CT Real Estate Investment Trust (CRT-UN) Q4 2023 earnings summary

Executive summary

• FY2023 investment of $151 million added ~839,000 sq. ft. of GLA; 571,000 sq. ft. remained under development at year-end, 98.8% covered by committed leases.

• Portfolio occupancy was 99.1% on a committed basis at Dec. 31, 2023; Canadian Tire represented 92.1% of GLA and 91.3% of annualized base minimum rent.

• Q4 net income fell 48.8% YoY, primarily on a smaller fair-value gain on investment properties; quarterly NOI, FFO and AFFO increased YoY.

Financial highlights

• Q4 property revenue was $140.0 million, up 3.5% YoY; NOI was $111.5 million, up 4.4%.

• Q4 net income was $38.2 million, down 48.8%; diluted net income per unit was $0.161, down 41.7% YoY.

• Q4 FFO was $77.7 million, up 2.8%; diluted FFO per unit was $0.330, up 2.5%.

• Q4 AFFO was $71.5 million, up 4.3%; diluted AFFO per unit was $0.303, up 3.8%.

• FY2023 revenue was $552.8 million, up 3.7%; NOI was $439.0 million, up 4.6%; net income was $229.4 million, down 29.3%.

Outlook and guidance

• Management expressed confidence in 2024 prospects, expecting strategic investments already made to continue driving growth.

• A planned Winkler, Manitoba redevelopment is estimated to require $9.1 million, with a 9.00% weighted-average cap rate and anticipated Q4 2025 completion.

• Year-end developments represented ~$258 million of investment upon completion, with $86 million spent to date.