CT REAL ESTATE INVESTMENT TRUST - Announces three new investments totalling
$77.2 million - Delivers 0.4% growth in AFFO per unit for the third quarter
- 99.1% of
October 1 st rental obligations fulfilled
"CT REIT's high occupancy rate, high rent collections, conservative balance sheet and credit metrics continue to support its solid results and underscore its attractive core attributes as we navigate through the global pandemic," said
New Investment Activity
During the third quarter, CT REIT completed the vend-in of a
Subsequent to the quarter, CT REIT completed the acquisition of a property consisting of two single tenant buildings leased to Mark's and
In addition to the completed transactions, CT REIT today announced the acquisition of three Canadian Tire stores from a third party. This new investment is anticipated to close in the fourth quarter and remains subject to customary closing conditions.
These newly announced investments require an estimated total investment of
CT REIT has, or will be, funding these investments through the issuance of Class B LP Units and/or Class
The table below summarizes the new investments and their actual or anticipated completion dates:
Property | Type | GLA (sf.) | Timing | Activity | ||
Vend-in | 36,000 | Q3 2020 | Existing Canadian Tire store and Canadian Tire Gas+ gas bar | |||
Third party acquisition | 15,000 | Q4 2020 | Third party acquisition of a property consisting of two freestanding buildings leased to Mark's and | |||
Third party acquisition | 54,000 | Q4 2020 | Third party acquisition of a Canadian Tire store | |||
Third party acquisition | 102,000 | Q4 2020 | Third party acquisition of a Canadian Tire store | |||
Third party acquisition | 104,000 | Q4 2020 | Third party acquisition of a Canadian Tire store | |||
Business Update Related to COVID-19
Tenants representing approximately 99.1% of annual base minimum rent fulfilled their
For the three months ended
For the nine months ended
On
Financial and Operational Summary
Summary of Selected Information | |||||||||||
(in thousands of Canadian dollars, except unit, per unit | Three Months Ended | Nine Months Ended | |||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||
Property revenue | $ | 123,172 | $ | 121,763 | 1.2 % | $ | 375,515 | $ | 365,321 | 2.8 % | |
Net operating income 1 | $ | 95,106 | $ | 93,939 | 1.2 % | $ | 284,693 | $ | 275,351 | 3.4 % | |
Net income | $ | 64,107 | $ | 80,138 | (20.0) % | $ | 169,273 | $ | 230,303 | (26.5) % | |
Net income per unit - basic 2 | $ | 0.280 | $ | 0.362 | (22.7) % | $ | 0.740 | $ | 1.043 | (29.1) % | |
Net income per unit - diluted 3 | $ | 0.240 | $ | 0.301 | (20.3) % | $ | 0.657 | $ | 0.875 | (24.9) % | |
Funds from operations 1 | $ | 68,479 | $ | 67,345 | 1.7 % | $ | 202,576 | $ | 195,064 | 3.9 % | |
Funds from operations per unit - diluted (non-GAAP) 1,2,4 | $ | 0.299 | $ | 0.303 | (1.3) % | $ | 0.885 | $ | 0.882 | 0.3 % | |
Adjusted funds from operations 1 | $ | 59,997 | $ | 57,855 | 3.7 % | $ | 176,661 | $ | 166,902 | 5.8 % | |
Adjusted funds from operations per unit - diluted (non-GAAP) 1,2,4 | $ | 0.262 | $ | 0.261 | 0.4 % | $ | 0.772 | $ | 0.755 | 2.3 % | |
Distributions per unit - paid 2 | $ | 0.199 | $ | 0.189 | 5.3 % | $ | 0.593 | $ | 0.568 | 4.4 % | |
AFFO payout ratio 1 | 76.0 % | 72.4 % | 5.0 % | 76.8 % | 75.2 % | 2.1 % | |||||
Cash generated from operating activities | $ | 90,483 | $ | 98,035 | (7.7) % | $ | 277,240 | $ | 268,342 | 3.3 % | |
Adjusted cashflow from operations 1 | $ | 60,140 | $ | 59,440 | 1.2 % | $ | 178,849 | $ | 167,943 | 6.5 % | |
Weighted average number of units outstanding 2 | |||||||||||
Basic | 228,956,289 | 221,677,555 | 3.3 % | 228,649,818 | 220,845,368 | 3.5 % | |||||
Diluted 3 | 333,492,050 | 322,629,585 | 3.4 % | 333,172,867 | 321,791,812 | 3.5 % | |||||
Diluted (non-GAAP) 1,4 | 229,228,980 | 221,912,113 | 3.3 % | 228,909,797 | 221,074,340 | 3.5 % | |||||
Indebtedness ratio | 42.2 % | 42.8 % | (0.9) % | ||||||||
Interest coverage (times) | 3.60 | 3.45 | 4.3 % | 3.51 | 3.38 | 3.8 % | |||||
Gross leasable area (square feet) 5 | 28,037,918 | 27,142,110 | 3.3 % | ||||||||
Occupancy rate 5,6 | 98.8 % | 98.8 % | — % | ||||||||
1 Non-GAAP measure. Refer to section 11.0 of the MD&A for further 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 | ||||||||||||||||||||
4 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 | ||||||||||||||||||||
5 Refers to retail, mixed-use commercial and industrial properties and excludes | ||||||||||||||||||||
6 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 |
Financial Highlights
Net Income - Net income was
Net Operating Income (NOI)* - In the third quarter, NOI was
Funds from Operations (FFO)* - FFO for the quarter was
Adjusted Funds from Operations (AFFO)* - AFFO for the quarter was
Distributions - Distributions per unit in the quarter amounted to
*NOI, FFO and AFFO are non-GAAP measures. Refer to Non-GAAP section in the Q3 2020 Management's Discussion & Analysis, which is available on SEDAR at www.sedar.com and at www.ctreit.com.
Operating Results
Leasing - CTC is CT REIT's most significant tenant. At
Occupancy - At
Management's Discussion and Analysis (MD&A) and Interim Condensed Consolidated Financial Statements (Unaudited) 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 management's discussion and analysis ("the Q3 2020 MD&A") and interim condensed consolidated financial statements (unaudited) and notes for the period ended
Note: Unless otherwise indicated, all figures in this press release are as of
Forward-Looking Statements
This press release contains forward-looking statements and information that reflects management's current expectations related to matters such as future financial performance, operating results and the effect of the COVID-19 pandemic on CT REIT's business and operations and the REIT's tenants' respective businesses and operations, including the operations of Canadian Tire stores, and discussions between the REIT and its tenants with respect to future rent obligations. 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 the REIT's ability to complete the investment in the acquisition under the heading "New Investment Activity", the timing and terms of any such investment and/or agreements and the benefits expected to result from such investment, the effects of COVID-19 on the REIT's business under the heading "Business Update Related to COVID-19" and statements concerning developments, redevelopments, intensifications, results, performance, achievements, 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. Without limiting the generality of the foregoing, given the evolving circumstances surrounding the pandemic, including the uncertainty of future waves, it is difficult to predict with certainty the nature, duration and extent of the adverse impact of COVID-19 on, among others: the global and domestic economy; the business, operations and financial position of the REIT's tenants, including CTC; the expected benefits from the investments described under the heading "New Investment Activity", including the timing of the acquisition; and the business, operations, financial position, results, prospects or opportunities of CT REIT.
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 4 "Risk Factors" of our Annual Information Form for fiscal 2019, and to Section 11 "Enterprise Risk Management" and all subsections thereunder of our fiscal 2019 Management's Discussion and Analysis as well as the REIT's other public filings available at www.sedar.com and at www.ctreit.com.
In addition, for further factors related to COVID-19 impacting the REIT, refer to Section 2.0 "Factors Affecting the REIT as a Result of the COVID-19 Pandemic", Section 12.0, "Enterprise Risk Management" and Section 14.0 "Forward-looking Information" of our Q3 2020 MDA&A, available at www.sedar.com 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.
Additional information about CT REIT has been filed electronically with various securities regulators in
Conference Call
CT REIT will conduct a conference call to discuss information included in this news release and related matters at
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