Q3 2024 Granite Real Estate Investment Trust Earnings Call Transcript
Key Points
- Granite Real Estate Investment Trust (GRP.U) reported strong NOI growth, marking the 13th consecutive quarter of NOI increase.
- FFO per unit in Q3 was $1.35, representing a 2.3% increase from Q2 and an 8.9% increase from the same quarter last year.
- The trust completed two active expansion projects in Ajax, Ontario, and Vert Netherlands, contributing to NOI growth.
- Granite successfully completed $800 million in bond offerings, extending the weighted average debt term to 4.6 years.
- Granite achieved an average rental rate increase of over 30% on 1.6 million square feet of Q3 2024 maturities, indicating strong leasing spreads.
- Granite experienced new vacancies in Canada and the US, impacting overall occupancy rates.
- G&A expenses for the quarter were significantly higher than the previous year, primarily due to unfavorable fair value variances in noncash compensation liabilities.
- Interest expense is expected to increase in Q4 due to overlapping debt obligations.
- The trust's occupancy rate is expected to end the year closer to 95%, lower than the previously forecasted 96% to 97%.
- Granite faces potential challenges with a tenant, True Value Company, which filed for Chapter 11 bankruptcy, creating uncertainty about future lease commitments.
Please stand by your program is about to begin. (Operator Instructions) Good morning. My name is Shelby and I will be your conference operator today. At this time. I would like to welcome everyone to Granite REITs' third-quarter 2024 results conference call. (Operator Instructions) Speaking to you on the call this morning is Kevan Gorrie, President and Chief Executive Officer; and Teresa Neto, Chief Financial Officer.
I will now turn the call over to Teresa Neto to go over certain advisories.
Thanks operator. Good morning everyone. Before we begin today's call, I would like to remind you that statements and information made in today's discussion may constitute forward-looking statements and forward-looking information and the actual results could differ materially from any conclusion, forecast or projection.
These statements and information are based on certain material, facts or assumptions reflect management's current expectations and are subject to known and
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