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TORONTO — Slate Grocery REIT (TSX: SGR.U) (TSX: SGR.UN) (the “REIT”), an proprietor and operator of U.S. grocery-anchored actual property, right this moment introduced its monetary outcomes and highlights for the three months ended March 31, 2022.
“Our outcomes this quarter once more underscore the uniquely defensive nature of grocery actual property in all market circumstances,” stated Blair Welch, Chief Govt Officer of Slate Grocery REIT. “Because the pandemic continues to abate and a brand new set of macroeconomic pressures emerges, our properties are enjoying an much more important position in facilitating the final mile of meals logistics in a well timed and value environment friendly means. Our staff’s sturdy operational efficiency has ensured that our portfolio is nicely positioned to proceed offering long-term, steady earnings, and we stay centered on natural progress and accretive funding alternatives to create worth for our unitholders.”
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For the CEO’s letter to unitholders for the quarter, please observe the hyperlink right here.
Highlights
- Continued operational excellence within the first quarter additional enhanced the sturdiness of the REIT’s portfolio
- Accomplished 410,624 sq. toes of leasing within the quarter, together with 91,346 sq. toes of latest leasing at a 38.3% unfold and renewals totaling 319,278 sq. toes at an 8.9% rental unfold
- Adjusting for accomplished redevelopments, same-property Web Working Revenue (“NOI”) elevated by $0.2 million or 0.8% year-over-year
- Adjusted funds from operations (“AFFO”) per unit for the primary quarter was $0.22, which represents a $0.03 enhance from the comparative interval within the prior 12 months
- As international macroeconomic pressures mount, the REIT’s portfolio is uniquely nicely positioned to make sure long-term, steady earnings
- All anchor areas stay totally occupied and complete occupancy is steady at 93.2%
- 97% of the REIT’s portfolio is secured by internet leases, providing safety in an inflationary market
- The REIT’s debt profile mitigates near-term rising rate of interest threat as 95% of the REIT’s debt is fastened
- The REIT’s foundation of $145 per sq. foot (“PSF”) stays extremely defensive, offering a 47% low cost to the typical price for a brand new construct of $275 PSF and growing
- The REIT continues to actively underwrite accretive funding alternatives and pursue natural progress
- On March 30, 2022, the REIT established an at-the-market fairness program (“ATM program”) to fund ongoing growth and acquisition actions and for basic working capital functions
- Subsequent to the quarter, the REIT issued a complete of 1.4 million class U items of the REIT below the ATM program at a median share value of C$16.95 (USD$13.59) for proceeds, internet of prices of $18.6 million
Abstract of Q1 2022 Outcomes
Three months ended March 31, |
||||||||
(hundreds of U.S. {dollars}, besides per unit quantities) |
2022 |
2021 |
Change % |
|||||
Rental income |
$ |
38,966 |
$ |
32,471 |
20.0% |
|||
NOI 1 2 |
$ |
32,179 |
$ |
23,285 |
38.2% |
|||
Web earnings 2 |
$ |
27,425 |
$ |
60,775 |
(54.9) % |
|||
Identical-property NOI (3 month interval, 65 properties) |
$ |
20,062 |
$ |
20,043 |
0.1% |
|||
Identical-property NOI (12 month interval, 56 properties) |
$ |
70,448 |
$ |
69,980 |
0.7% |
|||
New leasing (sq. toes) 2 |
91,346 |
46,774 |
95.3% |
|||||
New leasing unfold 2 |
38.3% |
6.6% |
31.7% |
|||||
Complete leasing (sq. toes) 2 |
410,624 |
143,325 |
186.5% |
|||||
Complete leasing unfold 2 |
15.8% |
2.4% |
13.4% |
|||||
New leasing – anchor / junior anchor 2 |
60,273 |
16,225 |
271.5% |
|||||
Weighted common variety of items excellent (“WA items”) |
60,064 |
48,597 |
23.6% |
|||||
FFO 1 2 3 |
$ |
16,209 |
$ |
11,529 |
40.6% |
|||
FFO per WA items 1 2 3 |
$ |
0.27 |
$ |
0.24 |
12.5% |
|||
FFO payout ratio 1 2 3 |
79.8% |
90.7% |
(12.0) % |
|||||
AFFO 1 2 3 |
$ |
13,257 |
$ |
9,450 |
40.3% |
|||
AFFO per WA items 1 2 3 |
$ |
0.22 |
$ |
0.19 |
15.8% |
|||
AFFO payout ratio 1 2 3 |
97.5% |
110.7% |
(11.9) % |
|||||
(hundreds of U.S. {dollars}, besides per unit quantities) |
March 31, 2022 |
December 31, 2021 |
Change % |
|||||
Complete belongings, IFRS |
$ |
1,775,504 |
$ |
1,737,162 |
2.2% |
|||
Complete belongings, proportionate curiosity |
$ |
1,993,004 |
$ |
1,955,072 |
1.9% |
|||
Debt, IFRS |
$ |
937,721 |
$ |
937,744 |
—% |
|||
Debt, proportionate curiosity |
$ |
1,148,841 |
$ |
1,149,649 |
(0.1) % |
|||
Web asset worth per unit |
$ |
13.02 |
$ |
12.29 |
5.9% |
|||
Variety of properties 2 |
107 |
107 |
—% |
|||||
Portfolio occupancy 2 |
93.2% |
93.6% |
(0.4) % |
|||||
Debt / GBV ratio |
52.8% |
54.0% |
(1.2) % |
|||||
Curiosity protection ratio 1 |
2.94x |
2.98x |
(1.3) % |
|||||
(1) Confer with “Non-IFRS Measures” part under. |
||||||||
(2) Contains the REIT’s share of three way partnership investments. |
||||||||
(3) Adjusting to exclude the affect of the $169.0 million debt refinancing within the first quarter of 2021, FFO, FFO per unit and FFO payout ratio could be $11.5 million, $0.24 and 88.3%, respectively, and AFFO, AFFO per unit and AFFO payout ratio could be $9.8 million, $0.20 and 107.1%, respectively. |
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Convention Name and Webcast
Senior administration will host a dwell convention name at 9:00 am ET on Tuesday, Could 10, 2022 to debate the outcomes and ongoing enterprise initiatives of the REIT.
The convention name may be accessed by dialing (647) 427-2311 or 1 (866) 521-4909. Moreover, the convention name might be out there by way of simultaneous audio discovered at https://www.snwebcastcenter.com/webcast/slate/2022/0510. A replay might be accessible till Could 24, 2022 by way of the REIT’s web site or by dialing (416) 621-4642 or 1 (800) 585-8367 (entry code 8270244) roughly two hours after the dwell occasion.
About Slate Grocery REIT (TSX: SGR.U / SGR.UN)
Slate Grocery REIT is an proprietor and operator of U.S. grocery-anchored actual property. The REIT owns and operates roughly U.S. $1.9 billion of important actual property infrastructure throughout main U.S. metro markets that communities depend upon for his or her on a regular basis wants. The REIT’s resilient grocery-anchored portfolio and robust credit score tenants present unitholders with sturdy money flows and the potential for capital appreciation over the long term. Go to slategroceryreit.com to study extra in regards to the REIT.
About Slate Asset Administration
Slate Asset Administration is a worldwide different funding platform focusing on actual belongings. We concentrate on fundamentals with the target of making long-term worth for our traders and companions. Slate’s platform has a variety of actual property and infrastructure funding methods, together with opportunistic, worth add, core plus and debt investments. We’re supported by distinctive folks and versatile capital, which allow us to originate and execute on a variety of compelling funding alternatives. Go to slateam.com to study extra.
Supplemental Data
All events can entry Slate Grocery’s Supplemental Data on-line at slategroceryreit.com within the Buyers part. These supplies are additionally out there on SEDAR or upon request to the REIT at information@slateam.com or (416) 644-4264.
Ahead Wanting Statements
Sure data herein constitutes “forward-looking data” as outlined below Canadian securities legal guidelines which mirror administration’s expectations concerning aims, plans, objectives, methods, future progress, outcomes of operations, efficiency, enterprise prospects and alternatives of the REIT. The phrases “plans”, “expects”, “doesn’t count on”, “scheduled”, “estimates”, “intends”, “anticipates”, “doesn’t anticipate”, “tasks”, “believes”, or variations of such phrases and phrases or statements to the impact that sure actions, occasions or outcomes “might”, “will”, “might”, “would”, “would possibly”, “happen”, “be achieved”, or “proceed” and related expressions determine forward-looking statements. A number of the particular forward-looking statements contained herein embrace, however are usually not restricted to, statements regarding the affect of the COVID-19 pandemic. There may be no assurance concerning the affect of COVID-19 on the enterprise, operations, and monetary efficiency of the REIT and its tenants, in addition to on client behaviors and the financial system generally. Administration believes that the expectations mirrored in its forward-looking statements are primarily based upon cheap assumptions, nevertheless, administration may give no assurance that precise outcomes, efficiency or achievements might be according to these forward-looking statements. Such forward-looking statements are certified of their entirety by the inherent dangers and uncertainties surrounding future expectations.
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Ahead-looking statements are essentially primarily based on quite a few estimates and assumptions that, whereas thought-about cheap by administration as of the date hereof, are inherently topic to vital enterprise, financial and aggressive uncertainties and contingencies. When counting on forward-looking statements to make selections, the REIT cautions readers to not place undue reliance on these statements, as forward-looking statements contain vital dangers and uncertainties, and shouldn’t be learn as ensures of future efficiency or outcomes, and won’t essentially be correct indications of whether or not or not the instances at or by which such efficiency or outcomes might be achieved. Quite a few elements might trigger precise outcomes to vary, probably materially, from the outcomes mentioned within the forward-looking statements. Extra details about dangers and uncertainties is contained within the filings of the REIT with securities regulators.
Non-IFRS Measures
This information launch and accompanying monetary statements are primarily based on Worldwide Monetary Reporting Requirements (“IFRS”), as issued by the Worldwide Accounting Requirements Board (“IASB”).
We disclose quite a few monetary measures on this information launch that aren’t measures used below IFRS, together with NOI, same-property NOI, FFO, FFO payout ratio, AFFO, AFFO payout ratio, adjusted EBITDA and the curiosity protection ratio, along with sure measures on a per unit foundation.
- NOI is outlined as rental income much less working bills, previous to straight-line lease, IFRIC 21, Levies (“IFRIC 21”) property tax changes and changes for fairness funding. Identical-property NOI consists of these properties owned by the REIT for every of the present interval and the related comparative interval excluding these properties below growth.
- FFO is outlined as internet earnings adjusted for sure gadgets together with transaction prices, change in truthful worth of properties, change in truthful worth of economic devices, deferred earnings taxes, unit expense (earnings), changes for fairness funding and IFRIC 21 property tax changes.
- AFFO is outlined as FFO adjusted for straight-line rental income and sustaining capital, leasing prices and tenant enhancements.
- FFO payout ratio and AFFO payout ratio are outlined as distributions declared divided by FFO and AFFO, respectively.
- FFO per WA unit and AFFO per WA unit are outlined as FFO and AFFO divided by the weighted common class U equal items excellent, respectively.
- Adjusted EBITDA is outlined as NOI much less basic and administrative bills.
- Curiosity protection ratio is outlined as adjusted EBITDA divided by money curiosity paid.
- Web asset worth is outlined as the combination of the carrying worth of the REIT’s fairness, deferred earnings taxes and exchangeable items of subsidiaries.
- Proportionate curiosity represents monetary data adjusted to mirror the REIT’s fairness accounted joint ventures and monetary actual property belongings and its share of internet earnings (losses) from fairness accounted joint ventures and monetary actual property belongings on a proportionately consolidated foundation on the REIT’s possession proportion of the associated funding.
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We make the most of these measures for quite a lot of causes, together with measuring efficiency, managing the enterprise, capital allocation and the evaluation of threat. Descriptions of why these non-IFRS measures are helpful to traders and the way administration makes use of every measure are included in Administration’s Dialogue and Evaluation. We imagine that offering these efficiency measures on a supplemental foundation to our IFRS outcomes is useful to traders in assessing the general efficiency of our companies in a way much like administration. These monetary measures shouldn’t be thought-about as an alternative to related monetary measures calculated in accordance with IFRS. We warning readers that these non-IFRS monetary measures might differ from the calculations disclosed by different companies, and because of this, might not be akin to related measures offered by others.
SGR-FR
Calculation and Reconciliation of Non-IFRS Measures
The desk under summarizes a calculation of non-IFRS measures primarily based on IFRS monetary data.
Three months ended March 31, |
||||||
(in hundreds of U.S. {dollars}, besides per unit quantities) |
2022 |
2021 |
||||
Rental income |
$ |
38,966 |
$ |
32,471 |
||
Straight-line lease income |
126 |
(165) |
||||
Property working bills |
(28,590) |
(21,560) |
||||
IFRIC 21 property tax adjustment |
16,439 |
12,397 |
||||
Contribution from three way partnership investments |
5,238 |
142 |
||||
NOI1 2 |
$ |
32,179 |
$ |
23,285 |
||
Money movement from operations |
$ |
20,271 |
$ |
15,714 |
||
Adjustments in non-cash working capital gadgets |
(6,870) |
(3,795) |
||||
Finance cost and mark-to-market changes |
(417) |
(576) |
||||
Curiosity, internet and TIF observe changes |
27 |
35 |
||||
Changes for three way partnership investments |
3,186 |
77 |
||||
Non-controlling curiosity |
(192) |
— |
||||
Change in truthful worth of subscription receipt funds in escrow |
— |
(91) |
||||
Capital |
(1,625) |
(788) |
||||
Leasing prices |
(326) |
(365) |
||||
Tenant enhancements |
(797) |
(761) |
||||
AFFO1 2 3 |
$ |
13,257 |
$ |
9,450 |
||
Web earnings 1 2 |
$ |
27,425 |
$ |
60,775 |
||
Change in truthful worth of economic devices |
— |
(3,018) |
||||
Change in truthful worth of properties |
(36,356) |
(78,749) |
||||
Deferred earnings tax expense |
13,768 |
19,448 |
||||
Changes for three way partnership investments |
(7,807) |
107 |
||||
Unit expense |
2,933 |
569 |
||||
Non-controlling curiosity |
(193) |
— |
||||
IFRIC 21 property tax adjustment |
16,439 |
12,397 |
||||
FFO 1 2 3 |
$ |
16,209 |
$ |
11,529 |
||
Straight-line rental income |
126 |
(165) |
||||
Capital expenditures |
(1,625) |
(788) |
||||
Leasing prices |
(326) |
(365) |
||||
Tenant enhancements |
(797) |
(761) |
||||
Non-controlling curiosity |
1 |
— |
||||
Changes for three way partnership investments |
(331) |
— |
||||
AFFO 1 2 3 |
$ |
13,257 |
$ |
9,450 |
||
Three months ended March 31, |
||||||
(in hundreds of U.S. {dollars}, besides per unit quantities) |
2022 |
2021 |
||||
NOI 1 2 |
$ |
32,179 |
$ |
23,285 |
||
Normal and administrative bills |
(3,613) |
(2,215) |
||||
Money curiosity, internet |
(9,688) |
(8,380) |
||||
Finance cost and mark-to-market changes |
(417) |
(576) |
||||
Present earnings tax expense |
(212) |
(685) |
||||
Changes for three way partnership investments |
(2,052) |
(65) |
||||
Non-controlling curiosity |
(192) |
— |
||||
Capital expenditures |
(1,625) |
(788) |
||||
Leasing prices |
(326) |
(365) |
||||
Tenant enhancements |
(797) |
(761) |
||||
AFFO 1 2 3 |
$ |
13,257 |
$ |
9,450 |
||
(1) Confer with “Non-IFRS Measures” part above. |
||||||
(2) Contains the REIT’s share of three way partnership investments. |
||||||
(3) Adjusting to exclude the affect of the $169.0 million debt refinancing within the first quarter of 2021, FFO and AFFO three month interval ended March 31, 2021 could be $11.8 million and $9.8 million, respectively. |
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Three months ended March 31, |
||||||
(in hundreds of U.S. {dollars}, besides per unit quantities) |
2022 |
2021 |
||||
Web earnings 1 |
$ |
27,425 |
$ |
60,775 |
||
Curiosity and financing prices |
10,160 |
8,956 |
||||
Change in truthful worth of economic devices |
— |
(3,018) |
||||
Change in truthful worth of properties |
(36,356) |
(78,749) |
||||
Deferred earnings tax expense |
13,768 |
19,448 |
||||
Present earnings tax expense |
212 |
685 |
||||
Unit expense |
2,933 |
569 |
||||
Changes for three way partnership investments |
(6,086) |
172 |
||||
Straight-line lease income |
126 |
(165) |
||||
IFRIC 21 property tax adjustment |
16,439 |
12,397 |
||||
Adjusted EBITDA 1 2 |
$ |
28,566 |
$ |
21,070 |
||
NOI 1 2 |
32,179 |
23,285 |
||||
Normal and administrative bills |
(3,613) |
(2,215) |
||||
Adjusted EBITDA 1 2 |
$ |
28,566 |
$ |
21,070 |
||
Money curiosity paid |
(9,715) |
(8,415) |
||||
Curiosity protection ratio 1 2 |
2.94x |
2.50x |
||||
WA items |
60,064 |
48,597 |
||||
FFO per WA unit 1 2 3 |
$ |
0.27 |
$ |
0.24 |
||
FFO payout ratio 1 2 3 |
79.8% |
90.7% |
||||
AFFO per WA unit 1 2 3 |
$ |
0.22 |
$ |
0.19 |
||
AFFO payout ratio 1 2 3 |
97.5% |
110.7% |
||||
(1) Contains the REIT’s share of three way partnership investments. |
||||||
(2) Confer with “Non-IFRS Measures” part above. |
||||||
(3) Adjusting to exclude the affect of the $169.0 million debt refinancing within the first quarter of 2021, FFO per unit and FFO payout ratio could be $0.24 and 88.3%, respectively, and AFFO per unit and AFFO payout ratio could be $0.20 and 107.1%, respectively. |
View supply model on businesswire.com: https://www.businesswire.com/information/dwelling/20220509006268/en/
Contacts
For Additional Data
Investor Relations
Tel: +1 416 644 4264
E-mail: ir@slateam.com
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