Completes new net zero distribution centre
development in Calgary,
Alberta
TORONTO, Feb. 13,
2024 /CNW/ - CT Real Estate Investment Trust
("CT REIT" or "the REIT") (TSX: CRT.UN) today reported its
consolidated financial results for the fourth quarter and year
ended December 31, 2023.
"2023 was a successful year for CT REIT and I am pleased with
our results and the team's accomplishments. We invested over
$150 million, added approximately
840,000 square feet to the portfolio, including our new 350,000
square foot net zero distribution centre in Calgary, Alberta, which was completed in Q4,
and extended 28 Canadian Tire store leases. We also concluded the
year, our tenth since our initial public offering, with the
issuance of $250 million in unsecured
debentures," said Kevin Salsberg,
President and Chief Executive Officer of CT REIT. "Our achievements
last year contributed to both solid earnings and distribution
growth, as well as our ability to maintain a strong balance sheet
and conservative debt metrics. I am excited about our prospects for
2024 as the strategic investments that we have made continue to
drive growth for CT REIT."
New Investment Activity
CT REIT announced one new
investment, which will require an estimated $9.1 million to complete. This investment is
expected to earn a weighted average cap rate of 9.00%.
The table below summarizes the new investment and its
anticipated completion date:
Property
|
Type
|
GLA
(sf.)
|
Timing
|
Activity
|
Winkler, MB
|
Redevelopment
|
141,000
|
Q4 2025
|
Redevelopment of an
existing enclosed mall
|
Update on Previously Announced Investment and Development
Activities
CT REIT invested $96 million in previously
disclosed projects that were completed in the fourth quarter of
2023, adding 455,000 square feet of incremental GLA to the
portfolio as detailed in the table below:
Property
|
Type
|
GLA
(sf.)
|
Timing
|
Activity
|
Calgary, AB
(Dufferin Distribution
Centre)
|
Development
|
352,000
|
Q4 2023
|
Development of a net
zero distribution centre for Canadian Tire
|
Invermere,
BC
|
Intensification
|
33,000
|
Q4 2023
|
Expansion of an
existing Canadian Tire store
|
Sydney, NS
|
Intensification
|
40,000
|
Q4 2023
|
Expansion of an
existing Canadian Tire store
|
Bedford, NS
|
Store
Expansion
|
-
|
Q4 2023
|
Expansion of an
existing Canadian Tire store into an existing space
|
Hamilton, ON
|
Intensification
|
3,000
|
Q4 2023
|
Development of a
third-party pad at an existing property
|
Napanee, ON
|
Intensification
|
27,000
|
Q4 2023
|
Expansion of an
existing Canadian Tire store
|
Kingston, ON
|
Ground Lease
|
-
|
Q4 2023
|
Entered into a ground
lease with a third party to facilitate the future
development of a new Canadian Tire store
|
Update on Full-Year 2023 Investment and Development
Activity
In 2023, CT REIT
invested approximately $151 million
in completed projects and ongoing developments and grew the
portfolio by approximately 839,000 square feet of GLA. As of
December 31, 2023, CT REIT had
571,000 square feet of GLA under development, of which
approximately 98.8% is subject to committed lease agreements. These
developments represent an investment of approximately $258 million upon completion, of which
$86 million has been spent to
date.
Financial and Operational Summary
Summary of Selected
Information
|
|
|
(in thousands of
Canadian dollars, except unit, per unit and square
footage amounts)
|
Three Months Ended
December 31,
|
Year Ended December
31,
|
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Property
revenue
|
$
139,968
|
$
135,175
|
3.5 %
|
$
552,772
|
$
532,795
|
3.7 %
|
Net operating income
1
|
$
111,512
|
$
106,763
|
4.4 %
|
$
438,956
|
$
419,818
|
4.6 %
|
Net income
|
$
38,239
|
$
74,749
|
(48.8) %
|
$
229,434
|
$
324,613
|
(29.3) %
|
Net income per unit -
basic 2
|
$
0.162
|
$
0.319
|
(49.2) %
|
$
0.976
|
$
1.387
|
(29.6) %
|
Net income per unit -
diluted 3
|
$
0.161
|
$
0.276
|
(41.7) %
|
$
0.870
|
$
1.185
|
(26.6) %
|
Funds from operations
1
|
$
77,704
|
$
75,570
|
2.8 %
|
$
307,914
|
$
296,204
|
4.0 %
|
Funds from operations
per unit - diluted 2,4,5
|
$
0.330
|
$
0.322
|
2.5 %
|
$
1.308
|
$
1.264
|
3.5 %
|
Adjusted funds from
operations 1
|
$
71,474
|
$
68,515
|
4.3 %
|
$
283,389
|
$
268,783
|
5.4 %
|
Adjusted funds from
operations per unit - diluted 2,4,5
|
$
0.303
|
$
0.292
|
3.8 %
|
$
1.203
|
$
1.147
|
4.9 %
|
Distributions per unit
- paid 2
|
$
0.225
|
$
0.217
|
3.5 %
|
$
0.883
|
$
0.854
|
3.5 %
|
AFFO payout ratio
4
|
74.3 %
|
74.3 %
|
— %
|
73.4 %
|
74.5 %
|
(1.1) %
|
Cash generated from
operating activities
|
$
118,316
|
$
123,937
|
(4.5) %
|
$
425,055
|
$
399,273
|
6.5 %
|
Weighted average number
of units outstanding 2
|
|
|
|
|
|
|
Basic
|
235,378,921
|
234,537,637
|
0.4 %
|
235,159,596
|
234,017,377
|
0.5 %
|
Diluted
3
|
337,577,223
|
328,542,758
|
2.7 %
|
337,339,769
|
328,011,845
|
2.8 %
|
Diluted (non-GAAP)
5
|
235,723,101
|
234,836,723
|
0.4 %
|
235,485,646
|
234,305,809
|
0.5 %
|
Indebtedness
ratio
|
|
|
|
41.4 %
|
40.7 %
|
0.7 %
|
Gross leasable area
(square feet) 6
|
|
|
|
30,833,056
|
30,078,518
|
2.5 %
|
Occupancy rate
6,7
|
|
|
|
99.1 %
|
99.3 %
|
(0.2) %
|
1 This is a
non-GAAP financial measure. See "Specified Financial Measures"
below for more information.
|
2 Total
units means Units and Class B LP Units outstanding.
|
3 Diluted
units determined in accordance with IFRS includes restricted and
deferred units issued under various plans and the effect of
assuming that all of the Class C LP Units will be settled with
Class B LP Units. Refer to section 7.0 of the MD&A.
|
4 This is a
non-GAAP ratio. See "Specified Financial Measures" below for more
information.
|
5 Diluted
units used in calculating non-GAAP measures include restricted and
deferred units issued under various plans and exclude the effect of
assuming that all of the Class C LP Units will be settled with
Class B LP Units. Refer to section 7.0 of the MD&A.
|
6 Refers to
retail, mixed-use commercial and industrial properties and excludes
Properties Under Development.
|
7 Occupancy
and other leasing key performance measures have been prepared on a
committed basis which includes the impact of existing lease
agreements contracted on or before December 31, 2023 and
December 31, 2022.
|
Financial Highlights
Net Income – Net income was $38.2 million for the quarter, a decrease of
$36.5 million or 48.8%, compared to
the same period in the prior year, primarily due to a decrease in
the fair value adjustment on investment properties, partially
offset by an increase in net operating income.
Net Operating Income (NOI)* – Total property revenue for
the quarter was $140.0 million,
which was $4.8 million or 3.5%
higher compared to the same period in the prior year. In the fourth
quarter, NOI was $111.5 million,
which was $4.7 million or 4.4% higher
compared to the same period in the prior year. This was primarily
due to rent escalations from Canadian Tire leases, which
contributed $1.6 million, and
the intensifications of income-producing properties completed in
2022 and 2023, which contributed a further $1.5 million to NOI growth. The recovery of
capital expenditures and interest earned on the unrecovered balance
also contributed $0.9 million to
NOI growth in the quarter.
Same store NOI was $107.6 million
and same property NOI was $109.7
million for the quarter, which were $2.3 million or 2.2%, and $3.8 million or 3.6%, respectively, higher when
compared to the prior year. Same store NOI increased primarily due
to increased revenue derived from contractual rent escalations, and
the recovery of capital expenditures and interest earned thereon.
Same property NOI increased primarily due to the increase in same
store NOI noted, as well as from the intensifications
completed in 2022 and 2023.
Funds from Operations (FFO)* – FFO for the quarter
was $77.7 million, which was
$2.1 million or 2.8% higher than the
same period in 2022, primarily due to the impact of NOI
variances, partially offset by increased interest costs on the
public debentures, and an increase in costs related to the Credit
Facilities due to higher utilization and a higher rate of interest.
FFO per unit - diluted (non-GAAP) for the quarter was $0.330, which was $0.008 or 2.5% higher, compared to the same
period in 2022, due to the growth of FFO exceeding the growth in
the weighted average units outstanding - diluted (non-GAAP).
Adjusted Funds from Operations
(AFFO)* – AFFO for the quarter was $71.5 million, which was $3.0 million or 4.3% higher than the same period
in 2022, primarily due to the impact of NOI variances,
partially offset by increased interest costs on the public
debentures, and an increase in costs related to the Credit
Facilities due to higher utilization and a higher rate of interest.
AFFO per unit - diluted (non-GAAP) for the quarter was $0.303, which was $0.011 or 3.8% higher, compared to the same
period in 2022, due to the growth of AFFO exceeding the growth in
the weighted average units outstanding - diluted (non-GAAP).
Distributions – Distributions per unit in the
quarter amounted to $0.225, which was
3.5% higher than the same period in 2022 due to an increase in the
rate of distributions which became effective with the monthly
distributions paid in July 2023.
Operating Results
Leasing – CTC is CT REIT's most significant tenant.
As at December 31, 2023, CTC represented 92.1% of total GLA
and 91.3% of annualized base minimum rent. For the full year, CT
REIT achieved a weighted average renewal spread of 10.3% on 312,000
square feet of non-Canadian Tire Store/Gas+ gas bar lease
extensions.
Occupancy – As at December 31, 2023, CT REIT's portfolio occupancy rate, on a
committed basis, was 99.1%.
*NOI, FFO and AFFO are Specified Financial Measures. See below
for additional information.
Specified Financial Measures
CT REIT uses specified
financial measures as defined by National Instrument 52-112
Non-GAAP and Other Financial Measures Disclosure of the
Canadian Securities Administrators ("NI 52-112"). CT REIT believes these specified financial
measures provide useful information to both management and
investors in measuring the financial performance of CT REIT and its
ability to meet its principal objective of creating unitholder
value over the long term by generating reliable, durable and
growing monthly cash distributions on a tax-efficient basis.
These specified financial measures used in this document include
non-GAAP financial measures and non-GAAP ratios, within the meaning
of NI 52-112. Non-GAAP financial measures and non-GAAP ratios do
not have a standardized meaning prescribed by IFRS, also referred
to as generally accepted accounting principles ("GAAP"),
and therefore they may not be comparable to similarly titled
measures and ratios presented by other publicly traded entities and
should not be construed as an alternative to other financial
measures determined in accordance with GAAP.
See below for further information on specified financial
measures used by management in this document and, where applicable,
for reconciliations to the nearest GAAP measures.
Net Operating Income
NOI is a non-GAAP financial measure defined as property revenue
less property expense, adjusted for straight-line rent. The most
directly comparable primary financial statement measure is property
revenue. Management believes that NOI is a useful key indicator of
performance as it represents a measure of property operations over
which management has control. NOI is also a key input in
determining the fair value of the portfolio of Properties. NOI
should not be considered as an alternative to property revenue or
net income and comprehensive income, both of which are determined
in accordance with IFRS.
(in thousands of
Canadian dollars)
|
Three Months
Ended
|
Year
Ended
|
For the periods ended
December 31,
|
2023
|
2022
|
Change ¹
|
2023
|
2022
|
Change ¹
|
Property
revenue
|
$
139,968
|
$
135,175
|
3.5 %
|
$
552,772
|
$
532,795
|
3.7 %
|
Less:
|
|
|
|
|
|
|
Property
expense
|
(28,842)
|
(27,833)
|
3.6 %
|
(115,523)
|
(111,133)
|
4.0 %
|
Property
straight-line rent revenue
|
386
|
(579)
|
NM
|
1,707
|
(1,844)
|
NM
|
Net operating
income
|
$
111,512
|
$
106,763
|
4.4 %
|
$
438,956
|
$
419,818
|
4.6 %
|
¹ NM - not
meaningful.
|
Funds From Operations and Adjusted Funds From
Operations
Certain non-GAAP financial measures for the real
estate industry have been defined by the Real Property Association
of Canada under its publications,
"REALPAC Funds From Operations & Adjusted Funds From Operations
for IFRS" and "REALPAC Adjusted Cashflow from Operations for IFRS".
CT REIT calculates Fund From Operations, Adjusted Funds From
Operations and Adjusted Cashflow from Operations in accordance with
these publications.
The following table reconciles GAAP net income and comprehensive
income to FFO and further reconciles FFO to AFFO:
(in thousands of
Canadian dollars)
|
Three Months
Ended
|
Year
Ended
|
For the periods ended
December 31,
|
2023
|
2022
|
Change ¹
|
2023
|
2022
|
Change ¹
|
Net Income and
comprehensive income
|
$
38,239
|
$
74,749
|
(48.8) %
|
$ 229,434
|
$ 324,613
|
(29.3) %
|
Fair value adjustment
on investment property
|
39,334
|
860
|
NM
|
78,636
|
(27,845)
|
NM
|
GP income tax
expense
|
(628)
|
(495)
|
26.9 %
|
31
|
(115)
|
NM
|
Lease principal
payments on right-of-use assets
|
(171)
|
(145)
|
17.9 %
|
(852)
|
(564)
|
51.1 %
|
Fair value adjustment
of unit-based compensation
|
523
|
276
|
89.5 %
|
(625)
|
(866)
|
(27.8) %
|
Internal leasing
expense
|
407
|
325
|
25.2 %
|
1,290
|
981
|
31.5 %
|
Funds from
operations
|
$
77,704
|
$
75,570
|
2.8 %
|
$ 307,914
|
$ 296,204
|
4.0 %
|
Property straight-line
rent revenue
|
386
|
(579)
|
NM
|
1,707
|
(1,844)
|
NM
|
Direct leasing costs
2, 3
|
(290)
|
(233)
|
24.5 %
|
(1,190)
|
(547)
|
NM
|
Capital expenditure
reserve 2
|
(6,326)
|
(6,243)
|
1.3 %
|
(25,042)
|
(25,030)
|
— %
|
Adjusted funds from
operations
|
$
71,474
|
$
68,515
|
4.3 %
|
$ 283,389
|
$ 268,783
|
5.4 %
|
¹ NM - not
meaningful.
|
² Comparatives have
been restated to conform with current year's
presentation.
|
³ Excludes internal and
external leasing costs related to development projects.
|
Funds From Operations
FFO is a non-GAAP financial measure of operating performance used
by the real estate industry, particularly by those publicly traded
entities that own and operate income-producing properties. The most
directly comparable primary financial statement measure is net
income and comprehensive income. FFO should not be considered as an
alternative to net income or cash flows provided by operating
activities determined in accordance with IFRS. The use of FFO,
together with the required IFRS presentations, has been included
for the purpose of improving the understanding of the operating
results of CT REIT.
Management believes that FFO is a useful measure of operating
performance that, when compared period-over-period, reflects the
impact on operations of trends in occupancy levels, rental rates,
operating costs and property taxes, acquisition activities and
interest costs, and provides a perspective of the financial
performance that is not immediately apparent from net income
determined in accordance with IFRS.
FFO adds back to net income items that do not arise from
operating activities, such as fair value adjustments. FFO, however,
still includes non-cash revenues related to accounting for
straight-line rent and makes no deduction for the recurring capital
expenditures necessary to sustain the existing earnings stream.
Adjusted Funds From Operations
AFFO is a non-GAAP
financial measure of recurring economic earnings used in the real
estate industry to assess an entity's distribution capacity. The
most directly comparable primary financial statement measure is net
income and comprehensive income. AFFO should not be considered as
an alternative to net income or cash flows provided by operating
activities determined in accordance with IFRS.
CT REIT calculates AFFO by adjusting FFO for non-cash income and
expense items such as amortization of straight-line rents. AFFO is
also adjusted for a reserve for maintaining the productive capacity
required for sustaining property infrastructure and revenue from
real estate properties and direct leasing costs. As property
capital expenditures do not occur evenly during the fiscal year or
from year to year, the capital expenditure reserve in the AFFO
calculation, which is used as an input in assessing the REIT's
distribution payout ratio, is intended to reflect an average annual
spending level. The reserve is primarily based on average
expenditures as determined by building condition reports prepared
by independent consultants.
Management believes AFFO is a useful measure of operating
performance similar to FFO as described above, adjusted for the
impact of non-cash income and expense items.
Capital Expenditure Reserve
The following table
compares and reconciles recoverable capital expenditures since 2013
to the capital expenditure reserve used in the calculation of AFFO
during that period:
(in thousands of
Canadian dollars)
|
Capital
expenditure
reserve 1
|
Recoverable
capital
expenditures
|
Variance
|
For the periods
indicated
|
October 23, 2013 to
December 31, 2021
|
$
168,855
|
$
156,751
|
$
12,104
|
Year ended
December 31, 2022
|
$
25,030
|
$
26,835
|
$
(1,805)
|
Year ended December
31, 2023
|
$
25,042
|
$
34,276
|
$
(9,234)
|
Total
|
$
218,927
|
$
217,862
|
$
1,065
|
1
Comparatives have been restated to conform with current year's
presentation.
|
The capital expenditure reserve is a non-GAAP financial measure
and management believes the reserve is a useful measure to
understand the normalized capital expenditures required to maintain
property infrastructure. Recoverable capital expenditures are the
most directly comparable measure disclosed in the REIT's primary
financial statements. The capital expenditure reserve should not be
considered as an alternative to recoverable capital expenditures,
which is determined in accordance with IFRS.
The capital expenditure reserve varies from the capital
expenditures incurred due to the seasonal nature of the
expenditures. As such, CT REIT views the capital expenditure
reserve as a meaningful measure.
FFO per unit - Basic, FFO per unit - Diluted (non-GAAP), AFFO
per unit - Basic and AFFO per unit - Diluted (non-GAAP)
FFO
per unit - basic, FFO per unit - diluted (non-GAAP), AFFO per unit
- basic and AFFO per unit - diluted (non-GAAP) are non-GAAP ratios
and reflect FFO and AFFO on a weighted average per unit basis.
Management believes these non-GAAP ratios are useful measures to
investors since the measures indicate the impact of FFO and AFFO,
respectively, in relation to an individual per unit investment in
the REIT. When calculating diluted per unit amounts, diluted units
include restricted and deferred units issued under various plans
and exclude the effects of settling the Class C LP Units with Class
B LP Units.
Management believes that FFO per unit ratios are useful measures
of operating performance that, when compared period-over-period,
reflect the impact on operations of trends in occupancy levels,
rental rates, operating costs and property taxes, acquisition
activities and interest costs, and provides a perspective of the
financial performance that is not immediately apparent from net
income per unit determined in accordance with IFRS. Management
believes that AFFO per unit ratios are useful measures of operating
performance similar to FFO as described above, adjusted for the
impact of non-cash income and expense items. The FFO per unit and
AFFO per unit ratios are not standardized financial measures under
IFRS and should not be considered as an alternative to other ratios
determined in accordance with IFRS. The component of the FFO per
unit ratios, which is a non-GAAP financial measure, is FFO, and the
component of AFFO per unit ratios, which is a non-GAAP financial
measure, is AFFO.
|
Three Months
Ended
|
Year
Ended
|
For the periods ended
December 31,
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Funds from
operations/unit - basic
|
$
0.330
|
$
0.322
|
2.5 %
|
$
1.309
|
$
1.266
|
3.4 %
|
Funds from
operations/unit - diluted
|
$
0.330
|
$
0.322
|
2.5 %
|
$
1.308
|
$
1.264
|
3.5 %
|
|
|
Three Months
Ended
|
Year
Ended
|
For the periods ended
December 31,
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Adjusted funds from
operations/unit - basic
|
$
0.304
|
$
0.292
|
4.1 %
|
$
1.205
|
$
1.149
|
4.9 %
|
Adjusted funds from
operations/unit - diluted
|
$
0.303
|
$
0.292
|
3.8 %
|
$
1.203
|
$
1.147
|
4.9 %
|
|
Management calculates the weighted average units outstanding -
diluted (non-GAAP) by excluding the full conversion of the Class C
LP Units to Class B LP Units, which is not considered a likely
scenario. As such, the REIT's fully diluted per unit FFO and AFFO
amounts are calculated, excluding the effects of settling the Class
C LP Units with Class B LP Units, which management considers a more
meaningful measure.
AFFO Payout Ratio
The AFFO payout ratio is a non-GAAP ratio which measures the
sustainability of the REIT's distribution payout. Management
believes this is a useful measure to investors since this metric
provides transparency on performance. Management considers the AFFO
payout ratio to be the best measure of the REIT's distribution
capacity. The AFFO payout ratio is not a standardized financial
measure under IFRS and should not be considered as an alternative
to other ratios determined in accordance with IFRS. The component
of the AFFO payout ratio, which is a non-GAAP financial measure, is
AFFO, and the composition of the AFFO payout ratio is as
follows:
|
Three Months
Ended
|
Year
Ended
|
For the periods ended
December 31,
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Distribution per
unit - paid (A)
|
$
0.225
|
$
0.217
|
3.5 %
|
$
0.883
|
$
0.854
|
3.5 %
|
AFFO per unit -
diluted (non-GAAP) 1 (B)
|
$
0.303
|
$
0.292
|
3.8 %
|
$
1.203
|
$
1.147
|
4.9 %
|
AFFO payout ratio
(A)/(B)
|
74.3 %
|
74.3 %
|
— %
|
73.4 %
|
74.5 %
|
(1.1) %
|
¹ For the purposes of
calculating diluted per unit amounts, diluted units include
restricted and deferred units issued under various plans and
excludes the effects of settling the Class C LP Units with Class B
LP Units.
|
Same Store NOI
Same store NOI is a non-GAAP financial
measure which reports the period-over-period performance of the
same asset base having consistent GLA in both periods. CT REIT
management believes same store NOI is a useful measure to gauge the
change in asset productivity and asset value. The most directly
comparable primary financial statement measure is property revenue.
Same store NOI should not be considered as an alternative to
property revenue or net income and comprehensive income, both of
which are determined in accordance with IFRS.
Same Property NOI
Same property NOI is a non-GAAP
financial measure that is consistent with the definition of same
store NOI above, except that same property includes the NOI impact
of intensifications. Management believes same property NOI is a
useful measure to gauge the change in asset productivity and asset
value, as well as measure the additional return earned by
incremental capital investments in existing assets. The most
directly comparable primary financial statement measure is property
revenue. Same property NOI should not be considered as an
alternative to property revenue or net income and comprehensive
income, both of which are determined in accordance with IFRS.
Acquisitions, Developments and Dispositions
NOI
Acquisitions, developments and dispositions NOI is a
non-GAAP financial measure that is consistent with the definition
of NOI above with respect to new property or dispositions of
property not included in same property NOI. CT REIT management
believes acquisitions, developments, and dispositions NOI is a
useful measure to gauge the change in asset productivity and asset
value. The most directly comparable primary financial statement
measure is property revenue. Acquisitions, developments, and
dispositions NOI should not be considered as an alternative to
property revenue or net income and comprehensive income, both of
which are determined in accordance with IFRS.
The following table summarizes the same store and same property
components of NOI:
(in thousands of
Canadian dollars)
|
Three Months
Ended
|
Year
Ended
|
For the periods ended
December 31,
|
2023
|
2022
|
Change ¹
|
2023
|
2022
|
Change ¹
|
Same store
|
$
107,552
|
$
105,210
|
2.2 %
|
$
421,694
|
$
411,478
|
2.5 %
|
Intensifications
|
|
|
|
|
|
|
2023
|
1,175
|
—
|
NM
|
2,294
|
—
|
NM
|
2022
|
967
|
665
|
45.4 %
|
8,994
|
3,521
|
NM
|
Same
property
|
$
109,694
|
$
105,875
|
3.6 %
|
$
432,982
|
$
414,999
|
4.3 %
|
Acquisitions,
developments and dispositions
|
|
|
|
|
|
|
2023
|
1,445
|
—
|
NM
|
4,947
|
966
|
NM
|
2022
|
373
|
888
|
(58.0) %
|
1,027
|
3,853
|
(73.3) %
|
Net operating
income
|
$
111,512
|
$
106,763
|
4.4 %
|
$
438,956
|
$
419,818
|
4.6 %
|
Add:
|
|
|
|
|
|
|
Property
expense
|
28,842
|
27,833
|
3.6 %
|
115,523
|
111,133
|
4.0 %
|
Property straight-line
rent revenue
|
(386)
|
579
|
NM
|
(1,707)
|
1,844
|
NM
|
Property
Revenue
|
$
139,968
|
$
135,175
|
3.5 %
|
$
552,772
|
$
532,795
|
3.7 %
|
¹ NM - not
meaningful.
|
Management's Discussion and Analysis (MD&A) and audited
Consolidated Financial Statements and Notes
Information in
this press release is a select summary of results. This press
release should be read in conjunction with CT REIT's MD&A for
the year ended December 31, 2023 (Q4 2023 MD&A) and
audited Consolidated Financial Statements and Notes for the
year ended December 31, 2023, which are both available on
SEDAR+ at www.sedarplus.ca and at www.ctreit.com.
Note: Unless otherwise indicated, all figures in this press
release are as at December 31, 2023, and are presented in
Canadian dollars.
Forward-Looking Statements
This press release contains
forward-looking statements and information that reflect
management's current expectations related to matters such as future
financial performance and operating results. Forward-looking
statements are provided for the purposes of providing information
about management's current expectations and plans and allowing
investors and others to get a better understanding of our future
outlook, anticipated events or results and our operating
environment. Readers are cautioned that such information may not be
appropriate for other purposes.
Certain statements other than statements of historical facts
included in this document may constitute forward-looking
information, including, but not limited to, statements concerning
future growth, the REIT's ability to complete the investment under
the heading "New Investment Activity", the timing and terms of any
such investment and the benefits expected to result from such
investment, statements concerning developments, intensifications,
results, performance, achievements, and prospects or opportunities
for CT REIT. Forward-looking information is based on reasonable
assumptions, estimates, analyses, beliefs, and opinions of
management made in light of its experience and perception of
prospects and opportunities, current conditions and expected
trends, as well as other factors that management believes to be
relevant and reasonable at the date such information is
provided.
By its very nature, forward-looking information requires the use
of estimates and assumptions and is subject to inherent risks and
uncertainties. It is possible that the REIT's assumptions,
estimates, analyses, beliefs, and opinions are not correct, and
that the REIT's expectations and plans will not be achieved.
Although the forward-looking information contained in this press
release is based on information, assumptions and beliefs which are
reasonable in the opinion of management and complete, this
information is necessarily subject to a number of factors that
could cause actual results to differ materially from management's
expectations and plans as set forth in such forward-looking
information.
For more information on the risks, uncertainties and assumptions
that could cause the REIT's actual results to differ from current
expectations, refer to section 5 "Risk Factors" of CT REIT's Annual
Information Form for fiscal 2023, and to section 12.0 "Enterprise
Risk Management" and 14.0 "Forward-looking Information" of CT
REIT's MD&A for fiscal 2023 as well as the REIT's other public
filings available at www.sedarplus.ca and at www.ctreit.com.
The forward-looking statements and information contained herein
are based on certain factors and assumptions as of the date hereof.
CT REIT does not undertake to update any forward-looking
information, whether written or oral, that may be made from time to
time by it or on its behalf, to reflect new information, future
events or otherwise, except as is required by applicable securities
laws.
Information contained in or otherwise accessible through the
websites referenced in this press release does not form part of
this press release and is not incorporated by reference into this
press release. All references to such websites are inactive textual
references and are for information only.
Additional information about CT REIT has been filed
electronically with various securities regulators in Canada through SEDAR+ and is available at
www.sedarplus.ca and at www.ctreit.com.
Conference Call
CT REIT will conduct a conference call
to discuss information included in this news release and related
matters at 9:00 a.m. ET on
February 14, 2024. The conference
call will be available simultaneously and in its entirety to all
interested investors and the news media through a webcast by
visiting https://edge.media-server.com/mmc/p/rdgf47o4/ or by
visiting
https://www.ctreit.com/English/news-and-events/events-and-webcasts/default.aspx
and will be available through replay for 12 months.
About CT Real Estate Investment Trust
CT REIT is an
unincorporated, closed-end real estate investment trust formed to
own income-producing commercial properties located primarily in
Canada. Its portfolio is comprised
of over 370 properties totalling more than 30 million square feet
of GLA, consisting primarily of net lease single-tenant retail
properties located across Canada.
Canadian Tire Corporation, Limited, is CT REIT's most significant
tenant. For more information, visit ctreit.com.
SOURCE CT Real Estate Investment Trust (CT REIT)