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

Executive summary

• Achieved strong operating and financial results for Q4 and full year 2024, meeting or exceeding earnings outlook and maintaining near full occupancy rates.

• FFO per unit for 2024 was $1.032, up 2.9% year-over-year; AFFO per unit rose 4.5% to $0.864.

• Completed approximately $426.5 million in real estate transactions in 2024, including $260 million of acquisitions and $166 million of dispositions.

• Advanced development pipeline with $299.4 million of new real estate, adding 1.1 million sq ft of commercial/industrial space and 151 residential units.

• 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 up 2.9% to $1.032.

• Same-asset NOI (cash basis) grew 3.2% to $958.0M for 2024; Q4 same-asset cash NOI increased by 2.8%.

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

• Adjusted Debt to EBITDAFV was 7.0x at year-end, with $1.5 billion undrawn credit facility and $13 billion unencumbered assets.

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

Outlook and guidance

• 2025 guidance: stable occupancy, 2–3% year-over-year growth in same-asset NOI, and FFO per unit diluted of $1.05–$1.06.

• Majority of 2025 development spend focused on industrial at Caledon Business Park and retail intensification.

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

• Targeting a third consecutive annual distribution increase in 2025.