Q2 2024 RioCan Real Estate Investment Trust Earnings Call Transcript
Key Points
- Record-breaking leasing spreads with new deals reaching an all-time high of 52.5%, driving blended leasing spreads of 23.4%.
- Retail portfolio committed occupancy increased to 98.3% in the second quarter, reflecting ongoing demand.
- Successfully leased more than 1.15 million square feet of space in the second quarter, nearly 0.5 million of which were new leases.
- Strong leasing strategy prioritizing essential tenants, with approximately 80% of annualized net rent coming from strong and stable tenants.
- Significant advancements in ESG, with the publication of an annual ESG report illustrating progress in sustainability, ethical governance, and fostering a positive culture.
- Temporary downtime due to prioritizing long-term quality and growth over short-term same-property NOI, leading to a reduction in SPNOI guidance for 2024.
- Higher interest expense net of higher interest income had an unfavorable impact of $0.03 on FFO.
- The construction completion of FourFifty The Well resulted in a temporary FFO drag of approximately $1.5 million due to lease-up phase.
- Market dynamics include tight zoning regulations and high construction costs, contributing to retail space scarcity.
- Some softness in the residential rental market due to an influx of condos, potentially slowing rent growth.
Good day, ladies and gentlemen, and welcome to the RioCan Real Estate Investment Trust second quarter 2024 Conference Call and Webcast. As a reminder, this call is being recorded.
I would now like to turn the conference over to Ms. Jennifer Suess, Senior Vice President, General Counsel, ESG and Corporate secretary. Ms. Suess, you may begin.
Thank you, and good morning, everyone. I am Jennifer Suess, Senior Vice President, General Counsel, ESG and Corporate Secretary of RioCan.
Before we begin, I'm required to read the following cautionary statements. In talking about our financial and operating performance and in responding to your questions, we may make forward-looking statements, including statements concerning RioCan's objectives, its strategies to achieve those objectives, as well as statements with respect to management's belief, plans, estimates and intention and similar statements concerning anticipated future
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