SmartCentres Real Estate Investment Trust (“SmartCentres”, the
“Trust” or the “REIT”) (TSX: SRU.UN) is pleased to report its
financial and operating results for the quarter and year ended
December 31, 2023.
“In reflecting on the achievements of 2023, I am
pleased with our strong financial and operational results," said
Mitchell Goldhar, CEO of SmartCentres. "Our net operating income
has shown steady and consistent growth through the year, which also
saw the achievement of numerous significant milestones, including
successfully closing 1,026 condo units at Transit City 4 & 5,
completing and significantly leasing up our purpose-built rental
apartment building, The Millway in VMC, and the commencement of
siteworks at two key development projects poised to drive future
growth, ArtWalk Phase 1 in VMC and the Canadian Tire flagship
retail store in Leaside. Our strategy involves both offense and
defense to drive business growth while maintaining high occupancies
and reliable rental income.”
2023 Fourth Quarter
Highlights
Operational
-
Shopping centre leasing activity remained strong with an
industry-leading in-place and committed occupancy rate of 98.5%
(December 31, 2022 – 98.0%).
-
Executed new leases of 84,227 square feet during the quarter.
-
Average renewal rent growth of 5.3% (excluding anchors).
Development
-
The siteworks for the 224,000 square foot retail project on Laird
Drive in Toronto continues, Canadian Tire is expected to take
possession of the 200,000 square foot flagship retail store in
early 2026.
- Obtained municipal
approvals and commenced construction on two self-storage facilities
in Dorval (St-Regis Blvd.), Quebec and in Toronto (Jane St.) during
the quarter.
-
All the 106 remaining units within Transit City 4 & 5 were
successfully closed during the quarter, generating $2.7 million of
FFO(1).
-
The Millway, a 458-rental unit apartments project, became fully
opened in the quarter. Leasing activity is on track with 60% of the
units leased by year-end and rental rates ahead of
expectations.
-
The siteworks at ArtWalk condominium Phase 1 are well underway,
with all 320 released units sold out and the remaining units
expected to be released for sale this year.
- The construction of Phase I of the
Vaughan NW townhomes is underway, with all 100 released units sold
out and closings expected to begin in the first half of 2024.
-
The second phase of the purpose-built residential rental project in
Laval, Quebec, comprising 211 units, opened on July 1, 2023, and
was 92% leased at the end of the fourth quarter. Demand for the
first phase remained strong with 98% occupancy.
Financial
-
Same Property NOI(1) for the three months and year ended
December 31, 2023 increased by $2.3 million or 1.7%, and $11.6
million or 2.2%, respectively, compared to the same periods in
2022. The increases were primarily driven by lease-up activity and
higher rental renewal rates.
-
FFO per Unit(1) for the three months and year ended
December 31, 2023 was $0.59, and $2.23, respectively, compared
to $0.57 and $2.07 for the same periods in 2022. The increases were
mainly attributable to higher profits from condo closings at
Transit City 4 & 5, and higher rental income, partially offset
by higher interest expense.
-
Net income and comprehensive income per Unit was $0.08 and $2.83
for the three months and year ended December 31, 2023,
respectively (three months ended December 31, 2022 – $0.56 and
year ended December 31, 2022 – $3.54). The decreases were
primarily due to a decrease in fair value adjustment on investment
properties and financial instruments compared to the same periods
in 2022.
-
Payout Ratio to AFFO(1) was 89.4% for the three months ended
December 31, 2023, and 93.0% for the year, as compared to 95.7% and
98.6% for the same periods in 2022, respectively.
(1) Represents a non-GAAP
measure. The Trust’s method of calculating non-GAAP measures may
differ from other reporting issuers’ methods and, accordingly, may
not be comparable. For additional information, please see “Non-GAAP
Measures” in this Press Release.Selected Consolidated
Operational, Mixed-Use Development and Financial
Information
(in thousands of
dollars, except per Unit and other non-financial data) |
|
|
|
As
at |
|
December 31, 2023 |
December 31, 2022 |
December 31, 2021 |
Portfolio Information (Number of properties) |
|
|
|
|
Retail properties |
|
|
155 |
|
|
155 |
|
|
155 |
|
Office properties |
|
|
4 |
|
|
4 |
|
|
4 |
|
Self-storage properties |
|
|
8 |
|
|
6 |
|
|
6 |
|
Residential properties |
|
|
3 |
|
|
2 |
|
|
1 |
|
Industrial properties |
|
|
1 |
|
|
0 |
|
|
0 |
|
Properties under development |
|
|
20 |
|
|
19 |
|
|
17 |
|
Total number of properties with an ownership interest |
|
|
191 |
|
|
186 |
|
|
183 |
|
Leasing and Operational
Information(1) |
|
|
|
|
Gross leasable
retail and office area (in thousands of sq. ft.) |
|
35,045 |
|
|
34,750 |
|
|
34,119 |
|
In-place and committed
occupancy rate |
|
|
98.5 |
% |
|
98.0 |
% |
|
97.6 |
% |
Average lease term to maturity
(in years) |
|
|
4.3 |
|
|
4.2 |
|
|
4.4 |
|
Net
annualized retail rental rate excluding Anchors (per occupied sq.
ft.) |
$ |
22.59 |
|
$ |
22.20 |
|
$ |
22.07 |
|
Mixed-Use Development
Information |
|
|
|
|
Trust’s
share of future development area (in thousands of sq. ft.) |
|
39,900 |
|
|
41,200 |
|
|
40,600 |
|
Financial
Information |
|
|
|
|
Investment properties(2) |
|
|
10,564,269 |
|
|
10,286,891 |
|
|
9,923,120 |
|
Total unencumbered
assets(3) |
|
|
9,170,121 |
|
|
8,415,900 |
|
|
6,640,600 |
|
Debt to Aggregate
Assets(3)(4)(5) |
|
|
43.1 |
% |
|
43.6 |
% |
|
42.9 |
% |
Adjusted Debt to Adjusted
EBITDA(3)(4)(5) |
|
9.6X |
10.3X |
9.2X |
Weighted average interest
rate(3)(4) |
|
|
4.15 |
% |
|
3.86 |
% |
|
3.11 |
% |
Weighted average term of debt
(in years) |
|
|
3.6 |
|
|
4.0 |
|
|
4.8 |
|
Interest coverage
ratio(3)(4) |
|
2.7X |
3.1X |
3.4X |
Weighted average number of units outstanding – diluted(7) |
|
|
180,023,932 |
|
|
179,657,455 |
|
|
173,748,819 |
|
|
Three Months Ended December 31 |
Year Ended December 31 |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Financial Information |
|
|
|
|
Rentals from investment
properties and other(2) |
211,021 |
|
|
206,223 |
|
|
834,581 |
|
|
804,598 |
|
Net income and comprehensive
income(2) |
14,165 |
|
|
100,310 |
|
|
510,103 |
|
|
635,965 |
|
FFO(3)(4)(6) |
106,893 |
|
|
102,471 |
|
|
400,965 |
|
|
371,572 |
|
AFFO(3)(4)(6) |
92,187 |
|
|
86,105 |
|
|
354,424 |
|
|
334,335 |
|
Cash flows provided by
operating activities(2) |
93,745 |
|
|
134,668 |
|
|
330,853 |
|
|
370,762 |
|
Net rental income and
other(2) |
128,451 |
|
|
129,151 |
|
|
513,561 |
|
|
502,604 |
|
NOI(3)(4) |
136,349 |
|
|
133,632 |
|
|
560,756 |
|
|
518,520 |
|
Change in net rental income
and other(3) |
(0.5) % |
|
1.7 |
% |
|
2.2 |
% |
|
3.5 |
% |
Change in SPNOI(3)(4) |
1.7 |
% |
|
4.7 |
% |
|
2.2 |
% |
|
3.3 |
% |
Net income and comprehensive
income per Unit(2) |
$0.08/$0.08 |
$0.56/$0.56 |
$2.86/$2.83 |
$3.57/$3.54 |
FFO per Unit(3)(4)(6) |
$0.60/$0.59 |
$0.58/$0.57 |
$2.25/$2.23 |
$2.09/$2.07 |
FFO with adjustments per
Unit(3)(4) |
$0.51/$0.51 |
$0.58/$0.58 |
$2.11/$2.09 |
$2.15/$2.13 |
AFFO per Unit(3)(4)(6) |
$0.52/$0.51 |
$0.48/$0.48 |
$1.99/$1.97 |
$1.88/$1.86 |
AFFO with adjustments per
Unit(3)(4) |
$0.43/$0.43 |
$0.49/$0.49 |
$1.85/$1.83 |
$1.94/$1.93 |
Payout Ratio to
AFFO(3)(4)(6) |
89.4 |
% |
|
95.7 |
% |
|
93.0 |
% |
|
98.6 |
% |
Payout Ratio to AFFO with
adjustments(3)(4) |
107.5 |
% |
|
93.9 |
% |
|
99.9 |
% |
|
95.2 |
% |
Payout
Ratio to cash flows provided by operating activities |
87.9 |
% |
|
61.2 |
% |
|
99.6 |
% |
|
88.9 |
% |
(1) |
Excluding residential and self-storage area. |
(2) |
Represents a Generally Accepted Accounting Principles (“GAAP”)
measure. |
(3) |
Represents a non-GAAP measure. The Trust’s method of calculating
non-GAAP measures may differ from other reporting issuers’ methods
and, accordingly, may not be comparable. For additional
information, please see “Non-GAAP Measures” in this Press
Release. |
(4) |
Includes the Trust’s proportionate share of equity accounted
investments. |
(5) |
As at December 31, 2023, cash-on-hand of $31.4 million was
excluded for the purposes of calculating the applicable ratios
(December 31, 2022 – $33.4 million, December 31,
2022 – $80.0 million). |
(6) |
The calculation of the Trust’s FFO and AFFO and related payout
ratios, including comparative amounts, are financial metrics that
were determined based on the REALpac White Paper on FFO and AFFO
issued in January 2022 (“REALpac White Paper”). Comparison with
other reporting issuers may not be appropriate. The payout ratio to
AFFO is calculated as declared distributions divided by AFFO. |
(7) |
The diluted weighted average includes the vested portion of the
deferred units issued pursuant to the deferred unit plan. |
Development and Intensification
Summary
The following table provides additional details
on the Trust’s 12 development initiatives that are currently under
construction or where initial siteworks have begun (in order of
estimated initial occupancy/closing date):
Projects under construction (Location/Project
Name) |
Type |
Trust’s share |
Actual / estimated initial occupancy / closing
date |
% of capital spend |
GFA(1) (sq.
ft.) |
No. of units |
|
|
|
|
|
|
|
Mixed-use
Developments |
|
|
|
|
|
|
Pickering (Seaton Lands) |
Industrial |
100 |
% |
Q2 2023 |
91 |
% |
229,000 |
— |
Whitby Self-Storage |
Self Storage |
50 |
% |
Q1 2024 |
82 |
% |
126,000 |
810 |
Markham East / Boxgrove |
Self Storage |
50 |
% |
Q2 2024 |
79 |
% |
133,000 |
910 |
Vaughan NW |
Townhouse |
50 |
% |
Q2 2024 |
39 |
% |
— |
174 |
Stoney Creek Self-Storage |
Self Storage |
50 |
% |
Q4 2024 |
36 |
% |
138,000 |
973 |
Gilbert Self-Storage |
Self Storage |
50 |
% |
Q1 2025 |
46 |
% |
176,000 |
1,469 |
Dorval (St-Regis Blvd.) Self-Storage |
Self Storage |
50 |
% |
Q2 2025 |
24 |
% |
164,000 |
1,165 |
Toronto (Jane St.) Self-Storage |
Self Storage |
50 |
% |
Q3 2025 |
31 |
% |
143,000 |
1,404 |
Ottawa SW(2) |
Retirement Residence |
50 |
% |
Q2 2026 |
27 |
% |
376,000 |
402 |
Ottawa SW(2) |
Seniors’ Apartments |
Vaughan / ArtWalk (40-Storey) |
Condo |
50 |
% |
Q2 2027 |
14 |
% |
320,000 |
373 |
Retail Development |
|
|
|
|
|
|
Toronto (Laird) |
Retail |
50 |
% |
Q1 2026 |
20 |
% |
224,000 |
— |
|
|
|
|
|
|
|
(1) GFA represents Gross Floor
Area.(2) Figure represents capital spend of both
retirement residence and seniors’ apartments projects.
Reconciliations of Non-GAAP Measures
The following tables reconcile the non-GAAP
measures to the most comparable GAAP measures for the quarter and
year ended December 31, 2023 and the comparable periods in
2022. Such measures do not have a standardized meaning prescribed
by IFRS and may not be comparable to similar measures disclosed by
other issuers.
Net Operating Income (including the
Trust’s Interests in Equity Accounted
Investments)Quarterly Comparison to Prior
Year
(in
thousands of dollars) |
Three Months Ended December 31, 2023 |
Three Months Ended December 31, 2022 |
|
GAAP Basis |
Proportionate Share Reconciliation |
Total Proportionate Share(1) |
GAAP Basis |
Proportionate Share Reconciliation |
Total Proportionate Share(1) |
Net rental income and other |
|
|
|
|
|
|
Rentals from investment
properties and other |
$ |
211,021 |
|
$ |
10,439 |
|
$ |
221,460 |
|
$ |
206,223 |
|
$ |
8,441 |
|
$ |
214,664 |
|
Property operating costs and other |
|
(82,073 |
) |
|
(5,681 |
) |
|
(87,754 |
) |
|
(77,062 |
) |
|
(3,779 |
) |
|
(80,841 |
) |
|
$ |
128,948 |
|
$ |
4,758 |
|
$ |
133,706 |
|
$ |
129,161 |
|
$ |
4,662 |
|
$ |
133,823 |
|
Residential sales revenue and other(2) |
|
— |
|
|
13,789 |
|
|
13,789 |
|
|
— |
|
|
— |
|
|
— |
|
Residential cost of sales and other |
|
(497 |
) |
|
(10,649 |
) |
|
(11,146 |
) |
|
(10 |
) |
|
(181 |
) |
|
(191 |
) |
|
$ |
(497 |
) |
$ |
3,140 |
|
$ |
2,643 |
|
$ |
(10 |
) |
$ |
(181 |
) |
$ |
(191 |
) |
NOI |
$ |
128,451 |
|
$ |
7,898 |
|
$ |
136,349 |
|
$ |
129,151 |
|
$ |
4,481 |
|
$ |
133,632 |
|
(1) |
This column contains non-GAAP measures because it includes figures
that are recorded in equity accounted investments. The Trust’s
method of calculating non-GAAP measures may differ from other
reporting issuers’ methods and, accordingly, may not be comparable.
For additional information, please see “Non-GAAP Measures” in this
Press Release. |
(2) |
Includes additional partnership
profit and other revenues. |
Year-to-Date Comparison to Prior
Year
(in
thousands of dollars) |
Year Ended December 31, 2023 |
Year Ended December 31, 2022 |
|
GAAP Basis |
Proportionate Share Reconciliation |
Total Proportionate Share(1) |
GAAP Basis |
Proportionate Share Reconciliation |
Total Proportionate Share(1) |
Net rental income and other |
|
|
|
|
|
|
Rentals from investment
properties and other |
$ |
834,581 |
|
$ |
36,544 |
|
$ |
871,125 |
|
$ |
804,598 |
|
$ |
28,643 |
|
$ |
833,241 |
|
Property operating costs and other |
|
(317,147 |
) |
|
(18,361 |
) |
|
(335,508 |
) |
|
(301,559 |
) |
|
(13,467 |
) |
|
(315,026 |
) |
|
$ |
517,434 |
|
$ |
18,183 |
|
$ |
535,617 |
|
$ |
503,039 |
|
$ |
15,176 |
|
$ |
518,215 |
|
Residential sales revenue and other(2) |
|
— |
|
|
139,190 |
|
|
139,190 |
|
|
— |
|
|
4,524 |
|
|
4,524 |
|
Residential cost of sales and other |
|
(3,873 |
) |
|
(110,178 |
) |
|
(114,051 |
) |
|
(435 |
) |
|
(3,784 |
) |
|
(4,219 |
) |
|
$ |
(3,873 |
) |
$ |
29,012 |
|
$ |
25,139 |
|
$ |
(435 |
) |
$ |
740 |
|
$ |
305 |
|
NOI |
$ |
513,561 |
|
$ |
47,195 |
|
$ |
560,756 |
|
$ |
502,604 |
|
$ |
15,916 |
|
$ |
518,520 |
|
(1) |
This column contains non-GAAP measures because it includes figures
that are recorded in equity accounted investments. The Trust’s
method of calculating non-GAAP measures may differ from other
reporting issuers’ methods and, accordingly, may not be comparable.
For additional information, please see “Non-GAAP Measures” in this
Press Release. |
(2) |
Includes additional partnership
profit and other revenues. |
Same Properties NOI
|
Three Months Ended December 31 |
Year Ended December 31 |
(in thousands of dollars) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net rental income and other |
$ |
128,451 |
|
$ |
129,151 |
|
$ |
513,561 |
|
$ |
502,604 |
|
NOI
from equity accounted investments(1) |
|
7,898 |
|
|
4,481 |
|
|
47,195 |
|
|
15,916 |
|
Total portfolio NOI before adjustments(1) |
$ |
136,349 |
|
$ |
133,632 |
|
$ |
560,756 |
|
$ |
518,520 |
|
|
|
|
|
|
Adjustments: |
|
|
|
|
Lease termination |
|
(984 |
) |
|
(82 |
) |
|
(1,675 |
) |
|
(214 |
) |
Net profit on condo and townhome closings |
|
(2,643 |
) |
|
191 |
|
|
(25,139 |
) |
|
(305 |
) |
Non-recurring items and other adjustments(2) |
|
4,112 |
|
|
(567 |
) |
|
7,906 |
|
|
5,820 |
|
Total portfolio NOI after adjustments(1) |
$ |
136,834 |
|
$ |
133,174 |
|
$ |
541,848 |
|
$ |
523,821 |
|
|
|
|
|
|
NOI sourced from: |
|
|
|
|
Acquisitions |
|
(363 |
) |
|
— |
|
|
(8,014 |
) |
|
(5,468 |
) |
Dispositions |
|
1 |
|
|
3 |
|
|
2 |
|
|
(9 |
) |
Earnouts and Developments |
|
(1,427 |
) |
|
(413 |
) |
|
(5,139 |
) |
|
(1,266 |
) |
Same Properties NOI(1) |
$ |
135,045 |
|
$ |
132,764 |
|
$ |
528,697 |
|
$ |
517,078 |
|
(1) |
Represents a non-GAAP measure. The Trust’s method of calculating
non-GAAP measures may differ from other reporting issuers’ methods
and, accordingly, may not be comparable. For additional
information, please see “Non-GAAP Measures” in this Press
Release. |
(2) |
Includes non-recurring items such
as one-time adjustments relating to vaccination centre costs,
royalties, straight-line rent and amortization of tenant
incentives. |
Reconciliation of FFO
|
Three Months Ended December 31 |
Year Ended December 31 |
(in
thousands of dollars) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income and comprehensive income |
$ |
14,165 |
|
$ |
100,310 |
|
$ |
510,103 |
|
$ |
635,965 |
|
Add (deduct): |
|
|
|
|
Fair value adjustment on investment properties and financial
instruments(1) |
|
56,197 |
|
|
(13,377 |
) |
|
(101,792 |
) |
|
(293,080 |
) |
Gain (loss) on derivative – TRS |
|
13,314 |
|
|
6,221 |
|
|
(205 |
) |
|
(4,918 |
) |
Gain on sale of investment properties |
|
(67 |
) |
|
(531 |
) |
|
(44 |
) |
|
(315 |
) |
Amortization of intangible assets and tenant improvement
allowance |
|
2,469 |
|
|
2,338 |
|
|
9,199 |
|
|
8,535 |
|
Distributions on Units classified as liabilities and vested
deferred units |
|
2,157 |
|
|
1,807 |
|
|
8,478 |
|
|
7,140 |
|
Adjustment on debt modification |
|
— |
|
|
— |
|
|
— |
|
|
(1,960 |
) |
Salaries and related costs attributed to leasing activities(2) |
|
2,709 |
|
|
1,514 |
|
|
8,519 |
|
|
7,508 |
|
Acquisition-related costs |
|
— |
|
|
— |
|
|
— |
|
|
298 |
|
Adjustments relating to equity accounted investments(3) |
|
15,949 |
|
|
4,189 |
|
|
(33,293 |
) |
|
12,399 |
|
FFO(4) |
$ |
106,893 |
|
$ |
102,471 |
|
$ |
400,965 |
|
$ |
371,572 |
|
Add (deduct) non-recurring
adjustments: |
|
|
|
|
(Gain) loss on derivative – TRS |
|
(13,314 |
) |
|
(6,221 |
) |
|
205 |
|
|
4,918 |
|
FFO sourced from condominium and townhome closings |
|
(2,657 |
) |
|
180 |
|
|
(24,010 |
) |
|
(680 |
) |
Transactional FFO – gain (loss) on sale of land to co-owner |
|
440 |
|
|
7,662 |
|
|
(568 |
) |
|
7,662 |
|
FFO with adjustments(4) |
$ |
91,362 |
|
$ |
104,092 |
|
$ |
376,592 |
|
$ |
383,472 |
|
(1) |
Includes fair value adjustments on investment properties and
financial instruments. Fair value adjustment on investment
properties is described in “Investment Properties” in the Trust’s
MD&A. Fair value adjustment on financial instruments comprises
the following financial instruments: units classified as
liabilities, Deferred Unit Plan (“DUP”), Equity Incentive Plan
(“EIP”), TRS, interest rate swap agreements, and LTIP recorded in
the same period in 2022. The significant assumptions made in
determining the fair value are more thoroughly described in the
Trust’s consolidated financial statements for the year ended
December 31, 2023. For details, please see discussion in
“Results of Operations” in the Trust’s MD&A. |
(2) |
Salaries and related costs
attributed to leasing activities of $8.5 million were incurred in
the year ended December 31, 2023 (year ended December 31,
2022 – $7.5 million) and were eligible to be added back to FFO
based on the definition of FFO, in the REALpac White Paper, which
provided for an adjustment to incremental leasing expenses for the
cost of salaried staff. This adjustment to FFO results in more
comparability between Canadian publicly traded real estate entities
that expensed their internal leasing departments and those that
capitalized external leasing expenses. |
(3) |
Includes tenant improvement
amortization, indirect interest with respect to the development
portion, fair value adjustment on investment properties, loss
(gain) on sale of investment properties, and adjustment for
supplemental costs. |
(4) |
Represents a non-GAAP measure.
The Trust’s method of calculating non-GAAP measures may differ from
other reporting issuers’ methods and, accordingly, may not be
comparable. For additional information, please see “Non-GAAP
Measures” in this Press Release. |
Reconciliation of AFFO
|
Three Months Ended December 31 |
Year Ended December 31 |
(in
thousands of dollars) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
FFO(1) |
$ |
106,893 |
|
$ |
102,471 |
|
$ |
400,965 |
|
$ |
371,572 |
|
Add (Deduct): |
|
|
|
|
Straight-line of rents |
|
(479 |
) |
|
(31 |
) |
|
(690 |
) |
|
(433 |
) |
Adjusted salaries and related costs attributed to leasing |
|
(2,709 |
) |
|
(1,514 |
) |
|
(8,519 |
) |
|
(7,508 |
) |
Actual sustaining capital expenditures, leasing commissions, and
tenant improvements |
|
(11,518 |
) |
|
(14,821 |
) |
|
(37,332 |
) |
|
(29,296 |
) |
AFFO(1) |
$ |
92,187 |
|
$ |
86,105 |
|
$ |
354,424 |
|
$ |
334,335 |
|
Add (deduct) non-recurring
adjustments: |
|
|
|
|
(Gain) loss on derivative –
TRS |
|
(13,314 |
) |
|
(6,221 |
) |
|
205 |
|
|
4,918 |
|
FFO sourced from condominium
and townhome closings |
|
(2,657 |
) |
|
216 |
|
|
(24,010 |
) |
|
(680 |
) |
Transactional FFO – gain (loss) on sale of land to co-owner |
|
440 |
|
|
7,662 |
|
|
(568 |
) |
|
7,662 |
|
AFFO with adjustments(1) |
$ |
76,656 |
|
$ |
87,762 |
|
$ |
330,051 |
|
$ |
346,235 |
|
(1) |
Represents a non-GAAP measure. The Trust’s method of calculating
non-GAAP measures may differ from other reporting issuers’ methods
and, accordingly, may not be comparable. For additional
information, please see “Non-GAAP Measures” in this Press
Release. |
Adjusted EBITDAThe following
table presents a reconciliation of net income and comprehensive
income to Adjusted EBITDA:
|
12 Months Ended |
12 Months Ended |
(in
thousands of dollars) |
December 31, 2023 |
December 31, 2022 |
Net income and comprehensive income |
$ |
510,103 |
|
$ |
635,965 |
|
Add (deduct) the following
items: |
|
|
Net interest expense |
|
157,990 |
|
|
138,464 |
|
Amortization of equipment,
intangible assets and tenant improvements |
|
11,619 |
|
|
11,078 |
|
Fair value adjustments on
investment properties and financial instruments |
|
(147,688 |
) |
|
(293,704 |
) |
Fair value adjustment on
TRS |
|
(205 |
) |
|
(4,918 |
) |
Adjustment for supplemental
costs |
|
5,709 |
|
|
4,648 |
|
Gain on sale of investment
properties |
|
(44 |
) |
|
(74 |
) |
Acquisition-related costs |
|
— |
|
|
298 |
|
Adjusted EBITDA(1) |
$ |
537,484 |
|
$ |
491,757 |
|
(1) |
Represents a non-GAAP measure. The Trust’s method of calculating
non-GAAP measures may differ from other reporting issuers’ methods
and, accordingly, may not be comparable. For additional
information, please see “Non-GAAP Measures” in this Press
Release. |
Non-GAAP Measures
The non-GAAP measures used in this Press
Release, including but not limited to, AFFO, AFFO with adjustments,
AFFO per Unit, AFFO with adjustments per Unit, Payout Ratio to
AFFO, Payout Ratio to AFFO with adjustments, Unencumbered Assets,
NOI, Debt to Aggregate Assets, Interest Coverage Ratio, Adjusted
Debt to Adjusted EBITDA, Unsecured/Secured Debt Ratio, FFO, FFO
with adjustments, FFO per Unit, FFO with adjustments per Unit, Same
Properties NOI, Debt to Gross Book Value, Weighted Average Interest
Rate, Transactional FFO, and Total Proportionate Share, do not have
any standardized meaning prescribed by International Financial
Reporting Standards (“IFRS”) and are therefore unlikely to be
comparable to similar measures presented by other issuers.
Additional information regarding these non-GAAP measures is
available in the Management’s Discussion and Analysis of the Trust
for the year ended December 31, 2023, dated February 14,
2024 (the “MD&A), and is incorporated by reference. The
information is found in the “Presentation of Certain Terms
Including Non-GAAP Measures” and “Non-GAAP Measures” sections of
the MD&A, which is available on SEDAR+ at www.sedarplus.ca.
Reconciliations of non-GAAP financial measures to the most directly
comparable IFRS measures are found in “Reconciliations of Non-GAAP
Measures” of this Press Release.
Full reports of the financial results of the
Trust for the year ended December 31, 2023 are outlined in the
consolidated financial statements and the related MD&A of the
Trust for the year ended December 31, 2023, which are
available on SEDAR+ at www.sedarplus.ca.
Conference Call
Management will hold a conference call on
Thursday, February 15, 2024 at 3:00 p.m. (ET).
Interested parties are invited to access the
call by dialing 1-855-353-9183 and then keying in the participant
access code 97190#.
A recording of this call will be made available
Thursday, February 15, 2024 through to Thursday,
February 22, 2024. To access the recording, please call
1-855-201-2300, enter the conference access code 97190# and then
key in the playback access code 0114192#.
About SmartCentres
SmartCentres is one of Canada’s largest fully
integrated REITs, with a best-in-class and growing mixed-use
portfolio featuring 191 strategically located properties in
communities across the country. SmartCentres has approximately
$11.9 billion in assets and owns 35.0 million square feet of
income producing value-oriented retail and first-class office
properties with 98.5% in place and committed occupancy, on 3,500
acres of owned land across Canada.
Cautionary Statements Regarding
Forward-looking Statements
Certain statements in this Press Release are
"forward-looking statements" that reflect management's expectations
regarding the Trust's future growth, results of operations,
performance and business prospects and opportunities. More
specifically, certain statements including, but not limited to,
statements related to SmartCentres’ expectations relating to cash
collections, SmartCentres’ expected or planned development plans
and joint venture projects, including the described type, scope,
costs and other financial metrics and the expected timing of
construction and condominium closings and statements that contain
words such as "could", "should", "can", "anticipate", "expect",
"believe", "will", "may" and similar expressions and statements
relating to matters that are not historical facts, constitute
"forward-looking statements". These forward-looking statements are
presented for the purpose of assisting the Trust's Unitholders and
financial analysts in understanding the Trust's operating
environment and may not be appropriate for other purposes. Such
forward-looking statements reflect management's current beliefs and
are based on information currently available to management.
However, such forward-looking statements involve
significant risks and uncertainties. A number of factors could
cause actual results to differ materially from the results
discussed in the forward-looking statements, including risks
associated with potential acquisitions not being completed or not
being completed on the contemplated terms, public health crises,
real property ownership and development, debt and equity financing
for development, interest and financing costs, construction and
development risks, and the ability to obtain commercial and
municipal consents for development. These risks and others are more
fully discussed under the heading “Risks and Uncertainties” and
elsewhere in SmartCentres’ most recent Management’s Discussion and
Analysis, as well as under the heading “Risk Factors” in
SmartCentres’ most recent annual information form. Although the
forward-looking statements contained in this Press Release are
based on what management believes to be reasonable assumptions,
SmartCentres cannot assure investors that actual results will be
consistent with these forward-looking statements. The
forward-looking statements contained herein are expressly qualified
in their entirety by this cautionary statement. These
forward-looking statements are made as at the date of this Press
Release and SmartCentres assumes no obligation to update or revise
them to reflect new events or circumstances unless otherwise
required by applicable securities legislation.
Material factors or assumptions that were
applied in drawing a conclusion or making an estimate set out in
the forward-looking information may include, but are not limited
to: a stable retail environment; a continuing trend toward land use
intensification, including residential development in urban markets
and continued growth along transportation nodes; access to equity
and debt capital markets to fund, at acceptable costs, future
capital requirements and to enable our refinancing of debts as they
mature; that requisite consents for development will be obtained in
the ordinary course, construction and permitting costs consistent
with the past year and recent inflation trends.
Contact
For information, visit www.smartcentres.com or please
contact:
Mitchell Goldhar
Executive Chairman and CEO
SmartCentres
(905) 326-6400 ext. 7674
mgoldhar@smartcentres.com
Peter SlanChief Financial
OfficerSmartCentres(905) 326-6400 ext.
7571pslan@smartcentres.com
SmartCentres Real Estate... (TSX:SRU.UN)
Historical Stock Chart
From Jun 2024 to Jul 2024
SmartCentres Real Estate... (TSX:SRU.UN)
Historical Stock Chart
From Jul 2023 to Jul 2024