Ravelin Properties (RPR.UN) Q4 2024 earnings summary

Executive summary

• 149,202 sq. ft. of leasing commenced in Q4 2024; 65,166 sq. ft. of new deals and renewals completed.

• Leasing pipeline exceeds 650,000 sq. ft.; tenant demand has improved from pandemic lows.

• $114.1M in property dispositions completed in 2024, including major sales in Winnipeg and Toronto in Q4.

• Internalization of management effective Dec 31, 2024, with expected annualized cost savings of at least $10M starting 2025.

• Name changed from Slate Office REIT to Ravelin Properties REIT.

Financial highlights

• Q4 2024 rental revenue: $46.97M, down 3.7% year-over-year.

• Q4 2024 net operating income: $20.83M, down 13.5% year-over-year.

• Q4 2024 net loss: $101.8M, up 66% from Q4 2023, driven by a $97.2M negative fair value adjustment.

• Q4 2024 FFO: $(1.9)M vs. $4.8M in Q4 2023; AFFO: $(2.25)M vs. $5.5M.

• Portfolio occupancy at 76.8%, down from 79.0% year-over-year.

Outlook and guidance

• Management expects cost savings from internalization to begin in 2025, with at least $10M in annualized run-rate savings.

• Active lease negotiations and a robust leasing pipeline are expected to support future occupancy.

• Anticipates closing Oshawa property sale ($16.5M) in Q2 2025.