Q3 2024 CT Real Estate Investment Trust Earnings Call Transcript
Key Points
- CT Real Estate Investment Trust (CTRRF) reported a healthy and stable Q3 with strong growth metrics, including a 3.4% increase in NOI and a 2.3% increase in AFFO per unit.
- The REIT announced $85 million in new investments this quarter, which will bolster their strong pipeline of projects, including over 0.5 million square feet of new development projects by the end of 2025.
- The occupancy rate remains high at 99.4%, indicating a substantially fully leased portfolio and reflecting the quality and strength of their assets.
- CT Real Estate Investment Trust (CTRRF) maintains a strong relationship with Canadian Tire, which continues to provide strategic growth opportunities and a stable development pipeline.
- The REIT's balance sheet remains strong with an indebtedness ratio of 40.7% and significant liquidity available through committed and uncommitted credit facilities.
- Transaction volumes remain low by historic standards, which could impact future growth opportunities.
- Same-store NOI growth is tracking lower than previous years, primarily due to higher nonrecoverable property costs and reduced contributions from maintenance capital.
- Interest coverage ratio decreased to 3.52 times from 3.71 times in the comparable quarter of 2023, driven by increased interest expenses.
- The REIT faces challenges with the timing of debenture refinancing, with $200 million coming due in June 2025, amidst a fluctuating interest rate environment.
- Development costs have increased on a per square foot basis, which could impact future project returns compared to acquisition yields.
Good morning. My name is Gigi, and I will be your conference operator today. At this time, I would like to welcome everyone to CT REIT's Q3 2024 Earnings Results Conference Call (Operator Instructions). The speakers on the call today are Kevin Salsberg, President and Chief Executive Officer of CT REIT; Jodi Shpigel, Senior Vice President, Real Estate; and Lesley Gibson, Chief Financial Officer.
Today's discussions may include forward-looking statements, such statements are based on managed assumptions and beliefs. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements. Please see CT REIT's public filings for a discussion of these risk factors, which are included in their 2023 Management's Discussion and Analysis and 2023 Annual Information Form, which can be found on CT REIT's website and on SEDAR+.
I will now turn the call over to Kevin Salsberg, President and Chief Executive Officer of CT REIT. Kevin?
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