MONTREAL, March 22,
2023 /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 ("fourth
quarter" or "Q4") and fiscal year ("Fiscal 2022") ended
December 31, 2022.
Fourth Quarter and Fiscal 2022 Highlights
- Total assets reached $1.04
billion at December 31, 2022,
up 4.6% compared to the same date last year
- Property revenue increased by 9.3% in Q4 year-over-year and by
25.2% in Fiscal 2022 compared to last year
- Net operating income (NOI)* up 9.1% in Q4 year-over-year
and up 24.8% for Fiscal 2022 compared to last year
- Industrial Same Property NOI* up 5.0% in Q4 year-over-year and
up 4.3% in Fiscal 2022 compared to last year
- Net income and comprehensive income up $2.7 million for Fiscal 2022 compared to last
year
- AFFO* increased by 4.5% in Q4 year-over-year and by 24.8% in
Fiscal 2022 compared to last year
- Debt to Gross Book Value* of 49.7% at December 31, 2022, compared to 53.1% at same date
last year
- 93.2% of 2022 gross leasable area ("GLA") renewed at 16.4%
average spread, and 49.8% of 2023 GLA renewed at average spread of
36.7%
- Occupancy rate of 98.5% at December 31,
2022
"PROREIT continued to deliver in Fiscal 2022 despite operating
in a challenging macro-economic and high interest rate
environment," said Jim Beckerleg,
President and CEO, PROREIT.
"Not only did we surpass the $1 billion mark in total
assets this year, we successfully refocused our high-quality
portfolio in the robust industrial sector and achieved meaningful
operational and leasing synergies. Thanks to our joint venture
transaction with Crestpoint Real Estate Investments Ltd. completed
in the second quarter of 2022 and the sale of 11 non-core retail
assets during the year, our industrial segment now accounts for 69%
of base rent at year end, compared to 64% at the end of last year.
Through some planned capital recycling and other opportunities that
may arise, we would see our next industrial segment target to
approach 80% of base rent in the near term.
"We also improved our key financial and operational metrics.
While sustaining a high occupancy rate of 98.5%, we have renewed
our maturing leases at very positive leasing spreads. The benefits
of those efforts will be more fully reflected in our financial
performance over the coming quarters. Industrial Same Property NOI*
growth also stands to benefit from the full impact of our higher
concentration in the industrial space and the significant market
value embedded in our strategic portfolio.
"We strengthened our balance sheet during the year, reducing our
total debt level by $10 million, and executing on our strategy
to reduce our Debt to Gross Book Value* ratio to below 50%, 10
months ahead of our target date.
"The strong team and deep bench strength we have assembled over
the past years gives me great confidence in PROREIT's ability to
achieve the next level of its growth. We are well positioned to
increase the industrial concentration of our portfolio further in
locations with robust economies while pursuing our goal to reach
$2 billion in assets. We will maintain a disciplined capital
allocation approach to create sustainable value to the benefit of
our stakeholders.
"It has been my privilege to lead this team over the past 10
years and I look forward to providing continued guidance from the
board, as Gordie takes the helm as CEO on April 1st, after this successful
transition year," concluded Mr. Beckerleg.
* 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
December 31
2022
|
3 Months
Ended
December 31
2021
|
Year Ended
December 31
2022
|
Year Ended
December 31
2021
|
Financial data
|
|
|
|
|
Property
revenue
|
$
25,070
|
$
22,932
|
$
97,210
|
$
77,674
|
Net operating income
(NOI) (1)
|
$
14,579
|
$
13,358
|
$
57,737
|
$
46,282
|
Same Property NOI
(1)
|
$
11,228
|
$
11,001
|
$
34,707
|
$
34,539
|
Net income and
comprehensive income
|
$
6,456
|
$
65,041
|
$
84,494
|
$
81,844
|
Total assets
|
$
1,035,928
|
$ 989,963
|
$
1,035,928
|
$ 989,963
|
Debt to Gross Book
Value (1)
|
49.73 %
|
53.06 %
|
49.73 %
|
53.06 %
|
Interest Coverage Ratio
(1)
|
2.7x
|
2.9x
|
2.8x
|
2.8x
|
Debt Service Coverage
Ratio (1)
|
1.6x
|
1.6x
|
1.6x
|
1.6x
|
Debt to Annualized
Adjusted EBITDA Ratio (1)
|
9.6x
|
10.7x
|
9.7x
|
12.4x
|
Weighted average
interest rate on mortgage debt
|
3.70 %
|
3.39 %
|
3.70 %
|
3.39 %
|
Net cash flows provided
from operating activities
|
$
8,331
|
$
20,242
|
$
28,235
|
$
29,276
|
Funds from Operations
(FFO) (1)
|
$
7,485
|
$
6,924
|
$
30,275
|
$
21,934
|
Basic FFO per unit
(1)(2)
|
$
0.1238
|
$
0.1158
|
$
0.5009
|
$
0.4490
|
Diluted FFO per unit
(1)(2)
|
$
0.1215
|
$
0.1136
|
$
0.4888
|
$
0.4389
|
Adjusted Funds from
Operations (AFFO) (1)
|
$
7,687
|
$
7,354
|
$
31,295
|
$
25,072
|
Basic AFFO per unit
(1)(2)
|
$
0.1272
|
$
0.1230
|
$
0.5177
|
$
0.5132
|
Diluted AFFO per unit
(1)(2)
|
$
0.1247
|
$
0.1206
|
$
0.5053
|
$
0.5017
|
AFFO Payout Ratio –
Basic (1)
|
88.5 %
|
91.5 %
|
86.9 %
|
87.7 %
|
AFFO Payout Ratio –
Diluted (1)
|
90.2 %
|
93.3 %
|
89.1 %
|
89.7 %
|
(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 130 investment properties at December 31, 2022, including a 50% ownership
interest in 42 investment properties, compared to 120 properties
owned at 100% at the end of Fiscal 2021. Total assets amounted to
$1.04 billion at December 31, 2022, compared to $990.0 million as at
December 31, 2021, an increase of $46.0 million or 4.6%. During the
twelve-month period ended December 31,
2022, PROREIT acquired a 50% interest in 21 investment
properties, sold a 50% interest in 21 other investment properties
and sold a 100% interest in 11 non-strategic retail properties.
For the fourth quarter and fiscal year ended December 31, 2022:
- Property revenue amounted to $25.1
million, an increase of $2.1
million or 9.3%, compared to $22.9
million for the same prior year period, and for Fiscal 2022
was $97.2 million, an increase of
$19.5 million or 25.2%, compared to
$77.7 million for fiscal 2021. The
increases were mainly driven by incremental revenues from net
acquisition activity over the last twelve-month period.
- Same Property NOI*, which represented 92 properties out of the
130-property portfolio, reached $11.2
million for the quarter, an increase of $0.2 million or 2.1%, compared to the same prior
year period. Same Property NOI*, which represented 69 properties
out of the 130-property portfolio, was $34.7
million for the year, an increase of $0.2 million or 0.5%, compared to last year. The
increases were a result of higher occupancy in the industrial and
retail asset class and certain contractual rent increases and
higher rental rates on lease renewals in the industrial asset class
offset by the decrease in office asset class occupancy compared to
the same period in 2021. Only representing 10.9% of total Same
Property NOI*, office Same Property NOI* decreased by 10.6% during
the fourth quarter year-over-year as a result of increased vacancy
in one of the eight office properties.
- Net operating income* amounted to $14.6
million for the quarter, compared to $13.4 million in Q4 2021, an increase of
$1.2 million or 9.1%, and was
$57.7 million for the year, an
increase of $11.5 million or 24.8%,
compared to $46.3 million for fiscal
2021. The increases were mainly driven by the impact of the net
property acquisition activity over the last twelve-month
period.
- AFFO* totaled $7.7 million for
the quarter, an increase of $0.3
million or 4.5%, compared to $7.4
million for Q4 2021 and was $31.3
million for Fiscal 2022, an increase of $6.2 million or 24.8%, compared to $25.1 million last year. The increases were
largely related to the net increase in the number of properties
acquired during Fiscal 2022 and the increase in property management
fees earned by Compass, which collects 100% of the property
management fees as sole property manager for the entire 50%-owned
42 property portfolio.
- AFFO Payout Ratio – Basic* stood at 88.5% for the quarter,
compared to 91.5% for Q4 2021 and was 86.9% for Fiscal 2022,
compared to 87.7% for fiscal 2021. The improvement was largely
related to the increase in NOI* resulting from the net increase in
the number of properties during Fiscal 2022, the increase in
property management fees ear
ned by Compass, which collects 100% of the property management
fees as sole property manager for the entire 50%-owned 42 property
portfolio, partially offset by increases in maintenance capital
expenditures and stabilized leasing costs, as well as certain
general and administrative costs resulting to the REIT's
growth.
TABLE 2- Reconciliation of net operating income to net income
and comprehensive income
(CAD $
thousands)
|
|
3 Months
Ended
December 31
2022
|
3 Months
Ended
December 31
2021
|
Year Ended
December 31
2022
|
Year Ended
December 31
2021
|
Property
revenue
|
|
$
25,070
|
$
22,932
|
$
97,210
|
$
77,674
|
Property operating
expenses
|
|
10,491
|
9,574
|
39,473
|
31,392
|
Net operating
income(1)
|
|
14,579
|
13,358
|
57,737
|
46,282
|
General and
administrative expenses
|
|
1,360
|
1,152
|
5,160
|
4,347
|
Long–term incentive
plan expense
|
|
1,042
|
840
|
691
|
3,060
|
Depreciation of
property and equipment
|
|
126
|
97
|
417
|
357
|
Amortization of
intangible assets
|
|
93
|
93
|
372
|
372
|
Interest and financing
costs
|
|
5,182
|
4,554
|
20,541
|
16,887
|
Distributions – Class B
LP Units
|
|
157
|
164
|
634
|
663
|
Fair value adjustment –
Class B LP Units
|
|
332
|
89
|
(1,179)
|
1,083
|
Fair value adjustment –
investment properties
|
|
166
|
(58,620)
|
(52,541)
|
(63,161)
|
Other income
|
|
(781)
|
(556)
|
(2,302)
|
(2,338)
|
Other
expenses
|
|
439
|
363
|
1,169
|
1,330
|
Debt settlement
costs
|
|
7
|
141
|
281
|
1,838
|
Net income and
comprehensive income
|
|
$
6,456
|
$
65,041
|
$
84,494
|
$
81,844
|
(1) Non–IFRS measure. See
"Non–IFRS Measures".
|
For the three months ended December 31,
2022, net income and comprehensive income amounted to
$6.5 million, compared to
$65.0 million during the same
prior year period. The $58.5 million decrease mainly relates to the
$58.8 million impact in the
non-cash fair market value adjustment on investment properties
compared to the same period last year. PROREIT updated independent
external appraisals for 6 properties during the fourth quarter
of 2022, and 43 properties during Fiscal 2022.
For the twelve months ended December 31,
2022, net income and comprehensive income amounted to
$84.5 million, compared to
$81.8 million during the same
prior year period. The $2.7 million increase is mainly attributable
to the $11.4 million increase in NOI*
and the $2.3 million favourable
impact on the non-cash fair value adjustment for Class B LP Units,
partially offset by the $10.6 million
less favourable impact in the non-cash fair value adjustment on
investment properties, and by the $3.7 million increase in interest and
financing costs in 2022, compared to 2021. In Fiscal 2022, PROREIT
updated independent external appraisals for 44 properties,
contributing to the fair market value gain of $52.5 million.
Solid Balance Sheet
PROREIT is committed to progressively improving its balance
sheet, including its Debt to Gross Book Value* ratio and its cash
position and sources of funds available. PROREIT maintains
diversified debt maturities appropriate for the overall debt level
of its portfolio.
Debt to Gross Book Value* was 49.7% at December 31, 2022, down from 53.1% at the same
date last year. Weighted average interest rate on mortgage debt was
3.7% at December 31, 2022, compared
to 3.4% at the same date last year.
At December 31, 2022, PROREIT had
$23.0 million available on its
credit facility.
Portfolio Transactions
On August 4, 2022, PROREIT
completed its joint venture transaction with Crestpoint Real Estate
Investments Ltd. and its affiliates ("Crestpoint") to jointly own
an industrial-focused portfolio of 42 properties located in
Atlantic Canada, including 41
properties in Dartmouth, Nova
Scotia, and one property in Moncton, New Brunswick, comprised of nearly
3.1 million square feet of GLA. As part of the transaction, 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, the REIT sold
a 50% interest in 21 of its properties to Crestpoint, having a
total value of $227.0 million for a
total consideration to the REIT of $113.5
million (before closing costs). PROREIT, through its wholly
owned property management business Compass Commercial Realty, acts
as the sole property manager for the entire 42-property portfolio
and collects industry standard fees.
On September 27, 2022, the REIT
announced that it completed the sale of a portfolio of nine
non-core retail properties totaling approximately 94,000 square
feet of GLA, located in Western Canada, for gross proceeds
of $18.8 million, excluding closing costs. Proceeds of the
sale were used to repay approximately $14.1 million in related
mortgages maturing in January 2023, and the balance was used
to partially repay a term loan.
On November 3, 2022, PROREIT
completed the sale of a non-strategic retail property in
Alberta, totaling approximately
11,000 square feet of GLA, for gross proceeds of $5.4 million (before closing costs). Proceeds of
the sale were used to pay out a term loan of approximately
$3.4 million, with the balance being
used for general trust purposes.
On December 13, 2022, the REIT
completed the sale of a small retail property in Quebec totaling approximately 3,500 square
feet of GLA for gross proceeds of $1.6 million (before closing costs).
Proceeds of the sale were used to partially pay down the REIT's
credit facility.
Operating Performance
At December 31, 2022, PROREIT's portfolio totaled
130 investment properties, including a 50% ownership interest
in 42 investment properties, aggregating
6.5 million square feet of GLA (at the REIT's
interest) with a weighted average lease term of 4.1 years. The
occupancy rate of the portfolio remains strong at 98.5% as at
December 31, 2022.
PROREIT continues to benefit from a robust operating
environment, with 93.2% of leases maturing in 2022 renewed at a
positive average spread of 16.4%, and 49.8% of leases maturing in
2023 renewed at a positive average spread of 36.7%.
CEO Succession
On October 4, 2022, PROREIT
announced that Gordon G. Lawlor will
succeed James W. Beckerleg as
President and Chief Executive Officer of the REIT and will join the
REIT's Board of Trustees, effective April 1, 2023, at
which time Mr. Beckerleg will be named Vice Chair of the Board and
Co-Founder, as part of the REIT's CEO succession plan. Mr.
Beckerleg has been President and Chief Executive Officer and a
Trustee of PROREIT since 2013. The REIT also announced that
Alison Schafer will be appointed
Chief Financial Officer and Secretary of the REIT concurrently with
these changes.
Distributions
Distributions to unitholders of $0.0375 per trust unit of the REIT were declared
monthly during the three months ended December 31, 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 fourth
quarter and Fiscal 2022 results on March 23, 2023, 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 (conference: 18931915). A recording
of the call will be available until March 30, 2023 by
dialing 888-390-0541 Access code: 931915#.
The conference call will also be accessible via live webcast on
PROREIT's website at www.proreit.com or at
https://app.webinar.net/xWzqGM4V1Z4
Annual Meeting of Unitholders
PROREIT will host its annual meeting on June 6, 2023. 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.
For more information on PROREIT, please visit the website at:
https://proreit.com.
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 EBITDA 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 year ended
December 31, 2022, dated March 22, 2023 (the "2022 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
December 31
2022
|
3 Months
Ended
December 31
2021
|
Year Ended
December 31
2022
|
Year Ended
December 31
2021
|
Property
revenue
|
$
25,070
|
$
22,932
|
$
97,210
|
$
77,674
|
Property operating
expenses
|
10,491
|
9,574
|
39,473
|
31,392
|
NOI (net operating
income) as reported in the financial statements
(1)
|
14,579
|
13,358
|
57,737
|
46,282
|
Straight-line rent
adjustment
|
(151)
|
(119)
|
(394)
|
(493)
|
NOI after
straight-line rent adjustment (1)
|
14,428
|
13,239
|
57,343
|
45,789
|
|
|
|
|
|
NOI (1)
sourced from:
|
|
|
|
|
Acquisitions
|
(3,155)
|
(1,313)
|
(21,003)
|
(8,631)
|
Dispositions
|
(45)
|
(925)
|
(1,633)
|
(2,619)
|
Same Property NOI
(1)
|
$
11,228
|
$
11,001
|
$
34,707
|
$
34,539
|
Number of same properties
|
92 (2)
|
92 (2)
|
69
|
69
|
(1)
Non-IFRS measure. See "Non–IFRS Measures".
|
(2)
Includes 6 properties 50% owned at December 31, 2022 (100% owned at
December 31, 2021). The comparative period has been updated to
reflect 50% ownership.
|
The following is the Same Property NOI by asset class for the
three-month periods and years ended December
31, 2022 and 2021:
|
3 Months Ended
|
|
Year
Ended
|
(CAD $
thousands)
|
Number of
same
properties
|
December 31
2022
|
December 31
2021
|
|
Number of
same
properties
|
Year Ended
December 31
2022
|
Year Ended
December 31
2021
|
Industrial
(2)
|
50
(3)
|
$
7,052
|
$
6,717
|
|
27
|
$
18,397
|
$
17,640
|
Retail
|
34
|
2,956
|
2,919
|
|
34
|
11,695
|
11,383
|
Office
(2)
|
8
|
1,220
|
1,365
|
|
8
|
4,615
|
5,516
|
Same Property NOI
(1)
|
92
|
$
11,228
|
$
11,001
|
|
69
|
$
34,707
|
$
34,539
|
(1) Non–IFRS measure. See
"Non–IFRS Measures".
|
(2)
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.
|
(3)
Includes 6 properties 50% owned at December 31, 2022 (100% owned at
December 31, 2021). The comparative period has been updated to
reflect 50% ownership.
|
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
December 31
2022
|
3 Months
Ended
December 31
2021
|
Year
Ended
December 31
2022
|
Year
Ended
December 31
2021
|
Net income and comprehensive income for the
period
|
$
6,456
|
$
65,041
|
$
84,494
|
$
81,844
|
Add:
|
|
|
|
|
Long–term incentive plan
|
281
|
157
|
(1,505)
|
1,133
|
Distributions – Class B LP Units
|
157
|
164
|
634
|
663
|
Fair value adjustment – investment properties
|
166
|
(58,620)
|
(52,541)
|
(63,161)
|
Fair value adjustment – Class B LP Units
|
332
|
89
|
(1,179)
|
1,083
|
Amortization of intangible assets
|
93
|
93
|
372
|
372
|
FFO (1)
|
$
7,485
|
$
6,924
|
$
30,275
|
$
21,934
|
Deduct:
|
|
|
|
|
Straight–line rent adjustment
|
$
(151)
|
$
(119)
|
$
(394)
|
$
(493)
|
Maintenance capital expenditures
|
(191)
|
(192)
|
(984)
|
(713)
|
Stabilized leasing costs
|
(425)
|
(387)
|
(1,650)
|
(1,013)
|
Add:
|
|
|
|
|
Long–term incentive plan
|
761
|
683
|
2,196
|
1,927
|
Amortization of financing costs
|
201
|
304
|
1,571
|
1,592
|
Debt settlement costs
|
7
|
141
|
281
|
1,838
|
AFFO (1)
|
$
7,687
|
$
7,354
|
$
31,295
|
$
25,072
|
Basic FFO per unit
(1)(2)
|
$
0.1238
|
$
0.1158
|
$
0.5009
|
$
0.4490
|
Diluted FFO per unit
(1)(2)
|
$
0.1215
|
$
0.1136
|
$
0.4888
|
$
0.4389
|
Basic AFFO per unit
(1)(2)
|
$
0.1272
|
$
0.1230
|
$
0.5177
|
$
0.5132
|
Diluted AFFO per unit
(1)(2)
|
$
0.1247
|
$
0.1206
|
$
0.5053
|
$
0.5017
|
Distributions declared per Unit and Class B LP
unit
|
$
0.1125
|
$
0.1125
|
$
0.4500
|
$
0.4500
|
AFFO Payout Ratio – Basic
(1)
|
88.5 %
|
91.5 %
|
86.9 %
|
87.7 %
|
AFFO Payout Ratio – Diluted
(1)
|
90.2 %
|
93.3 %
|
89.1 %
|
89.7 %
|
Basic weighted average number of units
(2)(3)
|
60,447,230
|
59,786,374
|
60,447,230
|
48,853,672
|
Diluted weighted average number of units
(2)(3)
|
61,625,646
|
60,964,929
|
61,932,299
|
49,975,662
|
(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 average 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 Units 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
December 31
2022
|
3 Months
Ended
December 31
2021
|
Year Ended
December 31
2022
|
Year Ended
December 31
2021
|
Net income and
comprehensive income
|
$
6,456
|
$
65,041
|
$
84,494
|
$
81,844
|
Interest and financing
costs
|
5,182
|
4,554
|
20,541
|
16,887
|
Depreciation of
property and equipment
|
126
|
97
|
417
|
357
|
Amortization of
intangible assets
|
93
|
93
|
372
|
372
|
Fair value adjustment –
Class B LP Units
|
332
|
89
|
(1,179)
|
1,083
|
Fair value adjustment –
investment properties
|
166
|
(58,620)
|
(52,541)
|
(63,161)
|
Distributions – Class B
LP Units
|
157
|
164
|
634
|
663
|
Straight–line
rent
|
(151)
|
(119)
|
(394)
|
(493)
|
Long–term incentive
plan expense
|
1,042
|
840
|
691
|
3,060
|
Debt settlement
costs
|
7
|
141
|
281
|
1,838
|
Adjusted EBITDA (1)
|
$
13,410
|
$
12,280
|
$
53,316
|
$
42,450
|
(1) Non–IFRS measure.
See "Non–IFRS Measures".
|
Calculation of Debt to Annualized Adjusted EBITDA Ratio
(CAD $ thousands)
|
3 Months
Ended
December 31
2022
|
3 Months
Ended
December 31
2021
|
Year Ended
December 31
2022
|
Year Ended
December 31
2021
|
Debt, excluding
unamortized financing costs
|
$
479,704
|
$
511,445
|
$
479,704
|
$
511,445
|
Credit facility,
excluding unamortized financing costs
|
37,000
|
15,000
|
37,000
|
15,000
|
Total Debt and Credit
facility, excluding unamortized financing costs
|
$
516,704
|
$
526,445
|
$
516,704
|
$
526,445
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
$
13,410
|
$
12,280
|
$
53,316
|
$
42,450
|
Annualized Adjusted
EBITDA (1)
|
$
53,640
|
$
49,120
|
$
53,316
|
$
42,450
|
Debt to Annualized Adjusted EBITDA Ratio
(1)
|
9.6x
|
10.7x
|
9.7x
|
12.4x
|
(1) Non–IFRS measure.
See "Non–IFRS Measures".
|
Calculation of the Interest Coverage Ratio
(CAD $ thousands)
|
3 Months
Ended
December 31
2022
|
3 Months
Ended
December 31
2021
|
Year Ended
December 31
2022
|
Year Ended
December 31
2021
|
Adjusted EBITDA
(1)
|
$
13,410
|
$
12,280
|
$
53,316
|
$
42,450
|
Interest expense
|
$
5,045
|
$
4,250
|
$
19,051
|
$
15,323
|
Interest Coverage Ratio
(1)
|
2.7x
|
2.9x
|
2.8x
|
2.8x
|
(1) Non–IFRS measure.
See "Non–IFRS Measures".
|
Calculation of the Debt Service Coverage Ratio
(CAD $ thousands)
|
3 Months
Ended
December 31
2022
|
3 Months
Ended
December 31
2021
|
Year Ended
December 31
2022
|
Year Ended
December 31
2021
|
Adjusted EBITDA
(1)
|
$
13,410
|
$
12,280
|
$
53,316
|
$
42,450
|
Interest expense
|
5,045
|
4,250
|
19,051
|
15,323
|
Principal
repayments
|
3,307
|
3,214
|
13,814
|
10,944
|
Debt Service Requirements
|
$
8,352
|
$
7,464
|
$
32,865
|
$
26,267
|
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)
|
December 31
2022
|
December 31
2021
|
Total assets, including
investment properties stated at fair value
|
$
1,035,928
|
$ 989,963
|
Accumulated
depreciation on property and equipment and intangible
assets
|
3,054
|
2,268
|
Gross Book Value
(1)
|
1,038,982
|
992,231
|
Debt, excluding
unamortized financing costs
|
479,704
|
511,445
|
Credit facility,
excluding unamortized financing costs
|
37,000
|
15,000
|
Total Debt and Credit
facility, excluding unamortized financing costs
|
$
516,704
|
$ 526,445
|
Debt to Gross Book
Value (1)
|
49.73 %
|
53.06 %
|
(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
December 31, 2022, which are
available under PROREIT's profile on SEDAR at www.sedar.com.
SOURCE PROREIT