Crombie Real Estate Investment Trust (CRR.UN) Q3 2024 earnings summary

Executive summary

• Achieved consistent Q3 2024 performance with high occupancy, strong leasing, and resilient necessity-based portfolio, driving FFO per unit growth and NOI gains.

• Strategic actions included acquiring the remaining 50% of Zephyr in Vancouver, disposing of two non-core retail properties, and focusing on grocery-anchored, industrial, and mixed-use assets.

• Maintained a robust and flexible balance sheet, supporting long-term value creation and readiness to seize new opportunities.

Financial highlights

• Property revenue increased 4.6% year-over-year to $114.5M; same-asset property cash NOI grew 2.6%; retail assets up 3.1%.

• FFO per unit was $0.31 (flat year-over-year); AFFO per unit was $0.27 (down 3.6%); payout ratios improved to 72.5% (FFO) and 83.6% (AFFO).

• Available liquidity reached $677 million, up 19.8% year-over-year.

• Debt to gross fair value at 42.9%; debt to trailing 12-month adjusted EBITDA at 7.72x, improved from 8.03x at year-end 2023.

Outlook and guidance

• No changes to projections for major development yields or lease-up timelines; Marlstone residential project in Halifax progressing on schedule for H1 2026 completion.

• Renewal spreads expected to remain in the mid-to-high single digits for the remainder of 2024 and into 2025.

• Non-major development pipeline remains the primary focus for capital allocation in 2025.