Connect with us

Hi, what are you looking for?

Uncategorized

Automotive Properties REIT Reports Financial Results for Third Quarter of 2021

TORONTO, Nov. 11, 2021 /CNW/ – Automotive Properties Real Estate Investment Trust (TSX:APR) (“Automotive Properties REIT” or the “REIT”) today announced its financial results for the three-month (“Q3 2021”) and nine-month (“YTD 2021”) periods ended September 30, 2021.

“The third quarter was another strong one for the REIT, highlighted by solid increases in revenue, NOI and AFFO per unit,” said Milton Lamb, CEO of Automotive Properties REIT. “Our strong financial performance is supported by the resiliency of the automotive dealership industry, which is experiencing year-over-year growth in sales this year. We are collecting 100% of contractual base rent under our leases every month, in addition to contractual rent that is due under the Deferral Agreements. We expect the pace of industry consolidation to accelerate in the months ahead as the economy continues to recover, and we are well positioned to capitalize on accretive opportunities to expand our property portfolio.”

Q3 2021 Highlights

The REIT collected 100% of its Q3 2021 contractual base rent due under its leases and rent deferral agreements with its tenants (the “Deferral Agreements”).
The REIT generated AFFO per Unit (as defined below) of $0.221 (diluted) and paid total cash distributions of $0.201 per Unit in Q3 2021, representing an AFFO payout ratio of approximately 91.0%. For the comparable three-month period ended September 30, 2020 (“Q3 2020”), the REIT generated AFFO per Unit of $0.215 (diluted) and paid cash distributions of $0.201 per Unit, representing an AFFO payout ratio of approximately 93.5%. The AFFO payout ratio was lower in Q3 2021 primarily due to contractual rent increases, in addition to the temporary dilutive effect of the REIT’s December 2019 equity offering.
The REIT had a Debt to Gross Book Value (“Debt to GBV”) ratio of 40.1% as at September 30, 2021, and a strong liquidity position with $74.2 million of undrawn credit facilities, $5.0 million of cash on hand, and seven unencumbered properties with an aggregate value of approximately $103.2 million.
The capitalization rate applicable to the REIT’s entire portfolio was 6.4% as at September 30, 2021, a reduction of approximately 10 basis points from 6.5% as at June 30, 2021, and a reduction of approximately 30 basis points from 6.7% as at December 31, 2020. The reduction of the capitalization rate in Q3 2021 is a result of the REIT decreasing the discount rate for its properties in the Greater Vancouver Area and Alberta by 25 basis points, and decreasing discount rates for specific properties in certain markets. The reductions were primarily due to industry-wide single tenant retail and industrial capitalization rate reductions. In addition, the REIT continued its amortization of two land lease properties.

Financial Results Summary¹          

Three months ended
September 30,

Nine months ended
September 30,

($000s, except per Unit amounts)

2021

2020

Change

2021

2020

Change

Rental revenue (2)

$19,462

$18,627

4.5%

$58,438

$56,033

4.3%

NOI

16,688

16,168

3.2%

50,306

47,548

5.8%

Cash NOI

15,992

15,243

4.9%

48,257

44,914

7.4%

Same Property Cash NOI (excluding bad
debt (expense)/reversal) (2)

15,410

15,120

1.9%

44,698

44,031

1.5%

Net Income (Loss) (3)

30,824

4,395

601.3%

75,013

(3,214)   

N/A

FFO

11,626

11,124

4.5%

35,039

32,552

7.6%

AFFO

11,008

10,338

6.5%

33,067

30,165

9.6%

Distributions per Unit

$0.201

$0.201

$0.603

$0.603

Full story available on Benzinga.com

Original Source: benzinga.com

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

World247News.com