Crombie Real Estate Investment Trust (CRR.UN) Q4 2024 earnings summary

Executive summary

• Delivered strong operating and financial results in 2024, with record-high committed occupancy at 96.8% and economic occupancy at 96.5%, despite sector headwinds like interest rate volatility and inflation.

• Portfolio focused on necessity-based retail, retail-related industrial, and mixed-use residential, with a total fair value exceeding $5.5 billion.

• Strategic pillars include owning and operating high-quality assets, optimizing the portfolio, and leveraging partnerships, especially with Empire.

• Strategic acquisition of the remaining 50% of Zephyr residential in Vancouver for $133M and sale of non-core retail assets.

• Balance sheet strength maintained, supporting consistent cash flow growth and long-term value creation.

Financial highlights

• Committed occupancy reached 96.8%, among the highest in history, with property revenue up 4.3% to $471.0 million.

• Same-asset property cash NOI grew 2.9% year-over-year to $314.7 million; average annual minimum rent per sq ft up 3.9%.

• AFFO per unit was $1.08, a 6.9% increase from 2023; Q4 AFFO per unit up 7.7% to $0.28; FFO per unit for Q4 was $0.32, up 6.7%.

• Debt-to-EBITDA ratio improved to 7.96x from 8.03x; available liquidity at year-end was $682 million, up 16.9%.

• FFO payout ratio improved to 70.3% in Q4; AFFO payout ratio dropped to 79.7%.

Outlook and guidance

• Targeting same property NOI growth in the 2%-3% range for 2025, with continued high occupancy potentially exceeding 97%.

• Capital investment planned in the $150–250 million range for 2025, with 15–20% for acquisitions, 40–50% for non-major developments, and the remainder for major projects.

• Major development, The Marlstone in Halifax, is progressing on schedule with completion expected in H1 2026.

• Management anticipates continued NOI, AFFO, and NAV growth, supported by ongoing development and modernization activities.

• Ongoing focus on partnership with Empire for growth and modernization initiatives.