The following is a summary of the SmartCentres Real Estate Investment Trust (CWYUF) Q4 2023 Earnings Call Transcript:
Financial Performance:
SmartCentres reported Q4 FFO per fully diluted unit at $0.59, an increase of 4% from last year and 7% from the previous quarter.
The company's net operating income for the quarter remained flat but saw a decline of half 1 percentage point from the same quarter last year. However, with equity accounted investments incorporated, NOI increased by $2.7 million or 2%.
Improvement seen in the payout ratio to AFFO for the quarter to 89.4% from 95.7% a year earlier.
Net profits of $25.5 million were booked from two condo towers on gross revenues of $136 million, reflecting an 18.8% margin.
Adjusted Debt to Adjusted EBITDA was better than the prior year, placing at 9.6x in Q4.
Despite a loss of $14.9 million on the investment portfolio, liquidity position remains comfortable with over $523 million of undrawn liquidity.
A slight increase was observed in the weighted average interest rate at 4.15%.
Business Progress:
A strong performance was seen by the core retail business as well as contributions from the mixed-use development portfolio, specifically from the Transit City 4 and 5 condo towers.
Occupancy level, including committed leases, remained solid at 98.5% at the end of Q4.
Development projects underway decreased to 12 in Q4 2023.
Success in leasing with both new and existing retailers and tenant retention remained strong during Q4.
A 458-unit apartment rental project was completed on time and within budget and is now 65% leased.
Growth in Quick-Service Restaurant industry was observed with the emergence of US brands like Chick-fil-a and Chipotle emphasizing the company's efforts to maintain a 100% occupancy level and strong relationships with tenants.
Company continues strategizing to strengthen shopping centers into city centers via their intensification program.
More details: SMARTCENTRES REAL ESTATE INVESTMENT IR
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