{"id":17090,"date":"2020-11-04T06:08:00","date_gmt":"2020-11-04T11:08:00","guid":{"rendered":"https:\/\/www.choicereit.ca\/news-release\/choice-properties-real-estate-investment-trust-publie-ses-resultats-pour-le-troisieme-trimestre-clos-le-30-septembre-2020\/"},"modified":"2020-11-04T06:08:00","modified_gmt":"2020-11-04T11:08:00","slug":"choice-properties-real-estate-investment-trust-publie-ses-resultats-pour-le-troisieme-trimestre-clos-le-30-septembre-2020","status":"publish","type":"news-release","link":"https:\/\/www.choicereit.ca\/fr\/news-release\/choice-properties-real-estate-investment-trust-publie-ses-resultats-pour-le-troisieme-trimestre-clos-le-30-septembre-2020\/","title":{"rendered":"Choice Properties Real Estate Investment Trust publie ses r\u00e9sultats pour le troisi\u00e8me trimestre clos le 30 septembre 2020"},"content":{"rendered":"

TORONTO<\/span>, Nov. 4, 2020<\/span> \/CNW\/ \u2013 Choice Properties Real Estate Investment Trust (\u00ab\u00a0Choice Properties\u00a0\u00bb or the \u00ab\u00a0Trust\u00a0\u00bb) (TSX: CHP.UN) today announced its consolidated financial results for the third quarter ended September 30, 2020<\/span>. The 2020 Third Quarter Report to Unitholders is available in the Investor Relations section of the Trust\u2019s website at www.choicereit.ca<\/a>, and has been filed on SEDAR at www.sedar.com<\/a>.<\/p>\n

\n

\u00ab\u00a0We are pleased with our financial results for the quarter, which reflect solid earnings, increased rent collections, lower bad debt expense and the resumption of investment activity after a difficult second quarter,\u00a0\u00bb said <\/span>Rael Diamond<\/span>, President and Chief Executive Officer of the Trust. Mr. Diamond further noted that \u00ab\u00a0Choice Properties completed or entered into agreements to dispose of <\/span>$341<\/span>.3 million of properties, and to acquire <\/span>$333<\/span>.9 million of new properties, consistent with our ongoing commitment to strengthening our balance sheet by improving the quality of our portfolio and reducing leverage. That said, the strength of our quarter must be tempered by the ongoing impact of the COVID-19 pandemic on the economy and the risk that it represents to our business. We will maintain our conservative approach and continue to focus on the well-being of our employees and tenants.\u00a0\u00bb<\/span><\/p>\n<\/div>\n

Summary of GAAP Basis Financial Results<\/b><\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

($ thousands except where otherwise
\nindicated)
\n(unaudited)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

Three Months<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

Nine Months<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n\n

September 30, 2020<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

September 30, 2019<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

Change<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

September 30, 2020<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

September 30, 2019<\/span><\/p>\n<\/td>\n

<\/td>\n\n

Change<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Net income (loss)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/b><\/span><\/p>\n<\/td>\n

\n

97,186<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

(210,796)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

307,982<\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/b><\/span><\/p>\n<\/td>\n

\n

334,115<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

(874,618)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

1,208,733<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Net income (loss) per unit diluted<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

0.137<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(0.301)<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

0.438<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

0.472<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(1.276)<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

1.748<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Rental revenue<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

308,956<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

323,306<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(14,350)<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

948,752<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

970,568<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(21,816)<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Fair value gain (loss) on<\/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<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Exchangeable Units(1)<\/sup><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(15,599)<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(296,371)<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

280,772<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

440,656<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(1,138,689)<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

1,579,345<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Fair value gains (losses) excluding<\/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<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Exchangeable Units(2)<\/sup><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

29,512<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(6,384)<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

35,896<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(322,756)<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(20,895)<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(301,861)<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Cash flows from operating activities<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

79,837<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

129,409<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

(49,572)<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

389,273<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

373,096<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

16,177<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Weighted average Units outstanding \u2013<\/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<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

diluted<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

711,582,778<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

700,010,054<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

11,572,724<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

707,537,645<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

685,491,674<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n\n

22,045,971<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/tr>\n
\n

1.<\/span><\/p>\n<\/td>\n

\n

Exchangeable Units are recorded at their fair value based on the market trading price of the Trust Units, which results in a negative impact to the financial results when the Trust Unit price rises and a positive impact when the Trust Unit price declines. <\/span><\/p>\n<\/td>\n<\/tr>\n

\n

2.<\/span><\/p>\n<\/td>\n

\n

Fair value gains (losses) excluding Exchangeable Units includes adjustments to fair value of investment properties and unit-based compensation.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Quarterly Results
\n<\/b>Net income for the third quarter of 2020 was $97.2 million<\/span> compared to a loss of $210.8 million<\/span> in 2019. The increase was mainly due to a favourable change of $280.8 million<\/span> in the adjustment to fair value on the Exchangeable Units and a favourable change in the fair value of investment properties, including properties held within equity accounted joint ventures. This was partially offset by an increase in bad debt expense due to negotiated rent abatements and amounts forgiven under the Canada<\/span> Emergency Commercial Rent Assistance (\u00ab\u00a0CECRA\u00a0\u00bb) rent relief program. For the quarter, bad debt expense was $4.0 million on an GAAP basis ($4.7 million<\/span> on a proportionate share basis).<\/p>\n

Year-to-Date Results
\n<\/b>Net income for the nine months ended September 30, 2020<\/span> was $334.1 million<\/span>, compared to a loss of $874.6 million<\/span> in the prior year. The increase was mainly due to a favourable change of $1.6 billion<\/span> in the adjustment to fair value on Exchangeable Units and reduced interest and financing charges, partially offset by an unfavourable change in the fair value of investment properties, including properties held within equity accounted joint ventures, increased bad debt expense, and non-recurring items recorded in the second quarter which included early redemption premiums paid on two senior unsecured debentures maturing in 2021 and an allowance for expected losses related to a specific mortgage receivable.<\/p>\n

The Trust has continued to support its tenants that have been negatively impacted by the pandemic by providing rent relief through rent deferrals and other arrangements, including participating in the CECRA program for eligible tenants. Year-to-date, the Trust has recorded a bad debt expense of $19.3 million<\/span> on a proportionate share basis that reflects the support provided to tenants as well as the increased collectability risk for certain tenants with amounts past due.<\/p>\n

Summary of Proportionate Share(1)<\/sup> Financial Results<\/b><\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

As at or for the period ended
\n($ thousands except where otherwise
\nindicated)
\n(unaudited)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

Three Months<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

Nine Months<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

<\/td>\n\n

September
\n30, 2020<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

September
\n30, 2019<\/span><\/p>\n<\/td>\n

<\/td>\n\n

Change<\/span><\/p>\n<\/td>\n

<\/td>\n\n

September
\n30, 2020<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

September 30,
\n2019<\/span><\/p>\n<\/td>\n

<\/td>\n\n

Change<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Rental revenue(1)<\/sup><\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/b><\/span><\/p>\n<\/td>\n

\n

324,130<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

340,524<\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

(16,394)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/b><\/span><\/p>\n<\/td>\n

\n

994,750<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

1,020,639<\/span><\/p>\n<\/td>\n

<\/td>\n\n

$<\/span><\/p>\n<\/td>\n

\n

(25,889)<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Net Operating Income (\u00ab\u00a0NOI\u00a0\u00bb), cash <\/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<\/td>\n<\/tr>\n
\n

basis(1)(3)<\/sup><\/span><\/p>\n<\/td>\n

<\/td>\n\n

229,891<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

239,047<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(9,156)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

677,853<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

706,371<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(28,518)<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Same-Asset NOI, cash basis(1)(3)<\/sup><\/span><\/p>\n<\/td>\n

<\/td>\n\n

209,116<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

210,922<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(1,806)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

618,914<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

628,040<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(9,126)<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Adjustment to fair value of <\/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<\/td>\n<\/tr>\n
\n

investment properties(1)<\/sup><\/span><\/p>\n<\/td>\n

<\/td>\n\n

18,305<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

(12,233)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

30,538<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(360,768)<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

(9,359)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(351,409)<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Occupancy (% of GLA)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

97.0%<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

97.7%<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(0.7)%<\/span><\/p>\n<\/td>\n

<\/td>\n\n

97.0%<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

97.7%<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(0.7)%<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Funds from operations (\u00ab\u00a0FFO\u00a0\u00bb)(2)<\/sup><\/span><\/p>\n<\/td>\n

<\/td>\n\n

169,173<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

174,982<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(5,809)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

480,488<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

514,483<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(33,995)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

FFO(2)<\/sup> per unit diluted<\/span><\/p>\n<\/td>\n

<\/td>\n\n

0.238<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

0.250<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(0.012)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

0.679<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

0.751<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(0.072)<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Adjusted funds from operations <\/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<\/td>\n<\/tr>\n
\n

(\u00ab\u00a0AFFO\u00a0\u00bb)(2)<\/sup><\/span><\/p>\n<\/td>\n

<\/td>\n\n

147,594<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

152,032<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(4,438)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

430,540<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

458,508<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(27,968)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

AFFO(2)<\/sup> per unit diluted<\/span><\/p>\n<\/td>\n

<\/td>\n\n

0.207<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

0.217<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(0.010)<\/span><\/p>\n<\/td>\n

<\/td>\n\n

0.609<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

0.669<\/span><\/p>\n<\/td>\n

<\/td>\n\n

(0.060)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

AFFO(2)<\/sup> payout ratio \u2013 diluted<\/span><\/p>\n<\/td>\n

<\/td>\n\n

89.9%<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

85.2%<\/span><\/p>\n<\/td>\n

<\/td>\n\n

4.7%<\/span><\/p>\n<\/td>\n

<\/td>\n\n

91.0%<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

83.0%<\/span><\/p>\n<\/td>\n

<\/td>\n\n

8.0%<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Cash distributions declared<\/span><\/p>\n<\/td>\n

<\/td>\n\n

132,628<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

129,470<\/span><\/p>\n<\/td>\n

<\/td>\n\n

3,158<\/span><\/p>\n<\/td>\n

<\/td>\n\n

391,746<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

380,787<\/span><\/p>\n<\/td>\n

<\/td>\n\n

10,959<\/span><\/p>\n<\/td>\n<\/tr>\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
\n

Weighted average number of Units <\/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<\/td>\n<\/tr>\n
\n

outstanding \u2013 diluted<\/span><\/p>\n<\/td>\n

<\/td>\n\n

711,582,778<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

700,010,054<\/span><\/p>\n<\/td>\n

<\/td>\n\n

11,572,724<\/span><\/p>\n<\/td>\n

<\/td>\n\n

707,537,645<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

685,491,674<\/span><\/p>\n<\/td>\n

<\/td>\n\n

22,045,971<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/tr>\n
\n

1.<\/span><\/p>\n<\/td>\n

\n

A non-GAAP measurement which includes amounts from directly held properties and equity accounted joint ventures.<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

2.<\/span><\/p>\n<\/td>\n

\n

A non-GAAP measurement. <\/span><\/p>\n<\/td>\n<\/tr>\n

\n

3.<\/span><\/p>\n<\/td>\n

\n

Includes a provision for bad debts and rent abatements.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Quarterly and Year-to-Date Results
\n<\/b>For the three months ended September 30, 2020<\/span>, Funds from Operations (\u00ab\u00a0FFO\u00a0\u00bb, a non-GAAP measure) was $169.2 million<\/span> or $0.238<\/span> per unit diluted compared to $175.0 million<\/span> or $0.250<\/span> per unit diluted for the three months ended September 30, 2019<\/span>, while for the nine months ended September 30, 2020<\/span>, FFO was $480.5 million<\/span> or $0.679<\/span> per unit diluted compared to $514.5 million<\/span> or $0.751<\/span> per unit diluted for the nine months ended September 30, 2019<\/span>.<\/p>\n

FFO decreased in the current quarter and on a year-to-date basis primarily due to an increase in bad debt expense and a reduction in net operating income attributable to the disposition of a 30-property portfolio in the third quarter of 2019. The decline was partially offset by deleveraging activities of the Trust by using proceeds from dispositions and the May 2019<\/span> equity offering to reduce overall borrowing costs.<\/p>\n

The decline in FFO on a per unit basis also reflects the higher weighted average number of units outstanding as a result of the May 2019<\/span> equity offering, the proceeds from which were used to lower debt levels, as well as the units issued as consideration of the previously announced acquisition of two assets from Wittington Properties Limited in July 2020<\/span>.<\/p>\n

Transaction Activity
\n<\/b>Since the end of the prior quarter, the Trust completed or entered into agreements to complete $341<\/span>.3 million of dispositions and $333<\/span>.9 million of acquisitions on a proportionate share basis(1)<\/sup>. Notable transactions include:<\/p>\n