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

Executive summary

• Delivered exceptional performance in 2024, achieving record-high committed occupancy of 96.8% and strong results across all operating and financial metrics despite sector headwinds like interest rate volatility and inflation.

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

• Strategic partnerships, especially with Empire, and development initiatives continue to drive portfolio optimization and growth.

• 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 economic occupancy at 96.5%.

• 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 CAD 1.08, a 6.9% increase from 2023; FFO per unit for Q4 2024 was $0.32, up 6.7% from Q4 2023.

• Added 225,000 sq ft of new leases at an average first-year rate of $23.65; renewal spreads of 9.8%.

• Available liquidity at year-end was $682 million, up 16.9% year-over-year.

Outlook and guidance

• Targeting same property NOI growth of 2%-3% for 2025, consistent with recent years.

• Expecting continued strong renewal spreads and occupancy potentially exceeding 97%.

• Major development focus on entitlements and ongoing construction at Marlstone, with completion expected in H1 2026.

• Capital allocation for 2025 expected in the CAD 150–250 million range, with 15–20% to acquisitions, 40–50% to non-major, and the rest to major projects.

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