- Fair value gains on investment properties of $58.6 million in Q4 and $63.2 million in 2021
- Property revenue up 30.4% in Q4 and 11.3% in 2021
- Same Property NOI1 grew 5.5% in Q4 and 4.3% in
2021
- Net operating income1 up 33.6% in Q4 and 14.2% in
2021
- Net income and comprehensive income up $58.6 million in Q4 and $60.8 million in 2021
- AFFO1 increase of 37.0% in Q4 and 11.7% in 2021
- Debt to Gross Book Value1 at year-end of 53.1%, down
from 57.8% in 2020
- $296.9 million of industrial
assets purchased in 2021
- $133.3 million in equity raised
in 2021
- Occupancy rate of 98.4% at year-end
- Publication of inaugural ESG report
MONTREAL, March 23, 2022 /CNW Telbec/ - PRO Real Estate
Investment Trust ("PROREIT" or the "REIT") (TSX: PRV.UN) today
reported its financial and operating results for the three-month
(or "fourth quarter" or "Q4") and twelve-month (or "full year")
periods ended December 31,
2021.
"Q4 2021 was an outstanding quarter that capped off an
exceptional year for PROREIT, both financially and operationally.
Despite the complexities and disruptions resulting from the ongoing
pandemic, we successfully accelerated our growth as an industrial
focused REIT, completing the accretive acquisitions of 34
industrial properties and reaching $990
million in assets by year-end. We did so while significantly
strengthening our balance sheet and credit facility," said
Jim Beckerleg, President and CEO,
PROREIT.
"Our business fundamentals are strong and our strategic focus on
mid-sized Canadian cities with robust economies has proven its
merit. Our industrial portfolio, which now accounts for 78% of our
gross leasable area and over 63% of our base rent, has significant
growth potential largely due to an upward trend in rental rates in
the Southwestern Ontario,
Ottawa, Halifax and Winnipeg markets where we have a strong
presence. Independent appraisals of a large portion of our
portfolio confirmed the significant increases in the fair value of
our properties. With the regular review of the fair value property
appraisals in 2022, we are confident to recognize further increases
embedded in our portfolio.
"With Same Property NOI1 increases recorded in
all asset classes, we are pleased with the performance of both our
retail and office segments in a persistent COVID-19 context,
highlighting the quality assets we own in these segments, coupled
with our low-risk tenant roster.
"Our record equity raise in 2021, from a public offering and
private placements, was successfully deployed by year-end, in line
with our objective to create long-term value for our unitholders.
We pursued strategic financing initiatives, resulting in a decrease
in our Debt to Gross Book Value1 to 53.1% at
year-end, closing the year with $45
million available on our credit facility. In the medium
term, we remain committed to our strategy of reducing our ratio
below 50%.
_____________________
|
1
|
This is a non-IFRS
measure. See "Non-IFRS Measures".
|
"In 2021 and early 2022, we made important progress in our ESG
journey with the introduction of our first ESG report, outlining
progress to date and providing visibility on the areas that we will
continue to focus on going forward.
"With 2022 now well underway, we look forward with optimism and
confidence in our team, our assets and our strategy. While
remaining steadfast on optimizing our strong and flexible financial
position and maintaining our disciplined capital allocation, we
intend to strategically pursue our growth in the industrial sector
where rent growth remains, with the ultimate goal of creating
sustainable value for all stakeholders," Mr. Beckerleg
concluded.
Financial Results
Table 1- Financial Highlights
(CAD $ thousands
except unit, per unit amounts
and unless otherwise stated)
|
3 Months
Ended
December 31
2021
|
3 Months
Ended
December 31
2020
|
Year
Ended
December 31
2021
|
Year Ended
December 31
2020
|
Financial data
|
|
|
|
|
|
|
|
|
Property
revenue
|
$
|
22,932
|
$
|
17,589
|
$
|
77,674
|
$
|
69,810
|
Net operating income
(NOI) (1)
|
$
|
13,358
|
$
|
10,002
|
$
|
46,282
|
$
|
40,529
|
Same Property NOI
(1)
|
$
|
10,091
|
$
|
9,560
|
$
|
39,089
|
$
|
37,490
|
Net income and
comprehensive income
|
$
|
65,041
|
$
|
6,413
|
$
|
81,844
|
$
|
21,072
|
Total
assets
|
$
|
989,963
|
$
|
634,484
|
$
|
989,963
|
$
|
634,484
|
Debt to Gross Book
Value (1)
|
|
53.06%
|
|
57.82%
|
|
53.06%
|
|
57.82%
|
Interest Coverage
Ratio (1)
|
|
2.9x
|
|
2.6x
|
|
2.8x
|
|
2.6x
|
Debt Service Coverage
Ratio (1)
|
|
1.6x
|
|
1.6x
|
|
1.6x
|
|
1.6x
|
Weighted average
interest rate on mortgage debt
|
|
3.39%
|
|
3.73%
|
|
3.39%
|
|
3.73%
|
Net cash flows
provided by operating activities
|
$
|
20,242
|
$
|
10,273
|
$
|
29,276
|
$
|
23,410
|
Funds from Operations
(FFO) (1)
|
$
|
6,924
|
$
|
4,789
|
$
|
21,934
|
$
|
20,908
|
Basic FFO per Unit
(1)(2)
|
$
|
0.1158
|
$
|
0.1197
|
$
|
0.4490
|
$
|
0.5227
|
Diluted FFO per Unit
(1)(2)
|
$
|
0.1136
|
$
|
0.1169
|
$
|
0.4389
|
$
|
0.5112
|
Adjusted Funds from
Operations (AFFO) (1)
|
$
|
7,354
|
$
|
5,366
|
$
|
25,072
|
$
|
22,436
|
Basic AFFO per Unit
(1)(2)
|
$
|
0.1230
|
$
|
0.1341
|
$
|
0.5132
|
$
|
0.5609
|
Diluted AFFO per Unit
(1)(2)
|
$
|
0.1206
|
$
|
0.1310
|
$
|
0.5017
|
$
|
0.5486
|
AFFO Payout Ratio –
Basic (1)
|
|
91.5%
|
|
83.9%
|
|
87.7%
|
|
88.3%
|
AFFO Payout Ratio –
Diluted (1)
|
|
93.3%
|
|
85.9%
|
|
89.7%
|
|
90.2%
|
|
|
(1)
|
Non–IFRS measure. See
"Non–IFRS Measures".
|
|
|
(2)
|
Total basic units
consist of trust units of the REIT and Class B LP Units (as defined
herein). Total diluted units also includes deferred trust units and
restricted trust units issued under the REIT's long–term incentive
plan.
|
PROREIT owned 120 investment properties as at December 31, 2021, compared to 91 properties at
the end of 2020. Total assets amounted to $990.0 million as at December 31, 2021, compared to $634.5 million as at December 31, 2020, an increase of $355.5 million, or 56%. PROREIT acquired 34
investment properties and sold five non-strategic investment
properties during the twelve-month period ended December 31, 2021.
________________________
|
1
|
This is a non-IFRS
measure. See "Non-IFRS Measures".
|
For the twelve-month period ended December 31, 2021:
- Property revenue amounted to $77.7
million, an increase of $7.9
million, or 11.3%, compared to $69.8
million for the prior year. The increase was mainly driven
by the incremental revenue from net acquisition activity over the
past twelve-month period.
- Same Property NOI1 amounted to $39.1 million, an increase of $1.6 million, or 4.3%, compared to the prior
year. Excluding COVID-19 related expenses and one-time office
revenue recorded in 2020 totalling $0.4
million, Same Property NOI increased by 3.1% in 2021
compared to the prior year, reflecting an overall increase in
occupancy, contractual rent increases and higher rental rates on
lease renewals.
- Net operating income1 was $46.3 million, an increase of $5.8 million, or 14.2%, compared to $40.5 million in 2020. The increase mainly
resulted from the favourable impact of net property acquisitions
completed over the past twelve-month period.
- AFFO1 totaled $25.1
million, an increase of $2.7
million, or 11.7%, compared to $22.4
million for the same prior year period. The increase mainly
relates to net acquisition activity over the past twelve-month
period.
- AFFO Payout Ratio - Basic1 stood at 87.7%, compared
to 88.3% for the prior year. The improvement mainly relates to net
acquisition activity over the past twelve months and the reduction
in monthly distributions starting April
2020, partially offset by increases in maintenance capital
expenditures, leasing costs, and general and administrative
expenses.
For the fourth quarter ended December
31, 2021:
- Property revenue amounted to $22.9
million, an increase of $5.3
million, or 30.4%, compared to $17.6
million for the same prior year period. The increase was
mainly driven by incremental revenues from net acquisition activity
over the last twelve-month period.
- Same Property NOI1 reached $10.1 million, an increase of $0.5 million, or 5.5%, compared to the same prior
year period. Excluding COVID-19 related expenses and one-time
office revenue recorded in Q4-2020 totalling $0.05 million, Same Property NOI increased by
5.0% in Q4 2021 compared to the same period in the prior year, as a
result of overall increase in occupancy, contractual rent increases
and higher rental rates on lease renewals.
- Net operating income1 amounted to $13.4 million, compared to $10.0 million in the same period in 2020, an
increase of 33.6% mainly driven by the impact of the net property
acquisitions over the last twelve-month period.
- AFFO1 totaled $7.4
million, an increase of $2.0
million, or 37.0%, compared to $5.4
million for the same prior year period, mainly driven by the
impact of the net acquisition activity over the last twelve-month
period.
- AFFO Payout Ratio - Basic1 stood at 91.5% compared
to 83.9% for the same prior year period. The change is mainly due
to timing between cash receipts from the equity raises in Q4 2021
and the deployment of funds for the purchase of properties in the
same quarter, in addition to increases in maintenance capital
expenditures, leasing costs, and general and administrative
expenses in relation to the growth of the REIT.
________________________
|
1
|
This is a non-IFRS
measure. See "Non-IFRS Measures".
|
TABLE 2- Reconciliation of net operating income to net income
and comprehensive income
(CAD $
thousands)
|
3 Months
Ended
December 31
2021
|
3 Months
Ended
December 31
2020
|
Year Ended
December 31
2021
|
Year Ended
December 31
2020
|
Property
revenue
|
$
|
22,932
|
$
|
17,589
|
$
|
77,674
|
$
|
69,810
|
Property operating
expenses
|
|
9,574
|
|
7,587
|
|
31,392
|
|
29,281
|
Net operating income
(NOI) (1)
|
|
13,358
|
|
10,002
|
|
46,282
|
|
40,529
|
General and
administrative expenses
|
|
1,152
|
|
899
|
|
4,347
|
|
3,328
|
Long–term incentive
plan expense
|
|
840
|
|
2,112
|
|
3,060
|
|
585
|
Depreciation of
property and equipment
|
|
97
|
|
92
|
|
357
|
|
299
|
Amortization of
intangible assets
|
|
93
|
|
93
|
|
372
|
|
372
|
Interest and
financing costs
|
|
4,554
|
|
3,877
|
|
16,887
|
|
15,382
|
Distributions – Class
B LP Units
|
|
164
|
|
171
|
|
663
|
|
928
|
Fair value adjustment
– Class B LP Units
|
|
89
|
|
2,104
|
|
1,083
|
|
(5,257)
|
Fair value adjustment
– investment properties
|
|
(58,620)
|
|
(5,604)
|
|
(63,161)
|
|
4,667
|
Other
income
|
|
(556)
|
|
(549)
|
|
(2,338)
|
|
(2,110)
|
Other
expenses
|
|
363
|
|
394
|
|
1,330
|
|
1,263
|
Debt settlement
costs
|
|
141
|
|
-
|
|
1,838
|
|
-
|
Net income and
comprehensive income
|
$
|
65,041
|
$
|
6,413
|
$
|
81,844
|
$
|
21,072
|
|
|
(1)
|
Non–IFRS measure. See
"Non–IFRS Measures".
|
For the year ended December 31,
2021, net income and comprehensive income amounted to
$81.8 million, an increase of
$60.8 million compared to
$21.1 million for the prior year.
This increase is mainly attributable to the favourable $67.8 million non-cash fair value adjustment on
investment properties, $5.7 million
favourable impact in net operating income, partially offset by the
$6.3 million impact of the non-cash
fair value adjustment on Class B LP Units (as defined herein) for
the twelve-month period ending December 31,
2021, compared to 2020. During the year ended December 31, 2021, PROREIT updated independent
external appraisals for 50 properties, including 38 industrial
properties, resulting in a fair market value gain of approximately
$63.2 million.
For the three months ended December 31,
2021, net income and comprehensive income amounted to
$65 million, compared to $6.4
million for the prior year. The $58.6
million increase mainly relates to a favourable $53.0 million impact in the non-cash fair
value adjustment on investment properties for the fourth quarter of
2021 compared to the prior year, partially offset by the
$2.0 million variance in non-cash
long-term incentive plan expense for the quarter ended December 31, 2021, compared to the same period in
2020. During the three months ended December
31, 2021, PROREIT updated independent external appraisals
for 37 properties, including 28 industrial properties, resulting in
a fair market value gain of approximately $58.6 million.
Solid Balance Sheet and Liquidity Position
PROREIT strategically improved its balance sheet, debt profile
and available credit position in 2021. As at December 31, 2021, PROREIT had $45 million available on its credit facility.
Debt to Gross Book Value1 was reduced to 53.1% at
December 31, 2021, from and 57.8% at
December 31, 2020. The weighted
average interest on mortgage debt was 3.39% at December 31,
2021, compared to 3.73% at the same date in 2020.
In February 2021, PROREIT obtained
$46.6 million in new mortgage
financing with an extended ten-year repayment term at a rate of
3.21%. Proceeds were mainly used to repay mortgages maturing in
2021 and 2022, and to reduce operating facilities.
In April 2021, PROREIT closed its
$50 million private placement
with Collingwood Investments Incorporated, a member of the Bragg
Group of Companies of Nova Scotia, to partially fund
acquisitions, repay certain indebtedness, for future acquisitions
and for general business and working capital.
In June 2021, PROREIT also entered
into a new $24.8 million mortgage financing with a term
of seven years at a rate of 3.70%, to refinance six retail
properties.
In October 2021, PROREIT closed
its public offering on a bought deal basis for gross proceeds of
$69 million while concurrently
completing a private placement with Collingwood Investments
Incorporated for additional gross proceeds of $14.3 million. Proceeds were used to fund
acquisitions and to repay a portion of PROREIT's credit
facility.
In November 2021, PROREIT renewed
and increased its credit facility to $60
million, from $45 million,
with improved terms.
Portfolio Growth
In line with its growth strategy focused on the industrial
sector, PROREIT acquired 34 institutional-calibre industrial assets
in 2021 totaling 2.3 million square feet for a total purchase price
of $296.9 million (excluding closing
costs) and a 6% average capitalization rate. 21 properties are
located in Atlantic Canada, 10
properties are in Winnipeg,
Manitoba, and three properties are in Ottawa, Ontario.
PROREIT sold five non-core properties totaling 0.2 million
square feet for gross proceeds of $20.9
million, above their IFRS carrying value.
At December 31 2021, PROREIT's
portfolio totaled 120 properties aggregating 6.6 million square
feet with a weighted average lease term of 4.6 years. The
industrial segment accounted for 78% of GLA and 63% of base rent at
December 31, 2021.
Operating Performance
Occupancy rate remains strong at 98.4% as at December 31,
2021, slightly up from 98.0% a year earlier.
Approximately 97% of leases maturing in 2021 are renewed with an
average increase of 10.2%, while almost half of 2022 renewals are
renewed at positive spread of 10.1%.
________________________
|
1
|
This is a non-IFRS
measure. See "Non-IFRS Measures".
|
In 2021, PROREIT undertook a comprehensive materiality
assessment in order to understand the ESG topics important to its
business and to its stakeholders. In its initial ESG report,
PROREIT outlines outline the specific priorities and initiatives it
intends to focus on over the coming years. PROREIT's ESG report is
available on the Sustainability section of its website.
Distributions
Distributions to unitholders of $0.0375 per trust unit of the REIT were declared
monthly during the three months ended December 31, 2021, representing distributions of
$0.45 per unit on an annual
basis. Equivalent distributions are paid on the Class B limited
partnership units of PRO REIT Limited Partnership ("Class B LP
Units"), a subsidiary of the REIT.
Investor Conference Call and Webcast Details
PROREIT will hold a conference call to discuss its 2021 fiscal
year and fourth quarter 2021 results on March 24, 2022, at
10:30 a.m. EDT. There will be a
question period reserved for financial analysts. To access the
conference call, please dial 888-664-6383 or 416-764-8650 or
514-225-6995. A recording of the call will be available until
April 1, 2021 by
dialing 888-390-0541 or 416-764-8677 Access code:
151159#
The conference call will also be accessible via live webcast on
PROREIT's website at www.proreit.com or at
https://produceredition.webcasts.com/starthere.jsp?ei=1523596&tp_key=8e9ff5e39a
Annual Meeting of Unitholders
PROREIT will host its annual meeting on June 7, 2022. Additional information regarding
the meeting will be contained in the REIT's information circular to
be prepared in connection with the meeting.
About PROREIT
PROREIT (TSX:PRV.UN) is an unincorporated open-ended real estate
investment trust established pursuant to a declaration of trust
under the laws of the Province of Ontario. Founded in 2013, PROREIT owns a
portfolio of high-quality commercial real estate properties in
Canada, with a strong industrial
focus in robust secondary markets.
Non-IFRS Measures
PROREIT's consolidated financial statements are prepared in
accordance with International Reporting Standards ("IFRS"), as
issued by the International Accounting Standards Board. In addition
to reported IFRS measures, industry practice is to evaluate real
estate entities giving consideration, in part, to certain non-IFRS
financial measures, non-IFRS ratios and other specified financial
measures (collectively, "non-IFRS measures"). In this press
release, as a complement to results provided in accordance with
IFRS, PROREIT discloses and discusses (i) certain non-IFRS
financial measures, including: adjusted earnings before interest,
tax, depreciation and amortization ("Adjusted EBITDA"); adjusted
funds from operations ("AFFO"); funds from operations ("FFO");
gross book value ("Gross Book Value"); net operating income
("NOI"); Same Property NOI; and (ii) certain non-IFRS ratios,
including: AFFO Payout Ratio – Basic; AFFO Payout Ratio – Diluted;
Basic AFFO per Unit; Diluted AFFO per Unit; Basic AFFO per Unit;
Diluted FFO per Unit; Debt to Gross Book Value; Debt Service
Coverage Ratio; Interest Coverage Ratio. These non-IFRS measures
are not defined by IFRS and do not have a standardized meaning
under IFRS. PROREIT's method of calculating these non-IFRS measures
may differ from other issuers and may not be comparable with
similar measures presented by other income trusts. PROREIT has
presented such non-IFRS measures and ratios as management believes
they are relevant measures of PROREIT's underlying operating and
financial performance. For information on the most directly
comparable IFRS measures, composition of the non-IFRS measures, a
description of how PROREIT uses these measures and an explanation
of how these measures provide useful information to investors,
refer to the "Non-IFRS Measures" section of PROREIT's management's
discussion and analysis for the three months and year ended
December 31, 2021, dated March 23, 2022 (the "Q4 MD&A"), available on
PROREIT's SEDAR profile at www.sedar.com, which is incorporated by
reference into this press release. As applicable, the
reconciliations for each non-IFRS measure are outlined below.
Non-IFRS measures should not be considered as alternatives to net
income, cash flows provided by operating activities, cash and cash
equivalents, total assets, total equity, or comparable metrics
determined in accordance with IFRS as indicators of PROREIT's
performance, liquidity, cash flow, and profitability.
Reconciliation of Same Property NOI to net operating income
(as reported in the consolidated financial statements)
(CAD $
thousands)
|
3 Months
Ended
December 31
2021
|
3 Months
Ended
December 31
2020
|
Year
Ended
December 31
2021
|
Year Ended
December 31
2020
|
Property
revenue
|
$
|
22,932
|
$
|
17,589
|
$
|
77,674
|
$
|
69,810
|
Property operating
expenses
|
|
9,574
|
|
7,587
|
|
31,392
|
|
29,281
|
Net operating income
(NOI) as reported in the financial statements
(1)
|
|
13,358
|
|
10,002
|
|
46,282
|
|
40,529
|
Less:
|
|
|
|
|
|
|
|
|
Straight-line rent
adjustment
|
|
119
|
|
79
|
|
493
|
|
683
|
Prior year operating
expense adjustments
|
|
-
|
|
(47)
|
|
(17)
|
|
(72)
|
NOI after
adjustments (1)
|
|
13,239
|
|
9,970
|
|
45,806
|
|
39,918
|
|
|
|
|
|
|
|
|
|
NOI (1)
sourced from:
|
|
|
|
|
|
|
|
|
Acquisitions
|
|
(3,150)
|
|
-
|
|
(6,154)
|
|
(447)
|
Dispositions
|
|
2
|
|
(410)
|
|
(563)
|
|
(1,981)
|
Same Property NOI
(1)
|
$
|
10,091
|
$
|
9,560
|
$
|
39,089
|
$
|
37,490
|
Add
Back:
|
|
|
|
|
|
|
|
|
COVID–19 related
rental abatements and bad debt expense
|
|
-
|
|
154
|
|
-
|
|
542
|
One-time
revenue
|
|
-
|
|
(100)
|
|
-
|
|
(100)
|
Same Property NOI
excluding COVID–19 related rental abatements and bad debt expense
and one-time revenue
|
$
|
10,091
|
$
|
9,614
|
$
|
39,089
|
$
|
37,932
|
Number of same
properties
|
|
86
|
|
86
|
|
85
|
|
85
|
|
|
(1)
|
Non–IFRS measure. See
"Non–IFRS Measures".
|
Reconciliation of AFFO and FFO to net income and
comprehensive income
(CAD $ thousands
except unit, per unit amounts and unless otherwise
stated)
|
3 Months
Ended
December 31
2021
|
3 Months
Ended
December 31
2020
|
Year
Ended
December 31
2021
|
Year Ended
December 31
2020
|
Net income and
comprehensive income
|
$
|
65,041
|
$
|
6,413
|
$
|
81,844
|
$
|
21,072
|
Add:
|
|
|
|
|
|
|
|
|
Long–term incentive
plan
|
|
157
|
|
1,612
|
|
1,133
|
|
(874)
|
Distributions – Class
B LP Units
|
|
164
|
|
171
|
|
663
|
|
928
|
Fair value adjustment
– investment properties
|
|
(58,620)
|
|
(5,604)
|
|
(63,161)
|
|
4,667
|
Fair value adjustment
– Class B LP Units
|
|
89
|
|
2,104
|
|
1,083
|
|
(5,257)
|
Amortization of
intangible assets
|
|
93
|
|
93
|
|
372
|
|
372
|
FFO
(1)
|
$
|
6,924
|
$
|
4,789
|
$
|
21,934
|
$
|
20,908
|
Deduct:
|
|
|
|
|
|
|
|
|
Straight–line rent
adjustment
|
$
|
(119)
|
$
|
(79)
|
$
|
(493)
|
$
|
(683)
|
Maintenance capital
expenditures
|
|
(192)
|
|
(97)
|
|
(713)
|
|
(246)
|
Stabilized leasing
costs
|
|
(387)
|
|
(155)
|
|
(1,013)
|
|
(348)
|
Add:
|
|
|
|
|
|
|
|
|
Long–term incentive
plan
|
|
683
|
|
500
|
|
1,927
|
|
1,459
|
Amortization of
financing costs
|
|
304
|
|
408
|
|
1,592
|
|
1,346
|
Debt settlement
costs
|
|
141
|
|
-
|
|
1,838
|
|
-
|
AFFO
(1)
|
$
|
7,354
|
$
|
5,366
|
$
|
25,072
|
$
|
22,436
|
Basic FFO per Unit
(1)(2)
|
$
|
0.1158
|
$
|
0.1197
|
$
|
0.4490
|
$
|
0.5227
|
Diluted FFO per Unit
(1)(2)
|
$
|
0.1136
|
$
|
0.1169
|
$
|
0.4389
|
$
|
0.5112
|
Basic AFFO per Unit
(1)(2)
|
$
|
0.1230
|
$
|
0.1341
|
$
|
0.5132
|
$
|
0.5609
|
Diluted AFFO per Unit
(1)(2)
|
$
|
0.1206
|
$
|
0.1310
|
$
|
0.5017
|
$
|
0.5486
|
Distributions
declared per Unit and Class B LP Unit
|
$
|
0.1125
|
$
|
0.1125
|
$
|
0.4500
|
$
|
0.4950
|
AFFO Payout Ratio –
Basic (1)
|
|
91.5%
|
|
83.9%
|
|
87.7%
|
|
88.3%
|
AFFO Payout Ratio –
Diluted (1)
|
|
93.3%
|
|
85.9%
|
|
89.7%
|
|
90.2%
|
Basic weighted
average number of units (2)(3)
|
|
59,786,374
|
|
40,023,023
|
|
48,853,672
|
|
39,998,598
|
Diluted weighted
average number of units (2)(3)
|
|
60,964,929
|
|
40,969,595
|
|
49,975,662
|
|
40,898,852
|
|
|
(1)
|
Non–IFRS measure. See
"Non–IFRS Measures".
|
|
|
(2)
|
FFO and AFFO per unit
is calculated as FFO or AFFO, as the case may be, divided by the
total of the weighted number of basic or diluted units, added to
the weighted average number of Class B LP Units outstanding during
the year.
|
|
|
(3)
|
Total basic units
consist of trust units of the REIT and Class B LP Units. Total
diluted units also include deferred trust units and restricted
trust units issued under the REIT's long–term incentive
plan.
|
Reconciliation of Adjusted EBITDA to net income and
comprehensive income
(CAD $
thousands)
|
3 Months
Ended
December 31
2021
|
3 Months
Ended
December 31
2020
|
Year
Ended
December 31
2021
|
Year Ended
December 31
2020
|
Net income and
comprehensive income
|
$
|
65,041
|
$
|
6,413
|
$
|
81,844
|
$
|
21,072
|
Interest and
financing costs
|
|
4,554
|
|
3,877
|
|
16,887
|
|
15,382
|
Depreciation of
property and equipment
|
|
97
|
|
92
|
|
357
|
|
299
|
Amortization of
intangible assets
|
|
93
|
|
93
|
|
372
|
|
372
|
Fair value adjustment
– Class B LP Units
|
|
89
|
|
2,104
|
|
1,083
|
|
(5,257)
|
Fair value adjustment
– investment properties
|
|
(58,620)
|
|
(5,604)
|
|
(63,161)
|
|
4,667
|
Distributions – Class
B LP Units
|
|
164
|
|
171
|
|
663
|
|
928
|
Straight–line
rent
|
|
(119)
|
|
(79)
|
|
(493)
|
|
(683)
|
Long–term incentive
plan expense
|
|
840
|
|
2,112
|
|
3,060
|
|
585
|
Debt settlement
costs
|
|
141
|
|
-
|
|
1,838
|
|
-
|
Adjusted EBITDA
(1)
|
$
|
12,280
|
$
|
9,179
|
$
|
42,450
|
$
|
37,365
|
|
|
(1)
|
Non–IFRS measure. See
"Non–IFRS Measures".
|
Calculation of the Interest Coverage Ratio
(CAD $
thousands)
|
3 Months
Ended
December 31
2021
|
3 Months
Ended
December 31
2020
|
Year Ended
December 31
2021
|
Year Ended
December 31
2020
|
Adjusted EBITDA
(1)
|
$
|
12,280
|
$
|
9,179
|
$
|
42,450
|
$
|
37,365
|
Interest expense
|
$
|
4,250
|
$
|
3,501
|
$
|
15,323
|
$
|
14,131
|
Interest Coverage
Ratio (1)
|
|
2.9x
|
|
2.6x
|
|
2.8x
|
|
2.6x
|
|
|
(1)
|
Non–IFRS measure. See
"Non–IFRS Measures".
|
Calculation of the Debt Service Coverage Ratio
(CAD $
thousands)
|
3 Months
Ended
December 31
2021
|
3 Months
Ended
December 31
2020
|
Year Ended
December 31
2021
|
Year Ended
December 31
2020
|
Adjusted EBITDA
(1)
|
$
|
12,280
|
$
|
9,179
|
$
|
42,450
|
$
|
37,365
|
Interest expense
|
|
4,250
|
|
3,501
|
|
15,323
|
|
14,131
|
Principal
repayments
|
|
3,214
|
|
2,387
|
|
10,944
|
|
9,451
|
Debt Service
Requirements
|
$
|
7,464
|
$
|
5,888
|
$
|
26,267
|
$
|
23,582
|
Debt Service Coverage
Ratio (1)
|
|
1.6x
|
|
1.6x
|
|
1.6x
|
|
1.6x
|
|
|
(1)
|
Non–IFRS measure. See
"Non–IFRS Measures".
|
Calculation of Gross Book Value and Debt to Gross Book
Value
(CAD $ thousands
unless otherwise stated)
|
December 31
2021
|
December 31,
2020
|
Total assets,
including investment properties stated at fair value
|
$
|
989,963
|
$
|
634,484
|
Accumulated
depreciation on property and equipment and intangible
assets
|
|
2,268
|
|
1,539
|
Gross Book Value
(1)
|
|
992,231
|
|
636,023
|
Debt, excluding
unamortized financing costs
|
|
511,445
|
|
342,772
|
Credit facility,
excluding unamortized financing costs
|
|
15,000
|
|
25,000
|
Debt
|
$
|
526,445
|
$
|
367,772
|
Debt to Gross Book
Value (1)
|
|
53.06%
|
|
57.82%
|
|
|
(1)
|
Non–IFRS measure. See
"Non–IFRS Measures".
|
Forward-Looking Statements
This press release contains forward looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable securities
legislation, including statements relating to certain expectations,
projections, growth plans and other information related to REIT's
business strategy and future plans. Forward-looking statements are
based on a number of assumptions and are subject to a number of
risks and uncertainties, many of which are beyond PROREIT's
control, that could cause actual results and events to differ
materially from those that are disclosed in or implied by such
forward-looking statements.
Forward-looking statements contained in this press release
include, without limitation, statements pertaining to the execution
by PROREIT of its growth strategy and the future financial and
operating performance of PROREIT. PROREIT's objectives and
forward-looking statements are based on certain assumptions,
including that (i) PROREIT will receive financing on favourable
terms; (ii) the future level of indebtedness of PROREIT and its
future growth potential will remain consistent with the REIT's
current expectations; (iii) there will be no changes to tax laws
adversely affecting PROREIT's financing capacity or operations;
(iv) the impact of the current economic climate and the current
global financial conditions on PROREIT's operations, including its
financing capacity and asset value, will remain consistent with
PROREIT's current expectations; (v) the performance of PROREIT's
investments in Canada will proceed
on a basis consistent with PROREIT's current expectations; and (vi)
capital markets will provide PROREIT with readily available access
to equity and/or debt.
The forward-looking statements contained in this news release
are expressly qualified in their entirety by this cautionary
statement. All forward-looking statements in this press release are
made as of the date of this press release. PROREIT does not
undertake to update any such forward-looking information whether as
a result of new information, future events or otherwise, except as
required by law.
Additional information about these assumptions and risks and
uncertainties is contained under "Risk Factors" in PROREIT's latest
annual information form and "Risk and Uncertainties" in PROREIT's
management's discussion and analysis for the year ended
December 31, 2021, which are
available under PROREIT's profile on SEDAR at www.sedar.com.
SOURCE PROREIT