MONTREAL, Aug. 10,
2022 /CNW/ - PRO Real Estate Investment Trust
("PROREIT" or the "REIT") (TSX: PRV.UN) today reported its
financial and operating results for the three-month period (or
"second quarter" or "Q2") ended June
30, 2022.
Second Quarter 2022
Highlights
- Property revenue up 33.6% in Q2 2022 compared to Q2 2021
- Net operating income* up 33.0% in Q2 2022 compared to Q2
2021
- Net income and comprehensive income up $0.9 million in Q2 2022 compared to Q2 2021
- AFFO* increase of 36.9% in Q2 2022 compared to Q2 2021
- AFFO Payout Ratio – Basic* of 86.5% in Q2 2022 compared to
92.3% in Q2 2021
- Debt to Gross Book Value* of 51.3% at June 30, 2022, compared to 58.2% at same date
last year
- Occupancy rate of 98.3% at June 30,
2022
- 81.8% of 2022 gross leasable area ("GLA") renewed at 12.9%
average spreads
- Completion of previously announced joint venture transaction
with Crestpoint Real Estate Investments Ltd. ("Crestpoint") to
co-own an industrial-focused portfolio of 42 properties
"We delivered another strong quarter in Q2, both from an
operational and financial standpoint. Our results are
reflecting, in large part, our steadily increasing presence in the
robust industrial sector as well as meaningful operational and
leasing synergies." said Jim
Beckerleg, President and CEO, PROREIT. "We are proud to have
completed our joint venture transaction with Crestpoint, which also
reflects our industrial and operational strategies. The scale of
this accretive transaction sets the stage for future growth and
opportunities in Eastern Canada,
and we look forward to leveraging the significant market leasing
upside embedded in this strategic portfolio.
"Our second quarter results include a 4.7% increase in Same
Property NOI* from our industrial portfolio compared to the same
period last year. Our smaller retail portfolio also performed very
well, with a 3.2% increase in Same Property NOI* compared to the
same period last year which we believe reflects our focus on
necessities-based properties with strong national anchors.
"We kept a sharp focus on maintaining our strong financial
discipline during the second quarter, in line with our commitment
to reduce our Debt to Gross Book Value* ratio to below 50% over the
next few quarters.
"While remaining mindful of the current level of macro-economic
uncertainty, inflationary pressures and the rising interest rate
environment, we are managing our strategies with discipline. We
believe we are advantageously positioned to achieve further
performance and improvements, adding value creation for our
stakeholders," Mr. Beckerleg concluded.
* Measures followed by the suffix "*" in this press release
are non-IFRS measures. See "Non-IFRS Measures".
Financial Results
Table 1- Financial
Highlights
(CAD $ thousands except
unit, per unit amounts and unless otherwise stated)
|
3 Months
Ended
June 30
2022
|
3 Months
Ended
June 30
2021
|
6 Months
Ended
June 30
2022
|
6 Months
Ended
June 30
2021
|
Financial data
|
|
|
|
|
Property
revenue
|
$
23,724
|
$
17,764
|
$
48,054
|
$
35,154
|
Net operating income
(NOI) (1)
|
$
14,270
|
$
10,731
|
$
28,350
|
$
20,824
|
Same Property NOI
(1)
|
$
9,933
|
$
9,854
|
$
19,696
|
$
19,534
|
Net income and
comprehensive income
|
$
11,969
|
$
11,101
|
$
58,491
|
$
12,735
|
Total assets
|
$
1,041,296
|
$ 772,881
|
$
1,041,296
|
$ 772,881
|
Debt to Gross Book
Value (1)
|
51.26 %
|
58.22 %
|
51.26 %
|
58.22 %
|
Interest Coverage Ratio
(1)
|
2.9x
|
2.8x
|
2.9x
|
2.7x
|
Debt Service Coverage
Ratio (1)
|
1.6x
|
1.6x
|
1.6x
|
1.6x
|
Debt to Annualized
Adjusted EBITDA Ratio (1)
|
10.2x
|
11.6x
|
10.2x
|
11.9x
|
Weighted average
interest rate on mortgage debt
|
3.40 %
|
3.50 %
|
3.40 %
|
3.50 %
|
Net cash flows provided
from operating activities
|
$
2,200
|
$
7,994
|
$
8,929
|
$
8,201
|
Funds from Operations
(FFO) (1)
|
$
7,836
|
$
4,782
|
$
15,945
|
$
8,660
|
Basic FFO per unit
(1)(2)
|
$
0.1296
|
$
0.1015
|
$
0.2638
|
$
0.1987
|
Diluted FFO per unit
(1)(2)
|
$
0.1272
|
$
0.0990
|
$
0.2592
|
$
0.1940
|
Adjusted Funds from
Operations (AFFO) (1)
|
$
7,862
|
$
5,741
|
$
15,675
|
$
11,163
|
Basic AFFO per unit
(1)(2)
|
$
0.1301
|
$
0.1219
|
$
0.2593
|
$
0.2561
|
Diluted AFFO per unit
(1)(2)
|
$
0.1276
|
$
0.1189
|
$
0.2548
|
$
0.2500
|
AFFO Payout Ratio –
Basic (1)
|
86.5 %
|
92.3 %
|
86.8 %
|
87.9 %
|
AFFO Payout Ratio –
Diluted (1)
|
88.2 %
|
94.6 %
|
88.3 %
|
90.0 %
|
(1) Non‑IFRS
measure. See "Non‑IFRS Measures".
|
(2) Total basic
units consist of trust units of PROREIT and Class B LP Units
(as defined herein). Total diluted units also include deferred
trust units and restricted trust units issued under the REIT's
long-term incentive plan.
|
PROREIT owned 120 investment properties at June 30, 2022, compared to 107 properties at the
same time last year. Total assets amounted to $1.04 billion at June 30,
2022, compared to $772.9
million as at June 30, 2021,
an increase of $268.4 million,
or 34.7%. PROREIT acquired 16 properties and sold three
non-strategic properties during the twelve-month period ended
June 30, 2022.
For the second quarter ended June
30, 2022:
- Property revenue amounted to $23.7
million, an increase of $6.0
million, or 33.6%, compared to $17.8
million for the same prior year period, mainly driven by
incremental revenues from net acquisition activity over the last
twelve-month period.
- Same Property NOI* reached $9.9
million, an increase of $0.1
million, or 0.8%, compared to the same prior year period.
The increase was a result of increased occupancy in the industrial
and retail asset classes, contractual rent increases and high
rental rates on lease renewals in the industrial segment, partially
offset by the decrease in office Same Property NOI* resulting from
a one-time adjustment of $0.13
million related to a prior period in addition to the
increase in vacancy in two of the eight office properties.
Excluding the aforementioned $0.13
million impact, Same Property NOI* increased by 2.2% in Q2
2022 compared to the same prior year period.
- Net operating income* amounted to $14.3
million, compared to $10.7
million in the same period in 2021, an increase of
$3.5 million, or 33.0%, mainly driven
by the impact of the net property acquisition activity over the
last twelve-month period.
- AFFO* totaled $7.9 million, an
increase of $2.1 million, or 36.9%,
compared to $5.7 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 – Basic* stood at 86.5% compared to 92.3% for
the same prior year period. This improvement is mainly related to
the impact of the net acquisition activity over the last
twelve-month period, partially offset by maintenance capital
expenditures, leasing costs, and general and administrative
expenses resulting from the REIT's growth.
For the six-month period ended June 30,
2022:
- Property revenue was $48.1
million. The increase of $12.9
million, or 36.7%, compared to the same period last year, is
primarily due to incremental revenues from the net property
acquisitions completed in the twelve-month period ended
June 30, 2022.
- Same Property NOI* was $19.7
million, an increase of $0.2
million, or 0.8%, compared to the same period last year. The
increase was a result of increased occupancy in the retail asset
class, contractual rent increases and high rental rates on lease
renewals in the industrial segment, partially offset by the
decrease in occupancy in the office sector.
- Net operating income* was $28.4
million, an increase of $7.5
million, or 36.1%, compared to the same period last year.
This increase results primarily from the favorable impact of the
net property acquisitions in the twelve-month period ended
June 30, 2022.
- AFFO* totaled $15.7 million, an
increase of $4.5 million, or 40.4%,
compared to the same period last year, mainly driven by the impact
of the net acquisition activity over the last twelve-month
period.
- AFFO Payout Ratio – Basic* stood at 86.8% compared to 87.9% for
the same period last year. This improvement is mainly related to
the impact of the net acquisition activity over the last
twelve-month period, partially offset by maintenance capital
expenditures, leasing costs, and general and administrative
expenses resulting from the REIT's growth.
TABLE 2- Reconciliation of net operating income to net income
and comprehensive income
(CAD $
thousands)
|
|
3 Months
Ended
June 30
2022
|
3 Months
Ended
June 30
2021
|
6 Months
Ended
June 30
2022
|
6 Months
Ended
June 30
2021
|
Property
revenue
|
|
$
23,724
|
$
17,764
|
$
48,054
|
$
35,154
|
Property operating
expenses
|
|
9,454
|
7,033
|
19,704
|
14,330
|
Net operating income (NOI)
(1)
|
|
14,270
|
10,731
|
28,350
|
20,824
|
General and
administrative expenses
|
|
1,324
|
1,062
|
2,526
|
2,131
|
Long‑term incentive
plan expense
|
|
(1,201)
|
1,334
|
(276)
|
1,871
|
Depreciation of
property and equipment
|
|
99
|
87
|
188
|
174
|
Amortization of
intangible assets
|
|
93
|
93
|
186
|
186
|
Interest and financing
costs
|
|
4,804
|
4,024
|
9,516
|
7,925
|
Distributions ‑ Class B
LP Units
|
|
159
|
167
|
318
|
333
|
Fair value adjustment ‑
Class B LP Units
|
|
(1,807)
|
887
|
(861)
|
1,319
|
Fair value adjustment ‑
investment properties
|
|
(833)
|
(8,287)
|
(41,134)
|
(7,117)
|
Other income
|
|
(677)
|
(557)
|
(1,139)
|
(1,118)
|
Other
expenses
|
|
340
|
426
|
535
|
688
|
Debt settlement
costs
|
|
-
|
394
|
-
|
1,697
|
Net income and comprehensive
income
|
|
$
11,969
|
$
11,101
|
$
58,491
|
$
12,735
|
(1) Non‑IFRS measure. See
"Non‑IFRS Measures".
|
For the three months ended June 30,
2022, net income and comprehensive income amounted to
$12.0 million, compared to
$11.1 million during the same prior
year period. The $0.9 million
increase mainly relates to the $3.5
million favourable impact in net operating income, the
$2.7 million favourable impact in the
non-cash fair value adjustment on Class B LP Units and the
$2.5 million favourable impact in the
non-cash long-term incentive plan expense, partially offset by the
$7.4 million change in the non-cash
fair market value adjustment on investment properties for the
second quarter of 2022, compared to the same prior year period.
PROREIT updated independent external appraisals for nine properties
during the second quarter of 2022, resulting in a fair market value
gain of $0.8 million.
For the six months ended June 30,
2022, net income and comprehensive income amounted to
$58.5 million, compared to
$12.7 million during the same prior
year period. The $45.8 million
increase mainly relates to the $34.0 million favourable impact in the
non-cash fair value adjustment on investment properties, combined
with the $7.5 million increase in net
operating income for the six-month period ending June 30, 2022, compared to the same prior year
period. During the first six months of 2022, PROREIT updated
independent external appraisals for 14 properties, resulting in a
fair market value gain of $41.1
million.
Solid Balance
Sheet
PROREIT remains committed to steadily improving its balance
sheet and liquidity position, including its Debt to Gross Book
Value* ratio. PROREIT continues to maintain diversified debt
maturities appropriate for the overall debt level of its
portfolio.
Proceeds from an agreement to sell nine non-strategic retail
properties located in Western
Canada entered into subsequent to quarter-end (see Portfolio
Transactions) will be used to repay approximately $14.1 million in related mortgages maturing in
January 2023, leaving approximately
$10 million in mortgage renewals
maturing in the next twelve months.
Debt to Gross Book Value* was 51.2% at June 30, 2022, down from 58.2% at the same date
last year. The weighted average interest rate on mortgage debt was
3.40% at June 30, 2022, compared to
3.50% at the same date last year.
At June 30, 2022, PROREIT had
$28 million available on its credit
facility.
Portfolio Transactions
On July 27, 2022, subsequent to
quarter-end, PROREIT reached an agreement to sell a portfolio of
nine non-core retail properties to a third party for gross proceeds
of $18.8 million (excluding closing
costs), totaling approximately 94,000 square feet of GLA located in
Western Canada. Proceeds of the
sale will be used to repay related mortgages, with the balance to
be used to partially repay a term loan. The closing of the sale is
scheduled for September 2022, subject
to standard closing conditions.
On August 5, 2022, subsequent to
quarter-end, PROREIT announced the closing of its previously
announced accretive transaction with Crestpoint to jointly own an
industrial-focused portfolio of 42 properties located in
Atlantic Canada, whereby PROREIT
and Crestpoint each acquired a 50% interest in 21 primarily
industrial properties owned by a third party, for a total purchase
price of $228.0 million (before
closing costs). In conjunction with the acquisition, PROREIT sold a
50% interest in 21 of its currently owned properties to Crestpoint,
having a total value of $227 million,
for a total consideration to PROREIT of $113.5 million (before closing costs).
PROREIT's acquisition in the 50% interest in the 21 properties
amounted to a cost to PROREIT of approximately $114.0 million (excluding closing costs),
financed from the proceeds of a 50% interest in approximately
$148.0 million in new fixed-rate
mortgages. The $40 million balance
was satisfied with cash on hand, including cash from the proceeds
of the sale of a 50% interest in existing properties to
Crestpoint.
PROREIT's sale of a 50% interest in 21 of its currently owned
properties resulted in a consideration of approximately
$49.0 million in cash received from
Crestpoint (before closing costs), with Crestpoint also assuming a
50% interest in approximately $129.0
million of fixed-rate mortgages held by PROREIT.
Portfolio Pro Forma the Transactions
Province
|
% By Base
Rent(1)
|
% By
GLA(1)
|
|
Asset
Class
|
% By Base
Rent(1)
|
% By
GLA(1)
|
Maritime
Provinces
|
49.9 %
|
52.0 %
|
|
Retail
|
22.0 %
|
13.8 %
|
Québec
|
9.8 %
|
12.0 %
|
|
Office
|
9.8 %
|
6.6 %
|
Western
Canada
|
12.7 %
|
12.2 %
|
|
Industrial
|
68.2 %
|
79.7 %
|
Ontario
|
27.5 %
|
23.9 %
|
|
|
|
|
Total
|
100.0 %
|
100.0 %
|
|
Total
|
100.0 %
|
100.0 %
|
(1)
Information as at June 30, 2022, adjusted to give
effect to the sale transaction of nine non-core retail properties
and the joint venture transaction with Crestpoint, as described
under "Portfolio Transactions".
|
Operating Performance
At June 30, 2022, PROREIT's portfolio totaled 120
properties aggregating 6.6 million square feet with a weighted
average lease term of 4.4 years. Approximately 81.8% of leases
maturing in 2022 were renewed at a positive average spread of
12.90%. Occupancy rate remains strong at 98.3% as at June 30, 2022.
Distributions
Distributions to unitholders of $0.0375 per trust unit of the REIT were declared
monthly during the three months ended June
30, 2022, 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 second
quarter 2022 results on August 11, 2022, at 12:00 p.m. Eastern (noon). There will be a
question period reserved for financial analysts. To access the
conference call, please dial 888-664-6383. A recording of the call
will be available until August 18,
2022 by dialing 888-390-0541Access code:
018773#
The conference call will also be accessible via live webcast on
PROREIT's website at www.proreit.com or at
https://app.webinar.net/Ww539xJKNkq
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"). Without limitation,
measures followed by the suffix "*" in this press release are
non-IFRS measures.
As a complement to results provided in accordance with IFRS,
PROREIT discloses and discusses in this press release (i)
certain non-IFRS financial measures, including: adjusted earnings
before interest, tax, depreciation and amortization ("Adjusted
EBITDA"); annualized adjusted earnings before interest, tax,
depreciation and amortization ("Annualized 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 FFO per
Unit; Diluted FFO per Unit; Debt to Gross Book Value; Debt Service
Coverage Ratio; Interest Coverage Ratio; Debt to Annualized
Adjusted EBTIDA 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 ended June
30, 2022, dated August 10,
2022 (the "Q2 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
Ended
June 30
2022
|
3 Months
Ended
June 30
2021
|
6 Months
Ended
June 30
2022
|
6 Months
Ended
June 30
2021
|
Property
revenue
|
$
23,724
|
$
17,764
|
$
48,054
|
$
35,154
|
Property operating
expenses
|
9,454
|
7,033
|
19,704
|
14,330
|
NOI (net operating
income) as reported in the financial statements
(1)
|
14,270
|
10,731
|
28,350
|
20,824
|
Straight-line rent
adjustment
|
(105)
|
(120)
|
(223)
|
(245)
|
NOI after
straight-line rent adjustment (1)
|
14,165
|
10,611
|
28,127
|
20,579
|
|
|
|
|
|
NOI (1)
sourced from:
|
|
|
|
|
Acquisitions
|
(4,233)
|
(583)
|
(8,434)
|
(583)
|
Dispositions
|
1
|
(174)
|
3
|
(462)
|
Same Property NOI
(1)
|
$
9,933
|
$
9,854
|
$
19,696
|
$
19,534
|
Number of same properties
|
86
|
86
|
86
|
86
|
(1) Non-IFRS measure. See
"Non‑IFRS Measures".
|
The following is the Same Property NOI by asset class for the three
and six month periods ended June 30,
2022 and 2021:
(CAD $
thousands)
|
3 Months
Ended
June 30
2022
|
3 Months
Ended
June 30
2021
|
6 Months
Ended
June 30
2022
|
6 Months
Ended
June 30
2021
|
Industrial
(1)
|
$
5,390
|
$
5,146
|
$
10,694
|
$
10,174
|
Retail
|
3,419
|
3,314
|
6,819
|
6,585
|
Office
(1)
|
1,124
|
1,394
|
2,183
|
2,775
|
Same Property NOI
(2)
|
$
9,933
|
$
9,854
|
$
19,696
|
$
19,534
|
(1) As of January 1, 2022, the
REIT reclassified one of its Office assets to Industrial assets to
be more consistent with the asset's use. The comparative period has
been updated to reflect this adjustment.
|
(2)
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
Ended
June 30
2022
|
3 Months
Ended
June 30
2021
|
6 Months
Ended
June 30
2022
|
6 Months
Ended
June 30
2021
|
Net income and comprehensive income for the
period
|
$
11,969
|
$
11,101
|
$
58,491
|
$
12,735
|
Add:
|
|
|
|
|
Long‑term incentive
plan
|
(1,745)
|
821
|
(1,055)
|
1,204
|
Distributions ‑ Class
B LP Units
|
159
|
167
|
318
|
333
|
Fair value adjustment
‑ investment properties
|
(833)
|
(8,287)
|
(41,134)
|
(7,117)
|
Fair value adjustment
‑ Class B LP Units
|
(1,807)
|
887
|
(861)
|
1,319
|
Amortization of
intangible assets
|
93
|
93
|
186
|
186
|
FFO (1)
|
$
7,836
|
$
4,782
|
$
15,945
|
$
8,660
|
Deduct:
|
|
|
|
|
Straight‑line rent
adjustment
|
$
(105)
|
$
(120)
|
$
(223)
|
$
(245)
|
Maintenance capital
expenditures
|
(232)
|
(122)
|
(511)
|
(186)
|
Stabilized leasing
costs
|
(446)
|
(240)
|
(838)
|
(406)
|
Add:
|
|
|
|
|
Long‑term incentive
plan
|
544
|
513
|
779
|
667
|
Amortization of
financing costs
|
265
|
534
|
523
|
976
|
Debt settlement
costs
|
-
|
394
|
-
|
1,697
|
AFFO (1)
|
$
7,862
|
$
5,741
|
$
15,675
|
$
11,163
|
Basic FFO per unit
(1)(2)
|
$
0.1296
|
$
0.1015
|
$
0.2638
|
$
0.1987
|
Diluted FFO per unit
(1)(2)
|
$
0.1272
|
$
0.0990
|
$
0.2592
|
$
0.1940
|
Basic AFFO per unit
(1)(2)
|
$
0.1301
|
$
0.1219
|
$
0.2593
|
$
0.2561
|
Diluted AFFO per unit
(1)(2)
|
$
0.1276
|
$
0.1189
|
$
0.2548
|
$
0.2500
|
Distributions declared per Unit and Class B LP
unit
|
$
0.1125
|
$
0.1125
|
$
0.2250
|
$
0.2250
|
AFFO Payout Ratio – Basic
(1)
|
86.5 %
|
92.3 %
|
86.8 %
|
87.9 %
|
AFFO Payout Ratio – Diluted
(1)
|
88.2 %
|
94.6 %
|
88.3 %
|
90.0 %
|
Basic weighted average number of units
(2)(3)
|
60,447,230
|
47,106,848
|
60,447,230
|
43,584,504
|
Diluted weighted average number of units
(2)(3)
|
61,625,646
|
48,285,403
|
61,510,654
|
44,648,990
|
(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, as
applicable, added to the weighted average number of Class B LP
Units outstanding during the period.
|
(3) Total basic units
consist of trust units of PROREIT and Class B LP Units. Total
diluted units also includes 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
Ended
June 30
2022
|
3 Months
Ended
June 30
2021
|
6 Months
Ended
June 30
2022
|
6 Months
Ended
June 30
2021
|
Net income and
comprehensive income
|
$
11,969
|
$
11,101
|
$
58,491
|
$
12,735
|
Interest and financing
costs
|
4,804
|
4,024
|
9,516
|
7,925
|
Depreciation of
property and equipment
|
99
|
87
|
188
|
174
|
Amortization of
intangible assets
|
93
|
93
|
186
|
186
|
Fair value adjustment ‑
Class B LP Units
|
(1,807)
|
887
|
(861)
|
1,319
|
Fair value adjustment ‑
investment properties
|
(833)
|
(8,287)
|
(41,134)
|
(7,117)
|
Distributions ‑ Class B
LP Units
|
159
|
167
|
318
|
333
|
Straight‑line
rent
|
(105)
|
(120)
|
(223)
|
(245)
|
Long‑term incentive
plan expense
|
(1,201)
|
1,334
|
(276)
|
1,871
|
Debt settlement
costs
|
-
|
394
|
-
|
1,697
|
Adjusted EBITDA (1)
|
$
13,178
|
$
9,680
|
$
26,205
|
$
18,878
|
(1) Non‑IFRS measure.
See "Non‑IFRS Measures".
|
Calculation of Debt to Annualized Adjusted EBITDA
Ratio
(CAD $
thousands)
|
3 Months
Ended
June 30
2022
|
3 Months
Ended
June 30
2021
|
6 Months
Ended
June 30
2022
|
6 Months
Ended
June 30
2021
|
Debt, excluding
unamortized financing costs
|
$
503,135
|
$
428,050
|
$
503,135
|
$
428,050
|
Credit facility,
excluding unamortized financing costs
|
32,000
|
23,000
|
32,000
|
23,000
|
Debt
|
$
535,135
|
$
451,050
|
$
535,135
|
$
451,050
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
$
13,178
|
$
9,680
|
$
26,205
|
$
18,878
|
Adjusted Annualized
EBITDA (1)
|
$
52,712
|
$
38,720
|
$
52,410
|
$
37,756
|
Debt to Annualized Adjusted EBITDA Ratio
(1)
|
10.2x
|
11.6x
|
10.2x
|
11.9x
|
(1) Non‑IFRS measure.
See "Non‑IFRS Measures".
|
Calculation of the Interest Coverage Ratio
(CAD $
thousands)
|
3 Months
Ended
June 30
2022
|
3 Months
Ended
June 30
2021
|
6 Months
Ended
June 30
2022
|
6 Months
Ended
June 30
2021
|
Adjusted EBITDA
(1)
|
$
13,178
|
$
9,680
|
$
26,205
|
$
18,878
|
Interest expense
|
$
4,538
|
$
3,508
|
$
8,986
|
$
6,961
|
Interest Coverage
Ratio (1)
|
2.9x
|
2.8x
|
2.9x
|
2.7x
|
(1) Non‑IFRS measure.
See "Non‑IFRS Measures".
|
Calculation of the Debt Service Coverage Ratio
(CAD $
thousands)
|
3 Months
Ended
June 30
2022
|
3 Months
Ended
June 30
2021
|
6 Months
Ended
June 30
2022
|
6 Months
Ended
June 30
2021
|
Adjusted EBITDA
(1)
|
$
13,178
|
$
9,680
|
$
26,205
|
$
18,878
|
Interest expense
|
4,538
|
3,508
|
8,986
|
6,961
|
Principal
repayments
|
3,566
|
2,486
|
7,155
|
4,943
|
Debt Service Requirements
|
$
8,104
|
$
5,994
|
$
16,141
|
$
11,904
|
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 except
unit, per unit amounts and unless otherwise stated)
|
June 30
2022
|
Dec 31
2021
|
June 30
2021
|
Total assets, including
investment properties stated at fair value
|
$
1,041,296
|
$
989,963
|
$
772,881
|
Accumulated
depreciation on property and equipment and intangible
assets
|
2,642
|
2,268
|
1,868
|
Gross Book Value
(1)
|
1,043,938
|
992,231
|
774,749
|
Debt, excluding
unamortized financing costs
|
503,135
|
511,445
|
428,050
|
Credit facility,
excluding unamortized financing costs
|
32,000
|
15,000
|
23,000
|
Debt
|
$
535,135
|
$
526,445
|
$
451,050
|
Debt to Gross Book
Value (1)
|
51.26 %
|
53.06 %
|
58.22 %
|
(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 three months ended
June 30, 2022, which are available
under PROREIT's profile on SEDAR at www.sedar.com.
SOURCE PROREIT