Automotive Properties REIT Stories Monetary Outcomes for Second Quarter of 2019


TORONTO , Aug. 14, 2019 /CNW/ – Automotive Properties Actual Property Funding Belief (APR-UN.TO) (“Automotive Properties REIT” or the “REIT”) right now introduced its monetary outcomes for the three-month (“Q2 2019) and six-month (“YTD 2019”) intervals ended June 30, 2019 .

Q2 2019 Highlights

  • Property rental income was $16.Four million , a rise of 44.4% from the second quarter of 2018 (“Q2 2018”);
  • Web Working Earnings1 (“NOI”) was $14.Zero million , a rise of 44.7% from Q2 2018;
  • Whole and Similar Property Money NOI1 had been $13.1 million and $9.Zero million , respectively, representing will increase of 47.2% and 1.5%, respectively, from Q2 2018;   
  • Web Earnings was $8.Four million , in comparison with $5.Three million in Q2 2018;
  • Funds from Operations1 (“FFO”) elevated 31.8% to $8.Eight million , from $6.6 million in Q2 2018. FFO1 per unit of the REIT (“Unit”) was $0.272 (diluted), in comparison with $0.252 (diluted) in Q2 2018;
  • Adjusted Funds from Operations1 (“AFFO”) elevated 36.0% to $7.9 million , from $5.Eight million in Q2 2018. AFFO1 per Unit elevated 11.2% to $0.247 (diluted), in comparison with $0.222 (diluted) in Q2 2018;
  • The REIT acquired three automotive dealership properties for a complete buy worth of roughly $30.Four million ;
  • The REIT accomplished a public providing of 8,000,00Zero Items at a worth of $10.45 per Unit, leading to gross proceeds of roughly $84 million ;
  • The REIT entered right into a non-binding letter of intent with the Dilawri Group to amass the Audi Queensway automotive dealership property for $36.5 million ; and
  • The REIT paid month-to-month money distributions of $0.067 per Unit, leading to whole distributions paid of roughly $6.Four million , representing an AFFO payout ratio of roughly 81.4%.

“We proceed to generate vital development in our key working metrics, pushed by the continued execution of our acquisition program, in addition to our contractual hire will increase,” mentioned Milton Lamb , CEO of Automotive Properties REIT. “In the course of the quarter, we accomplished a profitable fairness providing, acquired three high-quality dealership properties, and subsequently decreased our debt to gross guide worth, positioning us for additional high quality acquisitions.”

1 NOI, Money NOI, Similar Property Money NOI, FFO, AFFO, Debt to GBV, FFO Payout Ratio, AFFO Payout Ratio, and ACFO (as outlined under) are non-IFRS monetary measures. See “Non-IFRS Monetary Measures” on this information launch. References to “Similar Property” correspond to properties that the REIT owned in Q2 2018, thus eradicating the impression of acquisitions.

Monetary Outcomes Abstract

Three months ended
June 30,

Six months ended
June 30,

($000s, besides per Unit quantities)

2019

2018

Change

2019

2018

     Change

Rental income (1)

$16,425

$11,373

44.4%

$32,109

$22,679

41.6%

NOI

13,972

9,659

44.7%

27,543

19,259

43.0%

Money NOI

13,107

8,906

47.2%

25,761

17,752

45.1%

Similar Property Money NOI (1)

8,990

8,855

1.5%

17,986

17,701

1.6%

Web Earnings (Loss)(2)

8,436

5,317

58.7%

(9,446)

19,809

-147.7%

FFO

8,754

6,640

31.8%

17,335

13,307

30.3%

AFFO

7,948

5,842

36.0%

15,706

11,710

34.1%

Distributions per Unit

$0.201

$0.201

$0.402

$0.402

FFO per Unit – primary (3)

0.274

0.253

0.021

0.544

0.508

+0.036

FFO per Unit – diluted (4)

0.272

0.252

0.020

0.541

0.506

+0.035

AFFO per Unit – primary (3)

0.248

0.223

0.025

0.493

0.447

+0.046

AFFO per Unit – diluted (4)

0.247

0.222

0.025

0.490

0.445

+0.045

Ratios (%)

FFO payout ratio

73.9%

79.8%

-5.9%

74.3%

79.4%

-5.1%

AFFO payout ratio

81.4%

90.7%

-9.3%

82.0%

90.3%

-8.3%

Debt to GBV

49.7%

49.1%

+0.6%

49.7%

49.1%

+0.6%

(1)

Rental income is predicated on rents from leases entered into with tenants, all of that are triple-net leases and embody recoverable realty taxes and straight-line
changes. Similar Property Money NOI is predicated on rental income for a similar asset base having constant gross leasable space in each intervals

(2)

Web Earnings for Q2 2019 contains modifications in honest worth changes of $4.5 million for Class B restricted partnership items of Automotive Properties Restricted
Partnership (“Class B LP Items”) and $3.Eight million for rate of interest swaps. Please discuss with the consolidated monetary statements of the REIT and notes thereto

(3)

FFO per Unit and AFFO per Unit – primary is calculated by dividing the entire FFO and AFFO by the quantity of the entire weighted common variety of excellent
Items and Class B LP Items. The full weighted common variety of Items excellent (together with Class B LP Items) – primary for Q2 2019 was 31,993,541

(4)

FFO per Unit and AFFO per Unit – diluted is calculated by dividing the entire FFO and AFFO by the quantity of the entire weighted common variety of excellent
Items, Class B LP Items, deferred items (“DUs”) and earnings deferred items (“IDUs”) granted to sure unbiased trustees and administration of the REIT. The
whole weighted common variety of Items excellent (together with Class B LP Items, DUs and IDUs) on a completely diluted foundation for Q2 2019 was 32,238,171

 

Rental income in Q2 2019 elevated 44.4% to $16.Four million , in comparison with $11.Four million in Q2 2018. The rise in rental income displays development from properties acquired subsequent to Q2 2018 and contractual annual hire will increase throughout a good portion of the REIT’s portfolio.

Property prices had been $2.5 million in Q2 2019, as in comparison with $1.7 million in Q2 2018. The rise is attributable to increased realty tax fee for properties acquired subsequent to Q2 2018. These prices are recoverable from the relevant tenants pursuant to the phrases of the associated triple-net leases.

Whole Money NOI generated throughout Q2 2019 was $13.1 million , representing a rise of 47.2% in comparison with Q2 2018. The rise was primarily attributable to the properties acquired subsequent to Q2 2018.

Similar Property Money NOI generated throughout Q2 2019 totaled $9.Zero million , representing a rise of 1.5% in comparison with Q2 2018. This improve is primarily attributable to contractual hire will increase and a hire escalation of 10% on three funding properties which occurred in August 2018 .

Web Earnings was $8.Four million in Q2 2019, in comparison with $5.Three million in Q2 2018. The constructive variance is primarily attributable to development in NOI and the change within the honest worth adjustment for Class B LP Items, netted with the change within the honest worth adjustment for rate of interest swaps, in addition to increased curiosity expense and different financing costs.

FFO in Q2 2019 was $8.Eight million , or $0.272 per Unit (diluted), as in comparison with $6.6 million , or $0.252 per Unit (diluted), in Q2 2018. The rise was primarily as a result of impression of the properties acquired subsequent to Q2 2018.

AFFO in Q2 2019 was $7.9 million , or $0.247 per Unit (diluted), as in comparison with $5.Eight million , or $0.222 per Unit (diluted), in Q2 2018. The rise was primarily as a result of impression of the properties acquired subsequent to Q2 2018.

Adjusted Money Stream from Operations1 (“ACFO”) for Q2 2019 was $8.2 million , representing a rise of 32.9% from $6.2 million in Q2 2018. The rise was primarily as a result of impression of the properties acquired subsequent to Q2 2018.

Money Distributions
The REIT is at present paying month-to-month money distributions of $0.067 per Unit, representing $0.804 per Unit on an annualized foundation. For Q2 2019, the REIT paid whole distributions of $6.Four million to unitholders, or $0.201 per Unit, representing an AFFO payout ratio of 81.4%. The decrease AFFO payout ratio for Q2 2019 relative to Q2 2018 was primarily attributable to the impression of the properties acquired subsequent to Q2 2018.

Items Excellent
As at June 30, 2019 , there have been 29,796,552 Items and 9,933,253 Class B LP Items excellent.

Monetary Statements
The REIT’s unaudited consolidated monetary statements and associated Administration’s Dialogue & Evaluation (“MD&A”) for Q2 2019 / YTD 2019 can be found on the REIT’s web site at www.automotivepropertiesreit.ca and on SEDAR at www.sedar.com.

Convention Name
Administration of the REIT will host a convention name for analysts and buyers on Thursday, August 15, 2019 at 9:00 a.m. (ET) . The dial-in numbers for the convention name are (416) 764-8609 or (888) 390-0605. A dwell and archived webcast of the decision shall be accessible by way of the REIT’s web site www.automotivepropertiesreit.ca.

To entry a replay of the convention name, dial (416) 764-8677 or (888) 390-0541, passcode: 129105 #. The replay shall be accessible till August 22, 2019 .

About Automotive Properties REIT
Automotive Properties REIT is an unincorporated, open-ended actual property funding belief targeted on proudly owning and buying primarily income-producing automotive dealership properties situated in Canada. The REIT’s portfolio at present consists of 60 income-producing industrial properties, representing greater than two million sq. ft of gross leasable space, in metropolitan markets throughout British Columbia, Alberta , Saskatchewan , Manitoba , Ontario and Québec. Automotive Properties REIT is the one public automobile in Canada targeted on consolidating automotive dealership actual property properties. For extra info, please go to: www.automotivepropertiesreit.ca.

Ahead-Trying Data
This information launch incorporates forward-looking info inside the that means of relevant securities laws, which displays the REIT’s present expectations relating to future occasions and in some circumstances will be recognized by such phrases as “will” and “anticipated”. Ahead-looking info contains the REIT’s future acquisition capability. Ahead-looking info is predicated on quite a lot of assumptions and is topic to quite a lot of dangers and uncertainties, a lot of that are past the REIT’s management that would trigger precise outcomes and occasions to vary materially from these which are disclosed in or implied by such forward-looking info. Such dangers and uncertainties embody, however should not restricted to, the elements mentioned below “Dangers and Uncertainties” within the REIT’s MD&A for the yr ended December 31, 2018 and within the REIT’s annual info kind dated March 21, 2019 , each of which can be found on SEDAR (www.sedar.com). The REIT doesn’t undertake any obligation to replace such forward-looking info, whether or not because of new info, future occasions or in any other case, besides as expressly required by relevant regulation. This forward-looking info speaks solely as of the date of this information launch.

Non-IFRS Monetary Measures
This information launch incorporates sure monetary measures which aren’t outlined below IFRS and is probably not corresponding to comparable measures offered by different actual property funding trusts or enterprises. FFO, AFFO, FFO payout ratio, AFFO payout ratio, NOI, Similar Property NOI, Money NOI, and Similar Property Money NOI are key measures of efficiency utilized by the REIT’s administration and actual property companies. Debt to GBV is a measure of monetary place outlined by the REIT’s declaration of belief. These measures, in addition to any related “per Unit” quantities, should not outlined by IFRS and wouldn’t have standardized meanings prescribed by IFRS, and due to this fact shouldn’t be construed as alternate options to web earnings or money circulation from working actions calculated in accordance with IFRS. The REIT believes that AFFO is a vital measure of financial earnings efficiency and is indicative of the REIT’s capacity to pay distributions from earnings, whereas FFO, NOI, Money NOI and Similar Property Money NOI are essential measures of working efficiency of actual property companies and properties. The IFRS measurement most immediately corresponding to FFO, AFFO, NOI and Money NOI is web earnings. ACFO is a supplementary measure utilized by administration to enhance the understanding of the working money circulation of the REIT. The IFRS measurement most immediately corresponding to ACFO is money circulation from working actions. See the REIT’s Q2 2019 MD&A for additional dialogue of those non-IFRS monetary measures and for a reconciliation of NOI, FFO, AFFO and Money NOI to web earnings and complete earnings and ACFO to money circulation from working actions.

SOURCE Automotive Properties Actual Property Funding Belief

View authentic content material: http://www.newswire.ca/en/releases/archive/August2019/14/c1540.html



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