Ravelin Properties (RPR.UN) Q2 2024 earnings summary

Executive summary

• Completed 381,595 sq. ft. of leasing in Q2 2024, with new deals at 2.1% above average in-place rent and renewals at 6.7% above expiring rent.

• Over 389,000 sq. ft. of potential new leases and renewals in the pipeline, expected to add to NOI in late 2024 and 2025.

• Advanced portfolio realignment, completing nearly $50 million in dispositions by July 31, 2024, and additional $149.9 million in assets under contract or negotiation.

• Property portfolio revaluation led to a $154.4 million negative fair value adjustment in Q2 2024.

Financial highlights

• Rental revenue increased 1.8% year-over-year to $49.6 million in Q2 2024.

• Net operating income rose 0.5% year-over-year to $24.7 million.

• Reported net loss of $150.0 million, compared to a $19.6 million loss in Q2 2023, mainly due to property revaluation.

• FFO decreased 24.0% year-over-year to $4.4 million; FFO per unit down 28.6% to $0.05.

• AFFO fell 31.7% year-over-year to $4.2 million; AFFO per unit down 28.6% to $0.05.

• Total assets declined 11.0% to $1.56 billion since December 2023.

Outlook and guidance

• Renewal negotiations ongoing for 2.1% of portfolio GLA maturing in the remainder of 2024.

• Pipeline of high-quality credit tenants expected to contribute to NOI from late 2024 into 2025.