The following is a summary of the SmartCentres Real Estate Investment Trust (CWYUF) Q1 2024 Earnings Call Transcript:
Financial Performance:
SmartCentres REIT kicked off Q1 2024 with rental increases of 8.9% over 4.4 million square feet extended.
Same-property NOI experienced growth of $4 million, an advancement of 3% from the same quarter the previous year.
SmartCentres reported Funds from Operations (FFO) per fully diluted unit of $0.48, declining from $0.54 in Q1 2023 because of a decrease in total return swap's fair value and a lack of condominium closings.
Adjusted debt to EBITDA ratio showed light improvements, registering at 9.8x in Q1 2024, compared to 10x in 2023.
The REIT marked a slight decrease in portfolio occupancy due to two tenant vacancies.
They experienced an $118.9 million fair-value reduction in investment properties portfolio.
Business Progress:
Portfolio development and limited capital recycling is on the strategic agenda to focus on debt reduction and development cost funding.
Expansion in the pipeline as SmartCentres plans to lease to names like TJX banners, Dollarama, Shoppers Drug Mart, LCBO, Banks, Canadian Tire, and national grocers.
The trust has secured significant permissions for mixed-use, adding value to its NAV.
Active projects include the 40-story artwork project and the advancement of Vaughan Northwest townhomes.
They have experienced strong interest from national tenants, predicting swift space renewals.
They continue to grow the mixed-use portfolio with around 86 million square feet in the pipeline.
The REIT announced further potential for Walmart expansions in Canada and steady growth in its self-storage portfolio.
More details: SMARTCENTRES REAL ESTATE INVESTMENT IR
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