{"id":17104,"date":"2021-02-10T05:50:00","date_gmt":"2021-02-10T10:50:00","guid":{"rendered":"https:\/\/www.choicereit.ca\/news-release\/choice-properties-real-estate-investment-trust-publie-ses-resultats-pour-lexercice-clos-le-31-decembre-2020\/"},"modified":"2021-02-10T05:50:00","modified_gmt":"2021-02-10T10:50:00","slug":"choice-properties-real-estate-investment-trust-publie-ses-resultats-pour-lexercice-clos-le-31-decembre-2020","status":"publish","type":"news-release","link":"https:\/\/www.choicereit.ca\/fr\/news-release\/choice-properties-real-estate-investment-trust-publie-ses-resultats-pour-lexercice-clos-le-31-decembre-2020\/","title":{"rendered":"Choice Properties Real Estate Investment Trust publie ses r\u00e9sultats pour l’exercice clos le 31 d\u00e9cembre 2020"},"content":{"rendered":"

TORONTO<\/span>, Feb. 10, 2021<\/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 year ended December 31, 2020<\/span>. The 2020 Annual Report to Unitholders is available in the Investors section of the Trust\u2019s website at www.choicereit.ca<\/a><\/u>, and has been filed on SEDAR at www.sedar.com<\/a><\/u>.<\/p>\n

\u00a0<\/div>\n

\u00ab\u00a0We are pleased with our financial and operational results for the quarter and year ended December 31, 2020<\/span>, as our portfolio of high-quality real estate assets continued to produce strong earnings and stable rent collections. In addition to posting strong results, we completed over $1 billion<\/span> of real estate transactions this year through our capital recycling program, demonstrating our commitment and ability to improve the overall quality of our portfolio,\u00a0\u00bb said Rael Diamond<\/span>, President and Chief Executive Officer of the Trust.\u00a0 \u00ab\u00a0However, the strength of our results notwithstanding, we remain cautious due to the ongoing risks and uncertainties associated with the COVID-19 pandemic and the impact they may have on the economy and our business.\u00a0\u00bb<\/p>\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
\u00a0<\/td>\n\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

Year Ended<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\u00a0<\/td>\n\n

December 31,
\n2020<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

December 31,
\n2019<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

December 31,
\n2020<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

December 31,
\n2019<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

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

\u00a0<\/td>\n\n

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

\n

116,570<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

293,261<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

(176,691)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

450,685<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

(581,357)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

1,032,042<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

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

\u00a0<\/td>\n\n

321,862<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

317,986<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

3,876<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

1,270,614<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

1,288,554<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(17,940)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

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

\u00a0<\/td>\n\n

(86,370)<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

206,680<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(293,050)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

354,286<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(932,009)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

1,286,295<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

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

\u00a0<\/td>\n\n

104,948<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

9,352<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

95,596<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(217,808)<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(11,543)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(206,265)<\/span><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

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

\u00a0<\/td>\n\n

255,960<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

207,460<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

48,500<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

621,184<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

580,556<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

40,628<\/span><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

Weighted average Units outstanding \u2013 <\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

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

\u00a0<\/td>\n\n

718,026,576<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

700,544,380<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

17,482,196<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

707,764,714<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

689,285,790<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

18,478,924<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/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<\/b><\/p>\n

Net income for the fourth quarter of 2020 was $116.6 million<\/span> compared to $293.3 million<\/span> in 2019. The decrease was mainly due to an unfavourable change of $293.1 million<\/span> in the adjustment to the fair value on the Exchangeable Units, partially offset by a $109.8 million<\/span> favourable change in the fair value of investment properties, including properties held within equity accounted joint ventures. For the quarter, bad debt expense was $2.7 million<\/span> on a GAAP basis ($3.5 million<\/span> on a proportionate share basis).<\/p>\n

Annual Results
\n<\/b>Net income for the year ended December 31, 2020<\/span> was $450.7 million<\/span>, compared to a loss of $581.4 million<\/span> in the prior year. The increase was mainly due to a favourable change of $1.3 billion<\/span> in the adjustment to fair value on Exchangeable Units, reduced interest and financing charges, and a favourable change in other fair value adjustments, 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 Canada<\/span> Emergency Commercial Rent Assistance (\u00ab\u00a0CECRA\u00a0\u00bb) program for eligible tenants, which ended on September 30, 2020<\/span>. During the year ended December 31, 2020<\/span>, the Trust recorded a bad debt expense of $23.7 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

As at or for the period ended<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

Year Ended<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\u00a0<\/td>\n\n

December 31,
\n2020<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

December 31,
\n2019<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

December 31,
\n2020<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

December 31,
\n2019<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

Rental revenue(1)<\/sup>\u00a0<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

337,907<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

333,744<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

4,163<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

1,332,657<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

1,354,383<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\n

(21,726)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Net Operating Income (\u00ab\u00a0NOI\u00a0\u00bb), cash basis(1)(3)<\/sup>\u00a0<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

230,353<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

234,949<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(4,596)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

908,081<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

941,320<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(33,239)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\u00a0<\/td>\n\n

201,167<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

205,876<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(4,709)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

795,532<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

808,597<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(13,065)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Adjustment to fair value of investment properties(1)<\/sup> <\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

103,931<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(5,891)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

109,822<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(256,837)<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(15,250)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(241,587)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\u00a0<\/td>\n\n

97.1%<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

97.1%<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\n

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

\u00a0<\/td>\n\n

171,519<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

165,795<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

5,724<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

652,007<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

680,278<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(28,271)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\n

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

\u00a0<\/td>\n\n

136,054<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

129,187<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

6,867<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

566,469<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

587,695<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

(21,226)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

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

\n

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

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

100.3%<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

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

\u00a0<\/td>\n\n

92.6%<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

86.8%<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

5.8%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\u00a0<\/td>\n\n

162,411<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

151,267<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

11,144<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

554,157<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

532,054<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

22,103<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Weighted average number of Units outstanding \u2013 diluted<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

718,026,576<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

700,544,380<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

17,482,196<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

707,764,714<\/b><\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

689,285,790<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

18,478,924<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/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 Results
\n<\/b>For the three months ended December 31, 2020<\/span>, Funds from Operations (\u00ab\u00a0FFO\u00a0\u00bb, a non-GAAP measure) was $171.5 million<\/span> or $0.239<\/span> per unit diluted compared to $165.8 million<\/span> or $0.237<\/span> per unit diluted for the three months ended December 31, 2019<\/span>. FFO increased in the current quarter primarily due to the reduction in net interest expense and other financing charges resulting from deleveraging activities, partially offset by higher bad debt expense. In addition, 2019 results included non-recurring charges relating to the reimbursement of revenue to Loblaw for incorrectly allocated solar rooftop leases and an allowance for expected credit losses on a mortgage receivable.<\/p>\n

The increase on a per unit basis is due to the increase in FFO as described above, partially offset by the impact of the higher weighted average number of units outstanding as a result of the May 2019<\/span> equity offering where proceeds were used to lower debt levels, as well as the units issued as consideration of the acquisition of two assets from Wittington Properties Limited in July 2020<\/span>, and the issuance of Exchangeable Units to Weston Foods (Canada<\/span>) Inc., a wholly-owned subsidiary of George Weston Limited (\u00ab\u00a0GWL\u00a0\u00bb), as consideration for the acquisition of six assets in the fourth quarter of 2020.<\/p>\n

Annual Results
\n<\/b>For the year ended December 31, 2020<\/span>, FFO was $652.0 million<\/span> or $0.921<\/span> per unit diluted compared to $680.3 million<\/span> or $0.987<\/span> per unit diluted for the year ended December 31, 2019<\/span>.<\/p>\n

FFO decreased on an annual basis primarily due to an increase in bad debt expense, partially offset by lower borrowing costs from deleveraging activities and capital recycling.<\/p>\n

The decline in FFO on a per unit basis also reflects the higher weighted average number of units outstanding as discussed above.<\/p>\n

Transaction Activity
\n<\/b>Since the end of the prior quarter, the Trust completed or entered into agreements to complete $332.4 million<\/span> of dispositions and $219.3 million<\/span> of acquisitions on a proportionate share basis(1)<\/sup>. Notable transactions include:<\/p>\n