Toronto, Ontario February 16, 2022 - Choice Properties Real Estate Investment Trust (“Choice Properties” or the “Trust”) (TSX: CHP.UN) today announced its consolidated financial results for the three months and year ended December 31, 2021. The 2021 Annual Report to Unitholders is available in the Investors section of the Trust’s website at www.choicereit.ca, and has been filed on SEDAR at www.sedar.com.
“We are pleased with our financial and operational results for both the quarter and the year ended December 31, 2021, as our portfolio of high-quality real estate assets continued to drive solid earnings. In addition to posting strong results, we completed over $275 million of real estate transactions and completed $115 million of new developments for the quarter, demonstrating our commitment to improving our portfolio and driving net asset value growth” said Rael Diamond, President and Chief Executive Officer of the Trust. “We also advanced our sustainability initiatives in the quarter by issuing our inaugural green bond for $350 million and by committing to set enhanced science-based emissions reduction targets. We are proud of these advancements, which are aligned with our goal of creating enduring value.”
Summary of GAAP Basis Financial Results
| (en milliers de dollars, sauf indication contraire) (non audité) |
Trois mois | Année écoulée | ||||
|---|---|---|---|---|---|---|
| 31 décembre 2021 | 31 décembre 2020 | Changer | 31 décembre 2021 | 31 décembre 2020 | Changer | |
| Revenu net (perte) | $ (163,087) | $ 116,570 | $ (279,657) | $ 23,008 | $ 450,685 | $ (427,677) |
| Bénéfice net (perte) par part dilué(e) | (0.225) | 0.162 | (0.387) | 0.032 | 0.637 | (0.605) |
| Revenus locatifs | 325,763 | 321,862 | 3,901 | 1,292,321 | 1,270,614 | 21,707 |
| Gain (perte) de juste valeur sur les unités échangeablessi) | (372,039) | (86,370) | (285,669) | (862,815) | 354,286 | (1,217,101) |
| Gains (pertes) de juste valeur à l'exclusion des unités échangeablesi) | 96,941 | 104,948 | (8,007) | 457,237 | (217,808) | 675,045 |
| Flux de trésorerie provenant des activités opérationnelles | 244,202 | 255,960 | (11,758) | 669,428 | 621,184 | 48,244 |
| Moyenne pondérée des parts en circulation - diluéeii) | 723,363,313 | 718,026,576 | 5,336,737 | 723,127,566 | 707,764,714 | 15,362,852 |
(ii) Les gains (pertes) de juste valeur, à l'exclusion des unités échangeables, comprennent des ajustements de la juste valeur des immeubles de placement et des rémunérations basées sur des unités.
(iii) Comprend les parts de fiducie et les parts échangeables.
Quarterly Results
Choice Properties recorded a net loss of $163.1 million for the fourth quarter of 2021 as compared to $116.6 million in net income in the fourth quarter of 2020. The quarterly decrease compared to the prior year was mainly due to a $285.7 million unfavourable change in the adjustment to the fair value of the Trust’s Exchangeable Units due to an increase in the Trust’s Unit price.
For the three months ended December 31, 2021, bad debt expense was $0.8 million on a GAAP basis ($0.7 million on a proportionate share basis) compared to $2.7 million on a GAAP basis ($3.5 million on a proportionate share basis) for the three months ended December 31, 2020.
Year-to-Date Results
Choice Properties reported net income for the year ended December 31, 2021 of $23.0 million compared to $450.7 million for the year ended December 31, 2020. The decrease compared to the prior year was mainly due to a $1,217.1 million unfavourable change in the adjustment to the fair value of the Trust’s Exchangeable Units due to an appreciation in the Trust’s Unit price, partially offset by a $678.8 million favourable change in the fair value of investment properties, a favourable change in the share of income from equity accounted joint ventures of $72.5 million, an increase in rental revenue of $21.7 million mainly due to the net contribution from acquisitions and development transfers completed in the past 18 months, a decline in expected credit loss on mortgage receivables of $9.3 million and lower interest expense of $6.2 million.
For the year ended December 31, 2021, the year-to-date bad debt expense was $4.4 million on a GAAP basis ($5.4 million on a proportionate share basis (1)) compared to $21.7 million on a GAAP basis ($23.7 million on a proportionate share basis(1)) for the year ended December 31, 2020.
The results for the year ended December 31, 2020 were impacted by a non-recurring $7.8 million allowance for expected credit losses on a specific mortgage receivable and $6.8 million in early redemption premiums paid in June 2020 for two senior unsecured debentures that would have matured in 2021.
Summary of Proportionate Share(1) Financial Results
| Au ou pour l'exercice clos (en milliers de dollars, sauf indication contraire) |
Trois mois | Année écoulée | ||||
|---|---|---|---|---|---|---|
| 31 décembre 2021 | 31 décembre 2020 | Changer | 31 décembre 2021 | 31 décembre 2020 | Changer | |
| Revenus locatifsi) | $ 341,907 | $ 337,907 | $ 4,000 | $ 1,353,657 | $ 1,332,657 | $ 21,000 |
| Revenu net d'exploitation ("NOI"), comptabilité de caissei)ii) | 238,674 | 230,353 | 8,321 | 937,499 | 908,081 | 29,418 |
| NOI à périmètre constant, base caissei)ii) | 216,188 | 210,755 | 5,433 | 853,110 | 832,119 | 20,991 |
| Ajustement de la juste valeur des immeubles de placementi) | 109,227 | 103.931 | 5,296 | 502,295 | (256,837) | 759,132 |
| Occupation (% de la surface utile) | 97.1% | 97.1% | —% | 97.1% | 97.1% | —% |
| Fonds provenant des opérations ("FFO")i) | 174,797 | 171,519 | 3,278 | 689,898 | 652,007 | 37,891 |
| FFO(i ) par part dilué | 0.242 | 0.239 | 0.003 | 0.954 | 0.921 | 0.033 |
| Fonds d'exploitation ajustés ("AFFO")i) | 118,924 | 136,054 | (17,130) | 586,506 | 566,469 | 20,037 |
| AFFOi) par unité diluée | 0.164 | 0.189 | (0.025) | 0.811 | 0.800 | 0.011 |
| AFFOi) ratio de distribution - dilué | 112.5% | 97.7% | 14.8% | 91.2% | 92.6% | (1.4)% |
| Distributions en espèces déclarées | 133,820 | 162,411 | (28,591) | 535,104 | 554,157 | (19,053) |
| Nombre moyen pondéré d'unités en circulation - diluéii) | 723,363,313 | 718,026,576 | 5,336,737 | 723,127,566 | 707,764,714 | 15,362,852 |
(ii) Comprend une provision pour créances douteuses et abattements de loyer.
(iii) Comprend les parts de fiducie et les parts échangeables.
Quarterly and Year-to-Date Results
For the three months ended December 31, 2021, Funds from Operations (“FFO”, a non-GAAP measure) was $174.8 million or $0.242 per unit diluted compared to $171.5 million or $0.239 per unit diluted for the three months ended December 31, 2020. For the year ended December 31, 2021, FFO was $689.9 million or $0.954 per unit diluted compared to $652.0 million or $0.921 per unit diluted for the year ended December 31, 2020.
FFO increased by $3.3 million compared to the prior year primarily due to higher net operating income from higher revenues, a $2.7 million decline in bad debt expense, and a reversal of an expected credit loss on a specific mortgage receivable, partially offset by a decline in straight line rental revenue and an increase in general and administrative expenses.
On a year-to-date basis, FFO increased by $37.9 million mainly due to a $18.2 million decrease in bad debt expense, savings from lower borrowing costs and contributions from development transfers and transaction activity. The prior year results were impacted by a non-recurring $7.8 million allowance for expected credit losses on a specific mortgage receivable and $6.8 million in early redemption premiums paid in June 2020 for two senior unsecured debentures that would have matured in 2021.
On a per unit basis, the Trust had a higher weighted average number of units outstanding as at December 31, 2021 as a result of the Trust units issued as consideration for the acquisition of two assets from Wittington Properties Limited in July 2020 and the Exchangeable Units issued as consideration for the acquisition of six assets in December 2020 from Weston Foods (Canada) Inc. (“Weston Foods”), a wholly-owned subsidiary of George Weston Limited (“GWL”). Weston Foods amalgamated with GWL in July 2021, and the Exchangeable Units held by Weston Foods were transferred to GWL.
Quarterly Financing and Transaction Activity
On November 30, 2021, the Trust completed the issuance of $350 million aggregate principal amount of Series Q senior unsecured debentures (the “Series Q Debentures”) bearing interest at 2.46% per annum and maturing on November 30, 2026. The Series Q Debentures represented the Trust’s inaugural green bond offering pursuant to its Green Financing Framework released on November 15, 2021. The Trust intends to allocate the net proceeds of the offering to fund the financing and/or refinancing of eligible green projects as described in the Green Financing Framework. Prior to the allocation of the net proceeds of the offering to eligible green projects, the Trust used the net proceeds to repay existing indebtedness, including (i) the early redemption of the Trust’s $300 million principal amount of 3.01% Series I senior unsecured debentures on December 10, 2021, and (ii) to repay a portion of the balance drawn on the Trust’s credit facility.
The Trust completed $138.2 million of mortgage financings at a weighted average rate of 3.5% and discharged $57.1 million of mortgages at a weighted average rate of 3.8%.
Since the end of the prior quarter, the Trust completed $228.4 million of dispositions and $46.4 million of acquisitions on a proportionate share basis(1). Notable transactions include:
• the disposal of $228.4 million of non-core retail, industrial, and excess land assets;
• the acquisition of strategic retail assets, tenanted by Shoppers Drug Mart and Loblaw for $38.5 million; and
• the acquisition of a land assembly parcel for a GTA industrial development for $7.9 million
The Trust invested in its development program, with $41.1 million of spending during the quarter on a proportionate share basis(1). During the quarter, the Trust transferred a new 3,500 square foot retail site, and 229 residential units from properties under development to income producing properties, at a value of $114.8 million on a proportionate share basis(1).
Outlook
Choice Properties is a leading Real Estate Investment Trust that creates enduring value through the ownership, operation and development of high-quality commercial and residential properties. Our goal is to provide net asset value appreciation, stable net operating income growth and capital preservation, all with a long-term focus. Although there remains uncertainty about the longer-term impacts of the COVID-19 pandemic, Choice Properties is confident that its business model, stable tenant base, and disciplined approach to financial management will continue to position it well.
Our diversified portfolio of retail, industrial, residential and office properties is 97.1% occupied and leased to high-quality tenants across Canada. Our portfolio is primarily leased to necessity-based tenants and logistics providers, who continue to perform well in this environment and provide stability to our overall portfolio. This stability is evident in our financial results and by our collections, which were approximately 99% of contractual rents for the year. Despite the unpredictable re-opening of the economy, we are encouraged by high vaccination rates and anticipate further reopening measures. This optimism is reflected in our tenant base as we are seeing positive leasing momentum across our portfolio.
We continue to advance our development program, which provides us with the best opportunity to add high-quality real estate to our portfolio at a reasonable cost and drive net asset value appreciation over time. We have a mix of active development projects ranging in size, scale and complexity, including retail intensification projects, industrial development, and rental residential projects located in urban markets with a focus on transit accessibility. We recently completed two residential projects in downtown Toronto, Ontario and we are progressing on the construction of two additional high-rise residential projects, one of which is in Brampton, Ontario located next to the Mount Pleasant GO Station and the other is in the Westboro neighbourhood in Ottawa, Ontario. We are also finding ways to grow our industrial platform through development. We have two active industrial projects, which we expect will deliver 0.6M square feet of new generation logistics space. This includes a modern logistics facility located in a prime industrial node in Surrey, British Columbia comprising 0.4M square feet.
Beyond our active projects, we have a substantial pipeline of larger, more complex mixed-use developments and land held for future industrial development, which collectively are expected to drive meaningful net asset value growth in the future. We continue to advance the rezoning process for several mixed-use sites with 11 projects representing over 10.5M square feet now in different stages of the rezoning and planning process. We also acquired 300 acres of future industrial land in the GTA that will be developed into a multi-phase industrial park, providing a pipeline of opportunity to grow our industrial portfolio.
Underpinning all aspects of our business model is a strong balance sheet and a disciplined approach to financial management. We take a conservative approach to leverage and financing risk by maintaining strong leverage ratios and a staggered debt maturity profile. We have approximately $691 million of debt obligations coming due in 2022 which we intend to refinance with longer term debt, primarily unsecured debentures. From a liquidity perspective, the Trust has approximately $1.6 billion of available liquidity, comprised of $1.5 billion from the unused portion of the Trust’s revolving credit facility and $124.3 million in cash and cash equivalents, in addition to approximately $12.8 billion in unencumbered assets.
Update on Rent Collection
Rent collection for the fourth quarter remained high, reflecting the stability of the Trust’s necessity-based portfolio. For the three months ended December 31, 2021, the Trust collected or expects to collect approximately 99% of contractual rents.
In determining the expected credit losses on rent receivables, the Trust takes into account the payment history and future expectations of likely default events (i.e. asking for rental concessions, applications for rental relief through government programs, or stating they will not be making rental payments on the due date) based on actual or expected insolvency filings or company voluntary arrangements and likely deferrals of payments due, and potential abatements to be granted by the landlord. These assessments are made on a tenant-by-tenant basis.
The Trust’s assessment of expected credit losses is inherently subjective due to the forward-looking nature of the assessments. As a result, the value of the expected credit loss is subject to a degree of uncertainty and is made on the basis of assumptions which may not prove to be accurate given the uncertainty caused by COVID-19. Based on its review, the Trust recorded bad debt expense of $5.4 million in property operating costs, on a proportionate share basis(1), during the year ended December 31, 2021, with a corresponding amount recorded as an expected credit loss against its rent receivables.
| (sur la base de la part proportionnelle1)) (en milliers de dollars) | Exercice clos le 31 décembre 2021 | En pourcentage |
|---|---|---|
| Total des facturations récurrentes aux locataires | $ 1,483,090 | 100.0 % |
| Moins : Montants reçus et reports remboursés à ce jour | (1,468,978) | 99.0 % |
| Solde restant à payer | 14,112 | 1.0 % |
| Total des loyers à percevoir en vertu d'accords de report | (2,780) | (0.2) % |
| Total des loyers à percevoir, à l'exclusion des différés de perception | 11,332 | 0.8 % |
| Moins : Provision enregistrée en rapport avec les facturations récurrentes des locataires | (5,448) | (0.4) % |
| Solde à recouvrer à terme | $ 5,884 | 0.4 % |
The Trust’s provision for recurring tenant billings for the year ended December 31, 2021, is comprised of the following:
| (sur la base de la part proportionnelle1)) (en milliers de dollars) | Exercice clos le 31 décembre 2021 |
|---|---|
| Provisions pour les locataires ayant négocié des réductions de loyer | $ (2,128) |
| Provisions pour pertes de crédit attendues supplémentaires | (3,320) |
| Total de la provision constituée au titre des facturations récurrentes aux locataires | $ (5,448) |
Due to continued uncertainty surrounding the pandemic, it is not possible to reliably estimate the length and severity of COVID-19 related impacts on the financial results and operations of the Trust and its tenants, as well as on consumer behaviours and the economy in general. For more information on the risks presented to the Trust by the COVID-19 pandemic, please see Section 12, “Enterprise Risks and Risk Management” of the Trust’s MD&A for the year ended December 31, 2021 and its Annual Information Form for the year ended December 31, 2021.
Non-GAAP Financial Measures and Additional Financial Information
In addition to using performance measures determined in accordance with International Financial Reporting Standards (“IFRS” or “GAAP”), Choice Properties also measures its performance using certain non-GAAP measures, and provides these measures in this news release so that investors may do the same. Such measures and related per-unit amounts are not defined by IFRS and therefore should not be construed as alternatives to net income or cash flow from operating activities determined in accordance with IFRS. Furthermore, the supplemental measures used by management may not be comparable to similar measures presented by other real estate investment trusts or enterprises. The non-GAAP measures included in this news release are defined and reconciled to the most comparable GAAP measure below. Choice Properties believes these non-GAAP financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Trust for the reasons outlined below.
| Mesure non conforme aux PCGR | Description |
|---|---|
| Part proportionnelle | - Représente les informations financières ajustées pour refléter les coentreprises et les actifs immobiliers financiers mis en équivalence du Trust et sa part du revenu net (pertes) des coentreprises et des actifs immobiliers financiers mis en équivalence sur une base proportionnellement consolidée au pourcentage de participation du Trust dans l'investissement concerné. - La direction considère que cette méthode est pertinente pour démontrer la capacité du Trust à gérer l'économie sous-jacente des investissements concernés, y compris la performance financière et les flux de trésorerie, ainsi que le degré d'endettement des actifs sous-jacents, qui est un élément important de la gestion des risques. |
| Revenu net d'exploitation ("NOI"), base comptable | - Défini comme les revenus locatifs des biens immobiliers, y compris les revenus locatifs linéaires, les revenus de contrats remboursés et les revenus de rachat de bail, moins les charges d'exploitation directes des biens immobiliers et les impôts fonciers, et exclut certaines dépenses telles que les charges d'intérêt et les charges d'exploitation indirectes afin de fournir des résultats qui reflètent les opérations d'un bien immobilier avant de prendre en considération la façon dont il est financé ou les coûts d'exploitation de l'entité dans laquelle il est détenu. - La direction estime que le bénéfice d'exploitation net est une mesure importante du rendement d'exploitation des biens immobiliers commerciaux du Fonds, utilisée par les analystes du secteur immobilier, les investisseurs et la direction, et qu'il constitue également une donnée clé pour déterminer la juste valeur du portefeuille de Choice Properties. |
| NOI, base de caisse | - Défini comme les revenus locatifs des biens immobiliers, à l'exclusion des revenus locatifs linéaires, des frais d'exploitation directs des biens immobiliers et des impôts fonciers, et excluant certaines dépenses telles que les charges d'intérêt et les frais d'exploitation indirects afin de fournir des résultats qui reflètent les opérations d'un bien immobilier avant de prendre en considération la manière dont il est financé ou les coûts d'exploitation de l'entité dans laquelle il est détenu. - La direction estime que le revenu net d'exploitation est une mesure utile pour comprendre les variations du revenu d'exploitation d'une période à l'autre en raison de l'occupation, des taux de location, des coûts d'exploitation et des taxes foncières. |
| Bénéfice net d'exploitation (BNI) à périmètre constant, base caisse et Bénéfice net d'exploitation (BNI) des mêmes actifs, base comptable |
- Le bénéfice d'exploitation net pour les mêmes actifs est utilisé pour évaluer le rendement d'une période à l'autre des immeubles détenus et exploités par Propriétés de Choix depuis le 1er janvier 2020 inclusivement. - Le revenu net d'exploitation des biens immobiliers qui ont été (i) achetés, (ii) cédé, ou (iii) soumis à des changements significatifs en raison d'un nouveau développement, d'un redéveloppement, d'une expansion ou d'une démolition (collectivement, les " transactions ") sont exclus de la détermination du revenu net d'exploitation du même actif. - Le revenu net d'exploitation à périmètre constant, base caisse, est utile pour évaluer la réalisation des changements contractuels de taux de location prévus dans les contrats de bail et/ou l'expiration des périodes de franchise de loyer, tout en étant une mesure utile pour comprendre les changements de revenu net d'exploitation d'une période à l'autre dus à l'occupation, aux taux de location, aux coûts d'exploitation et aux impôts fonciers, avant de prendre en compte les changements de revenu net d'exploitation qui peuvent être attribués aux transactions et aux activités de développement. |
| Fonds provenant des opérations ("FFO") | - Calculé conformément au livre blanc de l'Association des biens immobiliers du Canada ("REALpac") sur les fonds provenant de l'exploitation et les fonds provenant de l'exploitation ajustés pour les IFRS, publié en février 2019. - La direction considère que les fonds provenant de l'exploitation constituent une mesure utile de la performance opérationnelle, car ils tiennent compte des éléments inclus dans le bénéfice net (ou la perte nette) qui ne découlent pas des activités d'exploitation ou qui ne donnent pas nécessairement une image exacte de la performance passée ou récurrente du fonds, comme les ajustements de la juste valeur des parts échangeables, des immeubles de placement et de la rémunération à base de parts. De temps à autre, la fiducie peut conclure des transactions qui ont une incidence importante sur le calcul et qui sont éliminées du calcul à des fins d'examen par la direction. - La direction utilise et estime que le FFO est une mesure utile de la performance du Trust qui, lorsqu'elle est comparée d'une période à l'autre, reflète l'impact sur les opérations des tendances des niveaux d'occupation, des taux de location, des coûts d'exploitation et des impôts fonciers, des activités d'acquisition et des coûts d'intérêt. |
| Fonds d'exploitation ajustés ("AFFO") | - Calculé conformément au livre blanc de REALpac sur les fonds provenant des opérations & les fonds provenant des opérations ajustés pour les normes IFRS, publié en février 2019. - La direction considère que l'AFFO est une mesure utile de la performance opérationnelle, car elle ajuste en outre l'AFFO pour tenir compte des dépenses d'investissement qui soutiennent les biens immobiliers productifs et élimine l'impact des loyers linéaires. L'AFFO est influencé par la saisonnalité inhérente au calendrier d'exécution des projets d'investissement immobilier. - Dans le calcul de l'AFFO, le FFO est ajusté en excluant les ajustements linéaires des loyers, ainsi que les coûts encourus liés aux activités de location interne et aux projets d'investissement immobilier. Les variations du fonds de roulement, considérées comme des besoins ou des excédents de trésorerie à court terme, sont considérées comme des activités de financement conformément à la méthodologie et ne sont pas prises en compte dans le calcul de l'AFFO. - Les dépenses d'investissement qui sont exclues et non déduites dans le calcul de l'AFFO comprennent celles qui génèrent un nouveau flux d'investissement, comme la construction d'un nouveau point de vente lors de l'expansion ou de l'intensification de la propriété, les activités de développement ou les activités d'acquisition. - En conséquence, l'AFFO diffère des FFO dans la mesure où l'AFFO exclut de sa définition certains revenus et dépenses sans effet de trésorerie reconnus par les GAAP, tels que les loyers linéaires, mais inclut également les coûts d'investissement et de location encourus au cours de la période qui sont capitalisés pour les besoins des GAAP. De temps à autre, la fiducie peut conclure des transactions qui ont une incidence importante sur le calcul et qui sont éliminées du calcul à des fins d'examen par la direction. |
| Ratio de distribution de l'AFFO | - Le ratio de distribution AFFO est une mesure supplémentaire utilisée par la direction pour évaluer la durabilité des paiements de distribution de la fiducie. - Le ratio est calculé en divisant les distributions de liquidités déclarées par l'AFFO. |
The following table reconciles net income (loss) as determined in accordance with GAAP to net income on a proportionate share basis for the three months and year ended December 31, 2021.
| Pour les périodes se terminant le 31 décembre (en milliers de dollars) | Trois mois | Année écoulée | ||||
|---|---|---|---|---|---|---|
| Base GAAP | Consolidation et éliminations(i) |
Part proportionnelle | Base GAAP | Consolidation et éliminations(i) |
Part proportionnelle | |
| Revenu net d'exploitation | ||||||
| Revenus locatifs | $ 325,763 | $ 16,144 | $ 341,907 | $ 1,292,321 | $ 61,336 | $ 1,353,657 |
| Coûts d'exploitation des biens immobiliers | (95,691) | (4,571) | (100,262) | (380,306) | (21,385) | (401,691) |
| 230,072 | 11,573 | 241,645 | 912,015 | 39,951 | 951,966 | |
| Autres produits et charges | ||||||
| Revenus d'intérêts | 7,312 | (3,779) | 3,533 | 20,079 | (8,040) | 12,039 |
| Revenus de commissions | 946 | — | 946 | 3,801 | — | 3,801 |
| Charges d'intérêts nettes et autres charges financières | (134,320) | (2,408) | (136,728) | (534,525) | (8,437) | (542,962) |
| Frais généraux et administratifs | (11,799) | — | (11,799) | (40,917) | — | (40,917) |
| Reprise de la (provision pour) perte de crédit attendue sur les créances hypothécaires | 1,026 | — | 1,026 | 1,502 | — | 1,502 |
| Quote-part du résultat des coentreprises comptabilisées selon la méthode de la mise en équivalence | 18,338 | (18,338) | — | 66,952 | (66,952) | — |
| Amortissement des immobilisations incorporelles | (250) | — | (250) | (1,000) | — | (1,000) |
| Gain de change reclassé des autres éléments du résultat global | — | — | — | — | — | — |
| Frais d'acquisition et autres frais connexes | — | — | — | — | — | — |
| Autres gains (pertes) de juste valeur, nets | 666 | — | 666 | (1,580) | — | (1,580) |
| Ajustement de la juste valeur des unités échangeables | (372,039) | — | (372,039) | (862,815) | — | (862,815) |
| Ajustement de la juste valeur des immeubles de placement | 96,275 | 12,952 | 109,227 | 458,817 | 43,478 | 502,295 |
| Revenu (perte) avant impôts sur le revenu | (163,773) | — | (163,773) | 22,329 | — | 22,329 |
| Recouvrement de l'impôt sur le revenu | 686 | — | 686 | 679 | — | 679 |
| Revenu net (perte) | $ (163,087) | $ — | $ (163,087) | $ 23,008 | $— | $ 23,008 |
The following table reconciles net income (loss) as determined in accordance with GAAP to net income on a proportionate share basis for the three months and year ended December 31, 2020:
| Pour les périodes se terminant le 31 décembre (en milliers de dollars) | Trois mois | Année écoulée | ||||
|---|---|---|---|---|---|---|
| Base GAAP | Consolidation et éliminations(i) |
Part proportionnelle | Base GAAP | Consolidation et éliminations(i) |
Part proportionnelle | |
| Revenu net d'exploitation | ||||||
| Revenus locatifs | $ 321,862 | $ 16,045 | $ 337,907 | $ 1,270,614 | $ 62,043 | $ 1,332,657 |
| Coûts d'exploitation des biens immobiliers | (96,460) | (5,697) | (102,157) | (384,016) | (22,127) | (406,143) |
| 225,402 | 10,348 | 235,750 | 886,598 | 39,916 | 926,514 | |
| Autres produits et charges | ||||||
| Revenus d'intérêts | 2,770 | 323 | 3,093 | 13,639 | (586) | 13,053 |
| Revenus de commissions | 1,136 | — | 1,136 | 4,416 | — | 4,416 |
| Charges d'intérêts nettes et autres charges financières | (133,121) | (1,965) | (135,086) | (540,720) | (8,081) | (548,801) |
| Frais généraux et administratifs | (8,778) | — | (8,778) | (36,718) | — | (36,718) |
| Reprise de la (provision pour) perte de crédit attendue sur les créances hypothécaires | — | — | — | (7,830) | — | (7,830) |
| Quote-part du résultat des coentreprises comptabilisées selon la méthode de la mise en équivalence | 9,036 | (9,036) | — | (5,570) | 5,570 | — |
| Amortissement des immobilisations incorporelles | (250) | — | (250) | (1,000) | — | (1,000) |
| Gain de change reclassé des autres éléments du résultat global | — | — | — | 1,184 | — | 1,184 |
| Frais d'acquisition et autres frais connexes | — | — | — | (1,589) | — | (1,589) |
| Autres gains (pertes) de juste valeur, nets | 1,347 | — | 1,347 | 2,210 | — | 2,210 |
| Ajustement de la juste valeur des unités échangeables | (86,370) | — | (86,370) | 354,286 | — | 354,286 |
| Ajustement de la juste valeur des immeubles de placement | 103,601 | 330 | 103,931 | (220,018) | (36,819) | (256,837) |
| Revenu (perte) avant impôts sur le revenu | 114,773 | — | 114,773 | 448,888 | — | 448,888 |
| Recouvrement de l'impôt sur le revenu | 1,797 | — | 1,797 | 1,797 | — | 1,797 |
| Revenu net (perte) | $ 116,570 | $ — | $ 116,570 | $ 450,685 | $ — | $ 450,685 |
The following table reconciles net income (loss), as determined in accordance with GAAP, to Net Operating Income, Cash Basis, for the periods ended as indicated.
| Pour les périodes se terminant le 31 décembre (en milliers de dollars) |
Trois mois | Année écoulée | ||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | Changer | 2021 | 2020 | Changer | |
| Revenu net (perte) | $ (163,087) | $ 116,570 | $ (279,657) | $ 23,008 | $ 450,685 | $ (427,677) |
| Reprise de (provision pour) la perte de crédit attendue sur les créances hypothécaires |
(1,026) | — | (1,026) | (1,502) | 7,830 | (9,332) |
| Frais généraux et administratifs dépenses |
11,799 | 8,778 | 3,021 | 40,917 | 36,718 | 4,199 |
| Charges d'intérêt nettes et autres charges financières |
134,320 | 133,121 | 1,199 | 534,525 | 540,720 | (6,195) |
| Revenus d'intérêts | (7,312) | (2,770) | (4,542) | (20,079) | (13,639) | (6,440) |
| Part du revenu (perte) de joint comptabilisé selon la méthode de la mise en équivalence entreprises |
(18,338) | (9,036) | (9,302) | (66,952) | 5,570 | (72,522) |
| Gain de change reclassés des autres résultat global |
— | — | — | — | (1,184) | 1,184 |
| Coûts de transaction liés à l'acquisition et autres dépenses connexes |
— | — | — | — | 1,589 | (1,589) |
| Autres gains (pertes) de juste valeur, net |
(666) | (1,347) | 681 | 1,580 | (2,210) | 3,790 |
| Ajustement de la juste valeur des Unités échangeables |
372,039 | 86,370 | 285,669 | 862,815 | (354,286) | 1,217,101 |
| Ajustement de la juste valeur des immeubles de placement |
(96,275) | (103,601) | 7,326 | (458,817) | 220,018 | (678,835) |
| Recouvrement de l'impôt sur le revenu | (686) | (1,797) | 1,111 | (679) | (1,797) | 1,118 |
| Revenu net d'exploitation, Base comptable - GAAP |
230,072 | 225,402 | 4,670 | 912,015 | 886,598 | 25,417 |
| Revenus locatifs linéaires | (339) | (3,217) | 2,878 | (7,893) | (13,946) | 6,053 |
| Recettes de rachat de bail | (1,840) | (929) | (911) | (4,363) | (1,958) | (2,405) |
| Revenu net d'exploitation, en espèces Base - GAAP |
227,893 | 221,256 | 6,637 | 899,759 | 870,694 | 29,065 |
| Ajustements pour les fonds propres coentreprises comptabilisées et actifs financiers immobiliers |
10,781 | 9,097 | 1,684 | 37,740 | 37,387 | 353 |
| Revenu net d'exploitation, en espèces Base - Proportionnelle Partager |
$ 238,674 | $ 230,353 | $ 8,321 | $ 937,499 | $ 908,081 | $ 29,418 |
The following table reconciles Net Operating Income, Cash Basis to Same-Asset Net Operating Income, Cash Basis, for the periods ended as indicated.
| Pour les périodes se terminant le 31 décembre (en milliers de dollars) |
Trois mois | Année écoulée | ||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | Changer | 2021 | 2020 | Changer | |
| Revenu net d'exploitation, base caisse - part proportionnelle | $ 238,674 | $ 230,353 | $ 8,321 | $ 937,499 | $ 908,081 | $ 29,418 |
| Transactions NOI, base caisse | 22,486 | 19,598 | 2,888 | 84,389 | 75,962 | 8,427 |
| Bénéfice net d'exploitation (BNI) à périmètre constant, base caisse | $ 216,188 | $ 210,755 | $ 5,433 | $ 853,110 | $ 832,119 | $ 20,991 |
The following table reconciles net income, as determined in accordance with GAAP, to Funds from Operations for the periods ended as indicated.
| Pour les périodes se terminant le 31 décembre (en milliers de dollars) |
Trois mois | Année écoulée | ||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | Changer | 2021 | 2020 | Changer | |
| Revenu net (perte) | $ (163,087) | $ 116,570 | $ (279,657) | $ 23,008 | $ 450,685 | $ (427,677) |
| Amortissement des immobilisations incorporelles | 250 | 250 | — | 1,000 | 1,000 | — |
| Gain de change reclassé des autres résultat global |
— | — | — | — | (1,184) | 1,184 |
| Coûts de transaction liés à l'acquisition et autres coûts connexes dépenses |
— | — | — | — | 1,589 | (1,589) |
| Autres gains (pertes) de juste valeur, nets | (666) | (1,347) | 681 | 1,580 | (2,210) | 3,790 |
| Ajustement de la juste valeur des unités échangeables | 372,039 | 86,370 | 285,669 | 862,815 | (354,286) | 1,217,101 |
| Ajustement de la juste valeur des immeubles de placement | (96,275) | (103,601) | 7,326 | (458,817) | 220,018 | (678,835) |
| Ajustement de la juste valeur des immeubles de placement détenus dans les coentreprises comptabilisées selon la méthode de la mise en équivalence |
(12,952) | (330) | (12,622) | (43,478) | 36,819 | (80,297) |
| Intérêts autrement capitalisés pour le développement en coentreprises comptabilisées selon la méthode de la mise en équivalence |
393 | 1,005 | (612) | 3,173 | 5,112 | (1,939) |
| Distributions de parts échangeables | 73,221 | 72,502 | 719 | 292,884 | 288,932 | 3,952 |
| Frais internes de location | 2,560 | 663 | 663 | 8,412 | 7,329 | 1,083 |
| Recouvrement de l'impôt sur le revenu | (686) | (1,797) | 1,111 | (679) | (1,797) | 1,118 |
| Fonds provenant des opérations | $ 174,797 | $ 171,519 | $ 3,278 | $ 689,898 | $ 652,007 | $ 37,891 |
| FFO par unité - dilué(i) | $ 0.242 | $ 0.239 | $ 0.003 | $ 0.712 | $ 0.921 | $ 0.033 |
| Moyenne pondérée des parts en circulation - diluées(ii) | 723,363,313 | 718,026,576 | 5,336,737 | 723,127,566 | 707,764,714 | 15,362,852 |
(ii) Comprend les parts de fiducie et les parts échangeables.
The following table reconciles Funds from Operations to Adjusted Funds from Operations for the periods ended as indicated.
| Pour les périodes se terminant le 31 décembre (en milliers de dollars) |
Trois mois | Année écoulée | ||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | Changer | 2021 | 2020 | Changer | |
| Fonds provenant des opérations | $ 174,797 | $ 171,519 | $ 3,278 | $ 689,898 | $ 652,007 | $ 37,891 |
| Frais internes de location | (2,560) | (1,897) | (663) | (8,412) | (7,329) | (1,083) |
| Revenus locatifs linéaires | (339) | (3,217) | 2,878 | (7,893) | (13,946) | 6,053 |
| Ajustement pour la part proportionnelle de l'amortissement linéaire les revenus locatifs provenant d'entreprises conjointes comptabilisées selon la méthode de la mise en équivalence entreprises et actifs immobiliers financiers |
(792) | (889) | (2,878) | (2,211) | (2,167) | (6,053) |
| Capital immobilier | (41,073) | (22,592) | (18,481) | (60,012) | (33,112) | (26,900) |
| Coûts directs de location | (2,258) | (1,051) | (1,207) | (6,426) | (6,519) | 93 |
| Améliorations locatives | (8,265) | (4,711) | (3,554) | (16,379) | (19,269) | 2,890 |
| Ajustement pour la part proportionnelle du résultat d'exploitation les dépenses d'investissement des entreprises conjointes mises en équivalence entreprises et actifs immobiliers financiers |
(586) | (1,108) | (51,596 | (2,059) | (3,196) | 51,746 |
| Fonds d'exploitation ajustés | $ 118,924 | $ 136,054 | $ (17,130) | $ 586,506 | $ 566,469 | $ 20,037 |
| AFFO par unité - dilué | $ 0.164 | $ 0.189 | $ (0.025) | $ 0.811 | $ 0.800 | $ 0.011 |
| Ratio de distribution de l'AFFO - dilué(i) | 112.5 % | 97.7 % | 14.8 % | 91.2 % | 92.6 % | (1.4) % |
| Distribution déclarée par unité | $ 0.185 | $ 0.185 | $ — | $ 0.740 | $ 0.740 | $ — |
| Moyenne pondérée des parts en circulation - diluées(ii) | 723,363,313 | 718,026,576 | 5,336,737 | 723,127,566 | 707,764,714 | 15,362,852 |
(ii) Comprend les parts de fiducie et les parts échangeables.
Management’s Discussion and Analysis and Consolidated Financial Statements and Notes
Information appearing in this news release is a select summary of results. This news release should be read in conjunction with the Choice Properties 2021 Annual Report to Unitholders, which includes the consolidated financial statements and MD&A for the Trust, and is available at www.choicereit.ca and on SEDAR at www.sedar.com.
Conference Call and Webcast
Management will host a conference call on Thursday, February 17, 2022 at 10:00AM (ET) with a simultaneous audio webcast. To access via teleconference, please dial (236) 389-2653 or (833) 921-1643 and enter the event passcode: 2690932. The link to the audio webcast will be available on www.choicereit.ca/events-webcasts.
About Choice Properties Real Estate Investment Trust
Choice Properties is a leading Real Estate Investment Trust that creates enduring value through the ownership, operation and development of high-quality commercial and residential properties.
We believe that value comes from creating spaces that improve how our tenants and communities come together to live, work, and connect. We strive to understand the needs of our tenants and manage our properties to the highest standard. We aspire to develop healthy, resilient communities through our dedication to social, economic, and environmental sustainability. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence. For more information, visit Choice Properties’ website at www.choicereit.ca and Choice Properties’ issuer profile at www.sedar.com.
Cautionary Statements Regarding Forward-looking Statements
This news release contains forward-looking statements relating to Choice Properties’ operations and the environment in which the Trust operates, which are based on management’s expectations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. Management undertakes no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except as required by law.
Numerous risks and uncertainties could cause the Trust’s actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in Section 12, “Enterprise Risks and Risk Management” of the Trust’s MD&A for the year ended December 31, 2021, which includes detailed risks and disclosure regarding COVID-19 and its impact on the Trust, and those described in the Trust’s Annual Information Form for the year ended December 31, 2021.
Contact
For further information, please contact investor@choicereit.ca
Mario Barrafato
Chief Financial Officer
t: (416) 628-7872 e: Mario.Barrafato@choicereit.ca
(1) Refer to Non-GAAP Financial Measures and Additional Financial Information section.