Latest news with #NOI
Yahoo
17-05-2025
- Business
- Yahoo
InterRent Real Estate Investment Trust (IIPZF) Q1 2025 Earnings Call Highlights: Strong ...
Occupancy Rate: Total portfolio occupancy at 96.8%, same-property occupancy improved by 10 basis points to 96.9%. Annualized Rent Revenue (ARR) Growth: 6.2% for the total portfolio, 5% for the same property in March. Operating Revenue Growth: Total portfolio operating revenues grew by 1.7% year-over-year; same-property revenue growth was 4.7%. Same-Property NOI Margin: Decreased by 110 basis points to 64.1%. Same-Property NOI Growth: 3.1% for the quarter. Funds From Operations (FFO): $21.8 million, a 3.3% year-over-year improvement; $0.15 per unit, a 4.2% increase. Net Proceeds from Dispositions: $39 million through three dispositions. Unit Repurchase: $4.8 million or 3.2% of diluted outstanding units in Q1; additional 1.2% post-Q1. Interest Coverage Ratio: Increased to 2.6 times. Total Debt to Gross Book Value: 40.9%. Available Liquidity: $236 million. Utility Costs Increase: 18.1% year-over-year to $521 per suite. Same-Property Operating Expenses: Increased by 6.3% year-over-year. Financing Costs: $14.6 million or 23.2% of operating revenue, down from $15.2 million or 24.5% a year ago. Weighted Average Cost of Mortgage Debt: 3.31%, down from 3.37% three months ago. Warning! GuruFocus has detected 4 Warning Signs with IIPZF. Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. InterRent Real Estate Investment Trust (IIPZF) maintained a high occupancy rate of 96.8% for the total portfolio, with a slight improvement in the same-property portfolio to 96.9%. The company achieved a year-over-year average rent revenue (ARR) growth of 6.2% for the total portfolio and 5% for the same property in March. InterRent Real Estate Investment Trust (IIPZF) successfully executed a buyback of 4.4% of its outstanding units at a significant discount to its IFRS NAV, enhancing shareholder value. The company reported a 3.3% year-over-year improvement in funds from operations (FFO), reaching $21.8 million for the quarter. InterRent Real Estate Investment Trust (IIPZF) has a strong balance sheet with a total debt to gross book value of 40.9% and $236 million in available liquidity. The company faced increased operating costs due to higher utility expenses, snow removal, and other weather-related costs, which impacted net margins. Same-property net operating income (NOI) margin dipped by 110 basis points from the previous year, although it remained at a healthy 64.1%. The gain on lease decreased to 8.5% this quarter from 20.3% a year ago, indicating a trend of rents aligning more closely with market rates. Utility costs increased by 18.1% per suite due to higher usage and rates, driven by colder temperatures and increased carbon taxes. The company is facing challenges in some markets, such as Vancouver, due to increased supply, which may affect rental pricing and occupancy strategies. Q: Are you considering increasing vacancy to drive rents given the current market conditions? A: Bradley Cutsey, President and CEO, mentioned that while they remain bullish, it's still early in the leasing season. They will continue to take a balanced approach and adjust strategies as necessary, particularly in Ontario where they feel comfortable pushing rents. Q: How is the asset disposition program progressing, and has market uncertainty affected it? A: Bradley Cutsey stated that the disposition program is on target, with no impact from market uncertainties. They remain disciplined in earmarking assets for disposition across their core regions. Q: How did Q1 occupancy and rent compare to internal expectations? A: Bradley Cutsey expressed satisfaction with Q1 performance, noting stability in a challenging environment. They are optimistic about maintaining this trend through the leasing season. Q: What is the impact of the carbon tax removal on your financials? A: Curt Millar, CFO, explained that the removal of the carbon tax is expected to save approximately $1 million for the remainder of 2025, positively impacting net operating margins. Q: Are there any new initiatives to close the NAV gap? A: Curt Millar highlighted their active buyback program and asset sales as key strategies. They are pausing most developments to focus on maximizing value through these initiatives. Q: How are you managing incentives and leasing spreads? A: Dave Nevins, COO, stated that incentives are used strategically to maintain occupancy levels. They are optimistic about leasing trends and expect to maintain healthy spreads. Q: Can you provide details on the 360 Laurier development's financials? A: Bradley Cutsey noted that the development is expected to yield mid-teens levered IRR. They have successfully repatriated $2 million of their investment through financing. Q: How are you addressing the valuation gap with the NCIB? A: Bradley Cutsey emphasized their disciplined approach to asset sales and buybacks, aligning timing and economics to maximize shareholder value without significantly altering leverage. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
National Post
17-05-2025
- Business
- National Post
Strategic Storage Trust VI, Inc. Reports First Quarter 2025 Results
Article content – Total revenues increased 11.1% compared to the same period in 2024. – Increased Same-Store Revenues by 6.8% for the Quarter. – Increased Same-Store Net Operating Income ('NOI') by 13.6% for the Quarter. – Increased Same-Store Average Physical Occupancy by 2.1% for the Quarter. Article content LADERA RANCH, Calif. — Strategic Storage Trust VI, Inc. ('SST VI') announced operating results for the three months ended March 31, 2025. Article content 'This quarter marks an important milestone for our company as we report our first same-store results.' commented H. Michael Schwartz, President and CEO of Strategic Storage Trust VI, Inc. 'I'm pleased to share that these results exceeded our expectations and reflect the underlying strength and quality of our portfolio across both the United States and Canada. In addition, we completed the refinancing of all our Canadian debt at significantly lower interest rates. This strategic move enhances our financial flexibility and positions us well for continued operational and capital efficiency moving forward.' Article content Key Highlights for the Three Months Ended March 31, 2025: Article content Total revenues were approximately $7.3 million, an increase of approximately $0.7 million when compared to the same period in 2024. Increased same-store revenues and NOI by 6.8% and 13.6%, respectively, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Increased same-store average physical occupancy by approximately 2.1% to 92.0% for the three months ended March 31, 2025 from 89.9% for the three months ended March 31, 2024. Increased same-store annualized rent per occupied square foot by approximately 3.7% to $17.01 for the three months ended March 31, 2025 from $16.40 for the three months ended March 31, 2024. Article content Debt Transactions Article content On January 8, 2025, we entered into a CAD $64.0 million financing with National Bank of Canada (the 'National Bank of Canada — Four Property Loan'). The National Bank of Canada — Four Property Loan has a term of three years, maturing on January 8, 2028. Payments consist of both principal and interest, calculated using a 25-year amortization, and are payable monthly. Amounts outstanding bear an interest rate equal to CORRA, plus a CORRA adjustment of approximately 0.30%, plus 2.25%. In addition, we entered into an interest rate swap agreement with a notional amount of CAD $64.0 million, whereby CORRA is fixed at approximately 3.03% that fixes the all in interest rate at 5.58% through the maturity of the loan. This addressed the upcoming 2025 maturities and will effectively reduced this portfolio's interest rate by approximately 100 basis points as compared to the previous financing arrangements. Article content On March 6, 2025, we entered into a credit agreement with Meridian Credit Union Limited (the 'Meridian Credit Agreement') with a maximum borrowing capacity of approximately CAD $16.0 million (the 'Meridian Loan'). At close, we borrowed approximately CAD $2.1 million. The Meridian Loan is secured by a first mortgage on our development property in Etobicoke, Ontario Canada (the 'Etobicoke Property'). The proceeds of the Meridian Loan will be used to fund development of a self storage facility on the Etobicoke Property. As of March 31, 2025 we had approximately CAD $2.1 million outstanding and approximately CAD $13.9 million of available capacity. Article content Pursuant to the Meridian Credit Agreement, amounts outstanding under the Meridian Loan bear interest at an annual rate equal to the Canada Prime Rate plus 1.50%, subject to a minimum all-in floor rate of 6.70% per annum. The Meridian Loan has an initial term of three years, maturing on March 5, 2028, with two six-month extension options. Payments under the Meridian Loan are payable monthly and interest-only. Article content On March 7, 2025, we entered into a CAD $164.5 million financing with QuadReal Finance, LP (the 'QuadReal — Seven Property Loan'). The QuadReal — Seven Property Loan has an initial term of five years, maturing on April 1, 2030. Payments under the QuadReal — Seven Property Loan are interest only during the term of the QuadReal – Seven Property Loan, payable monthly, with the full amount of the outstanding balance of the QuadReal – Seven Property Loan due on the maturity date. Upon the closing of the QuadReal – Seven Property Loan, we drew approximately CAD $147.0 million as the Initial Advance. The interest rate on the Initial Advance bears interest at an annual fixed rate equal to 5.59%. This strategic move addressed the upcoming 2025 maturities and will effectively reduced this portfolio's interest rate by approximately 170 basis points as compared to the previous financing arrangements. Article content About Strategic Storage Trust VI, Inc. (SST VI): Article content SST VI is a public non-traded REIT that elected to qualify as a REIT for federal income tax purposes. SST VI's primary investment strategy is to invest in income-producing and growth self-storage facilities and related self-storage real estate investments in the United States and Canada. As of May 16, 2025, SST VI has a portfolio of 13 operating properties in the United States comprising approximately 9,015 units and 1,079,395 rentable square feet (including parking); 11 properties with approximately 10,205 units and 1,067,715 rentable square feet (including parking) in Canada, joint venture interests in two operational and three development properties in two Canadian provinces (Ontario and Québec) and one wholly owned development property in Ontario. Article content Three Months Ended March 31, 2025 2024 Revenues: Self storage rental revenue $ 7,303,641 $ 6,577,587 Ancillary operating revenue 45,717 39,324 Total revenues 7,349,358 6,616,911 Operating expenses: Property operating expenses 2,939,080 2,928,714 Property operating expenses – affiliates 1,240,267 1,280,595 General and administrative 1,703,808 1,554,738 Depreciation 3,118,402 3,175,232 Intangible amortization expense — 1,039,598 Acquisition expense – affiliates 107,876 178,423 Other property acquisition expenses 14,020 54,041 Total operating expenses 9,123,453 10,211,341 Operating loss (1,774,095 ) (3,594,430 ) Other income (expense): Interest expense (4,107,295 ) (4,710,295 ) Interest expense – debt issuance costs (488,397 ) (276,258 ) Derivative fair value adjustment (531,449 ) 1,616,316 Other 79,014 187,818 Equity in loss of unconsolidated real estate venture (222,528 ) — Foreign currency adjustment (195,936 ) (2,206,103 ) Net loss (7,240,686 ) (8,982,952 ) Less: Distributions to preferred stockholders (3,088,356 ) (3,166,042 ) Net loss attributable to the noncontrolling interests in our Operating Partnership 152,735 225,373 Net loss attributable to Strategic Storage Trust VI, Inc. common stockholders $ (10,176,307 ) $ (11,923,621 ) Net loss per Class P share—basic and diluted $ (0.40 ) $ (0.55 ) Net loss per Class A share—basic and diluted $ (0.40 ) $ (0.55 ) Net loss per Class T share—basic and diluted $ (0.40 ) $ (0.55 ) Net loss per Class W share—basic and diluted $ (0.40 ) $ (0.55 ) Net loss per Class Y share—basic and diluted $ (0.40 ) $ (0.55 ) Net loss per Class Z share—basic and diluted $ (0.40 ) $ (0.55 ) Weighted average Class P shares outstanding—basic and diluted 11,331,153 11,137,137 Weighted average Class A shares outstanding—basic and diluted 3,389,986 3,351,907 Weighted average Class T shares outstanding—basic and diluted 5,386,419 5,302,182 Article content N/M Not meaningful (1) Revenue includes rental revenue, ancillary revenue, administrative and late fees. (2) Property operating expenses excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization expense and acquisition expenses, but includes property management fees. (3) Of the total rentable square feet, parking represented approximately 199,780 and 247,900 square feet as of March 31, 2025 and 2024, respectively. On a same-store basis, for the same periods, parking represented approximately 43,000 square feet. (4) Determined by dividing the sum of the month-end occupied square feet for the applicable group of facilities for each applicable period by the sum of their month-end rentable square feet for the period. (5) Determined by dividing the aggregate realized rental income for each applicable period by the aggregate of the month-end occupied square feet for the period. Properties are included in the respective calculations in their first full month of operations, as appropriate. We have excluded the realized rental revenue and occupied square feet related to parking herein for the purpose of calculating annualized rent per occupied square foot. Article content Our increase in same-store revenue of approximately $0.2 million was primarily the result of increased average physical occupancy of approximately 2% and an increase in revenue per occupied square foot of approximately 3.7% for the three months ended March 31, 2025 over the three months ended March 31, 2014. Article content Our same-store property operating expenses decreased by approximately $24,000 for the three months ended March 31, 2025 compared to the three months ended March 31, 2014. Article content NOI is a non-GAAP measure that SST VI defines as net income (loss), computed in accordance with GAAP, generated from properties, before corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization, acquisition expenses and other non-property related expenses. SST VI believes that NOI is useful for investors as it provides a measure of the operating performance of its operating assets because NOI excludes certain items that are not associated with the ongoing operation of the properties. Additionally, SST VI believes that NOI is a widely accepted measure of comparative operating performance in the real estate community. However, SST VI's use of the term NOI may not be comparable to that of other real estate companies as they may have different methodologies for computing this amount. Article content Article content Article content Article content Article content Contacts Article content Article content
National Post
07-05-2025
- Business
- National Post
Granite Announces 2025 First Quarter Results
Article content TORONTO — Granite Real Estate Investment Trust (TSX: NYSE: GRP.U) ('Granite' or the 'Trust') announced today its condensed consolidated combined results for the three month period ended March 31, 2025. Article content Article content Highlights for the three month period ended March 31, 2025 are set out below: Article content Financial: Article content Granite's net operating income ('NOI') was $125.7 million in the first quarter of 2025 compared to $114.5 million in the prior year period, an increase of $11.2 million primarily as a result of contractual rent adjustments and consumer price index based increases, renewal and re-leasing activity, and the lease commencement of four completed development and expansion projects in Canada, the United States and Netherlands during 2024; Same property NOI – cash basis (4) increased by 4.7% for the first quarter of 2025, excluding the impact of foreign exchange; Funds from operations ('FFO') (1) was $91.0 million ($1.46 per unit) in the first quarter of 2025 compared to $82.4 million ($1.30 per unit) in the first quarter of 2024; Adjusted funds from operations ('AFFO') (2) was $88.4 million ($1.41 per unit) in the first quarter of 2025 compared to $77.9 million ($1.22 per unit) in the first quarter of 2024; During the three month period ended March 31, 2025, the Canadian dollar weakened against the Euro and the US dollar relative to the prior year period. The impact of foreign exchange on FFO and AFFO for the three month period ended March 31, 2025, relative to the same period in 2024, was favourable by $0.07 per unit for each measure; AFFO payout ratio (3) was 60% for the first quarter of 2025 compared to 67% in the first quarter of 2024; Occupancy as at March 31, 2025 was 94.8%, with committed occupancy as at May 7, 2025 also at 94.8%, a decrease of 10 basis points and 20 basis points relative to December 31, 2024 and February 26, 2025, respectively; Granite recognized $48.2 million in net fair value losses on investment properties in the first quarter of 2025 mostly related to higher discount rates across select properties in all regions. The value of investment properties was increased by unrealized foreign exchange gains of $83.5 million in the first quarter of 2025 primarily resulting from the relative weakening of the Canadian dollar against the Euro, partially offset by the slight strengthening of the Canadian dollar against the US dollar as at March 31, 2025; and Granite's net income attributable to unitholders in the first quarter of 2025 was $43.9 million in comparison to $89.1 million in the prior year period primarily due to an unfavourable change in the fair value adjustment on investment properties of $60.9 million, partially offset by an $11.2 million increase in net operating income as noted above, and a $4.1 million decrease in income tax expense. Article content During the first quarter of 2025, Granite achieved average rental rate spreads of 10% over expiring rents representing approximately 736,000 square feet of new leases and renewals taking effect in the quarter; and In April 2025, a subsidiary of Do it Best Corp. assumed True Value's lease for Granite's property at 12 Tradeport Road in Hanover Township, Pennsylvania for the remaining term of 15.9 years. Article content During the first quarter of 2025, Granite repurchased 930,969 units under the normal course issuer bid ('NCIB') at an average unit cost of $68.30 for total consideration of $63.6 million, excluding commissions and taxes on net repurchases of units; Subsequent to March 31, 2025, Granite repurchased 497,300 units under the NCIB at an average unit cost of $63.42 for total consideration of $31.5 million, excluding commissions and taxes on net repurchases of units; and On March 28, 2025, Granite amended its existing unsecured revolving credit facility agreement to extend the maturity date by one year for a new five-year term to March 31, 2030. Article content Three Months Ended March 31, (in millions, except as noted) 2025 2024 Revenue $ 154.7 $ 138.9 Net operating income ('NOI') $ 125.7 $ 114.5 Net income attributable to unitholders $ 43.9 $ 89.1 Funds from operations ('FFO') (1) $ 91.0 $ 82.4 Adjusted funds from operations ('AFFO') (2) $ 88.4 $ 77.9 Diluted FFO per unit (1) $ 1.46 $ 1.30 Diluted AFFO per unit (2) $ 1.41 $ 1.22 Monthly distributions paid per unit $ 0.85 $ 0.83 AFFO payout ratio (3) 60 % 67 % As at March 31, 2025 and December 31, 2024 2025 2024 Fair value of investment properties $ 9,441.2 $ 9,397.3 Cash and cash equivalents $ 123.1 $ 126.2 Total debt (5) $ 3,162.1 $ 3,087.8 Net leverage ratio (6) 32 % 32 % Number of income-producing properties 138 138 Gross leasable area ('GLA'), square feet 63.3 63.3 Occupancy, by GLA 94.8 % 94.9 % Committed occupancy, by GLA (9) 94.8 % 95.0 % Magna as a percentage of annualized revenue (8) 27 % 26 % Magna as a percentage of GLA 19 % 19 % Weighted average lease term in years, by GLA 5.6 5.7 Overall capitalization rate (7) 5.4 % 5.3 % Article content A more detailed discussion of Granite's condensed consolidated combined financial results for the three month periods ended March 31, 2025 and 2024 is contained in Granite's Management's Discussion and Analysis of Results of Operations and Financial Position ('MD&A') and the unaudited condensed consolidated combined financial statements for those periods and the notes thereto, which are available through the internet on the Canadian Securities Administrators' System for Electronic Data Analysis and Retrieval Plus ('SEDAR+') and can be accessed at and on the United States Securities and Exchange Commission's (the 'SEC') Electronic Data Gathering, Analysis and Retrieval System ('EDGAR'), which can be accessed at Article content Granite is maintaining its 2025 guidance as presented on February 26, 2025. Granite's current outlook does not significantly change assumptions relating to new leasing of vacant space which continues to be projected primarily later in the second half of 2025 and also reflects year to date financing and NCIB activity. Granite's FFO per unit forecast represents an approximate 5% to 8% increase over 2024 and the AFFO per unit forecast represents a change of -1% to 2% over 2024 driven by higher maintenance capital expenditures relative to the prior year. Article content The high and low ranges of Granite's forecast are driven by foreign currency exchange rate assumptions for the nine-month forecast period between April and December, 2025, which have been modified relative to guidance provided on February 26, 2025, reflecting a recent weakening of the Canadian dollar relative to the Euro offset by the strengthening of the Canadian dollar against the U.S. dollar. The table below outlines Granite's current forecast for the year ending December 31, 2025: Article content Measure Current Previously Published EUR:CAD exchange rate (1) 1.52 to 1.58 1.45 to 1.50 USD:CAD exchange rate (1) 1.37 to 1.42 1.40 to 1.45 FFO per unit no change $5.70 to $5.85 AFFO per unit no change $4.80 to $4.95 Maintenance capital expenditures, tenant allowances and leasing commissions impacting AFFO no change $40.0 million Constant currency same property NOI – cash basis, four quarter average no change 4.5% to 6.0% (1) Foreign exchange rate assumptions pertain to forecast period only of the respective outlook. Article content Granite's 2025 forecast assumes no acquisitions and dispositions, and assumes no favourable reversals of tax provisions relating to prior years which cannot be determined at this time. Non-GAAP performance measures are included in Granite's 2025 forecast above (see ' NON-GAAP PERFORMANCE MEASURES '). See also ' FORWARD-LOOKING STATEMENTS '. Article content Granite will hold a conference call and live audio webcast to discuss its financial results. The conference call will be chaired by Kevan Gorrie, President and Chief Executive Officer. To hear a replay of the webcast, please visit The replay will be available for 90 days. Article content Granite's Annual General Meeting of Unitholders (the 'Meeting') will take place on June 5, 2025 at 10:00 a.m. (ET) virtually by way of a live audio webcast. Unitholders can participate at the Meeting by joining the live audio webcast online at Refer to the 'Voting Information and General Proxy Matters' within Granite's Management Information Circular/Proxy Statement for detailed instructions on how to vote at the Meeting. The webcast of the Meeting will be archived on our website following the conclusion of the Meeting. Please refer to the Annual Meetings page at for additional details on the virtual Meeting. Article content Additional property statistics as at March 31, 2025 have been posted to our website at Copies of financial data and other publicly filed documents are available through the internet on SEDAR+, which can be accessed at and on EDGAR, which can be accessed at Article content Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. Granite owns 144 investment properties representing approximately 63.3 million square feet of gross leasable area. Article content For further information, please see our website at or contact Teresa Neto, Chief Financial Officer, at (647) 925-7560. Article content Readers are cautioned that certain terms used in this press release such as FFO, AFFO, FFO payout ratio, AFFO payout ratio, same property NOI – cash basis, constant currency same property NOI – cash basis, total debt and net debt, net leverage ratio, and any related per unit amounts used by management to measure, compare and explain the operating results and financial performance of the Trust do not have standardized meanings prescribed under IFRS® Accounting Standards as issued by the International Accounting Standards Board ('IFRS Accounting Standards' or 'GAAP') and, therefore, should not be construed as alternatives to net income, cash provided by operating activities or any other measure calculated in accordance with IFRS Accounting Standards. Additionally, because these terms do not have a standardized meaning prescribed by IFRS Accounting Standards, they may not be comparable to similarly titled measures presented by other publicly traded entities. Article content (1) FFO is a non-GAAP performance measure that is widely used by the real estate industry in evaluating the operating performance of real estate entities. Granite calculates FFO as net income attributable to unitholders excluding fair value gains (losses) on investment properties and financial instruments, gains (losses) on sale of investment properties including the associated current income tax, foreign exchange gains (losses) on certain monetary items not forming part of a net investment in a foreign operation, deferred income taxes, corporate restructuring costs and certain other items, net of non-controlling interests in such items. The Trust's determination of FFO follows the definition prescribed by the Real Property Association of Canada ('REALPAC') guidelines on Funds From Operations & Adjusted Funds From Operations for IFRS Accounting Standards dated January 2022 ('REALPAC Guidelines') except for the exclusion of corporate restructuring costs. Granite considers FFO to be a meaningful supplemental measure that can be used to determine the Trust's ability to service debt, fund capital expenditures and provide distributions to unitholders. FFO is reconciled to net income, which is the most directly comparable GAAP measure (see table below). FFO should not be construed as an alternative to net income or cash flow provided by operating activities determined in accordance with IFRS Accounting Standards. (2) AFFO is a non-GAAP performance measure that is widely used by the real estate industry in evaluating the recurring economic earnings performance of real estate entities after considering certain costs associated with sustaining such earnings. Granite calculates AFFO as net income attributable to unitholders including all adjustments used to calculate FFO and further adjusts for actual maintenance capital expenditures that are required to sustain Granite's productive capacity, leasing costs such as leasing commissions and tenant allowances incurred and non-cash straight-line rent and tenant incentive amortization, net of non-controlling interests in such items. The Trust's determination of AFFO follows the definition prescribed by the REALPAC Guidelines except for the exclusion of corporate restructuring costs as noted above. Granite considers AFFO to be a meaningful supplemental measure that can be used to determine the Trust's ability to service debt, fund expansion capital expenditures, fund property development and provide distributions to unitholders after considering costs associated with sustaining operating earnings. AFFO is also reconciled to net income, which is the most directly comparable GAAP measure (see table below). AFFO should not be construed as an alternative to net income or cash flow provided by operating activities determined in accordance with IFRS Accounting Standards. Article content Three Months Ended March 31, (in millions, except per unit amounts) 2025 2024 Net income attributable to unitholders $ 43.9 $ 89.1 Add (deduct): Fair value losses (gains) on investment properties, net 48.2 (12.7 ) Fair value (gains) losses on financial instruments, net (0.1 ) 2.0 Deferred tax (recovery) expense (0.3 ) 3.8 Fair value remeasurement of the Executive Deferred Unit Plan (0.3 ) 0.2 Fair value remeasurement of the Directors Deferred Unit Plan (0.3 ) — Corporate restructuring costs — 0.2 Non-controlling interests relating to the above (0.1 ) (0.2 ) FFO [A] $ 91.0 $ 82.4 Add (deduct): Maintenance or improvement capital expenditures incurred (0.4 ) (0.6 ) Leasing costs (0.3 ) (0.2 ) Tenant allowances — (0.6 ) Tenant incentive amortization — 0.1 Straight-line rent amortization (1.9 ) (3.2 ) Non-controlling interests relating to the above — — AFFO [B] $ 88.4 $ 77.9 Basic and Diluted FFO per unit [A]/[C] and [A]/[D] $ 1.46 $ 1.30 Basic AFFO per unit [B]/[C] $ 1.42 $ 1.23 Diluted AFFO per unit [B]/[D] $ 1.41 $ 1.22 Basic weighted average number of units [C] 62.3 63.4 Diluted weighted average number of units [D] 62.5 63.6 Article content (3) The FFO and AFFO payout ratios are calculated as monthly distributions, which exclude special distributions, declared to unitholders divided by FFO and AFFO (non-GAAP performance measures), respectively, in a period. FFO payout ratio and AFFO payout ratio may exclude revenue or expenses incurred during a period that can be a source of variance between periods. The FFO payout ratio and AFFO payout ratio are supplemental measures widely used by investors in evaluating the sustainability of the Trust's monthly distributions to unitholders. Article content Three Months Ended March 31, (in millions, except as noted) 2025 2024 Monthly distributions declared to unitholders [A] $ 52.8 $ 52.3 FFO [B] 91.0 82.4 AFFO [C] 88.4 77.9 FFO payout ratio [A]/[B] 58 % 63 % AFFO payout ratio [A]/[C] 60 % 67 % Article content (4) Same property NOI — cash basis refers to the NOI — cash basis (NOI excluding lease termination and close-out fees, and the non-cash impact from straight-line rent and tenant incentive amortization) for those properties owned by Granite throughout the entire current and prior year periods under comparison. Same property NOI — cash basis excludes properties that were acquired, disposed of, classified as development properties or assets held for sale during the periods under comparison. Granite believes that same property NOI — cash basis is a useful supplementary measure in understanding period-over-period organic changes in NOI — cash basis from the same stock of properties owned. Article content Sq ft (1) Three Months Ended March 31, (in millions) 2025 2024 $ change % change Revenue $ 154.7 $ 138.9 15.8 Less: Property operating costs 29.0 24.4 4.6 NOI $ 125.7 $ 114.5 11.2 9.8 % Add (deduct): Lease termination and close-out fees (0.8 ) — (0.8 ) Straight-line rent amortization (1.9 ) (3.2 ) 1.3 Tenant incentive amortization — 0.1 (0.1 ) NOI – cash basis 63.3 $ 123.0 $ 111.4 11.6 10.4 % Less NOI – cash basis for: Acquisitions — — — — Developments 0.5 (1.5 ) (0.2 ) (1.3 ) Dispositions and assets held for sale — — — — Same property NOI – cash basis 62.9 $ 121.5 $ 111.2 10.3 9.3 % Constant currency same property NOI – cash basis (2) 62.9 $ 121.5 $ 116.0 5.5 4.7 % Article content (1) The square footage relating to the NOI — cash basis represents GLA of 63.3 million square feet as at March 31, 2025. The square footage relating to the same property NOI — cash basis represents the aforementioned GLA excluding the impact from the acquisitions, dispositions, assets held for sale and developments during the relevant period. (2) Constant currency same property NOI – cash basis is calculated by converting the comparative same property NOI – cash basis at current period average foreign exchange rates. Article content (5) Total debt is calculated as the sum of all current and non-current debt, the net mark to market fair value of derivatives and lease obligations. Net debt subtracts cash and cash equivalents from total debt. Granite believes that it is useful to include the derivatives and lease obligations for the purposes of monitoring the Trust's debt levels. (6) The net leverage ratio is calculated as net debt (a non-GAAP performance measure defined above) divided by the fair value of investment properties (excluding assets held for sale). The net leverage ratio is a non-GAAP ratio used in evaluating the Trust's degree of financial leverage, borrowing capacity and the relative strength of its balance sheet. Article content As at March 31, 2025 and December 31, 2024 2025 2024 Unsecured debt, net $ 3,092.1 $ 3,078.5 Derivatives, net 35.3 (25.1 ) Lease obligations 34.7 34.4 Total debt $ 3,162.1 $ 3,087.8 Less: cash and cash equivalents 123.1 126.2 Net debt [A] $ 3,039.0 $ 2,961.6 Investment properties [B] $ 9,441.2 $ 9,397.3 Net leverage ratio [A]/[B] 32 % 32 % Article content (7) Overall capitalization rate is calculated as stabilized net operating income (property revenue less property expenses) divided by the fair value of the income-producing property. (8) Annualized revenue for each period presented is calculated as the contractual base rent for the month subsequent to the quarterly reporting period multiplied by 12 months. Annualized revenue excludes revenue from properties classified as assets held for sale. (9) Committed occupancy as at May 7, 2025. Article content This press release may contain statements that, to the extent they are not recitations of historical fact, constitute 'forward-looking statements' or 'forward-looking information' within the meaning of applicable securities legislation, including the United States Securities Act of 1933, as amended, the United States Securities Exchange Act of 1934, as amended, and applicable Canadian securities legislation. Forward-looking statements and forward-looking information may include, among others, statements regarding Granite's future plans, goals, strategies, intentions, beliefs, estimates, costs, objectives, capital structure, cost of capital, tenant base, tax consequences, economic performance or expectations, or the assumptions underlying any of the foregoing. Words such as 'outlook', 'may', 'would', 'could', 'should', 'will', 'likely', 'expect', 'anticipate', 'believe', 'intend', 'plan', 'forecast', 'project', 'estimate', 'seek' and similar expressions are used to identify forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information should not be read as guarantees of future events, performance or results and will not necessarily be accurate indications of whether or the times at or by which such future performance will be achieved. Undue reliance should not be placed on such statements. There can also be no assurance that Granite's expectations regarding various matters, including the following, will be realized in a timely manner, with the expected impact or at all: the effectiveness of measures intended to mitigate such impact, and Granite's ability to deliver cash flow stability and growth and create long-term value for unitholders; Granite's ability to advance its ESG+R program and related targets and goals; the expansion and diversification of Granite's real estate portfolio and the reduction in Granite's exposure to Magna and the special purpose properties; Granite's ability to accelerate growth and to grow its net asset value, FFO and AFFO per unit, and constant currency same property NOI – cash basis; Granite's ability to execute on its strategic plan and its priorities in 2025; Granite's 2025 outlook for FFO per unit, AFFO per unit and constant currency same property NOI, including the anticipated impact of future foreign currency exchange rates on FFO and AFFO per unit and expectations regarding Granite's business strategy; fluctuations in foreign currency exchange rates and the effect on Granite's revenues, expenses, cash flows, assets and liabilities; Granite's ability to offset interest or realize interest savings relating to its term loans, debentures and cross currency interest rate swaps; Granite's ability to find and integrate satisfactory acquisition, joint venture and development opportunities and to strategically deploy the proceeds from recently sold properties and financing initiatives; Granite's intended use of available liquidity, its ability to obtain secured funding against its unencumbered assets and its expectations regarding the funding of its ongoing operations and future growth; any future offerings under Granite's base shelf prospectuses; obtaining site planning approval of a 0.7 million square foot distribution facility on the 34.0 acre site in Brantford, Ontario; obtaining site plan approval for the future phases of its development for up to 0.7 million square feet on the 68.7 acre site in Houston, Texas and up to 0.4 million square feet on the 30.8 acre site in Houston, Texas and the expected timing and potential yield from each project; the development of 12.9 acres of land in West Jefferson, Ohio and the potential yield from that project; the development of a 0.6 million square foot multi-phased business park on the remaining 36.0 acre parcel of land in Brantford, Ontario and the potential yield from that project; the development of a 0.2 million square foot modern distribution/logistics facility on the 10.1 acres of land in Brant County, Ontario and the potential yield of the project; estimates regarding Granite's development properties and expansion projects, including square footage of construction, total construction costs and total costs; Granite's ability to meet its target occupancy goals; Granite's ability to secure sustainability or other certifications for any of its properties; Granite's ability to generate peak solar capacity on its properties; the impact of the refinancing of the term loans on Granite's returns and cash flow; the amount of any distributions; and the effect of any legal proceedings on Granite. Forward-looking statements and forward-looking information are based on information available at the time and/or management's good faith assumptions and analyses made in light of Granite's perception of historical trends, current conditions and expected future developments, as well as other factors Granite believes are appropriate in the circumstances. Forward-looking statements and forward-looking information are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond Granite's control, that could cause actual events or results to differ materially from such forward-looking statements and forward-looking information. Important factors that could cause such differences include, but are not limited to, the risk of changes to tax or other laws and treaties that may adversely affect Granite's mutual fund trust status under the Income Tax Act (Canada) or the effective tax rate in other jurisdictions in which Granite operates; the risk related to tariffs, global trade and supply chains that may adversely impact Granite's tenants' operations and in turn impact Granite's operations and financial performance; economic, market and competitive conditions and other risks that may adversely affect Granite's ability to expand and diversify its real estate portfolio; and the risks set forth under 'Risks and Uncertainties' in Granite's Management's Discussion and Analysis for the quarter ended March 31, 2025 filed on May 7, 2025 and in the 'Risk Factors' section in Granite's AIF for 2024 dated February 26, 2025, filed on SEDAR+ at and attached as Exhibit 1 to the Trust's Annual Report on Form 40-F for the year ended December 31, 2024 filed with the SEC and available online on EDGAR at all of which investors are strongly advised to review. The 'Risk Factors' section also contains information about the material factors or assumptions underlying such forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information speak only as of the date the statements and information were made and unless otherwise required by applicable securities laws, Granite expressly disclaims any intention and undertakes no obligation to update or revise any forward-looking statements or forward-looking information contained in this press release to reflect subsequent information, events or circumstances or otherwise. Article content Article content Article content Article content Article content Article content
Globe and Mail
06-05-2025
- Business
- Globe and Mail
Minto Apartment REIT Reports 2025 First Quarter Financial Results
— Consistent Same Property Portfolio NOI despite a colder winter; accretive Unit buybacks continued — OTTAWA, ON , May 6, 2025 /CNW/ - Minto Apartment Real Estate Investment Trust (the "REIT") (TSX: today announced its financial results for the first quarter ended March 31, 2025 ("Q1 2025"). The Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis ("MD&A") for Q1 2025 are available on the REIT's website at and at 1 "We continued to generate solid operational performance in the first quarter, with average monthly rent for the Same Property Portfolio increasing 5.3% year-over-year," said Jonathan Li , President and Chief Executive Officer of the REIT. "While colder winter weather elevated our operating expenses, Same Property Portfolio NOI was consistent with Q1 last year due to our continued revenue growth." "We executed on several strategic capital allocation objectives in 2025 that have strengthened the REIT's competitive position. These include acquiring a 50% managing ownership interest in the Lonsdale Square property in Metro Vancouver, selling a non-core asset in Ottawa , allowing our purchase option for The Hyland to expire while receiving repayment of the associated CDL, and making accretive Unit purchases under our NCIB program. We have worked hard to strengthen our portfolio and balance sheet which has us well-positioned for the future." Q1 2025 Highlights Same Property Portfolio ("SPP") 2 revenue was $37.7 million , an increase of 2.1% compared to the first quarter ended March 31, 2024 ("Q1 2024") Revenue of $38.0 million decreased by 2.4% compared to Q1 2024 due to the sale of three assets in Ottawa , partially offset by the higher SPP revenue; SPP average monthly rent was $2,021 , an increase of 5.3% compared to Q1 2024; Average occupancy of unfurnished suites was 95.4%, compared to 96.9% in Q1 2024; The REIT executed 418 new leases, achieving an average rental rate that was 5.4% higher than the expiring rents. The gain-to-lease potential on sitting rents remained strong at 11.2% as at March 31, 2025 ; SPP annualized turnover was 16%, which was consistent with Q1 2024; SPP Net Operating Income ("NOI") was similar to Q1 2024 and SPP NOI margin was 61.4%, compared to 63.0% in Q1 2024; Normalized Funds from Operations ("Normalized FFO") were $0.2207 per unit, a 2.9% decrease compared to $0.2272 per unit in Q1 2024; Normalized Adjusted Funds from Operations ("Normalized AFFO") were $0.1959 per unit, a 3.3% decrease compared to $0.2026 per unit in Q1 2024; Net income and comprehensive income was $15.7 million , compared to a net loss and comprehensive loss of $18.8 million in Q1 2024; The REIT purchased $15.4 million of Units under the normal course issuer bid ("NCIB") at a weighted average purchase price of $13.24 per Unit; On January 15, 2025 , the REIT completed the purchase of a 50% managing ownership interest in Lonsdale Square, a property in North Vancouver , for a discounted purchase price of $53.0 million satisfied by the assumption of a $52.9 million CMHC-insured mortgage. Concurrently, the REIT received repayment of the $14 million convertible development loan ("CDL") associated with the property which was used to repay a portion of the revolving credit facility; On January 22, 2025 , the REIT completed the sale of the Castleview property in Ottawa for $69.0 million . The sale generated net proceeds of $33.8 million , which were used to repay the revolving credit facility and purchase Units under the REIT's NCIB program; and On February 28, 2025 , the purchase option for The Hyland expired without the REIT having exercised such option, and on March 5, 2025 , the REIT opted to waive on its right of first opportunity presented by the Minto Group for a development project in Ottawa . Subsequent Events Subsequent to March 31, 2025 , the REIT purchased approximately $8.4 million of additional Units under its NCIB program at a weighted average purchase price of $12.96 per Unit. Since November 2024 , the REIT has purchased approximately $28.2 million of Units under the NCIB at a weighted average purchase price of $13.29 per Unit; In April 2025 , the REIT upward refinanced a maturing mortgage for net proceeds of $9.0 million and received repayment of $19.4 million for the CDL associated with The Hyland; and, The REIT executed a new commercial lease for its vacant space at Minto Yorkville in Toronto , with lease payments expected to begin in January 2026 . Financial Summary ($000's except per unit and per suite amounts) Three months ended March 31, 2025 2024 Variance Financial Revenue from investment properties $ 38,010 $ 38,943 (2.4) % Property operating costs 7,023 6,987 (0.5) % Property taxes 3,906 4,008 2.5 % Utilities 3,757 3,504 (7.2) % NOI $ 23,324 $ 24,444 (4.6) % NOI margin (%) 61.4 % 62.8 % (140) bps Revenue - SPP $ 37,697 $ 36,923 2.1 % NOI - SPP 23,156 23,256 (0.4) % NOI margin (%) - SPP 61.4 % 63.0 % (160) bps Net income (loss) and comprehensive income (loss) 15,667 (18,794) nmf 3 Funds from Operations ("FFO") $ 14,301 $ 15,039 (4.9) % FFO per unit 0.2207 0.2290 (3.6) % Adjusted Funds from Operations ("AFFO") 12,691 13,427 (5.5) % AFFO per unit 0.1959 0.2045 (4.2) % Distribution rate per unit $ 0.1300 $ 0.1262 3.0 % AFFO payout ratio 66.4 % 61.7 % (470) bps Normalized FFO $ 14,301 $ 14,917 (4.1) % Normalized FFO per unit 0.2207 0.2272 (2.9) % Normalized AFFO 12,691 13,305 (4.6) % Normalized AFFO per unit 0.1959 0.2026 (3.3) % Normalized AFFO payout ratio 66.4 % 62.3 % (410) bps Operating - Proportionate Share Basis Average monthly rent $ 2,034 $ 1,911 6.4 % Average monthly rent - SPP 2,021 1,919 5.3 % Closing occupancy 96.2 % 97.1 % (90) bps Closing occupancy - SPP 96.1 % 97.3 % (120) bps Average occupancy 95.4 % 96.9 % (150) bps Average occupancy - SPP 95.5 % 97.0 % (150) bps _______________________________________ 3 No meaningful figure Summary of Q1 2025 Operating Results SPP Net Operating Income The REIT generated SPP revenue growth of 2.1% in Q1 2025 compared to Q1 2024, reflecting a 5.3% increase in SPP average monthly rent, partially offset by lower average occupancy, lower revenue from furnished suites and lower commercial revenue due to the temporary retail vacancy at Minto Yorkville. Closing occupancy increased sequentially from last quarter, reflecting the success of the REIT's strategic leasing initiatives. Management continues to leverage a combination of tactical promotion, marketing campaigns and a targeted renewal program across the portfolio to drive occupancy. SPP NOI was consistent with Q1 2024, declining by 0.4% as higher SPP revenue was effectively offset by a 6.4% increase in related operating expenses, due in part, to colder winter weather. SPP NOI margin was 61.4%, compared to 63.0% in Q1 2024. Normalized FFO and AFFO per Unit Normalized FFO and AFFO per unit decreased by 2.9% and 3.3%, respectively, in Q1 2025 compared to Q1 2024. These reductions reflect a decrease in NOI, driven by higher operating expenses, as noted above, and were partially offset by accretive Unit buybacks. NAV per unit and IFRS Net Income and Comprehensive Income The REIT's net asset value ("NAV") per unit as at March 31, 2025 was $22.73 , a 1.7% increase from $22.34 as at December 31, 2024 . The increase reflects a non-cash, fair value gain on investment properties of $8.9 million in Q1 2025 and the impact of the accretive NCIB program. The fair value gain resulted from growth in forecast NOI for the portfolio, which was largely attributed to the removal of the carbon tax, partially offset by an increase in the capital expenditure reserve. The REIT reported net income and comprehensive income of $15.7 million in Q1 2025, compared to a net loss and comprehensive loss of $18.8 million in Q1 2024. The variance was primarily attributable to the non-cash fair value gain of $8.9 million on investment properties in the quarter, compared to a loss of $38.6 million in Q1 2024. This was partially offset by a non-cash, fair value loss of $4.9 million on Class B LP Units in Q1 2025, reflecting an increase in the Unit price during the quarter, compared to a non-cash gain of $8.5 million in Q1 2024. Gain-on-Lease, Gain-to-Lease Potential, Suite Repositioning and Commercial Activity The REIT generated organic growth through 418 new leases signed in Q1 2025, achieving an average gain-on-lease of 5.4%. The realized gain-on-lease contracted compared to recent quarters, as market rents have flattened and turnover remains lower for suites with tenants whose sitting rents are well below current market rents. The REIT estimates a gain-to-lease potential of 11.2% as at March 31, 2025, representing future annualized potential revenue of $15.4 million . SPP annualized turnover was 16% in Q1 2025, which was consistent with Q1 2024. The REIT repositioned a total of 12 suites across its portfolio in Q1 2025, generating an average annual unlevered return on investment of 9.3%. Management currently expects to reposition a total of 35 to 70 suites in 2025, in line with the 48 completed in 2024. The REIT has executed a new commercial lease agreement at Minto Yorkville in Toronto with lease payments expected to commence in January 2026 . Solid Balance Sheet As at March 31, 2025, the REIT had, on a Proportionate Share Basis, Total Debt outstanding of $1.1 billion , with a weighted average effective interest rate on Term Debt of 3.54% and a weighted average term to maturity on Term Debt of 5.2 years. The REIT's Proportionate Debt-to-Gross Book Value ratio was 42.6%, similar to 42.5% as at December 31, 2024, and its Proportionate Debt-to-Adjusted EBITDA ratio was 11.22x, compared to 11.04x as at December 31, 2024. The REIT continues to maintain a strong financial position. Total liquidity on a Proportionate Share Basis was approximately $193.9 million as at March 31, 2025, with a liquidity ratio (Total liquidity/Total Debt) of 17.2% on a Proportionate Share Basis. Conference Call Management will host a conference call for analysts and investors on Wednesday, May 7, 2025 at 10:00 am ET . To join the conference call without operator assistance, participants can register and enter their phone number at to receive an instant automated call back. Alternatively, they can dial 416-945-7677 or 1-888-699-1199 to reach a live operator who will join them into the call. In addition, the call will be webcast live at: Minto Apartment REIT Q1 2025 Earnings Webcast A replay of the call will be available until Wednesday, May 14, 2025 . To access the replay, dial 289-819-1450 or 888-660-6345 (Passcode: 50938 #). A transcript of the call will be archived on the REIT's website. About Minto Apartment Real Estate Investment Trust Minto Apartment Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario to own income-producing multi-residential properties located in urban markets in Canada . The REIT owns a portfolio of high-quality income-producing multi-residential rental properties located in Toronto , Montreal , Ottawa , Calgary and Vancouver regions. For more information on Minto Apartment REIT, please visit the REIT's website at: Forward-Looking Statements This news release may contain forward-looking statements (within the meaning of applicable Canadian securities laws) relating to the business of the REIT. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "predict", "expect", "goal", "seek", "strategy", "future", "intend", "plan", "will", "may", "could", "should", "estimate", "potential", "might", "likely", "occur", "achieve", "continue", or the negative thereof, and other similar expressions. These statements are not historical facts but instead represent Management's expectations, estimates, forecasts and projections regarding future events and circumstances, including the impact of current economic conditions which include trade disputes, interest rate uncertainty, and inflation, among other factors, on the REIT's business, operations and financial results. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risks and Uncertainties" in the REIT's management's discussion and analysis dated May 6, 2025, which is available on SEDAR+ ( There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Non-IFRS and Other Financial Measures This news release contains certain non-IFRS and other financial measures which are measures commonly used by publicly traded entities in the real estate industry. Management believes that these metrics are useful for measuring different aspects of performance and assessing the underlying operating and financial performance on a consistent basis. However, these measures do not have a standardized meaning prescribed by IFRS Accounting Standards ("IFRS") and are not necessarily comparable to similar measures presented by other publicly traded entities. These measures should strictly be considered supplemental in nature and not a substitute for financial information prepared in accordance with IFRS. The REIT has adopted the guidance under NI 52-112 Non-GAAP and Other Financial Measures Disclosure for the purpose of this news release. These non-IFRS and other financial measures are defined below: "AFFO" is defined as FFO adjusted for items such as maintenance capital expenditures and straight-line rental revenue differences. AFFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS. The REIT's method of calculating AFFO is substantially in accordance with REALPAC's recommendations under the revised publication titled ''REALPAC Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO) for IFRS'' published in January 2022 , except that it adjusts for certain non-cash items (such as adjustments for the amortization of mark-to-market adjustments related to debt), but may differ from other issuers' methods and, accordingly, may not be comparable to AFFO reported by other issuers. The REIT regards AFFO as a key measure of operating performance. The REIT also uses AFFO in assessing its capacity to make distributions. "AFFO per unit" is calculated as AFFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period. The REIT regards AFFO per unit as a key measure of operating performance. "AFFO payout ratio" is the proportion of per unit distributions on Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership, excluding special non-cash distributions, to AFFO per unit. The REIT uses AFFO payout ratio in assessing its capacity to make distributions. "annualized turnover" is calculated as the number of move-outs for the period divided by total number of unfurnished suites in the portfolio. This percentage is extrapolated to determine an annual rate. "average annual unlevered return" refers to the return on repositioning activities, and is calculated by dividing the average annual rental increase per suite after repositioning by the average repositioning cost per suite, excluding the impact of financing costs. "average monthly rent" represents the average monthly rent per suite for occupied unfurnished suites at the end of the period on a Proportionate Share Basis. "average occupancy" is defined as the ratio of occupied unfurnished suites to the weighted average of the total unfurnished suites in the portfolio for the period on a Proportionate Share Basis. "closing occupancy" is defined as the ratio of occupied unfurnished suites to the total unfurnished suites in the portfolio at the end of the period on a Proportionate Share Basis. "Debt-to-Adjusted EBITDA ratio" is calculated by dividing interest-bearing debt (net of cash) by Adjusted EBITDA. Adjusted EBITDA is a non-IFRS financial measure and is used for evaluation of the REIT's financial health and liquidity. Adjusted EBITDA is calculated as the trailing twelve-month NOI adjusted for a full year of stabilized earnings including finance income, fees and other income and general and administrative expenses from recently completed acquisitions or dispositions, but excluding fair value adjustments. The REIT regards Debt-to-Adjusted EBITDA ratio as a measure of financial health and liquidity. "Debt-to-Gross Book Value ratio" is calculated by dividing total interest-bearing debt consisting of fixed and variable-rate mortgages, credit facility, construction loans and Class C limited partnership units of Minto Apartment Limited Partnership by Gross Book Value and is used as the REIT's primary measure of its leverage. "FFO" is defined as IFRS consolidated net income adjusted for items such as unrealized changes in the fair value of investment properties, effects of puttable instruments classified as financial liabilities and changes in fair value of financial instruments and derivatives. FFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS. The REIT's method of calculating FFO is substantially in accordance with REALPAC's recommendations under the revised publication titled ''REALPAC Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO) for IFRS'' published in January 2022 , but may differ from other issuers' methods and, accordingly, may not be comparable to FFO reported by other issuers. The REIT regards FFO as a key measure of operating performance. "FFO per unit" is calculated as FFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period. The REIT regards FFO per unit as a key measure of operating performance. "gain-on-lease" refers to the gap between rents achieved on new leases of unfurnished suites as compared to expiring leases. "gain-to-lease potential" refers to the gap between Management's estimate of monthly market rent and average monthly in-place rent per occupied unfurnished suite. "Gross Book Value" is calculated as the total assets of the REIT as at the applicable balance sheet date. "NAV" is calculated as the sum of the value of REIT Unitholders' equity and Class B limited partnership units of Minto Apartment Limited Partnership as at the applicable balance sheet date. "NAV per unit" is calculated by dividing NAV by the number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding as at the applicable balance sheet date. "NOI" is defined as revenue from investment properties less property operating costs, property taxes and utilities (collectively referred to as "property operating expenses" or "operating expenses") prepared in accordance with IFRS. NOI should not be construed as an alternative to net income determined in accordance with IFRS. The REIT's method of calculating NOI may differ from other issuers' methods and, accordingly, may not be comparable to NOI reported by other issuers. The REIT regards NOI as an important measure of the income generated from income-producing properties and is used by Management in evaluating the performance of the REIT's properties. It is also a key input in determining the value of the REIT's properties. "NOI margin" is defined as NOI divided by revenue from investment properties. "Normalized AFFO" is calculated as AFFO net of nonrecurring items that occurred during the period which are not indicative of the REIT's typical operating results. "Normalized AFFO per unit" is calculated as Normalized AFFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period. "Normalized AFFO payout ratio" is the proportion of the per unit distributions on Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership, excluding special non-cash distributions, to normalized AFFO per unit. "Normalized FFO" is calculated as FFO net of nonrecurring items that occurred during the period which are not indicative of the REIT's typical operating results. "Normalized FFO per unit" is calculated as Normalized FFO divided by the weighted average number of Units of the REIT and Class B limited partnership units of Minto Apartment Limited Partnership outstanding over the period. "Proportionate Share Basis" represents financial information adjusted to reflect the REIT's effective ownership share of joint venture results on a proportionately consolidated basis. This adjustment addresses the accounting difference arising from the use of the equity method for joint ventures under IFRS. "Term Debt" is calculated as the sum of the amortized cost of fixed rate mortgages, a variable-rate mortgage fixed through an interest rate swap and Class C LP Units. "Total Debt" is calculated as the sum of the amortized cost of interest-bearing debt consisting of a variable-rate credit facility and fixed rate debt comprised of mortgages, a variable-rate mortgage fixed through an interest rate swap, Class C LP Units, and the construction loan. "Total liquidity" is calculated as the sum of the undrawn balance under the revolving credit facility and cash. "weighted average effective interest rate on Term Debt" is calculated as the weighted average of the effective interest rates on the outstanding balances of fixed rate mortgages on a Proportionate Share Basis, a variable-rate mortgage fixed through an interest rate swap and Class C limited partnership units of Minto Apartment Limited Partnership. "weighted average term to maturity on Term Debt" is calculated as the weighted average of the term to maturity on the outstanding fixed rate mortgages on a Proportionate Share Basis, a variable-rate mortgage fixed through an interest rate swap and Class C limited partnership units of Minto Apartment Limited Partnership. FFO and AFFO Three months ended March 31, ($000's except unit and per unit amounts) 2025 2024 Net income (loss) and comprehensive income (loss) $ 15,667 $ (18,794) Distributions on Class B LP Units 3,348 3,251 Disposition costs on investment property 604 615 Fair value loss (gain) on: Investment properties (8,877) 38,605 Class B LP Units 4,893 (8,499) Interest rate swap 276 (58) Unit-based compensation 19 (81) Adjustment for equity-accounted entity (1,629) — Funds from operations (FFO) 14,301 15,039 Maintenance capital expenditure reserve (1,519) (1,539) Amortization of mark-to-market adjustments (72) (73) Commercial straight-line rent adjustments (19) — Adjusted funds from operations (AFFO) $ 12,691 $ 13,427 Weighted average number of Units and Class B LP Units issued and outstanding 64,788,348 65,659,537 FFO per unit $ 0.2207 $ 0.2290 AFFO per unit $ 0.1959 $ 0.2045 Distribution rate per unit $ 0.1300 $ 0.1262 AFFO payout ratio 66.4 % 61.7 % Normalized FFO and AFFO Three months ended March 31, ($000's except unit and per unit amounts) 2025 2024 FFO $ 14,301 $ 15,039 AFFO 12,691 13,427 Normalizing items Insurance recoveries — (122) Normalized FFO 14,301 14,917 Normalized FFO per unit $ 0.2207 $ 0.2272 Normalized AFFO 12,691 13,305 Normalized AFFO per unit $ 0.1959 $ 0.2026 Distribution rate per unit $ 0.1300 $ 0.1262 Normalized AFFO payout ratio 66.4 % 62.3 % NOI and NOI Margin ($000's) Same Property Portfolio Total Portfolio Three months ended March 31, 2025 2024 2025 2024 Revenue from investment properties $ 37,697 $ 36,923 $ 38,010 $ 38,943 Operating expenses 14,541 13,667 14,686 14,499 NOI $ 23,156 $ 23,256 $ 23,324 $ 24,444 NOI margin 61.4 % 63.0 % 61.4 % 62.8 % Proportionate Debt-to-Gross Book Value Ratio As at ($000's) March 31, 2025 December 31, 2024 Class C LP Units $ 178,493 $ 214,290 Mortgages 842,426 846,079 Construction loan 43,881 40,403 Credit facility 9,205 24,500 Mortgage held by joint venture 52,846 — Total Debt - Proportionate Share Basis 1,126,851 1,125,272 Total assets 2,588,351 2,645,415 Total assets held by joint venture 53,788 — Total assets - Proportionate Share Basis $ 2,642,139 $ 2,645,415 Proportionate Debt-to-Gross Book Value ratio 42.6 % 42.5 % Total liquidity - Proportionate Share Basis $ 193,881 $ 187,700 Total liquidity as a percentage of Total Debt - Proportionate Share Basis 17.2 % 16.7 % Proportionate Debt-to-Adjusted EBITDA Ratio As at ($000's) March 31, 2025 December 31, 2024 Trailing 12-month: NOI $ 99,451 $ 100,571 General and administrative expenses (9,919) (10,061) Finance income 7,785 7,873 Fees and other income 3,399 3,452 100,716 101,835 Impact on NOI of stabilized earnings from dispositions and acquisitions (731) (404) Adjusted EBITDA 99,985 101,431 Total Debt - Proportionate Share Basis 1,126,851 1,125,272 Cash - Proportionate Share Basis 5,108 5,878 Total Debt, net of cash - Proportionate Share Basis $ 1,121,743 $ 1,119,394 Proportionate Debt-to-Adjusted EBITDA Ratio 11.22x 11.04x NAV and NAV per unit ($000's except unit and per unit amounts) As at March 31, 2025 December 31, 2024 Net assets (Unitholders' equity) $ 1,110,993 $ 1,115,747 Add: Class B LP Units 348,465 343,572 NAV $ 1,459,458 $ 1,459,319 Number of Units and Class B LP Units 64,196,027 65,333,848 NAV per unit $ 22.73 $ 22.34 SOURCE Minto Apartment Real Estate Investment Trust
Hamilton Spectator
03-05-2025
- Business
- Hamilton Spectator
Canadian eyewear retailer Hakim Optical files for creditor protection
Canadian eyewear retailer Hakim Optical is seeking creditor protection as part of restructuring proceedings. Hakim Optical Laboratory Limited filed a notice of intention (NOI) to make a proposal under the Bankruptcy and Insolvency Act on April 16. KSV Restructuring Inc. has been appointed as the licensed insolvency Trustee. According to the NOI filing, the proceedings are intended to give the company an opportunity to negotiate an asset purchase agreement with its senior secured lender, which would allow the company to continue operating. The NOI says the Toronto-based company is working to finalize the asset purchase agreement and intends to seek court approval of a sale process immediately after. The NOI filing shows the company owes more than $25 million — nearly $16 million of which is owed to its lone secured lender, a Bolton-based numbered company, 1001112855 Ontario Inc. Hakim Optical currently has more than 140 locations across Canada. The company was founded in 1967 by Iranian immigrant Karim Hakimi, who has a real-life rags to riches story. His father died when he was young and he worked from about age nine or 10 to support his family. In his young adult life, he was able to immigrate to Canada and worked in Toronto factories for six months before he opened his own wholesale optical business. He rented space in a downtown location and had a handwritten sign in front of his business. He sold glasses at discount prices and the business grew, eventually exceeding 160 stores, more than 600 employees and tens of millions of pairs of glasses sold. Metrolinx named a future stop on Toronto's Eglinton Crosstown LRT line in honour of him and another business leader, Joe Lebovic. The Hakimi Lebovic stop will be located on Eglinton Avenue at Hakimi and Lebovic avenues (west of Warden Avenue) in Scarborough.
