723,770,677<\/strong><\/td>\n<\/td>\n 723,666,036<\/td>\n <\/td>\n 104,641<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<\/p>\n
(i)<\/sup> Exchangeable Units are required to be classified as financial liabilities at fair value through profit and loss under GAAP. They 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.(ii)<\/sup> Fair value gains (losses) excluding Exchangeable Units includes adjustments to fair value of investment properties, investment in real estate securities, and unit-based compensation.(iii)<\/sup> Includes Trust Units and Exchangeable Units.<\/p>\n<\/p>\n
<\/p>\n
Quarterly Results<\/h4>\n <\/p>\n
<\/p>\n
Choice Properties reported a net loss of $96.2 million for the first quarter of 2025 compared to net income of $142.3 million in the same prior year period. The decrease of $238.5 million was primarily due to changes in certain non-cash adjustments to fair value including:<\/p>\n
<\/p>\n
<\/p>\n
\na $304.8 million unfavourable change in the adjustment to fair value of the Trust\u2019s Exchangeable Units due to the increase in the Trust\u2019s unit price; partially offset by<\/li>\n<\/p>\n
<\/p>\n
a $31.3 million favourable change in the adjustment to fair value of investment properties; and<\/li>\n<\/p>\n
<\/p>\n
a $20.7 million favourable change in the adjustment to fair value of the investment in real estate securities of Allied, driven by the change in Allied\u2019s unit price in the quarter.<\/li>\n<\/p><\/ul>\n
<\/p>\n
<\/p>\n
Summary of Proportionate Share(2)<\/sup> Financial Results<\/h4>\n
<\/p>\n\n\n\n\n<\/td>\n <\/td>\n <\/td>\n <\/td>\n Three Months<\/strong><\/td>\n<\/td>\n <\/td>\n<\/tr>\n \nAs at or for the period ended <\/td>\n March 31, 2025<\/strong><\/td>\n<\/td>\n March 31, <\/td>\n Change $<\/td>\n<\/tr>\n \nRental revenue(i)<\/sup><\/td>\n$<\/strong><\/td>\n372,046<\/strong><\/td>\n$<\/td>\n 361,408<\/td>\n $<\/td>\n 10,638<\/td>\n<\/tr>\n \nNet Operating Income (\u201cNOI\u201d), Cash Basis(i)<\/sup><\/td>\n<\/td>\n 262,070<\/strong><\/td>\n<\/td>\n 251,633<\/td>\n <\/td>\n 10,437<\/td>\n<\/tr>\n \nSame-Asset NOI, Cash Basis(i)<\/sup><\/td>\n<\/td>\n 251,650<\/strong><\/td>\n<\/td>\n 244,499<\/td>\n <\/td>\n 7,151<\/td>\n<\/tr>\n \nAdjustment to fair value of investment properties(i)<\/sup><\/td>\n<\/td>\n 39,978<\/strong><\/td>\n<\/td>\n (3,560)<\/td>\n <\/td>\n 43,538<\/td>\n<\/tr>\n \nOccupancy (% of GLA)<\/td>\n <\/td>\n 97.7 %<\/strong><\/td>\n<\/td>\n 97.9 %<\/td>\n <\/td>\n (0.2)%<\/td>\n<\/tr>\n \nFunds from operations (\u201cFFO\u201d)(i)<\/sup><\/td>\n<\/td>\n 190,939<\/strong><\/td>\n<\/td>\n 187,189<\/td>\n <\/td>\n 3,750<\/td>\n<\/tr>\n \nFFO(i)<\/sup> per unit diluted<\/td>\n<\/td>\n 0.264<\/strong><\/td>\n<\/td>\n 0.259<\/td>\n <\/td>\n 0.005<\/td>\n<\/tr>\n \nAdjusted funds from operations (\u201cAFFO\u201d)(i)<\/sup><\/td>\n<\/td>\n 180,265<\/strong><\/td>\n<\/td>\n 173,146<\/td>\n <\/td>\n 7,119<\/td>\n<\/tr>\n \nAFFO(i)<\/sup> per unit diluted<\/td>\n<\/td>\n 0.249<\/strong><\/td>\n<\/td>\n 0.239<\/td>\n <\/td>\n 0.010<\/td>\n<\/tr>\n \nAFFO(i)<\/sup> payout ratio \u2013 diluted<\/td>\n<\/td>\n 76.6 %<\/strong><\/td>\n<\/td>\n 78.7 %<\/td>\n <\/td>\n (2.1)%<\/td>\n<\/tr>\n \nCash distributions declared<\/td>\n <\/td>\n 138,121<\/strong><\/td>\n<\/td>\n 136,287<\/td>\n <\/td>\n 1,834<\/td>\n<\/tr>\n \nWeighted average number of units outstanding \u2013 diluted(ii)<\/sup><\/td>\n<\/td>\n 723,770,677<\/strong><\/td>\n<\/td>\n 723,666,036<\/td>\n <\/td>\n 104,641<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<\/p>\n
(i) <\/sup>Refer to Non-GAAP Financial Measures and Additional Financial Information section.(ii)<\/sup> Includes Trust Units and Exchangeable Units.<\/p>\n<\/p>\n
<\/p>\n
Quarterly Results<\/h4>\n <\/p>\n
<\/p>\n
For the three months ended March 31, 2025, Same-Asset NOI, Cash Basis(2)<\/sup> increased by $7.2 million or 2.9%, compared to the same prior year period primarily due to increased revenue from higher rental rates on renewals, new leasing and contractual rent steps mainly in the industrial and retail portfolios. Further contributing to the increase was a property tax incentive recognized in the mixed-use and residential portfolio.<\/p>\nFFO(2) <\/sup>increased by $3.8 million or 1.9% for the three months ended March 31, 2025 compared to the prior year period primarily due to an increase in net operating income and higher fee income. The increase was partially offset by higher net interest expense, lower lease surrender revenue and income from the sale of residential inventory recognized in the prior year.<\/p>\n<\/p>\n
<\/p>\n
Outlook<\/h4>\n <\/p>\n
<\/p>\n
We are focused on capital preservation, delivering stable and growing cash flows and net asset value appreciation. Our high-quality portfolio is primarily leased to necessity-based tenants and logistics providers, who are less sensitive to economic volatility and therefore provide stability to our overall portfolio. We will continue to advance our development program, with a focus on commercial developments, which provides us with the best opportunity to add high-quality real estate to our portfolio at a reasonable cost and drive net asset value appreciation over time.<\/p>\n
We are confident that our business model, stable tenant base, strong balance sheet and disciplined approach to financial management will continue to benefit us. In 2025, Choice Properties is targeting:<\/p>\n
<\/p>\n
<\/p>\n
\nStable occupancy across the portfolio, resulting in approximately 2%-3% year-over-year growth in Same-Asset NOI, Cash Basis;<\/li>\n<\/p>\n
<\/p>\n
Annual FFO per unit diluted in a range of $1.05 to $1.06, reflecting approximately 2%-3% year-over-year growth; and<\/li>\n<\/p>\n
<\/p>\n
Strong leverage metrics, targeting Adjusted Debt to EBITDAFV below 7.5x.<\/li>\n<\/p><\/ul>\n
<\/p>\n
<\/p>\n
Non-GAAP Financial Measures and Additional Financial Information<\/h4>\n <\/p>\n
<\/p>\n
In addition to using performance measures determined in accordance with International Financial Reporting Standards (\u201cIFRS\u201d or \u201cGAAP\u201d), Choice Properties also measures its performance using certain non-GAAP measures, and provides these measures in this news release so that investors may do the same. Such measures and related per-unit amounts are not defined by IFRS and therefore should not be construed as alternatives to net income or cash flows from operating activities determined in accordance with IFRS. Furthermore, the supplemental measures used by management may not be comparable to similar measures presented by other real estate investment trusts or enterprises. The non-GAAP measures included in this news release are defined and reconciled to the most comparable GAAP measure below. Choice Properties 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
<\/p>\n\n\n\n\nNon-GAAP Measure<\/strong><\/td>\nDescription<\/strong><\/td>\n<\/tr>\n\nProportionate Share<\/td>\n \u2022 Represents financial information adjusted to reflect the Trust\u2019s equity accounted joint ventures and financial real estate assets and its share of net income (loss) from equity accounted joint ventures and financial real estate assets on a proportionately consolidated basis at the Trust\u2019s ownership percentage of the related investment. \nNet Operating Income (\u201cNOI\u201d), Accounting Basis<\/td>\n \u2022 Defined as property rental revenue including straight-line rental revenue, reimbursed contract revenue and lease surrender revenue, less direct property operating expenses and realty taxes, and excludes certain expenses such as interest expense and indirect operating expenses in order to provide results that reflect a property\u2019s operations before consideration of how it is financed or the costs of operating the entity in which it is held. \nNOI, Cash Basis<\/td>\n \u2022 Defined as property rental revenue and reimbursed contract revenue, excluding straight-line rental revenue and lease surrender revenue, less direct property operating expenses and realty taxes, and excludes certain expenses such as interest expense and indirect operating expenses in order to provide results that reflect a property\u2019s operations before consideration of how it is financed or the costs of operating the entity in which it is held. \nSame-Asset NOI, Cash Basis \u2022 Same-Asset NOI is used to evaluate the period-over-period performance of those commercial properties and stabilized residential properties, owned and operated by Choice Properties since January 1, 2024, inclusive. \nFunds from \u2022 Calculated in accordance with the Real Property Association of Canada\u2019s (\u201cREALpac\u201d) Funds From Operations<\/em> (FFO) &<\/em> Adjusted Funds From Operations<\/em> (AFFO)<\/em> for IFRS <\/em>issued in January 2022.\nAdjusted Funds from \u2022 Calculated in accordance with REALpac\u2019s Funds From Operations (FFO) & Adjusted Funds From Operations (AFFO) for IFRS <\/em>issued in January 2022.\nAFFO Payout Ratio<\/td>\n \u2022 AFFO payout ratio is a supplementary measure used by Management to assess the sustainability of the Trust\u2019s distribution payments. \nEarnings before \u2022 Defined as net income (loss) attributable to Unitholders, reversing, where applicable, income taxes, interest expense, amortization expense, depreciation expense, adjustments to fair value and other adjustments as allowed in the Trust Indentures, as supplemented. \nTotal Adjusted Debt<\/td>\n \u2022 Defined as variable rate debt (construction loans, mortgages, and credit facility) and fixed rate debt (senior unsecured debentures, construction loans and mortgages), as measured on a proportionate share basis(1)<\/sup>, and does not include the Exchangeable Units which are included as part of unit equity on account of the Exchangeable Units being economically equivalent and receiving equal distributions to the Trust Units.\nNet Asset Value \u2022 NAV is an alternative measurement of equity. It is calculated by summing Unitholder\u2019s Equity and the fair value of the Trust\u2019s Exchangeable Units. Under GAAP, Exchangeable Units are considered debt. The Exchangeable Units are not required to be repaid and the holder of these units has the right to convert them into Units, therefore Management considers the Exchangeable Units to be equivalent to equity. \nAdjusted Debt to EBITDAFV \u2022 Calculated as Total Adjusted Debt divided by EBITDAFV.<\/p>\n
The following table reconciles net loss, as determined in accordance with GAAP, to net loss on a proportionate share basis(2)<\/sup> for the three months ended March 31, 2025:<\/p>\n
<\/p>\n\n\n\n\n<\/td>\n <\/td>\n <\/td>\n <\/td>\n Three Months<\/strong><\/td>\n<\/td>\n <\/td>\n<\/tr>\n \n($ thousands)<\/td>\n <\/td>\n GAAP Basis<\/strong><\/td>\n<\/td>\n Adjustment to(2)<\/sup><\/strong><\/td>\n<\/td>\n Proportionate Share(2)<\/sup><\/strong><\/td>\n<\/tr>\n\nNet Operating Income<\/strong><\/td>\n<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \nRental revenue<\/td>\n $<\/td>\n 346,912<\/td>\n $<\/td>\n 25,134<\/td>\n $<\/td>\n 372,046<\/td>\n<\/tr>\n \nProperty operating costs<\/td>\n <\/td>\n (101,063)<\/td>\n <\/td>\n (7,830)<\/td>\n <\/td>\n (108,893)<\/td>\n<\/tr>\n \n<\/td>\n <\/td>\n 245,849<\/td>\n <\/td>\n 17,304<\/td>\n <\/td>\n 263,153<\/td>\n<\/tr>\n \nOther Income and Expenses<\/strong><\/td>\n<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \nInterest income<\/td>\n <\/td>\n 11,661<\/td>\n <\/td>\n (4,310)<\/td>\n <\/td>\n 7,351<\/td>\n<\/tr>\n \nInvestment income<\/td>\n <\/td>\n 5,315<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n 5,315<\/td>\n<\/tr>\n \nFee income<\/td>\n <\/td>\n 2,470<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n 2,470<\/td>\n<\/tr>\n \nNet interest expense and other financing charges<\/td>\n <\/td>\n (146,189)<\/td>\n <\/td>\n (6,859)<\/td>\n <\/td>\n (153,048)<\/td>\n<\/tr>\n \nGeneral and administrative expenses<\/td>\n <\/td>\n (14,737)<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n (14,737)<\/td>\n<\/tr>\n \nShare of income from equity accounted joint ventures<\/td>\n <\/td>\n 16,155<\/td>\n <\/td>\n (16,155)<\/td>\n <\/td>\n \u2014<\/td>\n<\/tr>\n \nAmortization of intangible assets<\/td>\n <\/td>\n (250)<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n (250)<\/td>\n<\/tr>\n \nAdjustment to fair value of unit-based compensation<\/td>\n <\/td>\n (18)<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n (18)<\/td>\n<\/tr>\n \nAdjustment to fair value of Exchangeable Units<\/td>\n <\/td>\n (237,472)<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n (237,472)<\/td>\n<\/tr>\n \nAdjustment to fair value of investment properties<\/td>\n <\/td>\n 29,958<\/td>\n <\/td>\n 10,020<\/td>\n <\/td>\n 39,978<\/td>\n<\/tr>\n \nAdjustment to fair value of investment in real estate securities<\/td>\n <\/td>\n (8,974)<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n (8,974)<\/td>\n<\/tr>\n \nLoss before Income Taxes<\/strong><\/td>\n<\/td>\n (96,232)<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n (96,232)<\/td>\n<\/tr>\n \nIncome tax expense<\/td>\n <\/td>\n (1)<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n (1)<\/td>\n<\/tr>\n \nNet Loss<\/strong><\/td>\n$<\/td>\n (96,233)<\/td>\n $<\/td>\n \u2014<\/td>\n $<\/td>\n (96,233)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<\/p>\n
The following table reconciles net income, as determined in accordance with GAAP, to net income on a proportionate share basis(2)<\/sup> for the three months ended March 31, 2024:<\/p>\n
<\/p>\n\n\n\n\n<\/td>\n <\/td>\n <\/td>\n <\/td>\n Three Months<\/strong><\/td>\n<\/td>\n <\/td>\n<\/tr>\n \n($ thousands)<\/td>\n <\/td>\n GAAP Basis<\/strong><\/td>\n<\/td>\n Adjustment to(2)<\/sup><\/strong><\/td>\n<\/td>\n Proportionate Share(2)<\/sup><\/strong><\/td>\n<\/tr>\n\nNet Operating Income<\/strong><\/td>\n<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \nRental revenue<\/td>\n $<\/td>\n 337,958<\/td>\n $<\/td>\n 23,450<\/td>\n $<\/td>\n 361,408<\/td>\n<\/tr>\n \nProperty operating costs<\/td>\n <\/td>\n (98,105)<\/td>\n <\/td>\n (8,246)<\/td>\n <\/td>\n (106,351)<\/td>\n<\/tr>\n \n<\/td>\n <\/td>\n 239,853<\/td>\n <\/td>\n 15,204<\/td>\n <\/td>\n 255,057<\/td>\n<\/tr>\n \nResidential Inventory Income<\/strong><\/td>\n<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \nGross sales<\/td>\n <\/td>\n 11,268<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n 11,268<\/td>\n<\/tr>\n \nCost of sales<\/td>\n <\/td>\n (9,234)<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n (9,234)<\/td>\n<\/tr>\n \n<\/td>\n <\/td>\n 2,034<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n 2,034<\/td>\n<\/tr>\n \nOther Income and Expenses<\/strong><\/td>\n<\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \nInterest income<\/td>\n <\/td>\n 9,759<\/td>\n <\/td>\n (1,928)<\/td>\n <\/td>\n 7,831<\/td>\n<\/tr>\n \nInvestment income<\/td>\n <\/td>\n 5,315<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n 5,315<\/td>\n<\/tr>\n \nFee income<\/td>\n <\/td>\n 701<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n 701<\/td>\n<\/tr>\n \nNet interest expense and other financing charges<\/td>\n <\/td>\n (142,284)<\/td>\n <\/td>\n (6,363)<\/td>\n <\/td>\n (148,647)<\/td>\n<\/tr>\n \nGeneral and administrative expenses<\/td>\n <\/td>\n (14,638)<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n (14,638)<\/td>\n<\/tr>\n \nShare of income from equity accounted joint ventures<\/td>\n <\/td>\n 4,718<\/td>\n <\/td>\n (4,718)<\/td>\n <\/td>\n \u2014<\/td>\n<\/tr>\n \nAmortization of intangible assets<\/td>\n <\/td>\n (250)<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n (250)<\/td>\n<\/tr>\n \nAdjustment to fair value of unit-based compensation<\/td>\n <\/td>\n 781<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n 781<\/td>\n<\/tr>\n \nAdjustment to fair value of Exchangeable Units<\/td>\n <\/td>\n 67,284<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n 67,284<\/td>\n<\/tr>\n \nAdjustment to fair value of investment properties<\/td>\n <\/td>\n (1,365)<\/td>\n <\/td>\n (2,195)<\/td>\n <\/td>\n (3,560)<\/td>\n<\/tr>\n \nAdjustment to fair value of investment in real estate securities<\/td>\n <\/td>\n (29,641)<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n (29,641)<\/td>\n<\/tr>\n \nIncome before Income Taxes<\/strong><\/td>\n<\/td>\n 142,267<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n 142,267<\/td>\n<\/tr>\n \nIncome tax recovery<\/td>\n <\/td>\n 12<\/td>\n <\/td>\n \u2014<\/td>\n <\/td>\n 12<\/td>\n<\/tr>\n \nNet Income<\/strong><\/td>\n$<\/td>\n 142,279<\/td>\n $<\/td>\n \u2014<\/td>\n $<\/td>\n 142,279<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<\/p>\n
The following table reconciles net (loss) income, as determined in accordance with GAAP, to Net Operating Income, Cash Basis for the periods ended as indicated:<\/p>\n
<\/p>\n\n\n\n\n<\/td>\n <\/td>\n <\/td>\n <\/td>\n Three Months<\/strong><\/td>\n<\/td>\n <\/td>\n<\/tr>\n \nFor the periods ended March 31 <\/td>\n 2025<\/strong><\/td>\n<\/td>\n 2024<\/td>\n <\/td>\n Change $<\/td>\n<\/tr>\n \nNet (Loss) Income<\/strong><\/td>\n