Ravelin Properties (RPR.UN) Q3 2024 earnings summary

Executive summary

• Completed 73,092 sq. ft. of leasing in Q3 2024, with new deals at 5.6% above average in-place rent and renewals at 1.5% above expiring rents.

• Disposed of nearly $103.0 million in assets year-to-date, including $5.2M in Fredericton and post-quarter sales of $14.3M in Winnipeg and $39.0M in Toronto.

• Significant pipeline of potential new leases and renewals with high-quality tenants expected to add to NOI in late 2024 and 2025.

• Slate Management ULC gave 180 days' notice to terminate the external management agreement; two trustees resigned.

Financial highlights

• Rental revenue decreased 1.7% year-over-year to $50.2M; NOI down 6.6% to $24.3M.

• Net loss of $182.1M in Q3 2024, up from $34.7M loss in Q3 2023, driven by a $175.4M negative fair value adjustment.

• FFO fell 35.6% year-over-year to $3.1M ($0.04/unit); AFFO dropped 47.8% to $2.7M ($0.03/unit).

• IFRS NAV per unit declined to $1.98 from $6.06 at year-end 2023.

• Portfolio occupancy stable at 79.0% (down 0.4% from year-end 2023).

Outlook and guidance

• Management expects new leasing and renewals to contribute to NOI growth starting late 2024 and into 2025.

• Ongoing discussions with lenders to resolve current defaults and refinance debt to more favorable terms.