- Fair value gains on investment properties of $58.6 million in Q4 and $63.2 million in 2021
- Property revenue up 30.4% in Q4 and 11.3% in 2021
- Same Property NOI1 grew 5.5% in Q4 and 4.3% in 2021
- Net operating income1 up 33.6% in Q4 and 14.2% in 2021
- Net income and comprehensive income up $58.6 million in Q4 and $60.8 million in 2021
- AFFO1 increase of 37.0% in Q4 and 11.7% in 2021
- Debt to Gross Book Value1 at year-end of 53.1%, down from 57.8% in 2020
- $296.9 million of industrial assets purchased in 2021
- $133.3 million in equity raised in 2021
- Occupancy rate of 98.4% at year-end
- Publication of inaugural ESG report
MONTREAL, March 23, 2022 /CNW Telbec/ - PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSX: PRV.UN) today reported its financial and operating results for the three-month (or "fourth quarter" or "Q4") and twelve-month (or "full year") periods ended December 31, 2021.
"Q4 2021 was an outstanding quarter that capped off an exceptional year for PROREIT, both financially and operationally. Despite the complexities and disruptions resulting from the ongoing pandemic, we successfully accelerated our growth as an industrial focused REIT, completing the accretive acquisitions of 34 industrial properties and reaching $990 million in assets by year-end. We did so while significantly strengthening our balance sheet and credit facility," said Jim Beckerleg, President and CEO, PROREIT.
"Our business fundamentals are strong and our strategic focus on mid-sized Canadian cities with robust economies has proven its merit. Our industrial portfolio, which now accounts for 78% of our gross leasable area and over 63% of our base rent, has significant growth potential largely due to an upward trend in rental rates in the Southwestern Ontario, Ottawa, Halifax and Winnipeg markets where we have a strong presence. Independent appraisals of a large portion of our portfolio confirmed the significant increases in the fair value of our properties. With the regular review of the fair value property appraisals in 2022, we are confident to recognize further increases embedded in our portfolio.
"With Same Property NOI1 increases recorded in all asset classes, we are pleased with the performance of both our retail and office segments in a persistent COVID-19 context, highlighting the quality assets we own in these segments, coupled with our low-risk tenant roster.
"Our record equity raise in 2021, from a public offering and private placements, was successfully deployed by year-end, in line with our objective to create long-term value for our unitholders. We pursued strategic financing initiatives, resulting in a decrease in our Debt to Gross Book Value1 to 53.1% at year-end, closing the year with $45 million available on our credit facility. In the medium term, we remain committed to our strategy of reducing our ratio below 50%.
_____________________ |
|
1 |
This is a non-IFRS measure. See "Non-IFRS Measures". |
"In 2021 and early 2022, we made important progress in our ESG journey with the introduction of our first ESG report, outlining progress to date and providing visibility on the areas that we will continue to focus on going forward.
"With 2022 now well underway, we look forward with optimism and confidence in our team, our assets and our strategy. While remaining steadfast on optimizing our strong and flexible financial position and maintaining our disciplined capital allocation, we intend to strategically pursue our growth in the industrial sector where rent growth remains, with the ultimate goal of creating sustainable value for all stakeholders," Mr. Beckerleg concluded.
Financial Results
Table 1- Financial Highlights
(CAD $ thousands except unit, per unit amounts |
3 Months |
3 Months |
Year Ended |
Year Ended |
||||
|
||||||||
Property revenue |
$ |
22,932 |
$ |
17,589 |
$ |
77,674 |
$ |
69,810 |
Net operating income (NOI) (1) |
$ |
13,358 |
$ |
10,002 |
$ |
46,282 |
$ |
40,529 |
Same Property NOI (1) |
$ |
10,091 |
$ |
9,560 |
$ |
39,089 |
$ |
37,490 |
Net income and comprehensive income |
$ |
65,041 |
$ |
6,413 |
$ |
81,844 |
$ |
21,072 |
Total assets |
$ |
989,963 |
$ |
634,484 |
$ |
989,963 |
$ |
634,484 |
Debt to Gross Book Value (1) |
53.06% |
57.82% |
53.06% |
57.82% |
||||
Interest Coverage Ratio (1) |
2.9x |
2.6x |
2.8x |
2.6x |
||||
Debt Service Coverage Ratio (1) |
1.6x |
1.6x |
1.6x |
1.6x |
||||
Weighted average interest rate on mortgage debt |
3.39% |
3.73% |
3.39% |
3.73% |
||||
Net cash flows provided by operating activities |
$ |
20,242 |
$ |
10,273 |
$ |
29,276 |
$ |
23,410 |
Funds from Operations (FFO) (1) |
$ |
6,924 |
$ |
4,789 |
$ |
21,934 |
$ |
20,908 |
Basic FFO per Unit (1)(2) |
$ |
0.1158 |
$ |
0.1197 |
$ |
0.4490 |
$ |
0.5227 |
Diluted FFO per Unit (1)(2) |
$ |
0.1136 |
$ |
0.1169 |
$ |
0.4389 |
$ |
0.5112 |
Adjusted Funds from Operations (AFFO) (1) |
$ |
7,354 |
$ |
5,366 |
$ |
25,072 |
$ |
22,436 |
Basic AFFO per Unit (1)(2) |
$ |
0.1230 |
$ |
0.1341 |
$ |
0.5132 |
$ |
0.5609 |
Diluted AFFO per Unit (1)(2) |
$ |
0.1206 |
$ |
0.1310 |
$ |
0.5017 |
$ |
0.5486 |
AFFO Payout Ratio – Basic (1) |
91.5% |
83.9% |
87.7% |
88.3% |
||||
AFFO Payout Ratio – Diluted (1) |
93.3% |
85.9% |
89.7% |
90.2% |
||||
(1) |
Non–IFRS measure. See "Non–IFRS Measures". |
(2) |
Total basic units consist of trust units of the REIT and Class B LP Units (as defined herein). Total diluted units also includes deferred trust units and restricted trust units issued under the REIT's long–term incentive plan. |
PROREIT owned 120 investment properties as at December 31, 2021, compared to 91 properties at the end of 2020. Total assets amounted to $990.0 million as at December 31, 2021, compared to $634.5 million as at December 31, 2020, an increase of $355.5 million, or 56%. PROREIT acquired 34 investment properties and sold five non-strategic investment properties during the twelve-month period ended December 31, 2021.
________________________ |
|
1 |
This is a non-IFRS measure. See "Non-IFRS Measures". |
For the twelve-month period ended December 31, 2021:
- Property revenue amounted to $77.7 million, an increase of $7.9 million, or 11.3%, compared to $69.8 million for the prior year. The increase was mainly driven by the incremental revenue from net acquisition activity over the past twelve-month period.
- Same Property NOI1 amounted to $39.1 million, an increase of $1.6 million, or 4.3%, compared to the prior year. Excluding COVID-19 related expenses and one-time office revenue recorded in 2020 totalling $0.4 million, Same Property NOI increased by 3.1% in 2021 compared to the prior year, reflecting an overall increase in occupancy, contractual rent increases and higher rental rates on lease renewals.
- Net operating income1 was $46.3 million, an increase of $5.8 million, or 14.2%, compared to $40.5 million in 2020. The increase mainly resulted from the favourable impact of net property acquisitions completed over the past twelve-month period.
- AFFO1 totaled $25.1 million, an increase of $2.7 million, or 11.7%, compared to $22.4 million for the same prior year period. The increase mainly relates to net acquisition activity over the past twelve-month period.
- AFFO Payout Ratio - Basic1 stood at 87.7%, compared to 88.3% for the prior year. The improvement mainly relates to net acquisition activity over the past twelve months and the reduction in monthly distributions starting April 2020, partially offset by increases in maintenance capital expenditures, leasing costs, and general and administrative expenses.
For the fourth quarter ended December 31, 2021:
- Property revenue amounted to $22.9 million, an increase of $5.3 million, or 30.4%, compared to $17.6 million for the same prior year period. The increase was mainly driven by incremental revenues from net acquisition activity over the last twelve-month period.
- Same Property NOI1 reached $10.1 million, an increase of $0.5 million, or 5.5%, compared to the same prior year period. Excluding COVID-19 related expenses and one-time office revenue recorded in Q4-2020 totalling $0.05 million, Same Property NOI increased by 5.0% in Q4 2021 compared to the same period in the prior year, as a result of overall increase in occupancy, contractual rent increases and higher rental rates on lease renewals.
- Net operating income1 amounted to $13.4 million, compared to $10.0 million in the same period in 2020, an increase of 33.6% mainly driven by the impact of the net property acquisitions over the last twelve-month period.
- AFFO1 totaled $7.4 million, an increase of $2.0 million, or 37.0%, compared to $5.4 million for the same prior year period, mainly driven by the impact of the net acquisition activity over the last twelve-month period.
- AFFO Payout Ratio - Basic1 stood at 91.5% compared to 83.9% for the same prior year period. The change is mainly due to timing between cash receipts from the equity raises in Q4 2021 and the deployment of funds for the purchase of properties in the same quarter, in addition to increases in maintenance capital expenditures, leasing costs, and general and administrative expenses in relation to the growth of the REIT.
________________________ |
|
1 |
This is a non-IFRS measure. See "Non-IFRS Measures". |
TABLE 2- Reconciliation of net operating income to net income and comprehensive income
(CAD $ thousands) |
3 Months |
3 Months |
Year Ended |
Year Ended |
||||
Property revenue |
$ |
22,932 |
$ |
17,589 |
$ |
77,674 |
$ |
69,810 |
Property operating expenses |
9,574 |
7,587 |
31,392 |
29,281 |
||||
Net operating income (NOI) (1) |
13,358 |
10,002 |
46,282 |
40,529 |
||||
General and administrative expenses |
1,152 |
899 |
4,347 |
3,328 |
||||
Long–term incentive plan expense |
840 |
2,112 |
3,060 |
585 |
||||
Depreciation of property and equipment |
97 |
92 |
357 |
299 |
||||
Amortization of intangible assets |
93 |
93 |
372 |
372 |
||||
Interest and financing costs |
4,554 |
3,877 |
16,887 |
15,382 |
||||
Distributions – Class B LP Units |
164 |
171 |
663 |
928 |
||||
Fair value adjustment – Class B LP Units |
89 |
2,104 |
1,083 |
(5,257) |
||||
Fair value adjustment – investment properties |
(58,620) |
(5,604) |
(63,161) |
4,667 |
||||
Other income |
(556) |
(549) |
(2,338) |
(2,110) |
||||
Other expenses |
363 |
394 |
1,330 |
1,263 |
||||
Debt settlement costs |
141 |
- |
1,838 |
- |
||||
Net income and comprehensive income |
$ |
65,041 |
$ |
6,413 |
$ |
81,844 |
$ |
21,072 |
(1) |
Non–IFRS measure. See "Non–IFRS Measures". |
For the year ended December 31, 2021, net income and comprehensive income amounted to $81.8 million, an increase of $60.8 million compared to $21.1 million for the prior year. This increase is mainly attributable to the favourable $67.8 million non-cash fair value adjustment on investment properties, $5.7 million favourable impact in net operating income, partially offset by the $6.3 million impact of the non-cash fair value adjustment on Class B LP Units (as defined herein) for the twelve-month period ending December 31, 2021, compared to 2020. During the year ended December 31, 2021, PROREIT updated independent external appraisals for 50 properties, including 38 industrial properties, resulting in a fair market value gain of approximately $63.2 million.
For the three months ended December 31, 2021, net income and comprehensive income amounted to $65 million, compared to $6.4 million for the prior year. The $58.6 million increase mainly relates to a favourable $53.0 million impact in the non-cash fair value adjustment on investment properties for the fourth quarter of 2021 compared to the prior year, partially offset by the $2.0 million variance in non-cash long-term incentive plan expense for the quarter ended December 31, 2021, compared to the same period in 2020. During the three months ended December 31, 2021, PROREIT updated independent external appraisals for 37 properties, including 28 industrial properties, resulting in a fair market value gain of approximately $58.6 million.
Solid Balance Sheet and Liquidity Position
PROREIT strategically improved its balance sheet, debt profile and available credit position in 2021. As at December 31, 2021, PROREIT had $45 million available on its credit facility. Debt to Gross Book Value1 was reduced to 53.1% at December 31, 2021, from and 57.8% at December 31, 2020. The weighted average interest on mortgage debt was 3.39% at December 31, 2021, compared to 3.73% at the same date in 2020.
In February 2021, PROREIT obtained $46.6 million in new mortgage financing with an extended ten-year repayment term at a rate of 3.21%. Proceeds were mainly used to repay mortgages maturing in 2021 and 2022, and to reduce operating facilities.
In April 2021, PROREIT closed its $50 million private placement with Collingwood Investments Incorporated, a member of the Bragg Group of Companies of Nova Scotia, to partially fund acquisitions, repay certain indebtedness, for future acquisitions and for general business and working capital.
In June 2021, PROREIT also entered into a new $24.8 million mortgage financing with a term of seven years at a rate of 3.70%, to refinance six retail properties.
In October 2021, PROREIT closed its public offering on a bought deal basis for gross proceeds of $69 million while concurrently completing a private placement with Collingwood Investments Incorporated for additional gross proceeds of $14.3 million. Proceeds were used to fund acquisitions and to repay a portion of PROREIT's credit facility.
In November 2021, PROREIT renewed and increased its credit facility to $60 million, from $45 million, with improved terms.
Portfolio Growth
In line with its growth strategy focused on the industrial sector, PROREIT acquired 34 institutional-calibre industrial assets in 2021 totaling 2.3 million square feet for a total purchase price of $296.9 million (excluding closing costs) and a 6% average capitalization rate. 21 properties are located in Atlantic Canada, 10 properties are in Winnipeg, Manitoba, and three properties are in Ottawa, Ontario.
PROREIT sold five non-core properties totaling 0.2 million square feet for gross proceeds of $20.9 million, above their IFRS carrying value.
At December 31 2021, PROREIT's portfolio totaled 120 properties aggregating 6.6 million square feet with a weighted average lease term of 4.6 years. The industrial segment accounted for 78% of GLA and 63% of base rent at December 31, 2021.
Operating Performance
Occupancy rate remains strong at 98.4% as at December 31, 2021, slightly up from 98.0% a year earlier.
Approximately 97% of leases maturing in 2021 are renewed with an average increase of 10.2%, while almost half of 2022 renewals are renewed at positive spread of 10.1%.
________________________ |
|
1 |
This is a non-IFRS measure. See "Non-IFRS Measures". |
In 2021, PROREIT undertook a comprehensive materiality assessment in order to understand the ESG topics important to its business and to its stakeholders. In its initial ESG report, PROREIT outlines outline the specific priorities and initiatives it intends to focus on over the coming years. PROREIT's ESG report is available on the Sustainability section of its website.
Distributions
Distributions to unitholders of $0.0375 per trust unit of the REIT were declared monthly during the three months ended December 31, 2021, representing distributions of $0.45 per unit on an annual basis. Equivalent distributions are paid on the Class B limited partnership units of PRO REIT Limited Partnership ("Class B LP Units"), a subsidiary of the REIT.
Investor Conference Call and Webcast Details
PROREIT will hold a conference call to discuss its 2021 fiscal year and fourth quarter 2021 results on March 24, 2022, at 10:30 a.m. EDT. There will be a question period reserved for financial analysts. To access the conference call, please dial 888-664-6383 or 416-764-8650 or 514-225-6995. A recording of the call will be available until April 1, 2021 by dialing 888-390-0541 or 416-764-8677 Access code: 151159#
The conference call will also be accessible via live webcast on PROREIT's website at www.proreit.com or at https://produceredition.webcasts.com/starthere.jsp?ei=1523596&tp_key=8e9ff5e39a
Annual Meeting of Unitholders
PROREIT will host its annual meeting on June 7, 2022. Additional information regarding the meeting will be contained in the REIT's information circular to be prepared in connection with the meeting.
About PROREIT
PROREIT (TSX:PRV.UN) is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. Founded in 2013, PROREIT owns a portfolio of high-quality commercial real estate properties in Canada, with a strong industrial focus in robust secondary markets.
Non-IFRS Measures
PROREIT's consolidated financial statements are prepared in accordance with International Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board. In addition to reported IFRS measures, industry practice is to evaluate real estate entities giving consideration, in part, to certain non-IFRS financial measures, non-IFRS ratios and other specified financial measures (collectively, "non-IFRS measures"). In this press release, as a complement to results provided in accordance with IFRS, PROREIT discloses and discusses (i) certain non-IFRS financial measures, including: adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA"); adjusted funds from operations ("AFFO"); funds from operations ("FFO"); gross book value ("Gross Book Value"); net operating income ("NOI"); Same Property NOI; and (ii) certain non-IFRS ratios, including: AFFO Payout Ratio – Basic; AFFO Payout Ratio – Diluted; Basic AFFO per Unit; Diluted AFFO per Unit; Basic AFFO per Unit; Diluted FFO per Unit; Debt to Gross Book Value; Debt Service Coverage Ratio; Interest Coverage Ratio. These non-IFRS measures are not defined by IFRS and do not have a standardized meaning under IFRS. PROREIT's method of calculating these non-IFRS measures may differ from other issuers and may not be comparable with similar measures presented by other income trusts. PROREIT has presented such non-IFRS measures and ratios as management believes they are relevant measures of PROREIT's underlying operating and financial performance. For information on the most directly comparable IFRS measures, composition of the non-IFRS measures, a description of how PROREIT uses these measures and an explanation of how these measures provide useful information to investors, refer to the "Non-IFRS Measures" section of PROREIT's management's discussion and analysis for the three months and year ended December 31, 2021, dated March 23, 2022 (the "Q4 MD&A"), available on PROREIT's SEDAR profile at www.sedar.com, which is incorporated by reference into this press release. As applicable, the reconciliations for each non-IFRS measure are outlined below. Non-IFRS measures should not be considered as alternatives to net income, cash flows provided by operating activities, cash and cash equivalents, total assets, total equity, or comparable metrics determined in accordance with IFRS as indicators of PROREIT's performance, liquidity, cash flow, and profitability.
Reconciliation of Same Property NOI to net operating income (as reported in the consolidated financial statements)
(CAD $ thousands) |
3 Months |
3 Months |
Year Ended |
Year Ended |
||||
Property revenue |
$ |
22,932 |
$ |
17,589 |
$ |
77,674 |
$ |
69,810 |
Property operating expenses |
9,574 |
7,587 |
31,392 |
29,281 |
||||
Net operating income (NOI) as reported in the financial statements (1) |
13,358 |
10,002 |
46,282 |
40,529 |
||||
Less: |
||||||||
Straight-line rent adjustment |
119 |
79 |
493 |
683 |
||||
Prior year operating expense adjustments |
- |
(47) |
(17) |
(72) |
||||
NOI after adjustments (1) |
13,239 |
9,970 |
45,806 |
39,918 |
||||
NOI (1) sourced from: |
||||||||
Acquisitions |
(3,150) |
- |
(6,154) |
(447) |
||||
Dispositions |
2 |
(410) |
(563) |
(1,981) |
||||
Same Property NOI (1) |
$ |
10,091 |
$ |
9,560 |
$ |
39,089 |
$ |
37,490 |
Add Back: |
||||||||
COVID–19 related rental abatements and bad debt expense |
- |
154 |
- |
542 |
||||
One-time revenue |
- |
(100) |
- |
(100) |
||||
Same Property NOI excluding COVID–19 related rental abatements and bad debt expense and one-time revenue |
$ |
10,091 |
$ |
9,614 |
$ |
39,089 |
$ |
37,932 |
Number of same properties |
86 |
86 |
85 |
85 |
||||
(1) |
Non–IFRS measure. See "Non–IFRS Measures". |
Reconciliation of AFFO and FFO to net income and comprehensive income
(CAD $ thousands except unit, per unit amounts and unless otherwise stated) |
3 Months |
3 Months |
Year Ended |
Year Ended |
||||
Net income and comprehensive income |
$ |
65,041 |
$ |
6,413 |
$ |
81,844 |
$ |
21,072 |
Add: |
||||||||
Long–term incentive plan |
157 |
1,612 |
1,133 |
(874) |
||||
Distributions – Class B LP Units |
164 |
171 |
663 |
928 |
||||
Fair value adjustment – investment properties |
(58,620) |
(5,604) |
(63,161) |
4,667 |
||||
Fair value adjustment – Class B LP Units |
89 |
2,104 |
1,083 |
(5,257) |
||||
Amortization of intangible assets |
93 |
93 |
372 |
372 |
||||
FFO (1) |
$ |
6,924 |
$ |
4,789 |
$ |
21,934 |
$ |
20,908 |
Deduct: |
||||||||
Straight–line rent adjustment |
$ |
(119) |
$ |
(79) |
$ |
(493) |
$ |
(683) |
Maintenance capital expenditures |
(192) |
(97) |
(713) |
(246) |
||||
Stabilized leasing costs |
(387) |
(155) |
(1,013) |
(348) |
||||
Add: |
||||||||
Long–term incentive plan |
683 |
500 |
1,927 |
1,459 |
||||
Amortization of financing costs |
304 |
408 |
1,592 |
1,346 |
||||
Debt settlement costs |
141 |
- |
1,838 |
- |
||||
AFFO (1) |
$ |
7,354 |
$ |
5,366 |
$ |
25,072 |
$ |
22,436 |
Basic FFO per Unit (1)(2) |
$ |
0.1158 |
$ |
0.1197 |
$ |
0.4490 |
$ |
0.5227 |
Diluted FFO per Unit (1)(2) |
$ |
0.1136 |
$ |
0.1169 |
$ |
0.4389 |
$ |
0.5112 |
Basic AFFO per Unit (1)(2) |
$ |
0.1230 |
$ |
0.1341 |
$ |
0.5132 |
$ |
0.5609 |
Diluted AFFO per Unit (1)(2) |
$ |
0.1206 |
$ |
0.1310 |
$ |
0.5017 |
$ |
0.5486 |
Distributions declared per Unit and Class B LP Unit |
$ |
0.1125 |
$ |
0.1125 |
$ |
0.4500 |
$ |
0.4950 |
AFFO Payout Ratio – Basic (1) |
91.5% |
83.9% |
87.7% |
88.3% |
||||
AFFO Payout Ratio – Diluted (1) |
93.3% |
85.9% |
89.7% |
90.2% |
||||
Basic weighted average number of units (2)(3) |
59,786,374 |
40,023,023 |
48,853,672 |
39,998,598 |
||||
Diluted weighted average number of units (2)(3) |
60,964,929 |
40,969,595 |
49,975,662 |
40,898,852 |
||||
(1) |
Non–IFRS measure. See "Non–IFRS Measures". |
(2) |
FFO and AFFO per unit is calculated as FFO or AFFO, as the case may be, divided by the total of the weighted number of basic or diluted units, added to the weighted average number of Class B LP Units outstanding during the year. |
(3) |
Total basic units consist of trust units of the REIT and Class B LP Units. Total diluted units also include deferred trust units and restricted trust units issued under the REIT's long–term incentive plan. |
Reconciliation of Adjusted EBITDA to net income and comprehensive income
(CAD $ thousands) |
3 Months |
3 Months |
Year Ended |
Year Ended |
||||
Net income and comprehensive income |
$ |
65,041 |
$ |
6,413 |
$ |
81,844 |
$ |
21,072 |
Interest and financing costs |
4,554 |
3,877 |
16,887 |
15,382 |
||||
Depreciation of property and equipment |
97 |
92 |
357 |
299 |
||||
Amortization of intangible assets |
93 |
93 |
372 |
372 |
||||
Fair value adjustment – Class B LP Units |
89 |
2,104 |
1,083 |
(5,257) |
||||
Fair value adjustment – investment properties |
(58,620) |
(5,604) |
(63,161) |
4,667 |
||||
Distributions – Class B LP Units |
164 |
171 |
663 |
928 |
||||
Straight–line rent |
(119) |
(79) |
(493) |
(683) |
||||
Long–term incentive plan expense |
840 |
2,112 |
3,060 |
585 |
||||
Debt settlement costs |
141 |
- |
1,838 |
- |
||||
Adjusted EBITDA (1) |
$ |
12,280 |
$ |
9,179 |
$ |
42,450 |
$ |
37,365 |
(1) |
Non–IFRS measure. See "Non–IFRS Measures". |
Calculation of the Interest Coverage Ratio
(CAD $ thousands) |
3 Months |
3 Months |
Year Ended |
Year Ended |
||||
Adjusted EBITDA (1) |
$ |
12,280 |
$ |
9,179 |
$ |
42,450 |
$ |
37,365 |
|
$ |
4,250 |
$ |
3,501 |
$ |
15,323 |
$ |
14,131 |
Interest Coverage Ratio (1) |
2.9x |
2.6x |
2.8x |
2.6x |
||||
(1) |
Non–IFRS measure. See "Non–IFRS Measures". |
Calculation of the Debt Service Coverage Ratio
(CAD $ thousands) |
3 Months |
3 Months |
Year Ended |
Year Ended |
||||
Adjusted EBITDA (1) |
$ |
12,280 |
$ |
9,179 |
$ |
42,450 |
$ |
37,365 |
|
4,250 |
3,501 |
15,323 |
14,131 |
||||
Principal repayments |
3,214 |
2,387 |
10,944 |
9,451 |
||||
Debt Service Requirements |
$ |
7,464 |
$ |
5,888 |
$ |
26,267 |
$ |
23,582 |
Debt Service Coverage Ratio (1) |
1.6x |
1.6x |
1.6x |
1.6x |
||||
(1) |
Non–IFRS measure. See "Non–IFRS Measures". |
Calculation of Gross Book Value and Debt to Gross Book Value
(CAD $ thousands unless otherwise stated) |
December 31 |
December 31, |
||
Total assets, including investment properties stated at fair value |
$ |
989,963 |
$ |
634,484 |
Accumulated depreciation on property and equipment and intangible assets |
2,268 |
1,539 |
||
Gross Book Value (1) |
992,231 |
636,023 |
||
Debt, excluding unamortized financing costs |
511,445 |
342,772 |
||
Credit facility, excluding unamortized financing costs |
15,000 |
25,000 |
||
Debt |
$ |
526,445 |
$ |
367,772 |
Debt to Gross Book Value (1) |
53.06% |
57.82% |
||
(1) |
Non–IFRS measure. See "Non–IFRS Measures". |
Forward-Looking Statements
This press release contains forward looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation, including statements relating to certain expectations, projections, growth plans and other information related to REIT's business strategy and future plans. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond PROREIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements.
Forward-looking statements contained in this press release include, without limitation, statements pertaining to the execution by PROREIT of its growth strategy and the future financial and operating performance of PROREIT. PROREIT's objectives and forward-looking statements are based on certain assumptions, including that (i) PROREIT will receive financing on favourable terms; (ii) the future level of indebtedness of PROREIT and its future growth potential will remain consistent with the REIT's current expectations; (iii) there will be no changes to tax laws adversely affecting PROREIT's financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on PROREIT's operations, including its financing capacity and asset value, will remain consistent with PROREIT's current expectations; (v) the performance of PROREIT's investments in Canada will proceed on a basis consistent with PROREIT's current expectations; and (vi) capital markets will provide PROREIT with readily available access to equity and/or debt.
The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. PROREIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law.
Additional information about these assumptions and risks and uncertainties is contained under "Risk Factors" in PROREIT's latest annual information form and "Risk and Uncertainties" in PROREIT's management's discussion and analysis for the year ended December 31, 2021, which are available under PROREIT's profile on SEDAR at www.sedar.com.
SOURCE PROREIT
Investor Relations: PRO Real Estate Investment Trust, James W. Beckerleg, President and Chief Executive Officer, 514-933-9552; PRO Real Estate Investment Trust, Gordon G. Lawlor, CPA, CA, Executive Vice President, Chief Financial Officer and Secretary, 514-933-9552
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