TORONTO, March 7, 2024 /CNW/ – Automotive Properties Real Estate Investment Trust (TSX:APR) (“Automotive Properties REIT” or the “REIT”) today announced its financial results for the fourth quarter (“Q4 2023”) and year ended December 31, 2023 (“2023”).
“We continued to generate strong financial performance with growth in rental revenue, Cash NOI, same property Cash NOI and AFFO per Unit for both the fourth quarter and full year,” said Milton Lamb, CEO of Automotive Properties REIT. “Given the combination of fixed and CPI-linked annual rent increases built into our triple-net leases, our property portfolio is well positioned to continue generating solid returns for unitholders.”
The REIT generated AFFO per Unit1 of $0.230 (diluted) and paid total cash distributions of $0.201 per Unit (as defined below) in Q4 2023, representing an AFFO payout ratio1 of approximately 87.4%. For the comparable three-month period ended December 31, 2022 (“Q4 2022”), the REIT generated AFFO per Unit of $0.213 (diluted) and paid cash distributions of $0.201 per Unit, representing an AFFO payout ratio of approximately 94.4%.
The REIT had a Debt to Gross Book Value (“Debt to GBV”)2 ratio of 45.0% as at December 31, 2023, and $57.2 million of undrawn capacity under its revolving credit facilities, $0.3 million of cash on hand, and five unencumbered properties with an aggregate value of approximately $70.6 million.
The REIT’s valuation of its investment properties decreased nominally in Q4 2023 compared to the prior quarter to reflect current market conditions, resulting in a fair value loss of $0.8 million. The capitalization rate applicable to the REIT’s entire portfolio increased to 6.59% as at December 31, 2023, compared to 6.56% as at September 30, 2023 and 6.42% as at December 31, 2022.
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1 AFFO per Unit and AFFO payout ratio are non-IFRS measures and non-IFRS ratios, respectively. See “Non-IFRS Financial Measures” at the end of this news release.
2 Debt to GBV is a supplementary financial measure. See “Non-IFRS Financial Measures” at the end of this news release.
Three months ended
December 31,
12 months ended
December 31,
($000s, except per Unit amounts)
2023
2022
Change
2023
2022
Change
Rental revenue (1)
$23,291
$20,901
11.4 %
$92,484
$82,861
11.6 %
NOI (2)
19,741
17,629
12.0 %
78,413
70,575
11.1 %
Cash NOI (2)
19,317
17,263
11.9 %
76,372
68,533
11.4 %
Same Property Cash NOI (1) (2)
17,279
16,866
2.4 %
67,568
65,962
2.4 %
Net (Loss) Income (3)
(15,199)
13,588
N/A
50,991
83,365
-38.8 %
FFO (2)
11,939
11,008
8.5 %
48,010
46,748
2.7 %
AFFO (2)
11,532
10,641
8.4 %
45,930
44,707
2.7 %
Distributions per Unit
$0.201
$0.201
–
$0.804
$0.804
–
FFO per Unit – basic (2) (4)
0.243
0.224
0.019
0.979
0.953
0.026
FFO per Unit – diluted (2) (5)
0.238
0.221
0.017
0.959
0.939
0.020
AFFO per Unit – basic (2) (4)
0.235
0.217
0.018
0.936
0.912
0.024
AFFO per Unit – diluted (2) (5)
0.230
0.213
0.017
0.918
0.898
0.020
Ratios (%)
FFO payout ratio (2)
84.5 %
91.0 %
6.5 %
83.8 %
85.6 %
1.8 %
AFFO payout ratio (2)
87.4 %
94.4 %
7.0 %
87.6 %
89.5 %
1.9 %
Debt to GBV (6)
45.0 %
40.0 %
-5.0 %
45.0 %
40.0 %
-5.0 %
(1)
Rental revenue is based on rents from leases entered into with tenants, all of which are triple-net leases and include recoverable realty taxes and straight-line adjustments. Same Property Cash NOI is based on rental revenue for the same asset base having consistent gross leasable area in both periods.
(2)
NOI, Cash NOI, Same Property Cash NOI, FFO, AFFO, FFO per Unit, AFFO per Unit, FFO payout ratio and AFFO payout ratio are non-IFRS measures or non-IFRS ratios, as applicable. See “Non-IFRS Financial Measures” at the end of this news release. References to “Same Property” correspond to properties that the REIT owned in Q4 2022, thus removing the impact of acquisitions.
(3)
Net income for Q4 2023 includes changes in fair value adjustments of $3.6 million for Class B Limited Partnership Units of Automotive Properties Limited Partnership (“Class B LP Units”), Deferred Units (“DUs”), Income Deferred Units (“IDUs”), Performance Deferred Units (“PDUs”) and Restricted Deferred Units (“RDUs”), $21.0 million for interest rate swaps and $0.8 million for investment properties. Net income for 2023 includes changes in fair value adjustments of $22.2 million Class B LP Units, DUs, IDUs, PDUs and RDUs, $7.7 million for interest rate swaps and $4.1 million for investment properties. For 2023 net income, please refer to the consolidated financial statements of the REIT and notes thereto.
(4)
FFO per Unit and AFFO per Unit – basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding trust units of the REIT (“REIT Units” and together with the Class B LP Units, “Units”) and Class B LP Units. The total weighted average number of Units outstanding – basic for Q4 2023 was 49,054,833.
(5)
FFO per Unit and AFFO per Unit – diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding Units, DUs, IDUs, PDUs and RDUs granted to independent trustees and management …
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