Automotive Properties REIT Reports 2024 Fourth Quarter and Year-End Results

TORONTO, March 5, 2025 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) ("Automotive Properties REIT" or the "REIT") today announced its financial results for the fourth quarter ("Q4 2024") and year ended December 31, 2024 ("2024").

"Following the completion of our sale of the Kennedy Lands, we had an active fourth quarter and start to 2025 on the acquisition front," said Milton Lamb, CEO of Automotive Properties REIT. "During Q4, we acquired two heavy construction equipment dealerships in the Greater Montreal Area and entered into an agreement to acquire a Rivian-tenanted property in Tampa, Florida. Subsequent to year-end, we entered into an agreement to acquire a Tesla-tenanted property in a suburb of Columbus, Ohio. We expect to close these two U.S. acquisitions by the end of March 2025. We expect the addition of these four properties to increase our AFFO per Unit, while also enhancing our geographic, brand and tenant diversification."

"Our property portfolio generated solid organic growth for the fourth quarter and year, supported by the fixed and CPI-linked contractual rent increases embedded in our leases," continued Mr. Lamb. "We look forward to further building on these solid results in 2025 through continued organic growth and the positive impact of our property acquisitions."

Q4 2024 Highlights                               

• The REIT generated AFFO per Unit¹ of $0.232 (diluted) and paid regular cash distributions of $0.201 per Unit (as defined below) in Q4 2024, representing an AFFO payout ratio¹ of approximately 86.6%. For the comparable three-month period ended December 31, 2023 ("Q4 2023"), the REIT generated AFFO per Unit of $0.230 (diluted) and paid cash distributions of $0.201 per Unit, representing an AFFO payout ratio of approximately 87.4%.
• The REIT had a Debt to Gross Book Value ("Debt to GBV")² ratio of 42.4% as at December 31, 2024, and $88.8 million of undrawn capacity under its revolving credit facilities, $0.3 million of cash on hand, and three unencumbered properties with an aggregate value of approximately $43.8 million. As at the date of this news release, the REIT has approximately $89.4 million of undrawn capacity under its revolving credit facilities.
• On October 1, 2024, the REIT completed the sale of the automotive dealership properties located at 8210 and 8220 Kennedy Road and 7 and 13/15 Main Street in Markham, Ontario (collectively, the "Kennedy Lands") to a member of the Dilawri Group for initial gross proceeds of $54.0 million (the "Sale Transaction"). The net proceeds from the Sale Transaction were used primarily to repay in full the REIT's indebtedness under its revolving credit facilities.
• On October 15, 2024, the REIT funded the dealership facility expansion at its McNaught Cadillac Buick GMC dealership property located in Winnipeg, Manitoba. The investment of approximately $7.1 million resulted in an annual rent increase. The tenant has also exercised an early lease renewal and extended the duration of the existing lease term.
• On October 31, 2024, the REIT announced that it had entered into an agreement to acquire a Rivian-tenanted automotive property in Tampa, Florida (the "Tampa Property") for a purchase price of approximately US$13.5 million (approximately C$18.8 million). The REIT expects to fund the purchase price for the acquisition of the Tampa Property with draws on its revolving credit facilities. The acquisition of the Tampa Property is expected to close in March 2025, subject to the satisfaction of customary closing conditions.
• On November 25, 2024, the REIT acquired two heavy construction equipment dealership properties located in the Greater Montreal Area for a purchase price of approximately $25.4 million (the "Greater Montreal Properties"). The REIT funded the purchase price of the Greater Montreal Properties with cash on hand and by drawing on its revolving credit facilities.
• The REIT declared a special distribution in the amount of $0.55 per Unit (the "Special Distribution") payable to Unitholders of record as of December 31, 2024, comprised of $0.081 per Unit payable in cash and $0.469 per Unit payable through the issuance of Units. The Unit portion of the Special Distribution was paid on December 31, 2024 and the cash portion of the Special Distribution was paid on January 6, 2025.

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¹ AFFO per Unit and AFFO payout ratio are non-IFRS measures and non-IFRS ratios, respectively. See "Non-IFRS Financial Measures" at the end of this news release.

² Debt to GBV is a supplementary financial measure. See "Non-IFRS Financial Measures" at the end of this news release.

Subsequent Event                              

• On February 10, 2025, the REIT announced that it had entered into an agreement with a third party to acquire a Tesla-tenanted collision center property (the "Columbus Tesla Property") located in Dublin, Ohio, a suburb of Columbus, for approximately US$17.8 million (approximately C$25.5 million). The REIT expects to fund the purchase price for the acquisition of the Columbus Tesla Property primarily by drawing on its revolving credit facilities. The acquisition is expected to close in March 2025, subject to the satisfaction of customary closing conditions.

Financial Results Summary           

	Three months ended December 31,			12 months ended  December 31,
($000s, except per Unit amounts)	2024	2023	Change	2024	2023	Change
Rental revenue ^(1)	$23,415	$23,291	0.5 %	$93,876	$92,484	1.5 %
NOI ^(2)	19,765	19,741	0.1 %	79,329	78,413	1.2 %
Cash NOI ^(2)	19,585	19,317	1.4 %	78,269	76,372	2.5 %
Same Property Cash NOI ^(1) (2)	19,284	18,897	2.0 %	75,530	73,818	2.3 %
Net Income (loss)^(3)	12,046	(15,199)	N/A	72,001	50,991	41.2 %
FFO ^(2)	11,874	11,939	-0.5 %	47,879	48,010	-0.3 %
AFFO ^(2)	11,682	11,532	1.3 %	46,810	45,930	1.9 %
Distributions per Unit ^(4)	$0.201	$0.201	-	$0.804	$0.804	-
FFO per Unit - basic ^(2) (5)	0.242	0.243	-0.001	0.976	0.979	-0.003
FFO per Unit - diluted ^(2)^(6)	0.236	0.238	-0.002	0.953	0.959	-0.006
AFFO per Unit - basic ^(2) (5)	0.238	0.235	0.003	0.954	0.936	0.018
AFFO per Unit - diluted ^(2)^(6)	0.232	0.230	0.002	0.932	0.918	0.014
Ratios (%)
FFO payout ratio ^(2)	85.2 %	84.5 %	0.7 %	84.4 %	83.8 %	0.6 %
AFFO payout ratio ^(2)	86.6 %	87.4 %	-0.8 %	86.3 %	87.6 %	-1.3 %
Debt to GBV ^(7)	42.4 %	45.0 %	-2.6 %	42.4 %	45.0 %	-2.6 %

(1)	Rental revenue is based on rents from leases entered into with tenants, all of which are triple-net leases and include recoverable realty taxes and straight-line adjustments. Same Property Cash NOI is based on rental revenue for the same asset base having consistent gross leasable area in both periods.
(2)	NOI, Cash NOI, Same Property Cash NOI, FFO, AFFO, FFO per Unit, AFFO per Unit, FFO payout ratio and AFFO payout ratio are non-IFRS measures or non-IFRS ratios, as applicable. See "Non-IFRS Financial Measures" at the end of this news release. References to "Same Property" correspond to properties that the REIT owned in Q4 2023, thus removing the impact of acquisitions.
(3)	Net income for Q4 2024 includes changes in fair value adjustments of $1.6 million for Class B Limited Partnership Units of Automotive Properties Limited Partnership ("Class B LP Units"), Deferred Units ("DUs"), Income Deferred Units ("IDUs"), Performance Deferred Units ("PDUs") and Restricted Deferred Units ("RDUs"), $0.05 million for interest rate swaps and foreign exchange forward contract and $1.4 million for investment properties. Net income for 2024 includes changes in fair value adjustments of $9.1 million Class B LP Units, DUs, IDUs, PDUs and RDUs, $9.8 million for interest rate swaps and foreign exchange forward contract and $27.7 million for investment properties Please refer to the consolidated financial statements of the REIT and the notes thereto for additional information.
(4)	Excludes the Special Distribution.
(5)	FFO per Unit and AFFO per Unit – basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding trust units of the REIT ("REIT Units" and together with the Class B LP Units, "Units") and Class B LP Units. The total weighted average number of Units outstanding – basic for Q4 2024 was 49,090,142.
(6)	FFO per Unit and AFFO per Unit – diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding Units, DUs, IDUs, PDUs and RDUs granted to independent trustees and management of the REIT. The total weighted average number of Units outstanding (including Class B LP Units, DUs, IDUs, PDUs and RDUs) on a fully diluted basis for Q4 2024 was 50,297,193.
(7)	Debt to GBV is a supplementary financial measure. See "Non-IFRS Financial Measures" at the end of this news release.

Rental revenue was $23.4 million in Q4 2024 and $93.9 million in 2024, representing increases of 0.5% and 1.5%, respectively, from Q4 2023 and the year ended December 31, 2023 ("2023"). Increased rental revenue in Q4 2024 and 2024 reflects growth from the properties acquired subsequent to Q4 2023 and during and subsequent to 2023, respectively, and contractual rent increases, partially offset by the decrease in rent as a result of the Sale Transaction.

The REIT generated total Cash NOI of $19.6 million in Q4 2024 and $78.3 million in 2024, representing increases of 1.4% and 2.5%, respectively, from Q4 2023 and 2023. The increases were primarily attributable to the properties acquired subsequent to Q4 2023 and during and subsequent to 2023, respectively, and contractual rent increases. Same Property Cash NOI was $19.3 million in Q4 2024 and $75.5 million in 2024, representing increases of 2.0% and 2.3%, respectively, from Q4 2023 and 2023. The increases were primarily attributable to contractual rent increases.

The REIT recorded net income of $12.0 million in Q4 2024, compared to a net loss of $15.2 million in Q4 2023. Net income was $72.0 million in 2024, compared to $51.0 million in 2023. The positive variance in Q4 2024 was primarily due to changes in non-cash fair value adjustments for interest rate swaps and foreign exchange foreign contract, and for Class B LP Units, DUs, IDUs, PDUs and RDUs (collectively "Unit-based compensation"). The positive variance in 2024 was primarily due to changes in fair value adjustments for investment properties (including a gain of $23.8 million resulting from the Sale Transaction), partially offset by changes in fair value adjustments for Class B LP Units and Unit-based compensation, and for interest rate swaps and a foreign exchange forward contract. The impact of the movement in the traded value of the REIT Units resulted in an increase in fair value adjustment for Class B LP Units and Unit-based compensation of $1.6 million in Q4 2024 (2024 – increase of $9.1 million), compared to a decrease of $3.6 million in Q4 2023 (2023 – increase of $22.2 million).

FFO in Q4 2024 decreased by 0.5% to $11.9 million, or $0.236 per Unit (diluted), compared to $11.9 million, or $0.238 per Unit (diluted) in Q4 2023. The slight decrease was primarily attributable to higher general and administrative expenses and a reduction in straight-line rent adjustment, partially offset by lower interest expense and higher base rental revenue. FFO in 2024 decreased by 0.3% to $47.9 million, or $0.953 per Unit (diluted), compared to $48.0 million, or $0.959 per Unit (diluted), in 2023. The slight decrease was primarily attributable to higher interest expense, higher general and administrative expenses, and a reduction in straight-line rent adjustment, partially offset by higher base rental revenue. Straight-line rent adjustment decreased by $0.2 million in Q4 2024 and $1.0 million in 2024, respectively, due to the addition of leases to the investment property portfolio containing CPI-linked rent adjustments.

AFFO in Q4 2024 increased 1.3% to $11.7 million, or $0.232 per Unit (diluted), compared to $11.5 million, or $0.230 per Unit (diluted), in Q4 2023. AFFO in 2024 increased 1.9% to $46.8 million, or $0.932 per Unit (diluted), compared to $45.9 million, or $0.918 per Unit (diluted), in 2023. The increases in AFFO in Q4 2024 and 2024 were primarily attributable to the impact of the properties acquired subsequent to Q4 2023 and during and subsequent to 2023, respectively, and contractual rent increases. The increase to AFFO in 2024 was partially offset by higher interest costs and general and administrative expenses. Straight-line rent adjustment is excluded from the calculation of AFFO.

Adjusted Cash Flow from Operations ("ACFO")³ for 2024 was $51.2 million, an increase of 3.9% compared to $49.3 million in 2023. The increase was primarily attributable to properties acquired during and subsequent to 2023 and contractual rent increases, partially offset by higher interest paid. 

Cash Distributions

The REIT is currently paying monthly cash distributions of $0.067 per Unit, representing $0.804 per Unit on an annualized basis. For Q4 2024, the REIT declared and paid regular cash distributions of $9.87 million, or $0.201 per Unit, representing an AFFO payout ratio of 86.6%. The AFFO payout ratio was lower in Q4 2024 compared to the 87.4% AFFO payout ratio in Q4 2023, primarily due to the positive impact of the properties acquired subsequent to Q4 2023 and contractual rent increases, partially offset by increased interest expense, short and long-term performance awards, and the vesting of long-term Unit-based compensation.

For 2024, the REIT declared and paid regular cash distributions of $39.45 million, or $0.804 per Unit, representing an AFFO payout ratio of 86.3%. The AFFO payout ratio was lower in 2024 compared to the 87.6% AFFO payout ratio in 2023 primarily due to the impact of the properties acquired during and subsequent to 2023 and contractual rent increases.

Principally to distribute to Unitholders a portion of the taxable income generated by the Sale Transaction, the REIT declared and paid the Special Distribution to Unitholders of record as of December 31, 2024 in the amount of $0.55 per REIT unit, comprised of $0.081 per Unit payable in cash and $0.469 per Unit payable by the issuance of Units. The Unit portion of the Special Distribution was paid at the close of business on December 31, 2024 through the issuance of Units from treasury that had a fair market value equal to the dollar amount of the Special Distribution payable in Units based on the volume-weighted average trading price of the Units on the Toronto Stock Exchange for the five trading days ending on December 30, 2024. Immediately following the Special Distribution, the outstanding Units of the REIT were consolidated such that each Unitholder held, after the consolidation, the same number of Units as held immediately prior to the Special Distribution. The cash portion of the Special Distribution was paid on January 6, 2025.

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³ ACFO is a non-IFRS measure. See "Non-IFRS Financial Measures" at the end of this news release.

Liquidity and Capital Resources 

As at December 31, 2024, the REIT had a Debt to GBV ratio of 42.4%, $88.8 million of undrawn capacity under its revolving credit facilities, $0.3 million of cash on hand, and three unencumbered properties with an aggregate value of approximately $43.8 million. As at the date of this news release, the REIT has approximately $89.4 million of undrawn capacity under its revolving credit facilities, cash on hand of $0.3 million, and three unencumbered properties have an aggregate value of approximately $43.8 million.

As at December 31, 2024, 93% of the REIT's debt was fixed with a weighted average interest rate of 4.37%, a weighted average interest rate swap term and mortgages remaining of 4.2 years, and a weighted average term to maturity of debt of 2.4 years.

Units Outstanding

As at December 31, 2024, there were 49,090,142 REIT Units and nil Class B LP Units outstanding.

Outlook 

The REIT is subject to risks associated with inflation, interest rates, currency fluctuations and availability of capital. The REIT is actively monitoring risks associated with recently proposed trade tariffs and other trade restrictions, which, if implemented, could impact cross-border trade, material costs, and overall economic market conditions in Canada. While the full extent and impact of these proposed trade tariffs and trade restrictions remains uncertain, the REIT is continuing to assess their potential effect on its business, property valuations and financing conditions.

The REIT used a portion of the net proceeds from the Sale Transaction to pay down in full its indebtedness under its revolving credit facilities, which lowered the REIT's Debt to GBV ratio, thereby providing the REIT with additional acquisition capacity. The REIT has entered into agreements to acquire the Tampa Property for approximately US$13.5 million and the Columbus Tesla Property for approximately US$17.8 million (together, the "Property Acquisitions"). The REIT expects to fund the Property Acquisitions with draws on its revolving credit facilities. The addition of these properties is expected to increase the REIT's AFFO per Unit.

The Canadian and United States automotive and original equipment manufacturer ("OEM") dealership and service industry is highly fragmented, and the REIT expects continued consolidation over the mid to long term due to increased industry sophistication and growing capital requirements for owner operators, which encourages them to pursue increased economies of scale. The REIT plans to continue to grow its portfolio of properties leased to OEMs, OEM dealers and other automotive related uses.

Financial Statements

The REIT's audited consolidated financial statements and related Management's Discussion & Analysis ("MD&A") for the year ended December 31, 2024 are available on the REIT's website at www.automotivepropertiesreit.ca and on SEDAR+ at www.sedarplus.ca.

Conference Call

Management of the REIT will host a conference call for analysts and investors on Thursday, March 6, 2025 at 9:00 a.m. (ET). To join the conference call without operator assistance, participants can register and enter their phone number at https://emportal.ink/4hK1nyh to receive an instant automated call back. Alternatively, they can dial [phone] or [phone] to reach a live operator who will join them into the call. A live and archived webcast of the call will be accessible via the REIT's website www.automotivepropertiesreit.ca.

To access a replay of the conference call, dial [phone] or [phone], passcode: 13550 #. The replay will be available until March 13, 2025.

About Automotive Properties REIT

Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive and other OEM dealership and service properties located in Canada and the United States. The REIT's portfolio currently consists of 78 income-producing commercial properties, representing approximately 2.9 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive and OEM dealership and service real estate properties. For more information, please visit: www.automotivepropertiesreit.ca.

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events and in some cases can be identified by such terms as "will" and "expected". Forward-looking information includes the REIT's expectations with respect to inflation and interest rates, including the impact of each of the foregoing on the REIT and its tenants, the REIT's expectations with respect to the completion of the Property Acquisitions, the timing and the financial benefits therefrom and the REIT's future acquisition capacity. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risks & Uncertainties, Critical Judgments & Estimates" in the REIT's MD&A for the year ended December 31, 2024 and in the REIT's annual information form dated March 5, 2025, which are available on SEDAR+ (www.sedarplus.ca) and the REIT's website (www.automotivepropertiesreit.ca). The forward-looking information relating to the proposed Property Acquisitions is subject to the further risk that the customary closing conditions may not be satisfied or waived such that one or both of the acquisitions do not close on current terms or at all. The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.

Non-IFRS Financial Measures

This news release contains certain financial measures and ratios which are not defined under International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures presented by other real estate investment trusts or enterprises. FFO, AFFO, FFO payout ratio, AFFO payout ratio, NOI, Cash NOI, Same Property Cash NOI and ACFO are key measures of performance used by the REIT's management and real estate businesses. Debt to GBV, a supplementary financial measure, is a measure of financial position defined by agreements to which the REIT is a party. These measures, as well as any associated "per Unit" amounts, are not defined by IFRS and do not have standardized meanings prescribed by IFRS, and therefore should not be construed as alternatives to net income or cash flow from operating activities calculated in accordance with IFRS. The REIT believes that AFFO is an important measure of economic earnings performance and is indicative of the REIT's ability to pay distributions from earnings, while FFO, NOI, Cash NOI and Same Property Cash NOI are important measures of operating performance of real estate businesses and properties. The IFRS measurement most directly comparable to FFO, AFFO, NOI, Cash NOI and Same Property Cash NOI is net income. ACFO is a supplementary measure used by management to improve the understanding of the operating cash flow of the REIT. The IFRS measurement most directly comparable to ACFO is cash flow from operating activities. For reconciliations of NOI, FFO, AFFO and Cash NOI to net income and comprehensive income, and ACFO to cash flow from operating activities, please see the tables below. For further information regarding these non-IFRS measures and supplementary financial measures, please refer to Section 1 "General Information and Cautionary Statements – Non-IFRS Financial Measures" and Section 6 "Non-IFRS Financial Measures" in the REIT's MD&A for the year ended December 31, 2024 which is incorporated by reference herein and is available on the REIT's website at www.automotivepropertiesreit.ca and on SEDAR+ at www.sedarplus.ca.

Reconciliation of NOI, Cash NOI, FFO and AFFO to Net Income and Comprehensive Income

	Three Months Ended December 31,				12 Months Ended December 31,
($000s, except per Unit amounts)	2024	2023	Variance		2024		2023	Variance
Calculation of NOI
Property revenue	$23,415	$23,291	$124		$93,876		$92,484	$1,392
Property costs	(3,650)	(3,550)	(100)		(14,547)		(14,071)	(476)
NOI (including straight‑line adjustments)	$19,765	$19,741	$24		$79,329		$78,413	$916
Adjustments:
Land lease payments	(86)	(115)	29		(384)		(345)	(39)
Straight‑line adjustment	(94)	(309)	215		(676)		(1,696)	1,020
Cash NOI	$19,585	$19,317	$268		$78,269		$76,372	$1,897
Reconciliation of net income to FFO and AFFO
Net income (loss) and comprehensive income	$12,046	($15,199)	$27,245		$72,001		$50,991	$21,010
Adjustments:
Change in fair value — Interest rate swaps	47	20,972	(20,925)		9,810		7,739	2,071
Distributions on Class B LP Units	-	1,875	(1,875)		3,125		7,499	(4,374)
Change in fair value – Class B LP Units and Unit-based compensation	(1,582)	3,565	(5,147)		(9,096)		(22,163)	13,067
Change in fair value — investment properties^(1)	1,441	768	673		(27,664)		4,113	(31,777)
ROU asset net balance of depreciation/interest and lease payments	(78)	(42)	(36)		(297)		(169)	(128)
FFO	$11,874	$11,939	($65)		$47,879		$48,010	($131)
Adjustments:
Straight‑line adjustment	(94)	(309)	215		(676)		(1,696)	1.020
Capital expenditure reserve	(98)	(98)	0		(393)		(384)	9
AFFO	$11,682	$11,532	$150		$46,810		$45,930	$880
Number of Units outstanding (including Class B LP Units)	49,090,142	49,054,833	35,309		49,090,142		49,054,833	35,309
Weighted average Units Outstanding — basic	49,090,142	49,054,833	35,309		49,068,183		49,054,833	35,309
Weighted average Units Outstanding — diluted	50,297,193	50,082,627	214,566		50,235,796		50,049,275	186,521
FFO per Unit – basic^(2)	$0.242	$0.243	($0.001)		$0.976		$0.979	($0.003)
FFO per Unit – diluted^(3)	$0.236	$0.238	($0.002)		$0.953		$0.959	($0.006)
AFFO per Unit – basic^(2)	$0.238	$0.235	$0.003		$0.954		$0.936	$0.018
AFFO per Unit – diluted^(3)	$0.232	$0.230	$0.002		$0.932		$0.918	$0.014
Distributions per Unit^(4)	$0.201	$0.201	—		$0.804		$0.804	—
FFO payout ratio^(4)	85.2 %	84.5 %	0.7 %		84.4 %		83.8 %	0.6 %
AFFO payout ratio^(4)	86.6 %	87.4 %	(0.8 %)		86.3 %		87.6 %	(1.3 %)

(1)	The Change in fair value — investment properties in respect of the 12 months ended December 31, 2024 is inclusive of the $23,760 fair value gain as a result of the Sale Transaction.
(2)	FFO and AFFO per Unit — basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted-average number of outstanding REIT Units and Class B LP Units.
(3)	FFO and AFFO per Unit — diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted-average number of outstanding REIT Units, Class B LP Units and Unit-based compensation granted to independent trustees and management of the REIT.
(4)	Excludes the Special Distribution.

Same Property Cash Net Operating Income

	Three Months Ended December 31,					12 Months Ended December 31,
	2024	2023	Variance		2024		2023	Variance
Same property base rental revenue	$19,383	$18,983	$400		$75,914		$74,163	$1,751
Land lease payments	(99)	(86)	(13)		(384)		(345)	(39)
Same Property Cash NOI	$19,284	$18,897	$387		$75,530		$73,818	1,712

Reconciliation of Cash Flow from Operating Activities to ACFO

	12 Months Ended December 31,
($000s)	2024	2023	Variance
Cash flow from operating activities	$75,914	$74,266	$1,648
Change in non-cash working capital	570	129	441
Interest paid	(24,016)	(23,569)	(447)
Amortization of financing fees	(874)	(932)	58
Amortization of indemnification fees	(144)	(262)	118
Net interest expense and other financing charges in excess of interest paid	112	25	97
Capital expenditure reserve	(393)	(384)	(9)
ACFO	$51,169	$49,273	$1,896
ACFO payout ratio	77.10 %	80.04 %	(2.94 %)

SOURCE Automotive Properties Real Estate Investment Trust

For more information please contact: Bruce Wigle, Investor Relations, Bay Street Communications, Tel: [phone]; Milton Lamb, President & CEO, Automotive Properties REIT, Tel: [phone]; Andrew Kalra, CFO & Corporate Secretary, Automotive Properties REIT, Tel: [phone]