CT Real Estate Investment Trust (CTRRF) Q2 2024 Earnings Call Highlights: Strong NOI Growth and ...

GuruFocus News
3 min read

In This Article:

  • NOI Growth: Increased by 4.4% or $4.8 million.

  • AFFO per Unit: Up 3.6% to $0.315.

  • Same-Store NOI Growth: Increased by 1.0% or $1.1 million.

  • Same-Property NOI Growth: Increased by 1.9% or $2 million.

  • Cash Distributions: Increased by 3.5% compared to the previous year.

  • Distribution Increase: 3% increase effective July 15, cumulative increase of 42.3% since IPO.

  • Occupancy Rate: 99.4%.

  • Weighted Average Lease Term: 8.0 years.

  • Interest Coverage Ratio: 3.59 times.

  • Indebtedness Ratio: 40.9%.

  • Cash on Hand: $31 million.

  • Available Credit Facility: $297 million committed, $300 million uncommitted.

  • Property Acquisition: $45.2 million investment in Nanaimo, BC.

  • Property Sale: Sold property in Chilliwack, BC for $19 million.

  • Development Projects: 19 projects with a total committed investment of $283 million.

Release Date: August 02, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • CT Real Estate Investment Trust (CTRRF) reported a 4.4% increase in net operating income (NOI) and a 3.6% increase in adjusted funds from operations (AFFO) per unit.

  • The company has raised its distributions 11 times since its IPO in 2013, with a compound annual growth rate of 4.1% over the last five years.

  • CT Real Estate Investment Trust (CTRRF) successfully acquired a Canadian Tire-anchored property in a strong market on Vancouver Island, British Columbia.

  • The company maintains a high occupancy rate of 99.4% with a weighted average lease term of 8.0 years, one of the longest in the sector.

  • CT Real Estate Investment Trust (CTRRF) released its third annual ESG report, highlighting its ongoing commitment to environmental, social, and governance initiatives.

Negative Points

  • The property transaction market remains slow, impacting the ability to source new acquisitions.

  • Interest coverage ratio decreased to 3.59 times from 3.74 times in the previous year, due to higher interest expenses.

  • The indebtedness ratio increased slightly to 40.9% from 39.9% in the previous year.

  • The company anticipates a potential slowdown in same-asset NOI growth due to lower recovery of capital expenditures and interest rate changes.

  • The pace of new development projects has slowed, influenced by Canadian Tire's strategic decisions and the current interest rate environment.

Q & A Highlights

Q: Is the recent property disposition in Chilliwack, BC, a sign of more such transactions in the future? A: Kevin Salsberg, President and CEO, explained that such dispositions are not typical. The decision to sell was driven by a compelling offer from an end-user, making it financially advantageous to sell rather than redevelop the site.

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