- Delivers 3.7% growth in AFFO per unit for the first quarter
- 96.5% of tenants fulfilled their
May 1 st rental obligations $315 million of liquidity available
"While our focus remains on the health and safety of our employees, our tenants and their customers and employees, CT REIT's solid Q1 results underscore our strong position coming into the COVID-19 pandemic. Our rent collections, conservative balance sheet and financial flexibility demonstrate our resilience in these uncertain times," said
Business Update Related to COVID-19
As a result of recommendations by public health officials and restrictions issued by government health authorities due to COVID-19 (coronavirus), tenants representing approximately 6.2% of CT REIT's annual base minimum rent are currently not open to the public.
Tenants representing 33.4% of CT REIT's annual base minimum rent are now operating on a limited basis. This includes 132 Canadian Tire Retail stores in
Tenants representing approximately 96.5% of annual base minimum rent fulfilled their
The REIT is in a strong liquidity position with a debt-to-gross book value of 42.7%, and $315 million of undrawn credit facilities and cash on hand. The REIT's assets, with an IFRS value of approximately
CT REIT is continuing to closely monitor the impact that the rapidly evolving COVID-19 pandemic has on its business, operations and financial position. Absent material changes in our business, we do not anticipate providing business updates on a regular basis outside of our regular continuous disclosure or as required by applicable securities laws.
Update on Previously Announced Investments
CT REIT invested
The table below provides activity updates on the previously announced investments.
Property | Type | GLA (sf.) | Timing | Activity | |
| Third Party Acquisition | 140,193 | Q1 2020 | Acquisition of a one- | |
Intensification | 10,000 | Q1 2020 | Development of a | ||
Various | Intensifications | 5,295 | Q1 2020 | Development of third- |
Financial and Operational Summary
Summary of Selected Information | ||||||||
(in thousands of Canadian dollars, except unit, per unit and square footage amounts) | Three Months Ended | |||||||
2020 | 2019 | Change | ||||||
Property revenue | $ | 126,845 | $ | 121,564 | 4.3% | |||
Net operating income 1 | $ | 95,319 | $ | 89,939 | 6.0% | |||
Net income | $ | 43,196 | $ | 71,445 | (39.5)% | |||
Net income per unit - basic 2 | $ | 0.189 | $ | 0.324 | (41.7)% | |||
Net income per unit - diluted 3 | $ | 0.173 | $ | 0.273 | (36.6)% | |||
Funds from operations 1 | $ | 66,885 | $ | 63,435 | 5.4% | |||
Funds from operations per unit - diluted (non-GAAP) 1,2,4 | $ | 0.293 | $ | 0.288 | 1.7% | |||
Adjusted funds from operations 1 | $ | 58,174 | $ | 54,024 | 7.7% | |||
Adjusted funds from operations per unit - diluted (non-GAAP) 1,2,4 | $ | 0.254 | $ | 0.245 | 3.7% | |||
Distributions per unit - paid 2 | $ | 0.197 | $ | 0.189 | 4.0% | |||
AFFO payout ratio 1 | 77.6 | 77.1% | 0.6% | |||||
Cash generated from operating activities | $ | 98,817 | $ | 89,660 | 10.2% | |||
Adjusted cashflow from operations 1 | $ | 55,118 | $ | 51,719 | 6.6% | |||
Weighted average number of units outstanding 2 | ||||||||
Basic | 228,350,645 | 220,321,203 | 3.6% | |||||
Diluted 3 | 348,948,514 | 324,707,957 | 7.5% | |||||
Diluted (non-GAAP) 1,4 | 228,596,901 | 220,547,295 | 3.6% | |||||
Indebtedness ratio | 42.7% | 44.1% | 1.4% | |||||
Interest coverage (times) | 3.43 | 3.35 | 2.4% | |||||
Gross leasable area (square feet) 5 | 27,711,965 | 26,907,132 | 3.0% | |||||
Occupancy rate 5,6 | 99.4% | 99.1% | 0.3% | |||||
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 distribution centre 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 first 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 Section 11.1 "Non-GAAP Measures" in the Q1 2020 MD&A, 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 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 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 and, the REIT's tenants' businesses and operations, including the operations of Canadian Tire stores in
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 effects of COVID -19 on the REIT's business under the heading "Business Update Related to COVID-19".
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 rapidly evolving circumstances surrounding COVID-19, it is difficult to predict with certainty the nature, duration and extent of the adverse impact of the pandemic on, among others: the global and domestic economy; the business, operations and financial position of the REIT's tenants, including Canadian Tire; the benefits expected to result from such investments and property intensifications described under the heading "Update on Previously Announced Investments", including the timing of any such developments; 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. In addition, for further factors related to COVID-19 impacting the REIT, refer to Section 2 "Factors Affecting the REIT as a Result of COVID-19", Section 12, "Enterprise Risk Management" and Section 14.0 "Forward Looking Information" of our Q1 2020 MDA&A as well as the REIT's other public filings, 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
Annual Meeting
As previously announced, CT REIT's Annual Meeting of Unitholders will take place on
Conference Call
CT REIT will conduct a conference call to discuss information included in this news release and related matters at
About
SOURCE
© Canada Newswire, source