{"id":17116,"date":"2021-04-29T05:25:00","date_gmt":"2021-04-29T09:25:00","guid":{"rendered":"https:\/\/www.choicereit.ca\/news-release\/choice-properties-real-estate-investment-trust-publie-ses-resultats-pour-le-trimestre-clos-le-31-mars-2021\/"},"modified":"2021-04-29T05:25:00","modified_gmt":"2021-04-29T09:25:00","slug":"choice-properties-real-estate-investment-trust-publie-ses-resultats-pour-le-trimestre-clos-le-31-mars-2021","status":"publish","type":"news-release","link":"https:\/\/www.choicereit.ca\/fr\/news-release\/choice-properties-real-estate-investment-trust-publie-ses-resultats-pour-le-trimestre-clos-le-31-mars-2021\/","title":{"rendered":"Choice Properties Real Estate Investment Trust publie ses r\u00e9sultats pour le trimestre clos le 31 mars 2021"},"content":{"rendered":"

TORONTO<\/span>, April 29, 2021 \/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 three months ended March 31, 2021<\/span>. The 2021 First Quarter 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

\u00ab\u00a0We are pleased to report a strong start to 2021 with stable and expected financial and operational results for the first quarter, as our portfolio of high-quality real estate assets continued to produce solid earnings and rent collections,\u00a0\u00bb said Rael Diamond<\/span>, President and Chief Executive Officer of the Trust. \u00ab\u00a0In addition, we advanced a key development initiative and completed an important acquisition in the quarter. We announced a new partnership with The Daniels Corporation to revitalize and redevelop our Golden Mile Shopping Centre in Toronto<\/span> and we acquired approximately 300 acres of future industrial development land in the Greater Toronto Area<\/span>, providing us an opportunity to significantly increase our existing industrial footprint.\u00a0\u00bb<\/p>\n

Summary of GAAP Basis Financial Results<\/h4>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

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

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

<\/td>\n\n

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

<\/td>\n\n

March 31, 2021<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

March 31, 2020<\/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

(62,198)<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

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

\n

332,742<\/span><\/p>\n<\/td>\n

<\/td>\n\n

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

\n

(394,940)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

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

(0.086)<\/b><\/span><\/p>\n<\/td>\n

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

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

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

(0.561)<\/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<\/tr>\n
\n

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

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

326,539<\/b><\/span><\/p>\n<\/td>\n

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

324,911<\/span><\/p>\n<\/td>\n

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

1,628<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Fair value gain (loss) on Exchangeable Units(1)<\/sup><\/span><\/p>\n<\/td>\n

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

(217,683)<\/b><\/span><\/p>\n<\/td>\n

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

386,062<\/span><\/p>\n<\/td>\n

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

(603,745)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Fair value gains (losses) excluding Exchangeable Units(2)<\/sup><\/span><\/p>\n<\/td>\n

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

59,220<\/b><\/span><\/p>\n<\/td>\n

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

(135,665)<\/span><\/p>\n<\/td>\n

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

194,885<\/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<\/tr>\n
\n

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

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

148,632<\/b><\/span><\/p>\n<\/td>\n

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

104,147<\/span><\/p>\n<\/td>\n

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

44,485<\/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<\/tr>\n
\n

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

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

722,930,485<\/b><\/span><\/p>\n<\/td>\n

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

700,625,695<\/span><\/p>\n<\/td>\n

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

22,304,790<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

\n\n\n\n\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<\/h4>\n

Choice Properties had a net loss of $62.2 million<\/span> for the first quarter of 2021 as compared to net income of $332.7 million<\/span> in the first quarter of 2020. The decrease was mainly due to an unfavourable change of $603.7 million<\/span> in the adjustment to the fair value on the Exchangeable Units, partially offset by a $209.1 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 $1.6 million<\/span> on a GAAP basis ($1.9 million<\/span> on a proportionate share basis) as compared to bad debt expense of $0.9 million<\/span> on a GAAP and proportionate share basis in the first quarter of 2020.<\/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. During the three months ended March 31, 2021<\/span>, the Trust recorded a bad debt expense of $1.9 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<\/h4>\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<\/span><\/p>\n

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

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

<\/td>\n\n

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

<\/td>\n\n

March 31, 2021<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

March 31, 2020<\/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

341,608<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n\n

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

\n

340,417<\/span><\/p>\n<\/td>\n

<\/td>\n\n

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

\n

1,191<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

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

229,633<\/b><\/span><\/p>\n<\/td>\n

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

231,531<\/span><\/p>\n<\/td>\n

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

(1,898)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

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

214,393<\/b><\/span><\/p>\n<\/td>\n

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

215,957<\/span><\/p>\n<\/td>\n

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

(1,564)<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

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

60,895<\/b><\/span><\/p>\n<\/td>\n

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

(148,206)<\/span><\/p>\n<\/td>\n

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

209,101<\/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<\/tr>\n
\n

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

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

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

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

97.5%<\/span><\/p>\n<\/td>\n

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

(0.5)%<\/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<\/tr>\n
\n

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

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

170,608<\/b><\/span><\/p>\n<\/td>\n

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

170,670<\/span><\/p>\n<\/td>\n

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

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

\n

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

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

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

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

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

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

(0.008)<\/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<\/tr>\n
\n

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

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

155,316<\/b><\/span><\/p>\n<\/td>\n

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

151,773<\/span><\/p>\n<\/td>\n

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

3,543<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

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

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

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

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

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

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

\n

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

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

86.1%<\/b><\/span><\/p>\n<\/td>\n

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

85.4%<\/span><\/p>\n<\/td>\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<\/tr>\n
\n

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

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

133,706<\/b><\/span><\/p>\n<\/td>\n

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

129,561<\/span><\/p>\n<\/td>\n

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

4,145<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

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

722,930,485<\/b><\/span><\/p>\n<\/td>\n

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

700,625,695<\/span><\/p>\n<\/td>\n

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

22,304,790<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

\n\n\n\n\n\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<\/h4>\n

For the three months ended March 31, 2021<\/span>, Funds from Operations (\u00ab\u00a0FFO\u00a0\u00bb, a non-GAAP measure) was $170.6 million<\/span> or $0.236<\/span> per unit diluted compared to $170.7 million<\/span> or $0.244<\/span> per unit diluted for the three months ended March 31, 2020<\/span>. Funds from operations was relatively unchanged year-over-year, as an increase in non-recurring lease surrender revenue and savings from lower borrowing costs were partially offset by higher bad debt expense and a decline in interest income due to fewer mortgages receivable outstanding as compared to prior year. The results were also impacted by a higher than usual amount of excess cash on the balance sheet during the first quarter as a result of proceeds from property dispositions in 2020 as part of capital recycling initiatives.<\/p>\n

The decline on a per unit basis was primarily due to the higher weighted average number of units outstanding as a result of: (i) the Trust units issued as consideration for the acquisition of two assets from Wittington Properties Limited in July 2020<\/span> and (ii) the Exchangeable Units issued as consideration for the acquisition of six assets from Weston Foods (Canada<\/span>) Inc. in December 2020<\/span>.<\/p>\n

Transaction Activity<\/h4>\n

Since the end of the prior quarter, the Trust completed $163.4 million<\/span> of acquisitions and $88.9 million<\/span> of dispositions on a proportionate share basis(1)<\/sup>. Notable transactions include:<\/p>\n