Latest news with #NexusIndustrialREIT
Yahoo
16-05-2025
- Business
- Yahoo
Nexus Industrial REIT (EFRTF) Q1 2025 Earnings Call Highlights: Strategic Shift to Industrial ...
Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Nexus Industrial REIT (EFRTF) completed the sale of 15 out of 16 retail properties, marking a strategic repositioning to focus solely on industrial real estate. The company's industrial occupancy increased to 97% in the first quarter, demonstrating strong operational performance. Net operating income (NOI) for the industrial portfolio improved by 3.4% compared to the previous quarter, driven by acquisitions, organic growth, and development. Nexus Industrial REIT (EFRTF) has successfully renewed over 80% of the gross leasable area set to expire in 2025, with a 30% growth on expiring rents. The company is well-positioned to weather economic challenges, with only 6% of NOI related to the auto manufacturing supply chain and 85% derived from Canadian distribution and third-party logistics tenants. Net income decreased by $10.5 million compared to the previous year, primarily due to a higher loss on the fair value adjustment of derivative financial instruments. The company faces challenges in leasing a 115,000 square foot project in Hamilton, which has been difficult due to market conditions. Two tenants have entered creditor protection, potentially impacting 2025 results, although they have continued to pay rent through April. Interest expense increased by $200,000 compared to the same period last year, partly due to lower capitalization of interest expense on development properties. The company still holds 50% ownership in two office properties, which are expected to be a longer-term project to sell due to their low value and partnership agreements. Warning! GuruFocus has detected 9 Warning Signs with EFRTF. Q: Can you explain how the Class B issuance for the Richmond expansion will work in terms of payment milestones? A: The payments will be released as construction progresses, with milestones such as drawings, permits, and foundation completion. These will be released in increments, such as 5% or 10%, as the project advances. (Kelly Hanzick, CEO) Q: What is the timeline for the Richmond expansion project? A: We expect to commence by the end of the third quarter, with completion anticipated in about one year. (Kelly Hanzick, CEO) Q: With the portfolio rebalancing complete, should we expect further capital recycling or high grading on the industrial side? A: The portfolio quality is strong, but we have interest in some assets out west. We may recycle capital from about five assets and reinvest in opportunities, particularly in the Montreal area, which could provide positive growth. (Kelly Hanzick, CEO) Q: Why was a three-year term selected for the Robin Hill Road lease instead of a longer term? A: The tenant had a lengthy renewal option, and we opted for a shorter term to gain immediate benefits. The tenant is a long-standing multinational, and we don't anticipate them leaving. (Kelly Hanzick, CEO) Q: Can you provide more details on the Richmond expansion and its impact on potential incremental density? A: The expansion includes additional courts and parking, which is crucial for the club's operation. We're also seeking bonus density, which could significantly increase the property's value. The city is supportive, and we expect to secure this bonus density. (Kelly Hanzick, CEO) Q: What is the potential scale of the bonus density at the Richmond site? A: The potential bonus density is approximately 240,000 square feet, likely for industrial use, such as storage. (Kelly Hanzick, CEO) Q: Regarding the Robin's Hill London lease, is the market rent representative of what you could achieve today? A: The Robin's Hill site is one of the best in London, and the PV site is slightly older. We're negotiating a long-term deal for the PV site, which may start lower and ramp up to market rates over five years. (Kelly Hanzick, CEO) Q: What is your exposure to the auto industry, and do you have any exposure to steel-related tenants? A: Our exposure to the auto industry is about 6%, primarily in parts distribution rather than manufacturing. We have some exposure to aluminum and auto parts suppliers, but it's limited. (Kelly Hanzick, CEO) 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
Hamilton Spectator
15-05-2025
- Business
- Hamilton Spectator
Nexus Industrial REIT Announces First Quarter 2025 Financial Results
Q1 Net Operating Income grew 8.6% from accretive acquisitions, development, and 6.6% industrial SPNOI Completed the strategic transition to a pure-play industrial REIT TORONTO, May 14, 2025 (GLOBE NEWSWIRE) — Nexus Industrial REIT (the 'REIT') (TSX: announced today its results for the first quarter ended March 31, 2025. 'In the first quarter we completed our strategic transition to a pure-play, Canada-focused industrial REIT' said Kelly Hanczyk, CEO of Nexus Industrial REIT. 'We sold fifteen legacy retail properties and an additional office building. Industrial assets now contribute over 99% of our NOI on a proforma basis. The sale proceeds reduced our debt and are being used to complete two ongoing development projects that will add $6.6 million of annual stabilized NOI after completion in the third quarter, representing an unlevered 9.4% return on development costs. 'Over the past five years we have successfully re-focused and grown Nexus to be a scale pure-play industrial REIT. Our updated portfolio of industrial properties positions us well to withstand the turbulent economic environment: our buildings are tenanted by high-quality lessees focusing on Canadian distribution, with long average lease terms. And, our buildings are geographically diversified within Canada. 'We have also had an excellent start to our 2025 leasing,' continued Mr. Hanczyk. 'We have already renewed over 80% of our expiring GLA, including three value-add renewals that will contribute another $2.6 million to NOI this year and $2.9 million in 2026, increasing thereafter. These renewals further demonstrate the quality of our portfolio and the strength of our tenant relationships. 'I am very excited with the progress that we have made, and I am confident that our strategy will continue to be rewarding for our unitholders' concluded Mr. Hanczyk. First Quarter 2025 Highlights: Subsequent events: Summary of Results Non-IFRS Measures Included in the tables above and elsewhere in this news release are non-IFRS financial measures that should not be construed as an alternative to net income / loss, cash from operating activities or other measures of financial performance calculated in accordance with IFRS and may not be comparable to similar measures as reported by other issuers. Certain additional disclosures for these non-IFRS financial measures have been incorporated by reference and can be found on page 3 in the REIT's Management's Discussion and Analysis for the three months ended March 31, 2025, available on SEDAR at and on the REIT's website under Investor Relations. See Appendix A of this earnings release for a reconciliation of the non-IFRS financial measures to the primary financial statement measures. NOI NOI for the three months ended March 31, 2025 was $32.1 million or $2.6 million higher than the prior year, which was primarily due to $1.1 million from acquisitions of industrial income producing properties completed subsequent to Q1 2024, an increase in Same Property NOI by $1.6 million, and $1.6 million relating to development projects, partially offset by $1.4 million relating to dispositions completed since Q1 2024, and $0.1 million relating to higher tenant incentives and leasing costs amortization. Fair value adjustment of investment properties The fair value gains on investment properties for the three months ended March 31, 2025, totalled $8.9 million. The REIT engaged external appraisers to value properties totaling $90.7 million in the quarter. Overall, fair value gains recorded for the REIT's portfolio primarily consists of $4.5 million relating to properties held for development based on development progress relative to the as-completed appraisal value and $10.0 million relating to changes in stabilized NOI and capitalization rates. Partially offsetting this is $2.9 million of capital expenditures net of adjustments that were not deemed to increase the fair value of the properties and therefore fair valued to zero and $2.7 million relating to investment property sale price adjustments prior to disposition. Outlook The REIT is focused on delivering total unitholder return through profitable long-term growth, and by pursuing its strategy as a Canada-focused pure-play industrial REIT. Overall, the REIT anticipates mid-single digit Same Property NOI growth in its industrial portfolio for the full year. In 2025, the REIT expects to benefit from the completion of two significant development projects. Combined, these properties will add annual stabilized NOI of approximately $6.6 million when complete: Earnings Call Management of the REIT will host a conference call at 10:00 AM Eastern Standard Time on Thursday May 15, 2025 to review the financial results and operations. To participate in the conference call, please dial 647-846-8414 or 1-833-752-3601 (toll free in Canada and the US) at least five minutes prior to the start time and ask to join the Nexus Industrial REIT conference call. A recording of the conference call will be available until June 15, 2025. To access the recording, please dial 1-412-317-0088 or 1-855-669-9658 (toll free in Canada and the US) and enter access code 4446040. May and June Distributions The REIT will make a cash distribution in the amount of $0.05333 per unit, representing $0.64 per unit on an annualized basis, payable June 13, 2025, to unitholders of record as of May 30, 2025. The REIT will also make a cash distribution in the amount of $0.05333 per unit, representing $0.64 per unit on an annualized basis, payable July 15, 2025, to unitholders of record as of June 30, 2025. Annual Meeting Voting Results Each of the matters set out in the REIT's management information circular dated March 26, 2025 (the 'Circular') for the annual meeting of unitholders held on May 14, 2025 (the 'Meeting') was approved by the requisite majority of unitholders, and each of the trustee nominees listed in the Circular was elected as a trustee of the REIT. Voting results for the individual trustees are as follows: The voting results for the audit committee, including Ms. Floriana Cipollone, Mr. Bradley Cutsey, and Mr. Ben Rodney, have been negatively impacted by Glass Lewis and Institutional Shareholder Services ('ISS') recommendation to the REIT's unitholders to withhold votes for these trustees due to excessive non-audit fees paid by the REIT to the REIT's auditor PricewaterhouseCoopers LLP ('the REIT's auditor'). This recommendation is based on Glass Lewis' and ISS' assessment ('their assessment') of the audit fees disclosed in the REIT's annual information form (AIF) for the year ended December 31, 2024. The REIT disagrees with their assessment. Audit fees paid by the REIT to the REIT's auditor during the year ended December 31, 2024, were $0.35 million as compared to non-audit fees of $0.28 million. This demonstrates that the audit fees paid exceeded non-audit fees by $0.07 million. The amounts referenced by Glass Lewis and ISS are fees billed by the REIT's auditor and disclosed as such in the REIT's AIF, and not amounts paid by the REIT. Final results on all matters considered at the Meeting are reported in the Report of Voting Results as filed on SEDAR ( ). About Nexus Industrial REIT Nexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada, and the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 89 properties (including one property held for development in which the REIT has an 80% interest) comprising approximately 11.7 million square feet of gross leasable area. The REIT has approximately 94,234,000 voting units issued and outstanding, including approximately 71,128,000 REIT Units and approximately 23,106,000 Class B LP Units of subsidiary limited partnerships of Nexus, which are convertible to REIT Units on a one-to-one basis. Forward Looking Statements Certain statements contained in this news release constitute forward-looking statements which reflect the REIT's current expectations and projections about future results. Often, but not always, forward-looking statements can be identified by the use of words such as 'plans', 'expects' or 'does not expect', 'is expected', 'estimates', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect. While the REIT anticipates that subsequent events and developments may cause its views to change, the REIT specifically disclaims any obligation to update these forward-looking statements except as required by applicable law. These forward-looking statements should not be relied upon as representing the REIT's views as of any date subsequent to the date of this news release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the REIT. For further information please contact: Kelly C. Hanczyk, CEO at (416) 906-2379 or Mike Rawle, CFO at (647) 823-1381 APPENDIX A – NON-IFRS FINANCIAL MEASURES SAME PROPERTY RESULTS ADJUSTED EBITDA ADJUSTED NET DEBT
Yahoo
15-05-2025
- Business
- Yahoo
Nexus Industrial REIT Announces First Quarter 2025 Financial Results
Q1 Net Operating Income grew 8.6% from accretive acquisitions, development, and 6.6% industrial SPNOI Completed the strategic transition to a pure-play industrial REIT TORONTO, May 14, 2025 (GLOBE NEWSWIRE) -- Nexus Industrial REIT (the 'REIT') (TSX: announced today its results for the first quarter ended March 31, 2025. 'In the first quarter we completed our strategic transition to a pure-play, Canada-focused industrial REIT' said Kelly Hanczyk, CEO of Nexus Industrial REIT. 'We sold fifteen legacy retail properties and an additional office building. Industrial assets now contribute over 99% of our NOI on a proforma basis. The sale proceeds reduced our debt and are being used to complete two ongoing development projects that will add $6.6 million of annual stabilized NOI after completion in the third quarter, representing an unlevered 9.4% return on development costs. 'Over the past five years we have successfully re-focused and grown Nexus to be a scale pure-play industrial REIT. Our updated portfolio of industrial properties positions us well to withstand the turbulent economic environment: our buildings are tenanted by high-quality lessees focusing on Canadian distribution, with long average lease terms. And, our buildings are geographically diversified within Canada. 'We have also had an excellent start to our 2025 leasing,' continued Mr. Hanczyk. 'We have already renewed over 80% of our expiring GLA, including three value-add renewals that will contribute another $2.6 million to NOI this year and $2.9 million in 2026, increasing thereafter. These renewals further demonstrate the quality of our portfolio and the strength of our tenant relationships. 'I am very excited with the progress that we have made, and I am confident that our strategy will continue to be rewarding for our unitholders' concluded Mr. Hanczyk. First Quarter 2025 Highlights: Completed the transition to a pure-play industrial REIT by selling 15 legacy retail properties and one legacy office property for total proceeds of $50.9 million. Industrial in-place and committed occupancy increased to 97% from 96% in 2024. Net income was $33.2 million driven by net operating income ("NOI")(1) of $32.1 million and by fair value gains on Class B LP units and on investment properties, partially offset by financing expense, general and administrative expense and fair value losses on derivative instruments. NOI increased 8.6% versus year ago to $32.1 million from the acquisition of high-quality, tenanted income-producing industrial properties, and growth in industrial Same Property NOI(1). Industrial Same Property NOI(1) increased 6.6% year over year to $27.4 million. Normalized FFO(1) per unit increased $0.022 versus a year ago to $0.187 and Normalized AFFO(1) per unit increased $0.019 versus a year ago to $0.154. Unitholders' equity increased by $24.5 million and NAV(1) per unit of $13.21 increased $0.02 or 0.2% versus Q4 2024. Advanced construction on the 325,000 sq. ft. expansion project in St. Thomas, ON, and on the 115,000 sq. ft. new industrial small-bay complex in Calgary, AB. Combined, these projects will add annual stabilized NOI of $6.6 million when complete. Completion of both projects is planned for the third quarter.(1) Non-IFRS Financial Measure Subsequent events: On April 14, 2025, the REIT acquired a land parcel adjacent to one of its existing properties in Kelowna, BC for a purchase price of $18.8 million. The land is intended for the future development of Class A industrial buildings. The purchase consideration was settled through the transfer of a non-core industrial property in Fort St. John valued at $7.0 million and the balance settled in cash. Concurrent with the above transaction, the REIT entered into an agreement with the vendor of the REIT's Richmond, BC property, The REIT will develop 51,467 square feet for additional courts and parking, representing a value of approximately $29 million. The Developer will manage the development and assume the costs of the construction. The agreement provides that, as long as certain conditions are met, the fee may be paid by issuing to the Developer Class B LP Units of a subsidiary limited partnership of the REIT, valued at $10.50 per unit and exchangeable on a 1 for 1 basis for REIT units. In accordance with the agreement, the REIT has agreed to issue 2,764,464 Class B LP units which will be released in stages as consideration for the construction costs. Summary of Results (In thousands of Canadian dollars, except per unit amounts) Three months ended March 31, 2025 2024 $ $ FINANCIAL INFORMATION Operating Results Property revenues 44,754 41,597 NOI (1) 32,090 29,537 Net Income 33,151 43,671 Adjusted EBITDA (LTM) (1) 121,151 107,206 FFO (1) 17,043 14,355 Normalized FFO (1) (2) 17,580 15,378 AFFO (1) 14,397 11,588 Normalized AFFO (1) (2) 14,478 12,611 Distributions declared (3) 15,073 14,940 Same Property NOI (1) 27,824 26,268 Industrial Same Property NOI (1) 27,353 25,650 Weighted average units outstanding (000s): Basic (4) 94,203 93,341 Diluted (4) 94,477 93,448 Per unit amounts: Distributions per unit – basic (3) (4) 0.160 0.160 Distributions per unit – diluted (3) (4) 0.160 0.160 Normalized FFO per unit – basic (1) (2) (4) 0.187 0.165 Normalized FFO per unit – diluted (1) (2) (4) 0.186 0.165 Normalized AFFO per unit – basic (1) (2) (4) 0.154 0.135 Normalized AFFO per unit – diluted (1) (2) (4) 0.153 0.135 Normalized AFFO payout ratio – basic (1) (2) (3) 104.1 % 118.5 % Normalized AFFO payout ratio – diluted (1) (2) (3) 104.6 % 118.5 % Same Property NOI Growth % (1) 5.9 % -1.5 % Industrial Same Property NOI Growth % (1) 6.6 % 1.0 %(1) This is a Non-IFRS Financial Measure. (2) Until Q1 2024, Normalized FFO and Normalized AFFO included adjustments for vendor rent obligation amounts due from the vendor of the REIT's Richmond, BC property, until certain conditions were satisfied. During Q2 2024, these conditions were satisfied and the vendor settled all outstanding amounts. (3) Includes distributions payable to holders of Class B LP Units which are accounted for as finance expense in the consolidated financial statements. (4) Weighted average number of units includes Class B LP Units. As at March 31, 2025 and December 31, 2024 2025 2024 (In thousands of Canadian dollars, unless stated otherwise) $ $ PORTFOLIO INFORMATION Total Portfolio Number of Investment Properties (2) 90 106 Number of Properties Under Development 2 2 Investment Properties Fair Value (excludes assets held for sale) 2,469,045 2,458,174 Gross leasable area ('GLA') (in millions of sq. ft.) (at the REIT's ownership interest) 11.7 12.5 Industrial occupancy rate – in-place and committed (period-end) (3) 97 % 96 % Weighted average lease term ('WALT') (years) 6.7 6.8 Industrial WALT (years) 6.8 7.0 Estimated spread between industrial portfolio market and in-place rents 21.8 % 25.3 % FINANCING AND CAPITAL INFORMATION Financing Net debt (1) 1,255,667 1,279,538 Total Indebtedness Ratio (1) 48.8 % 49.1 % Net Debt to Adjusted EBITDA (1) 10.36 10.87 Adjusted Net Debt to Adjusted EBITDA (1) 10.31 10.27 Debt service coverage ratio (times) 1.64 1.62 Secured Indebtedness Ratio 26.3 % 27.4 % Unencumbered investment properties as a percentage of investment properties 40.2 % 39.5 % Total assets 2,574,184 2,604,460 Cash and cash equivalents 9,080 11,532 Capital Total equity (per consolidated financial statements) 1,086,233 1,061,724 Total equity (including Class B LP Units) 1,244,968 1,241,747 Total number of Units (in thousands) (4) 94,221 94,159 NAV per Unit 13.21 13.19 (1) See Non-IFRS Financial Measure. (2) Includes 3 properties (17 properties - December 31, 2024) classified as assets held for sale. (3) Includes committed new leases for future occupancy. (4) Includes Class B LP Units. Non-IFRS Measures Included in the tables above and elsewhere in this news release are non-IFRS financial measures that should not be construed as an alternative to net income / loss, cash from operating activities or other measures of financial performance calculated in accordance with IFRS and may not be comparable to similar measures as reported by other issuers. Certain additional disclosures for these non-IFRS financial measures have been incorporated by reference and can be found on page 3 in the REIT's Management's Discussion and Analysis for the three months ended March 31, 2025, available on SEDAR at and on the REIT's website under Investor Relations. See Appendix A of this earnings release for a reconciliation of the non-IFRS financial measures to the primary financial statement measures. NOI NOI for the three months ended March 31, 2025 was $32.1 million or $2.6 million higher than the prior year, which was primarily due to $1.1 million from acquisitions of industrial income producing properties completed subsequent to Q1 2024, an increase in Same Property NOI by $1.6 million, and $1.6 million relating to development projects, partially offset by $1.4 million relating to dispositions completed since Q1 2024, and $0.1 million relating to higher tenant incentives and leasing costs amortization. Fair value adjustment of investment properties The fair value gains on investment properties for the three months ended March 31, 2025, totalled $8.9 million. The REIT engaged external appraisers to value properties totaling $90.7 million in the quarter. Overall, fair value gains recorded for the REIT's portfolio primarily consists of $4.5 million relating to properties held for development based on development progress relative to the as-completed appraisal value and $10.0 million relating to changes in stabilized NOI and capitalization rates. Partially offsetting this is $2.9 million of capital expenditures net of adjustments that were not deemed to increase the fair value of the properties and therefore fair valued to zero and $2.7 million relating to investment property sale price adjustments prior to disposition. Outlook The REIT is focused on delivering total unitholder return through profitable long-term growth, and by pursuing its strategy as a Canada-focused pure-play industrial REIT. Overall, the REIT anticipates mid-single digit Same Property NOI growth in its industrial portfolio for the full year. In 2025, the REIT expects to benefit from the completion of two significant development projects. Combined, these properties will add annual stabilized NOI of approximately $6.6 million when complete: The REIT expects to complete its 325,000 sq ft Dennis Rd. expansion project in St. Thomas, ON in the third quarter of 2025. This project is being constructed for an existing tenant. The REIT earns 7.8% on capital expenditures during the construction phase, and will earn a contractual going-in yield of 9.0% on the total development costs of $54.9 million upon completion. The REIT is constructing a 115,000 sq ft small-bay industrial building adjacent to an existing building that it owns in Calgary, AB. The project is now expected to be completed in the third quarter of 2025 and to earn a going-in yield of approximately 11% on total development costs of $15.4 million. Earnings Call Management of the REIT will host a conference call at 10:00 AM Eastern Standard Time on Thursday May 15, 2025 to review the financial results and operations. To participate in the conference call, please dial 647-846-8414 or 1-833-752-3601 (toll free in Canada and the US) at least five minutes prior to the start time and ask to join the Nexus Industrial REIT conference call. A recording of the conference call will be available until June 15, 2025. To access the recording, please dial 1-412-317-0088 or 1-855-669-9658 (toll free in Canada and the US) and enter access code 4446040. May and June Distributions The REIT will make a cash distribution in the amount of $0.05333 per unit, representing $0.64 per unit on an annualized basis, payable June 13, 2025, to unitholders of record as of May 30, 2025. The REIT will also make a cash distribution in the amount of $0.05333 per unit, representing $0.64 per unit on an annualized basis, payable July 15, 2025, to unitholders of record as of June 30, 2025. Annual Meeting Voting Results Each of the matters set out in the REIT's management information circular dated March 26, 2025 (the 'Circular') for the annual meeting of unitholders held on May 14, 2025 (the 'Meeting') was approved by the requisite majority of unitholders, and each of the trustee nominees listed in the Circular was elected as a trustee of the REIT. Voting results for the individual trustees are as follows: Nominee Number of Votes For Percentage of Votes For Number of Votes Withheld Percentage of Votes Withheld Floriana Cipollone 23,448,607 59.583% 15,906,168 40.417% Bradley Cutsey 27,573,968 70.065% 11,780,807 29.935% Daniel Oberste 39,198,350 99.603% 156,425 0.397% Mary Vitug 29,108,794 73.965% 10,245,981 26.035% Kelly C. Hanczyk 33,109,525 84.131% 6,245,250 15.869% Ben Rodney 27,578,382 70.076% 11,776,393 29.924% The voting results for the audit committee, including Ms. Floriana Cipollone, Mr. Bradley Cutsey, and Mr. Ben Rodney, have been negatively impacted by Glass Lewis and Institutional Shareholder Services ("ISS") recommendation to the REIT's unitholders to withhold votes for these trustees due to excessive non-audit fees paid by the REIT to the REIT's auditor PricewaterhouseCoopers LLP ("the REIT's auditor"). This recommendation is based on Glass Lewis' and ISS' assessment ("their assessment") of the audit fees disclosed in the REIT's annual information form (AIF) for the year ended December 31, 2024. The REIT disagrees with their assessment. Audit fees paid by the REIT to the REIT's auditor during the year ended December 31, 2024, were $0.35 million as compared to non-audit fees of $0.28 million. This demonstrates that the audit fees paid exceeded non-audit fees by $0.07 million. The amounts referenced by Glass Lewis and ISS are fees billed by the REIT's auditor and disclosed as such in the REIT's AIF, and not amounts paid by the REIT. Final results on all matters considered at the Meeting are reported in the Report of Voting Results as filed on SEDAR ( About Nexus Industrial REIT Nexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada, and the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 89 properties (including one property held for development in which the REIT has an 80% interest) comprising approximately 11.7 million square feet of gross leasable area. The REIT has approximately 94,234,000 voting units issued and outstanding, including approximately 71,128,000 REIT Units and approximately 23,106,000 Class B LP Units of subsidiary limited partnerships of Nexus, which are convertible to REIT Units on a one-to-one basis. Forward Looking Statements Certain statements contained in this news release constitute forward-looking statements which reflect the REIT's current expectations and projections about future results. Often, but not always, forward-looking statements can be identified by the use of words such as 'plans', 'expects' or 'does not expect', 'is expected', 'estimates', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect. While the REIT anticipates that subsequent events and developments may cause its views to change, the REIT specifically disclaims any obligation to update these forward-looking statements except as required by applicable law. These forward-looking statements should not be relied upon as representing the REIT's views as of any date subsequent to the date of this news release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the REIT. For further information please contact: Kelly C. Hanczyk, CEO at (416) 906-2379 orMike Rawle, CFO at (647) 823-1381 APPENDIX A – NON-IFRS FINANCIAL MEASURES (In thousands of Canadian dollars, except per unit amounts) Three months ended March 31, 2025 2024 Change FFO $ $ $ Net income 33,151 43,671 (10,520 ) Adjustments: Loss on disposal of investment properties 85 - 85 Fair value adjustment of investment properties (8,878 ) (15,183 ) 6,305 Fair value adjustment of Class B LP Units (19,037 ) (10,828 ) (8,209 ) Fair value adjustment of incentive units 199 (9 ) 208 Fair value adjustment of derivative financial instruments 7,989 (7,491 ) 15,480 Adjustments for equity accounted joint venture (1) 76 (42 ) 118 Distributions on Class B LP Units expensed 3,713 3,938 (225 ) Amortization of tenant incentives and leasing costs 366 273 93 Lease principal payments (26 ) (4 ) (22 ) Amortization of right-of-use assets 30 30 - Net effect of unrealized foreign exchange on USD debt and related hedges (625 ) - (625 ) Funds from operations (FFO) 17,043 14,355 2,688 Weighted average units outstanding (000s) Basic (4) 94,203 93,341 862 FFO per unit – basic 0.181 0.154 0.027 FFO 17,043 14,355 2,688 Add: Vendor rent obligation (2) - 628 (628 ) Add: Non-recurring personnel transition costs 107 260 (153 ) Add: Non-recurring adjustments from asset dispositions (5) 472 - 472 Add: Other non-cash items (6) (42 ) 135 (177 ) Normalized FFO 17,580 15,378 2,202 Weighted average units outstanding (000s) Basic (4) 94,203 93,341 862 Normalized FFO per unit – basic 0.187 0.165 0.022 (In thousands of Canadian dollars, except per unit amounts) Three months ended March 31, 2025 2024 Change AFFO $ $ $ FFO 17,043 14,355 2,688 Adjustments: Straight-line adjustments ground lease and rent (1,046 ) (1,167 ) 121 Capital reserve (3) (1,600 ) (1,600 ) - Adjusted funds from operations (AFFO) 14,397 11,588 2,809 Weighted average units outstanding (000s) Basic (4) 94,203 93,341 862 AFFO per unit – basic 0.153 0.124 0.029 AFFO 14,397 11,588 2,809 Add: Vendor rent obligation (2) - 628 (628 ) Add: Non-recurring personnel transition costs 107 260 (153 ) Add: Non-recurring adjustments from asset dispositions (5) 16 - 16 Add: Other non-cash items (6) (42 ) 135 (177 ) Normalized AFFO 14,478 12,611 1,867 Weighted average units outstanding (000s) Basic (4) 94,203 93,341 862 Normalized AFFO per unit – basic 0.154 0.135 0.019 (1) Adjustment for equity accounted joint venture relates to a fair value adjustment of swaps in place at the joint venture to swap floating rate bankers' acceptance rates to a fixed rate and a fair value adjustment of the joint venture investment property. (2) Until Q1 2024, Normalized FFO and Normalized AFFO included adjustments for vendor rent obligation amounts due from the vendor of the REIT's Richmond, BC property, until certain conditions were satisfied. During Q2 2024, these conditions were satisfied and the vendor settled all outstanding amounts. (3) Capital reserve includes maintenance capital expenditures, tenant incentives and leasing costs. Reserve amounts are established with reference to building condition reports, appraisals, and internal estimates of tenant renewal, tenant incentives and leasing costs. The REIT believes that a reserve is more appropriate given the fluctuating nature of these capital expenditures. (4) Weighted average number of units includes the Class B LP Units. (5) These adjustments represent balance sheet write-offs, early mortgage repayment charges, and other costs associated with the disposals made during the period. Given the one-time, non-recurring, nature of these costs, the REIT has adjusted for these in determining normalized FFO and normalized AFFO. (6) This adjustment represents unrealized foreign exchange losses (gains) on transactions relating to deferred purchase consideration. Note that the comparative periods for 2024 have been updated to conform with the current period PROPERTY RESULTS (In thousands of Canadian dollars) Three months ended March 31, 2025 2024 Change $ $ $ Property revenues 44,754 41,597 3,157 Property expenses (12,664 ) (12,060 ) (604 ) NOI 32,090 29,537 2,553 Add/(Deduct): Amortization of tenant incentives and leasing costs 366 273 93 Straight-line adjustments of rent (1,045 ) (1,164 ) 119 Development and expansion (1,622 ) (70 ) (1,552 ) Acquisitions (1,335 ) (248 ) (1,087 ) Disposals (630 ) (2,025 ) 1,395 Termination fees and other non-recurring items - (35 ) 35 Same Property NOI 27,824 26,268 1,556 Industrial same property NOI 27,353 25,650 1,703 ADJUSTED EBITDA (In thousands of Canadian dollars) Three months ended March 31, 2025 2024 Change $ $ $ Net income 80,362 199,984 (119,622 ) Add (deduct): Net interest expense 55,049 46,680 8,369 Distributions on Class B LP Units 15,053 14,606 447 Fair value adjustments (1) (30,593 ) (151,931 ) 121,338 Amortization expense (1)(2) (3,151 ) (3,732 ) 581 Loss on disposal of investment properties 1,540 807 733 Unrealized foreign exchange loss (gain) 123 (53 ) 176 Income from development property 2,374 325 2,049 Non-recurring personnel transition costs 191 520 (329 ) Non-recurring costs related to asset dispositions 203 - 203 Adjusted EBITDA 121,151 107,206 13,945 (1) Includes equity accounted investments adjustments. (2) Includes amortization of straight line rent, tenant improvement, and leasing NET DEBT (In thousands of Canadian dollars) March 31, December 31, 2025 2024 $ $ Current and non-current: Mortgages payable 581,204 590,292 Credit facilities 663,632 649,836 Lease liabilities 10,689 10,715 Liabilities associated with assets held for sale 9,222 40,227 Total indebtedness 1,264,747 1,291,070 Less: Unrestricted cash (9,080 ) (11,532 ) Less: Additions to properties under development (7,130 ) (70,232 ) Adjusted net debt 1,248,537 1,209,306
Yahoo
09-05-2025
- Business
- Yahoo
Undervalued Small Caps In Global With Insider Activity
In recent weeks, global markets have experienced a wave of optimism, with U.S. small- and mid-cap indexes advancing for the fourth consecutive week amid easing trade tensions and positive earnings reports. Despite mixed economic signals such as declining job openings and a slight contraction in GDP, investor sentiment remains buoyant, particularly within the small-cap sector which often benefits from domestic economic resilience. In this context, identifying stocks that are potentially undervalued with notable insider activity can offer intriguing opportunities for investors looking to capitalize on these market dynamics. Name PE PS Discount to Fair Value Value Rating Morgan Advanced Materials 11.2x 0.5x 38.89% ★★★★★☆ Nexus Industrial REIT 5.4x 2.8x 20.86% ★★★★★☆ Savills 24.6x 0.5x 41.04% ★★★★☆☆ Westshore Terminals Investment 12.4x 3.4x 42.27% ★★★★☆☆ Sing Investments & Finance 6.9x 3.5x 44.62% ★★★★☆☆ Eastnine 17.9x 8.7x 39.90% ★★★★☆☆ Tristel 30.3x 4.3x 19.10% ★★★☆☆☆ AKVA group 19.4x 0.7x 48.87% ★★★☆☆☆ Seeing Machines NA 2.2x 49.34% ★★★☆☆☆ European Residential Real Estate Investment Trust NA 1.6x -143.23% ★★★☆☆☆ Click here to see the full list of 154 stocks from our Undervalued Global Small Caps With Insider Buying screener. Underneath we present a selection of stocks filtered out by our screen. Simply Wall St Value Rating: ★★★☆☆☆ Overview: Bloomberry Resorts operates integrated resort facilities and has a market capitalization of approximately ₱114.07 billion. Operations: The company's primary revenue stream is derived from its integrated resort facility, with recent figures indicating revenue of ₱52.76 billion. The cost of goods sold (COGS) for the latest period was ₱14.39 billion, resulting in a gross profit margin of 72.72%. Operating expenses have been significant, impacting net income margins which stood at 4.97% for the most recent period analyzed. PE: 18.0x Bloomberry Resorts, a smaller company in the gaming and hospitality sector, has experienced insider confidence with Cyrus Sherafat purchasing 9 million shares for approximately PHP 69.93 million recently. Despite reporting a net loss of PHP 920 million in Q4 2024, their revenue increased to PHP 14.55 billion from PHP 11.91 billion the previous year. The company declared a cash dividend of PHP 0.0847 per share in March and completed a significant refinancing deal to manage debt more effectively over time, potentially easing future financial strain. Click here to discover the nuances of Bloomberry Resorts with our detailed analytical valuation report. Review our historical performance report to gain insights into Bloomberry Resorts''s past performance. Simply Wall St Value Rating: ★★★☆☆☆ Overview: Exchange Income is a diversified company operating primarily in the aerospace, aviation, and manufacturing sectors with a market cap of CA$2.15 billion. Operations: The company generates revenue primarily from its Manufacturing and Aerospace & Aviation segments, with recent figures showing CA$1.02 billion and CA$1.64 billion respectively. Over the analyzed period, gross profit margin has shown fluctuations, reaching 36.40% by the end of 2024. Operating expenses have consistently increased alongside revenue growth, impacting overall profitability metrics such as net income margin which was at 4.56% in December 2024. PE: 23.2x Exchange Income, a smaller company in its sector, recently expanded its credit facility to C$3 billion, signaling financial flexibility despite relying solely on external borrowing. The company's earnings are projected to grow by 25.41% annually. While dividends remain steady at C$0.22 per share monthly, insider confidence is reflected through recent share purchases by insiders between January and March 2025. These actions suggest potential growth opportunities amid current market conditions without any recent buybacks executed yet under the new program expiring in 2026. Click here and access our complete valuation analysis report to understand the dynamics of Exchange Income. Evaluate Exchange Income's historical performance by accessing our past performance report. Simply Wall St Value Rating: ★★★★☆☆ Overview: Propel Holdings is a financial technology company that provides innovative online credit solutions to underserved consumers, with a market capitalization of approximately CAD $0.2 billion. Operations: Propel Holdings generates revenue primarily through its operations, with a notable gross profit margin of 100% from 2020 onwards. Operating expenses have consistently increased, reaching $381.84 million by early 2025, while net income margins have shown improvement over time, rising to approximately 11.53% in the same period. PE: 16.7x Propel Holdings, a dynamic player in its sector, recently reported strong financial performance with Q1 2025 revenue at US$138.94 million and net income rising to US$23.5 million. The company increased its annual dividend to CAD 0.72 per share, marking the eighth hike since early 2023, reflecting confidence in future cash flows. Recent insider confidence is evident as they have been acquiring more shares over the past months, suggesting belief in Propel's growth potential amidst expanding U.S. partnerships and reduced borrowing costs following credit facility adjustments. Dive into the specifics of Propel Holdings here with our thorough valuation report. Gain insights into Propel Holdings' past trends and performance with our Past report. Click through to start exploring the rest of the 151 Undervalued Global Small Caps With Insider Buying now. Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PSE:BLOOM TSX:EIF and TSX:PRL. Have feedback on this article? Concerned about the content? with us directly. 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Yahoo
22-04-2025
- Business
- Yahoo
Global Undervalued Small Caps With Insider Action To Watch
In a week marked by mixed outcomes for major stock indexes, smaller-cap indices like the S&P MidCap 400 and Russell 2000 have shown resilience, posting gains amidst broader market volatility. This performance comes against a backdrop of global trade tensions and economic uncertainties, which continue to shape investor sentiment and influence market dynamics. In such an environment, identifying promising small-cap stocks involves looking at factors like financial health, growth potential, and strategic insider actions that may signal confidence in the company's future prospects. Name PE PS Discount to Fair Value Value Rating Morgan Advanced Materials 10.2x 0.5x 44.70% ★★★★★★ Nexus Industrial REIT 5.1x 2.6x 27.02% ★★★★★★ Chorus Aviation NA 0.4x 21.30% ★★★★★★ Sing Investments & Finance 7.4x 3.7x 41.54% ★★★★☆☆ Seeing Machines NA 1.8x 48.22% ★★★★☆☆ Italmobiliare 10.7x 1.4x -251.44% ★★★☆☆☆ Speedy Hire NA 0.2x -6.83% ★★★☆☆☆ Calfrac Well Services 34.5x 0.2x 26.94% ★★★☆☆☆ Saturn Oil & Gas 5.3x 0.4x -1.16% ★★★☆☆☆ European Residential Real Estate Investment Trust NA 1.6x -133.92% ★★★☆☆☆ Click here to see the full list of 157 stocks from our Undervalued Global Small Caps With Insider Buying screener. Here we highlight a subset of our preferred stocks from the screener. Simply Wall St Value Rating: ★★★☆☆☆ Overview: European Residential Real Estate Investment Trust focuses on owning and operating a portfolio of residential properties across Europe, with a market capitalization of €0.89 billion. Operations: The primary revenue stream is derived from investment properties, with the latest reported revenue at €92.97 million. The cost of goods sold (COGS) was €20.10 million, leading to a gross profit of €72.87 million and a gross profit margin of 78.38%. Operating expenses were recorded at €8.65 million, impacting the net income which stood at -€64.29 million for the same period due to significant non-operating expenses amounting to €128.51 million. PE: -2.2x European Residential Real Estate Investment Trust, a small cap player in the property sector, faces challenges with earnings declining 31.6% annually over five years and interest payments not fully covered by earnings. Despite these hurdles, insider confidence is evident as they have been purchasing shares recently. The company maintains regular dividends, recently affirming a €0.06 annualized distribution per unit for April 2025. With no customer deposits and reliance on external borrowing, financial risks remain present but manageable given recent net loss improvements from €114 million to €64 million year-over-year. Delve into the full analysis valuation report here for a deeper understanding of European Residential Real Estate Investment Trust. Gain insights into European Residential Real Estate Investment Trust's historical performance by reviewing our past performance report. Simply Wall St Value Rating: ★★★★★☆ Overview: Killam Apartment REIT focuses on owning, managing, and developing residential apartment buildings, commercial properties, and manufactured home communities with a market capitalization of CA$2.18 billion. Operations: The company generates revenue primarily from its apartment segment, complemented by income from commercial properties and manufactured home communities. Over the observed periods, the net income margin showed notable fluctuations, reaching as high as 1.82%. Operating expenses and general & administrative expenses are consistent cost components impacting profitability. PE: 3.0x Killam Apartment REIT, a small player in the real estate sector, presents an intriguing investment opportunity. Despite its reliance on external borrowing, which is riskier than customer deposits, the company maintains a strong financial position with sales reaching C$364.65 million for 2024. Insider confidence is evident as insiders have been purchasing shares since early 2024. Regular monthly dividends of C$0.06 per unit continue to provide consistent returns to investors, hinting at stable future prospects. Navigate through the intricacies of Killam Apartment REIT with our comprehensive valuation report here. Learn about Killam Apartment REIT's historical performance. Simply Wall St Value Rating: ★★★★☆☆ Overview: Wajax is a Canadian company that specializes in the distribution and service of industrial components and equipment, with a market cap of CA$0.53 billion. Operations: The company's revenue primarily comes from wholesale machinery and industrial equipment, with a notable gross profit margin of 21.55% as of June 2024. Operating expenses include significant general and administrative costs, which were CA$318.75 million in the same period. Net income margin has shown variability, reaching 3.32% in June 2024 but declining to 2.04% by December of the same year. PE: 8.6x Wajax, a smaller company in its sector, recently saw insider confidence when President Ignacy Domagalski purchased 17,500 shares for approximately C$306,250. However, the company's financial health shows mixed signals. While interest payments aren't well covered by earnings and profit margins decreased to 2% from 3.8%, Wajax continues to distribute dividends of C$0.35 per share. Sales fell slightly to C$2.1 billion in 2024 from the prior year's C$2.15 billion, with net income dropping significantly to C$42 million from C$81 million previously reported. Dive into the specifics of Wajax here with our thorough valuation report. Evaluate Wajax's historical performance by accessing our past performance report. Explore the 157 names from our Undervalued Global Small Caps With Insider Buying screener here. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TSX: TSX: and TSX:WJX. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
