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

Executive summary

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

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

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

• 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.

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

Financial highlights

• Net book value per unit increased by CAD 3.10 (15%) to CAD 24.22 in 2024, including CAD 1.78 per unit FX gain.

• Paid CAD 1.36 per unit to unitholders, a 6.4% cash yield on 2023 book value.

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

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

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

Outlook and guidance

• Q1 2025 revenue outlook is CAD 42.5 million, with a 12-month revenue outlook of CAD 187 million, including CAD 19.4 million in expected common distributions.

• Run Rate Payout Ratio for the next 12 months expected between 55% and 60%.

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

• Anticipated aggregate partner resets expected to increase revenue by approximately CAD 5 million in 2025.

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