\n| <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 2013<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 2014<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 2013(5)<\/sup><\/span> <\/p>\n<\/td>\n| <\/td>\n | <\/td>\n<\/tr>\n | \n| <\/td>\n | \n 2014<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Number of properties<\/span> <\/p>\n<\/td>\n | <\/td>\n | \n 472<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 435<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 472<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 435<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Gross Leasable Area (\u00ab\u00a0GLA\u00a0\u00bb) (in millions of square feet)<\/span> <\/p>\n<\/td>\n | <\/td>\n | \n 38.9<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 36.3<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 38.9<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 36.3<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Occupancy<\/span> <\/p>\n<\/td>\n | <\/td>\n | \n 98.1<\/b><\/span><\/span><\/p>\n<\/td>\n | \n %<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 97.7<\/span><\/span><\/p>\n<\/td>\n | \n %<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 98.1<\/b><\/span><\/span><\/p>\n<\/td>\n | \n %<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 97.7<\/span><\/span><\/p>\n<\/td>\n | \n %<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Rental revenue<\/span> <\/p>\n<\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 175,246<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 164,852<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 682,923<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 318,507<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Net Operating Income (\u00ab\u00a0NOI\u00a0\u00bb)(1)<\/sup><\/span> <\/p>\n<\/td>\n| <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 123,175<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 114,108<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 475,739<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 222,267<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Net Income<\/span> <\/p>\n<\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 87,017<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n (6,478)<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 199,614<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 67,148<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Net Income per unit diluted<\/span> <\/p>\n<\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 0.221<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n (0.018)<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 0.522<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 0.185<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Funds from Operations (\u00ab\u00a0FFO\u00a0\u00bb)(1)<\/sup> per unit diluted (2)(3)<\/sup><\/span> <\/p>\n<\/td>\n| <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 0.230<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 0.224<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 0.912<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 0.444<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Adjusted Funds from Operations (\u00ab\u00a0AFFO\u00a0\u00bb)(1)<\/sup> per unit diluted<\/span> <\/p>\n<\/td>\n| <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 0.188<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 0.176<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 0.745<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 0.360<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Adjusted Funds from Operations(1)<\/sup> payout ratio<\/span> <\/p>\n<\/td>\n| <\/td>\n | \n 86.4<\/b><\/span><\/span><\/p>\n<\/td>\n | \n %<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 92.3<\/span><\/span><\/p>\n<\/td>\n | \n %<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 87.2<\/b><\/span><\/span><\/p>\n<\/td>\n | \n %<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 88.6<\/span><\/span><\/p>\n<\/td>\n | \n %<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Distribution declared per unit<\/span> <\/p>\n<\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 0.162501<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 0.162501<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 0.650004<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 0.318917<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Total assets (in millions)<\/span> <\/p>\n<\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 8,192<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 7,448<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/b><\/span><\/span><\/p>\n<\/td>\n | \n 8,192<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/span><\/p>\n<\/td>\n | \n 7,448<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Debt to total assets(4)<\/sup><\/span> <\/p>\n<\/td>\n| <\/td>\n | \n 44.0<\/b><\/span><\/span><\/p>\n<\/td>\n | \n %<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 47.0<\/span><\/span><\/p>\n<\/td>\n | \n %<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 44.0<\/b><\/span><\/span><\/p>\n<\/td>\n | \n %<\/b><\/span><\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n 47.0<\/span><\/span><\/p>\n<\/td>\n | \n %<\/span><\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Debt service coverage(4)<\/sup><\/span> <\/p>\n<\/td>\n| <\/td>\n | \n 3.5x<\/b><\/span> <\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 3.4x<\/span> <\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 3.5x<\/b><\/span> <\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | \n 3.4x<\/span> <\/p>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n<\/table>\n<\/div>\n\n \n\n| \n (1)<\/span><\/span><\/p>\n<\/td>\n | \n See \u00ab\u00a0Non-GAAP Financial Measures\u00a0\u00bb beginning on page 5.<\/span> <\/p>\n<\/td>\n<\/tr>\n\n| \n (2)<\/span><\/span><\/p>\n<\/td>\n | \n Including internalization costs in 2014 and start-up costs in 2013, FFO per unit on a diluted basis for fourth quarter 2014 and 2013 were $0.230 and $0.225, respectively.<\/span> <\/p>\n<\/td>\n<\/tr>\n\n| \n (3)<\/span><\/span><\/p>\n<\/td>\n | \n Including internalization costs and the reversal of the finance charge associated with the Transferor Note transactions described in Section 9 of the MD&A , \u00ab\u00a0Long Term Debt and Class C LP Units\u00a0\u00bb in 2014 and start-up costs in 2013, FFO per unit on a diluted basis for the year end periods ended 2014 and 2013 were $0.777 and $0.437, respectively.<\/span> <\/p>\n<\/td>\n<\/tr>\n\n| \n (4)<\/span><\/span><\/p>\n<\/td>\n | \n Debt ratios include Class C LP Units but exclude Exchangeable Units. The ratios are non-GAAP financial measures calculated based on the trust indentures, as supplemented.<\/span> <\/p>\n<\/td>\n<\/tr>\n\n| \n (5)<\/span><\/span><\/p>\n<\/td>\n | \n Based on operations for the period from July 5, 2013 to December 31, 2013.<\/span> <\/p>\n<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<\/p>\n Financial Highlights for the Quarter:<\/b> <\/p>\n\n- Net Operating Income<\/b>(1)<\/sup> \u2013 <\/b>Fourth quarter NOI(1)<\/sup> of $123.2 million<\/span> represented an increase of $9.1 million<\/span>, or 7.9%, over the fourth quarter of 2013. The positive variance was driven primarily by acquisitions, which contributed $7.7 million<\/span> to NOI(1)<\/sup>. Based on a portfolio of 423 properties that were owned throughout the current and comparative periods, Same Properties NOI(1) <\/sup>of $113.3 million<\/span> increased by $1.6 million<\/span> or 1.5% over fourth quarter 2013. This improvement was primarily due to increased recovery of capital expenditures of $0.7 million<\/span>, and net recoveries of $0.4 million<\/span> and rental revenue generated from the development of new GLA of $0.4 million<\/span>. Full year 2014 NOI(1)<\/sup> was $475.7 million<\/span>, of which $450.9 million<\/span> was attributed to Same Properties, $23.7 million<\/span> to acquisitions and $1.1 million<\/span> to dispositions. <\/li>\n
- Net Income \u2013 <\/b>Fourth quarter net income was $87.0 million<\/span>. Excluding the fair value adjustment on exchangeable units and investment properties of $46.4 million<\/span> (2013 \u2013 ($43.2) million<\/span>), net income was $40.6 million<\/span>, an increase of $3.8 million<\/span> or 10.6% over net income of $36.7 million<\/span> in the fourth quarter of 2013. This increase was primarily due to NOI(1)<\/sup> from acquisitions, which was partially offset by higher financing charges of $4.3 million<\/span>. Net income, for the year ended December 31, 2014<\/span>, excluding fair value adjustments, was $105.5 million<\/span>. <\/li>\n
- Funds from Operations<\/b>(1)<\/sup> \u2013<\/b> Fourth quarter FFO(1)<\/sup> was $90.9 million<\/span> or $0.230<\/span> per unit, compared with $82.3 million<\/span> or $0.224<\/span> per unit in the fourth quarter of 2013. Including one-time internalization costs of $0.2 million<\/span> that impacted the fourth quarter of 2014 and a reversal of $0.4 million<\/span> for one-time start-up costs that impacted the fourth quarter of 2013, FFO(1)<\/sup> was $90.7 million<\/span> or $0.230<\/span> per unit and $82.7 million<\/span> or $0.225<\/span>, respectively. The year-over-year improvement in FFO(1)<\/sup> was driven by acquisitions, partially offset by higher financing charges. For the year ended December 31, 2014<\/span>, FFO(1)<\/sup> was $349.0 million<\/span> or $0.912<\/span> per unit, excluding $2.6 million<\/span> of internalization costs and $48.9 million<\/span> of non-cash finance charges related to the replacement of Transferor Notes with senior unsecured debentures, which were recorded in previous quarters. <\/li>\n
- Adjusted Funds from Operations<\/b>(1) <\/sup>\u2013<\/b> Fourth quarter AFFO(1)<\/sup> was $74.1 million<\/span> or $0.188<\/span> per unit, compared to $64.7 million<\/span> or $0.176<\/span> per unit in the fourth quarter of 2013. Similar to FFO(1)<\/sup>, the improvement in AFFO(1)<\/sup> was driven by NOI(1)<\/sup> from acquisitions , which were partially offset by higher financing charges. Also, the capital expenditures for the fourth quarter were lower in 2014 than in 2013. Annual 2014 AFFO(1)<\/sup> was $285.2 million<\/span> or $0.745<\/span> per unit. <\/li>\n
- Distribution \u2013<\/b> Distribution declared per unit during the quarter totaled $0.162501<\/span>, for an AFFO(1)<\/sup> payout ratio of 86.4% (fourth quarter 2013 \u2013 92.3%). During 2014, distribution declared per unit totaled $0.650004<\/span> for an AFFO(1)<\/sup> payout ratio of 87.2% (2013 \u2013 88.6%). <\/li>\n<\/ul>\n
<\/p>\n Operational Highlights for the Quarter:<\/b> <\/p>\n\n- Accretive Acquisitions<\/b>\n
\n- In the fourth quarter of 2014, Choice Properties acquired a 16-property portfolio from Loblaw Companies Limited (\u00ab\u00a0Loblaw\u00a0\u00bb) for an aggregate purchase price of approximately $211.0 million<\/span>, excluding acquisition costs. The acquisition was immediately accretive, with a capitalization rate of 6.57%, excluding cost of land for immediate development. This portfolio spans the country, adds approximately 1.3 million square feet of GLA and is expected to provide an estimated stabilized NOI(1)<\/sup> of approximately $13.6 million<\/span>. <\/li>\n
- Subsequent to the fourth quarter, Choice Properties completed the previously announced acquisition of a warehouse from Loblaw of approximately 920,000 square feet in Pickering, Ontario<\/span> for a purchase price of $81.2 million<\/span>, excluding acquisition costs. The acquisition was immediately accretive with an estimated stabilized NOI(1)<\/sup> of $5.3 million<\/span>, representing a capitalization rate of 6.50%. In addition, Choice Properties acquired a shopping centre of approximately 55,000 square feet in Porter\u2019s Lake, Nova Scotia<\/span> from a third-party for a purchase price of $5.2 million<\/span>, excluding acquisition costs. The acquisition was immediately accretive with an estimated stabilized NOI(1)<\/sup> of approximately $0.5 million<\/span> representing a capitalization rate of 9.5%. The shopping centre is currently 85% occupied by 20 tenants and anchored by a 47,000 square foot grocery store on an adjacent property that Choice Properties owns. <\/li>\n<\/ul>\n<\/li>\n
- Strategic Development Relationships<\/b>\n
\n- In the fourth quarter of 2014, Choice Properties acquired, for approximately $18.0 million<\/span>, excluding acquisition costs, a 70% interest in a limited partnership which holds 21 acres of land in Brampton, Ontario<\/span> that is intended for future retail development with a total value of $25.7 million<\/span>. Separately, Choice Properties acquired from Loblaw, for approximately $6.2 million<\/span>, excluding acquisition costs, a 40% interest in a limited partnership which holds a property at 500 Lake Shore Boulevard West in Toronto, Ontario<\/span> that is intended for mixed-use redevelopment. <\/li>\n
- Subsequent to the fourth quarter, Choice Properties entered into a co-ownership agreement to acquire a 50% interest of a nine-acre parcel of land in Kanata, Ontario<\/span> intended for future retail development. The purchase price for the property is approximately $4.0 million<\/span>, excluding acquisition costs, with Choice Properties\u2019 proportionate share being 50%, or approximately $2.0 million<\/span>. In addition, Choice Properties acquired a 16-acre site in Barrie, Ontario<\/span> from Loblaw at a purchase price of approximately $11.5 million<\/span>, excluding acquisition costs. Choice Properties intends to develop the property in conjunction with an adjacent 21-acre parcel of land as part of co-development arrangements. <\/li>\n<\/ul>\n<\/li>\n
- Active Management \u2013<\/b> During the quarter, Choice Properties completed initiatives and programs required to fully internalize leasing and property management functions on January 1, 2015<\/span>. <\/li>\n<\/ul>\n
<\/p>\n \n \n\n| \n (1) See \u00ab\u00a0Non-GAAP Financial Measures\u00a0\u00bb beginning on page 5<\/span><\/p>\n<\/td>\n<\/tr>\n<\/table>\n<\/div>\n\n- Leasing Profile \u2013 <\/b>During the fourth quarter of 2014, Choice Properties entered into leases or offers to lease for 185,446 square feet of gross leasable area (\u00ab\u00a0GLA\u00a0\u00bb) with an average lease term of 5.7 years and included renewals of 149,480 square feet of expiring leases with an average increase in base rent of 7.9%. For the full year 2014, leases or offers to lease totaled 636,767 square feet with an average lease term of 7.1 years, including renewals of 384,062 square feet representing a renewal retention rate of 84.3% and average increase in base rent on renewal of 6.5%. <\/li>\n
- Occupancy \u2013 <\/b>At December 31, 2014<\/span>, the Trust\u2019s portfolio occupancy rate was 98.1%, compared to 97.7% at December 31, 2013<\/span>. <\/li>\n<\/ul>\n
<\/p>\n Capital Structure:<\/b> <\/p>\n\n- Capacity to Invest for Further Growth \u2013 <\/b>For the fourth quarter and annual periods ended December 31, 2014<\/span>, the Trust\u2019s debt service coverage ratio(1)<\/sup> was 3.5 times. With stable cash flow from operations and access to a $500 million<\/span> unsecured revolving credit facility, the Trust believes it has the financial capacity to meet ongoing obligations and invest for further growth. <\/li>\n
- Strengthened Financial Flexibility Through Debt Financing \u2013<\/b> Subsequent to the end of the quarter, on February 5, 2015<\/span>, Choice Properties issued $250 million<\/span> of Series E senior unsecured debentures with a coupon rate of 2.297% that mature on September 14, 2020<\/span>. This financing serves to reduce Choice Properties\u2019 overall weighted average coupon rate while maintaining the Trust\u2019s weighted average term to maturity of its debt instruments. The net proceeds of the offering were used by the Trust to repay existing indebtedness and for general business purposes. <\/li>\n<\/ul>\n
<\/p>\n Outlook<\/b> <\/p>\n While the Canadian economy presents uncertainty given volatility in commodity pricing, in particular, oil and gas prices, the Canadian dollar exchange rate and interest rates, Choice Properties believes that the fundamentals of the retail real estate market remain stable. Even though the Canadian retail landscape continues to be ever evolving, underscored by recent notable exits and anticipated new entrants, Choice Properties\u2019 grocery anchored real estate focus and its stable and reliable cash flows from long-term leases position it well to execute on potential opportunities to drive growth. With consistent cash flow from operations and a strong balance sheet, Choice Properties expects to meet its ongoing obligations, including providing its Unitholders with monthly distributions and to invest in growth. In 2015, Choice Properties intends to focus on: <\/p>\n \n- Acquiring accretive assets that meet its investment criteria and that are strategically aligned with its current portfolio; <\/li>\n
- Leveraging the excess density within its portfolio for at-grade intensification; <\/li>\n
- Accelerating greenfield and mixed-used development programs; and <\/li>\n
- Enhancing internally managed operations to strengthen relationships with tenants and to optimize cash flows and profitability within its portfolio. <\/li>\n<\/ul>\n
<\/p>\n \n \n\n| \n (1)<\/span><\/span><\/p>\n<\/td>\n | \n Debt ratios include Class C LP Units but exclude Exchangeable Units. The ratios are non-GAAP financial measures calculated based on the trust indentures, as supplemented.<\/span> <\/p>\n<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<\/p>\n Forward-Looking Statements<\/b> <\/p>\n This press release contains forward-looking statements about Choice Properties\u2019 objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects and opportunities. Specific statements with respect to anticipated future results can be found in various sections included but not limited to Section 3 \u00ab\u00a0Objectives and Strategies\u00a0\u00bb, Section 5 \u00ab\u00a0Investment Properties\u00a0\u00bb, Section 6 \u00ab\u00a0Results of Operations\u00a0\u00bb, Section 7 \u00ab\u00a0Other Measures of Performance\u00a0\u00bb, Section 10 \u00ab\u00a0Liquidity and Capital Resources\u00a0\u00bb and Section 17 \u00ab\u00a0Outlook\u00a0\u00bb in the MD&A of Choice Properties\u2019 2014 Annual Report. Forward-looking statements are typically identified by words such as \u00ab\u00a0expect\u00a0\u00bb, \u00ab\u00a0anticipate\u00a0\u00bb, \u00ab\u00a0believe\u00a0\u00bb, \u00ab\u00a0foresee\u00a0\u00bb, \u00ab\u00a0could\u00a0\u00bb, \u00ab\u00a0estimate\u00a0\u00bb, \u00ab\u00a0goal\u00a0\u00bb, \u00ab\u00a0intend\u00a0\u00bb, \u00ab\u00a0plan\u00a0\u00bb, \u00ab\u00a0seek\u00a0\u00bb, \u00ab\u00a0strive\u00a0\u00bb , \u00ab\u00a0will\u00a0\u00bb, \u00ab\u00a0may\u00a0\u00bb, \u00ab\u00a0should\u00a0\u00bb and similar expressions, as they relate to Choice Properties and its management. <\/p>\n Forward-looking statements reflect Choice Properties\u2019 current estimates, beliefs and assumptions, which are based on management\u2019s perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. Choice Properties\u2019 expectation of operating and financial performance is based on certain assumptions, including assumptions about future growth potential, prospects and opportunities, industry trends, future levels of indebtedness, current tax laws, current economic conditions and no new competition in the market that leads to reduced revenues and profitability. Management\u2019s estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Choice Properties can give no assurance that such estimates, beliefs and assumptions will prove to be correct. <\/p>\n Numerous risks and uncertainties could cause Choice Properties\u2019 actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including, those described in Section 13 \u00ab\u00a0Enterprise Risks and Risk Management\u00a0\u00bb in the MD&A of Choice Properties\u2019 2014 Annual Report. Such risks and uncertainties include: <\/p>\n \n- changes in economic conditions, including changes in interest rates, and the rate of inflation or deflation; <\/li>\n
- the inability of Choice Properties to maintain and leverage its relationship with Loblaw, including in respect of: (i) Loblaw\u2019s retained interest in Choice Properties; (ii) the services to be provided to Choice Properties (whether directly or indirectly) by Loblaw; (iii) expected transactions to be entered into between Loblaw and Choice Properties (including Choice Properties\u2019 acquisition of certain interests in properties held by Loblaw); and (iv) the Strategic Alliance Agreement between Choice Properties and Loblaw; <\/li>\n
- changes in Loblaw\u2019s business, activities or circumstances which may impact Choice Properties, including Loblaw\u2019s inability to make rent payments or perform its obligations under its leases; <\/li>\n
- failure to manage its growth effectively in accordance with its growth strategy or acquire assets on an accretive basis; <\/li>\n
- changes in timing to obtain municipal approvals, development costs, and tenant leasing and occupancy of properties under development or intensification; <\/li>\n
- changes in Choice Properties\u2019 capital expenditure and fixed cost requirements; <\/li>\n
- the inability of the Partnership to make distributions or other payments or advances; <\/li>\n
- the inability of Choice Properties to obtain financing; <\/li>\n
- changes in Choice Properties\u2019 degree of financial leverage; <\/li>\n
- changes in laws or regulatory regimes, which may affect Choice Properties, including changes in the tax treatment of the Trust and its distributions to Unitholders or the inability of the Trust to continue to qualify as a \u00ab\u00a0mutual fund trust\u00a0\u00bb and as a \u00ab\u00a0real estate investment trust\u00a0\u00bb, as such terms are defined in the Income Tax Act<\/i> (Canada<\/span>); and <\/li>\n
- changes in Choice Properties\u2019 competitiveness in the real estate market or the unavailability of desirable commercial real estate assets. <\/li>\n<\/ul>\n
<\/p>\n This is not an exhaustive list of the factors that may affect Choice Properties\u2019 forward-looking statements. Other risks and uncertainties not presently known to Choice Properties could also cause actual results or events to differ materially from those expressed in its forward-looking statements. Additional risks and uncertainties are discussed in Choice Properties\u2019 materials filed with the Canadian securities regulatory authorities from time to time, including the Trust\u2019s 2014 Annual Information Form. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Choice Properties\u2019 expectations only as of the date of this press release. Except as required by applicable law, Choice Properties does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. <\/p>\n Non-GAAP Financial Measures<\/b> <\/p>\n Choice Properties uses the following non-GAAP financial measures: FFO, AFFO, and NOI. The Trust believes these non-GAAP financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Trust for the reasons outlined below. <\/p>\n Management uses these and other non-GAAP financial measures to exclude the impact of certain expenses and income that must be recognized under GAAP when analyzing underlying operating performance, as the excluded items are not necessarily reflective of Choice Properties\u2019 underlying operating performance or impact the comparability of financial performance between periods. From time to time, the Trust may exclude additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring. <\/p>\n These measures do not have a standardized meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measures presented by other publicly traded REITs, and should not be construed as an alternative to other financial measures determined in accordance with GAAP. <\/p>\n Same Properties <\/b> Properties that were owned throughout both the current and comparative periods are grouped as same properties for comparative calculations. <\/p>\n Net Operating Income <\/b>NOI is defined as cash rental revenue from investment properties less property operating costs. NOI is used as a key indicator of performance as it represents a measure over which management has control. The Trust evaluates performance of management by comparing the performance of the portfolio adjusted for the effects of certain items and current year acquisitions. The Trust\u2019s method of calculating NOI may differ from other issuers\u2019 methods and, accordingly, may not be comparable to NOI reported by other issuers. <\/p>\n Funds from Operations <\/b>FFO is not a term defined under IFRS and may not be comparable to similar measures used by other real estate entities. Except as otherwise noted, Choice Properties calculates its FFO in accordance with the Real Property Association of Canada White Paper on Funds from Operations for IFRS issued in | | | | | | | | | | | | | | |