Choice Properties Real Estate Investment Trust (CHP.UN) Q4 2024 earnings summary

Executive summary

• Achieved strong operational and financial results for 2024, meeting or exceeding earnings outlook and strategic priorities, with FFO per unit up 2.9% to $1.032 and AFFO per unit up 4.5% to $0.864.

• Maintained high occupancy rates at 97.6% overall, with retail at 97.6%, industrial at 97.9%, and mixed-use & residential at 94.1%.

• Completed approximately $426.5 million in real estate transactions, including $260 million in acquisitions and $166 million in dispositions.

• Delivered 1.1 million sq. ft. of new commercial and industrial GLA and 151 residential units, with a development pipeline of 18.1 million sq. ft.

• Announced a third consecutive annual distribution increase, with a 1.3% rise effective March 2025.

Financial highlights

• Q4 2024 FFO per unit (diluted) was $0.260, up 2.0% year-over-year; full-year FFO per unit (diluted) was $1.032, up 2.9%.

• Same-asset NOI (cash basis) increased 2.8% in Q4 and 3.2% for the year, reaching $958.0 million.

• IFRS NAV per unit was $14.07 at year-end, up 2.9% from 2023.

• Rental revenue for Q4 2024 was $344.9 million; full-year rental revenue reached $1.36 billion.

• AFFO payout ratio for the year was 87.8%, down from 90.5% in 2023.

Outlook and guidance

• Targeting stable occupancy and 2–3% year-over-year growth in same-asset NOI (cash basis) for 2025.

• Annual FFO per unit (diluted) guidance for 2025 is $1.05–$1.06, reflecting 2–3% growth.

• Maintaining strong leverage metrics, with Adjusted Debt to EBITDAFV targeted below 7.5x.

• Industrial occupancy expected to improve to above 98.5% by year-end 2025.