Alaris Equity Partners Income Trust (AD-UN) Q4 2024 earnings summary

Executive summary

• Net book value per unit rose to CAD 24.22 in 2024, up CAD 3.10 (15%) year-over-year, with a total return on book value of 21% including dividends.

• Partner distribution and transaction fee revenue for Q4 was CAD 46.9 million, exceeding guidance and prior year, with annual revenue reaching CAD 194.2 million, up 19% year-over-year.

• Net distributable cash flow for 2024 increased 42% year-over-year to CAD 130.4 million ($2.87/unit), with a payout ratio of 48%.

• Invested $139 million in new capital during 2024 and $118 million subsequent to year-end, totaling $249 million, above the five-year average.

• Completed a strategic recapitalization with Ohana, raising US$120 million from independent investors and growing third-party AUM; total capital now exceeds $2.2 billion.

Financial highlights

• Realized gains on partner investments totaled CAD 40.1 million in 2024, up from CAD 13.5 million in 2023, mainly from redemptions and unit exchanges.

• Common distributions in 2024 were 170% higher than 2023, totaling $34.5 million and representing a 20% cash yield on the common portfolio.

• Net book value per unit compounded at 18.9% annually over the last three years.

• Adjusted EBITDA for 2024 was $206.3 million ($4.53/unit), down 4.8% year-over-year.

• Adjusted earnings per unit for 2024 was $2.71, down 12.6% year-over-year.

Outlook and guidance

• Aggregate partner resets expected to increase revenue by CAD 4.9 million in 2025.

• Q1 2025 revenue outlook is CAD 42.5 million; 12-month revenue outlook raised to CAD 187 million, including CAD 19.4 million in expected common distributions.

• Run Rate Payout Ratio expected between 55% and 60%.

• G&A expense outlook increased to CAD 18.5 million, remaining at 10% of revenue.

• Strong deal pipeline and new co-investment partnerships expected to support future growth.