"We are pleased with our strong progress in executing our strategic plan over the last 30 months. Our team has been determined and resilient in the face of a challenging economic environment, and volatility in the capital and real estate markets. We are determined to surface significant unitholder value by transforming into a simplified growth-oriented company focused on residential and industrial properties" said
STRATEGIC REPOSITIONING HIGHLIGHTS DURING THE LAST 30 MONTHS:
- Completed a spin off, on a tax-free basis, of 27 properties including all of the REIT's enclosed shopping centres to a new publicly-traded REIT, Primaris REIT, valued at approximately
$2.4 billion ; - 45 investment properties totaling approximately
$2.4 billion were sold including the Bow and 100 Wynford; - H&R to date has contracted to sell a further
$293.2 million of properties in 2024; - H&R's residential real estate assets at the REIT's proportionate share(1) increased from approximately
$3.4 billion as atJune 30, 2021 to approximately$4.4 billion as atDecember 31, 2023 ; - H&R's industrial real estate assets at the REIT's proportionate share(1) increased from approximately
$1.3 billion as atJune 30, 2021 to approximately$1.9 billion as atDecember 31, 2023 ; - H&R's office portfolio exposure at the REIT's proportionate share(1) was reduced from approximately
$5.1 billion atJune 30, 2021 to approximately$2.5 billion atDecember 31, 2023 ($703.5 million are properties advancing through the rezoning process); - H&R's retail portfolio at the REIT's proportionate share(1) decreased from approximately
$4.0 billion as atJune 30, 2021 to approximately$1.6 billion as atDecember 31, 2023 ; - H&R's portion of residential and industrial real estate assets at the REIT's proportionate share(1) increased from 35% as at
June 30, 2021 to 61% as atDecember 31, 2023 ; - Debt per the REIT's Financial Statements was reduced from approximately
$6.1 billion as atJune 30, 2021 to approximately$3.7 billion as atDecember 31, 2023 ; - Debt to total assets at the REIT's proportionate share(2)(3) improved from 50.0% at
June 30, 2021 to 44.0% as atDecember 31, 2023 ; - The unencumbered asset to unsecured debt coverage ratio improved from 1.65x as at
June 30, 2021 to 2.16x as atDecember 31, 2023 ; - Debt to Adjusted EBITDA (based on trailing 12 months) at the REIT's proportionate share(2)(3)(5) improved from 10.4x at
June 30, 2021 to 8.5x atDecember 31, 2023 ; - The REIT repurchased 27.0 million Units totalling
$339.8 million betweenJune 30, 2021 andDecember 31, 2023 ; - Operating results improved with a 14.9% increase in Same-Property net operating income (cash basis)(1) in 2022 and a further 10.3% in 2023;
- Overall Occupancy grew from 93.7 % at
June 30, 2021 to 96.5% atDecember 31, 2023 ; - H&R's exposure to
Alberta real estate assets, at the REIT's proportionate share(1), was reduced from 16.9% atJune 30, 2021 to only 4.5% atDecember 31, 2023 .
HIGHLIGHTS FOR THE YEAR ENDED
- Net operating income increased by 2.2% compared to 2022. Property dispositions in the last 12 months totaled
$432.9 million . - Same-Property net operating income (cash basis)(1) increased by 10.3% compared to 2022 driven by healthy gains across all our operating segments:
- Residential 18.7 % Driven by strong rent growth and the strengthening of the
U.S. dollar - Industrial 12.5 % Driven by strong rent growth and higher occupancy
- Office 5.2 % Driven by higher lease termination fees, bad debt recoveries and the strengthening of the
U.S. dollar - Retail 5.7 % Driven by increase in occupancy at River Landing Miami and the strengthening of the
U.S. dollar
- Residential 18.7 % Driven by strong rent growth and the strengthening of the
- Funds From Operations ("FFO") per Unit(3) grew 13.0% to
$1.33 per Unit compared to$1.17 per Unit in 2022. The REIT's payout ratio as a % of FFO was 52.8%(3) compared to 50.3%(3) in 2022 . - Cash distributions of
$0.70 per Unit increased by 18.6% compared to 2022. - As a result of fair value adjustments, real estate assets decreased by
$486.1 million ($197.6 million in Q4 2023), driven by capitalization rate expansion. The following weighted average capitalization rates were used to value the REIT's investment properties at the REIT's proportionate share(1):
• Office - | 6.22 % | |
• Office - | 7.68 % | |
• Retail | 6.49 % | |
• Residential | 4.47 % | |
• Industrial | 5.30 % |
- Overall portfolio occupancy was 96.5% at
December 31, 2023 . - Unitholders' equity per Unit was
$19.83 and Net Asset Value ("NAV") per Unit(3) was$20.75 atDecember 31, 2023 . - Liquidity was in excess of
$950 million atDecember 31, 2023 .
(1) | These are non-GAAP measures. Refer to the "Non-GAAP Measures" section of this news release. |
(2) | Debt includes mortgages payable, debentures payable, unsecured term loans, lines of credit and liabilities classified as held for sale. |
(3) | These are non-GAAP ratios. Refer to the "Non-GAAP Measures" section of this news release. |
(4) | Unencumbered assets are investment properties and properties under development without encumbrances for mortgages or lines of credit. Unsecured debt includes debentures payable, unsecured term loans and unsecured lines of credit. |
(5) | Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is calculated by taking the sum of net operating income (excluding straight-lining of contractual rent, IFRIC 21, as well as the Bow and 100 Wynford non-cash rental adjustments) and finance income and subtracting trust expenses (excluding the fair value adjustment to unit-based compensation) for the last 12 months. Refer to the "Non-GAAP Measures" section of this news release. |
FINANCIAL HIGHLIGHTS
2023 | 2022 | |
Total assets (in thousands) | ||
Debt to total assets per the REIT's Financial Statements(1) | 34.2 % | 34.4 % |
Debt to total assets at the REIT's proportionate share(1)(2) | 44.0 % | 44.0 % |
Debt to Adjusted EBITDA at the REIT's proportionate share(1)(2)(3) | 8.5 | 9.6 |
Unitholders' equity (in thousands) | ||
Units outstanding (in thousands) | 261,868 | 265,885 |
Exchangeable units outstanding (in thousands) | 17,974 | 17,974 |
Unitholders' equity per Unit | ||
NAV per Unit(2) |
3 months ended | Year ended | |||
2023 | 2022 | 2023 | 2022 | |
Rentals from investment properties (in millions) | ||||
Net operating income (in millions) | ||||
Same-Property net operating income (cash basis) (in millions)(4) | ||||
Net income from equity accounted investments (in millions) | ||||
Fair value adjustment on real estate assets (in millions) | ( | ( | ( | |
Net income (loss) (in millions) | ( | ( | ||
FFO (in millions)(4) | ||||
Adjusted funds from operations ("AFFO") (in millions)(4) | ||||
Weighted average number of Units and exchangeable units for FFO (in 000's) | 279,842 | 283,859 | 281,815 | 290,782 |
FFO per basic and diluted Unit(2) | ||||
AFFO per basic and diluted Unit(2) | ||||
Cash Distributions per Unit | ||||
Payout ratio as a % of FFO(2) | 83.6 % | 60.6 % | 52.8 % | 50.3 % |
Payout ratio as a % of AFFO(2) | 102.0 % | 85.5 % | 63.0 % | 59.7 % |
(1) | Debt includes mortgages payable, debentures payable, unsecured term loans, lines of credit and liabilities classified as held for sale. |
(2) | These are non-GAAP ratios. Refer to the "Non-GAAP Measures" section of this news release. |
(3) | Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is calculated by taking the sum of net operating income (excluding straight-lining of contractual rent, IFRIC 21, as well as the Bow and 100 Wynford non-cash rental adjustments) and finance income and subtracting trust expenses (excluding the fair value adjustment to unit-based compensation) for the last 12 months. Refer to the "Non-GAAP Measures" section of this news release. |
(4) | These are non-GAAP measures. Refer to the "Non-GAAP Measures" section of this news release. |
Included in net income, FFO and AFFO for the year ended
SUMMARY OF SIGNIFICANT ACTIVITY
2023 Net Operating Income Highlights:
Three months ended | Year ended | |||||
(in thousands of Canadian dollars) | 2023 | 2022 | % Change | 2023 | 2022 | % Change |
Operating Segment: | ||||||
Same-Property net operating income (cash basis) - Residential(1) | 12.0 % | 18.7 % | ||||
Same-Property net operating income (cash basis) - Industrial(1) | 17,377 | 15,839 | 9.7 % | 68,130 | 60,566 | 12.5 % |
Same-Property net operating income (cash basis) - Office(1) | 44,536 | 43,741 | 1.8 % | 183,227 | 174,224 | 5.2 % |
Same-Property net operating income (cash basis) - Retail(1) | 24,180 | 24,697 | (2.1) % | 94,306 | 89,216 | 5.7 % |
Same-Property net operating income (cash basis)(1) | 127,699 | 121,414 | 5.2 % | 507,564 | 460,347 | 10.3 % |
Net operating income (cash basis) from Transactions at the REIT's proportionate share(1)(2) | 30,072 | 38,504 | (21.9) % | 136,609 | 159,794 | (14.5) % |
Realty taxes in accordance with IFRIC 21 at the REIT's proportionate share(1)(3) | 14,946 | 12,600 | 18.6 % | — | — | — % |
Straight-lining of contractual rent at the REIT's proportionate share(1) | 2,623 | 3,588 | (26.9) % | 12,100 | 6,890 | 75.6 % |
Net operating income from equity accounted investments(1) | (27,980) | (27,994) | 0.1 % | (109,669) | (92,082) | (19.1) % |
Net operating income per the REIT's Financial Statements | (0.5) % | 2.2 % |
(1) | These are non-GAAP measures. Refer to the "Non-GAAP Measures" section of this news release. |
(2) | Transactions includes acquisitions, dispositions, and transfers of investment properties to or from properties under development during the two-year period ended |
(3) | Realty taxes in accordance with IFRS Interpretations Committee Interpretation 21, Levies ("IFRIC 21") relates to the timing of the liability recognition for |
2023 Transaction Highlights
Property Dispositions
In
In
In
In
In
In
In
In
Including
H&R's various property sales during 2023 (including properties under contract to be sold) are consistent with the REIT's strategic repositioning plan to surface significant value for unitholders, by transforming into a simplified, growth-oriented company focused on residential and industrial properties.
Q4 2023 Leasing Highlights:
In Q4 2023, H&R completed a new 10-year lease for a 39,741 square foot industrial property in
In Q4 2023, H&R received a lease termination fee of approximately
Development Update
The REIT currently has two industrial properties under development located at
The REIT commenced construction on two
Q4 Future Intensification Highlights
In
Normal Course Issuer Bid
During the year ended
2023 Cash Distributions
H&R's cash distributions amounted to
For the year ended
2023 Taxation Consequences for Taxable Canadian Unitholders
H&R's cash distributions amounted to
Debt & Liquidity Highlights
As at
As at
Subsequent to
MONTHLY DISTRIBUTIONS DECLARED
H&R today declared distributions for the months of February and March scheduled as follows:
Distribution/Unit | Annualized | Record date | Distribution date | |
CONFERENCE CALL AND WEBCAST
Management will host a conference call to discuss the financial results of the REIT on
A live audio webcast will be available through www.hr-reit.com/investor-relations/#investor-events. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on H&R's website following the call date.
The investor presentation is available on H&R's website at www.hr-reit.com/investor-relations/#investor-presentation.
About H&R REIT
H&R REIT is one of
Forward-Looking Disclaimer
Certain information in this news release contains forward‐looking information within the meaning of applicable securities laws (also known as forward‐looking statements) including, among others, statements made or implied under the heading "Summary of Significant Activity" relating to H&R's objectives, beliefs, plans, estimates, targets, projections and intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including with respect to H&R's future plans and targets, the REIT's ability to take advantage of value-creating opportunities, the REIT's strategic repositioning plan to surface significant value for unitholders, H&R's strategy to grow its exposure to residential assets in
Forward‐looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements are not guarantees of future performance and are based on H&R's estimates and assumptions that are subject to risks, uncertainties and other factors including those risks and uncertainties discussed in H&R's materials filed with the Canadian securities regulatory authorities from time to time, which could cause the actual results, performance or achievements of H&R to differ materially from the forward‐looking statements contained in this news release. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward‐looking statements include assumptions relating to the general economy, including the effects of increased inflation; debt markets continue to provide access to capital at a reasonable cost, notwithstanding rising interest rates; and assumptions concerning currency exchange and interest rates. Additional risks and uncertainties include, among other things, risks related to: real property ownership; the current economic environment; credit risk and tenant concentration; lease rollover risk; interest rate and other debt‐related risk; development risks; residential rental risk; capital expenditures risk; currency risk; liquidity risk; risks associated with disease outbreaks; cyber security risk; financing credit risk; ESG and climate change risk; co‐ownership interest in properties; general uninsured losses; joint arrangement and investment risks; dependence on key personnel and succession planning; potential acquisition, investment and disposition opportunities and joint venture arrangements; potential undisclosed liabilities associated with acquisitions; competition for real property investments; Unit price risk; potential conflicts of interest; availability of cash for distributions; credit ratings; ability to access capital markets; dilution; unitholder liability; redemption right risk; risks relating to debentures; tax risk; additional tax risks applicable to unitholders; investment eligibility; and statutory remedies. H&R cautions that these lists of factors, risks and uncertainties are not exhaustive. Although the forward‐looking statements contained in this news release are based upon what H&R believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward‐looking statements.
Readers are also urged to examine H&R's materials filed with the Canadian securities regulatory authorities from time to time as they may contain discussions on risks and uncertainties which could cause the actual results and performance of H&R to differ materially from the forward‐looking statements contained in this news release. All forward‐looking statements contained in this news release are qualified by these cautionary statements. These forward‐looking statements are made as of
Non‐GAAP Measures
The audited consolidated financial statements of the REIT and related notes for the three months and year ended
For information on the most directly comparable GAAP measures, composition of the measures, a description of how the REIT uses these measures and an explanation of how these measures provide useful information to investors, refer to the "Non‐GAAP Measures" section of the REIT's management's discussion and analysis as at and for the three months and year ended December 31, 2023 available at www.hr‐reit.com and on the REIT's profile on SEDAR at www.sedarplus.com, which is incorporated by reference into this news release.
Financial Position
The following table reconciles the REIT's Statement of Financial Position from the REIT's Financial Statements to the REIT's proportionate share (a non-GAAP Measure):
(in thousands of Canadian dollars) | REIT's Financial Statements | Equity investments | REIT's | REIT's Financial Statements | Equity investments | REIT's |
Assets | ||||||
Real estate assets | ||||||
Investment properties | ||||||
Properties under development | 1,074,819 | 135,635 | 1,210,454 | 880,778 | 89,912 | 970,690 |
8,886,362 | 2,283,647 | 11,170,009 | 9,680,095 | 2,218,218 | 11,898,313 | |
Equity accounted investments | 1,165,012 | (1,165,012) | — | 1,060,268 | (1,060,268) | — |
Assets classified as held for sale | 293,150 | — | 293,150 | 294,028 | — | 294,028 |
Other assets | 369,008 | 21,866 | 390,874 | 301,325 | 21,892 | 323,217 |
Cash and cash equivalents | 64,111 | 36,933 | 101,044 | 76,887 | 38,443 | 115,330 |
Liabilities and Unitholders' Equity | ||||||
Liabilities | ||||||
Debt | ||||||
Exchangeable units | 177,944 | — | 177,944 | 217,668 | — | 217,668 |
Deferred Revenue | 947,671 | — | 947,671 | 986,243 | — | 986,243 |
Deferred tax liability | 437,214 | — | 437,214 | 483,048 | — | 483,048 |
Accounts payable and accrued liabilities | 335,606 | 60,176 | 395,782 | 309,505 | 58,502 | 368,007 |
Liabilities classified as held for sale | — | — | — | 6,323 | — | 6,323 |
Non-controlling interest | — | 19,419 | 19,419 | — | 22,573 | 22,573 |
5,585,268 | 1,177,434 | 6,762,702 | 5,925,316 | 1,218,285 | 7,143,601 | |
Unitholders' equity | 5,192,375 | — | 5,192,375 | 5,487,287 | — | 5,487,287 |
Debt to Adjusted EBITDA at the REIT's Proportionate Share
The following table provides a reconciliation of Debt to Adjusted EBITDA at the REIT's proportionate share (a non-GAAP ratio):
2023 | 2022 | |
Debt per the REIT's Financial Statements | ||
Debt - REIT's proportionate share of equity accounted investments | 1,097,839 | 1,137,210 |
Debt at the REIT's proportionate share | 4,784,672 | 5,066,062 |
Years ended | 2023 | 2022 |
Net income per the REIT's Financial Statements | 61,690 | 844,823 |
Net income from equity accounted investments (within equity accounted investments) | (426) | (1,132) |
Finance costs - operations | 266,795 | 260,288 |
Fair value adjustments on financial instruments and real estate assets | 363,547 | (582,538) |
(Gain) loss on sale of real estate assets, net of related costs | 9,420 | (7,493) |
Income tax (recovery) expense | (30,484) | 101,634 |
Non-controlling interest | 1,254 | 967 |
Adjustments: | ||
The Bow and 100 Wynford non-cash rental income adjustments | (92,920) | (86,555) |
Straight-lining of contractual rent | (12,100) | (6,890) |
Fair value adjustment to unit-based compensation | (5,134) | 2,172 |
Adjusted EBITDA at the REIT's proportionate share | ||
Debt to Adjusted EBITDA at the REIT's proportionate share | 8.5 | 9.6 |
RESULTS OF OPERATIONS
The following table reconciles the REIT's Results of Operations from the REIT's Financial Statements to the REIT's proportionate share (a non-GAAP Measure):
Three months ended | Three months ended | |||||
(in thousands of Canadian dollars) | REIT's Financial Statements | Equity investments | REIT's | REIT's Financial Statements | Equity investments | REIT's |
Rentals from investment properties | ||||||
Property operating costs | (58,544) | (10,459) | (69,003) | (68,723) | (9,477) | (78,200) |
Net operating income | 147,360 | 27,980 | 175,340 | 148,112 | 27,994 | 176,106 |
Net income from equity accounted investments | 145,320 | (145,292) | 28 | 53,473 | (52,719) | 754 |
Finance costs - operations | (54,130) | (12,310) | (66,440) | (55,625) | (11,736) | (67,361) |
Finance income | 3,325 | 103 | 3,428 | 3,204 | 60 | 3,264 |
Trust expenses | (7,054) | (1,309) | (8,363) | (11,012) | (1,100) | (12,112) |
Fair value adjustment on financial instruments | (43,606) | 527 | (43,079) | (30,234) | 481 | (29,753) |
Fair value adjustment on real estate assets | (197,587) | 131,522 | (66,065) | (224,480) | 37,350 | (187,130) |
Loss on sale of real estate assets, net of related costs | (1,119) | (501) | (1,620) | (3,322) | (89) | (3,411) |
Net income (loss) before income taxes and non-controlling interest | (7,491) | 720 | (6,771) | (119,884) | 241 | (119,643) |
Income tax (expense) recovery | (3,822) | (14) | (3,836) | 3,755 | (18) | 3,737 |
Net income (loss) before non-controlling interest | (11,313) | 706 | (10,607) | (116,129) | 223 | (115,906) |
Non-controlling interest | — | (706) | (706) | — | (223) | (223) |
Net loss | (11,313) | — | (11,313) | (116,129) | — | (116,129) |
Other comprehensive loss: | ||||||
Items that are or may be reclassified subsequently to net loss | (130,990) | — | (130,990) | (71,875) | — | (71,875) |
Total comprehensive loss attributable to unitholders | ( | $— | ( | ( | $— | ( |
The following table reconciles the REIT's Results of Operations from the REIT's Financial Statements to the REIT's proportionate share (a non-GAAP Measure):
Year ended | Year ended | |||||
(in thousands of Canadian dollars) | REIT's Financial Statements | Equity investments | REIT's | REIT's Financial Statements | Equity investments | REIT's |
Rentals from investment properties | ||||||
Property operating costs | (300,542) | (41,035) | (341,577) | (299,691) | (38,230) | (337,921) |
Net operating income | 546,604 | 109,669 | 656,273 | 534,949 | 92,082 | 627,031 |
Net income from equity accounted investments | 145,459 | (145,033) | 426 | 47,139 | (46,007) | 1,132 |
Finance costs - operations | (218,152) | (48,643) | (266,795) | (220,262) | (40,026) | (260,288) |
Finance income | 13,849 | 341 | 14,190 | 14,793 | 88 | 14,881 |
Proceeds on disposal of purchase option | 30,568 | — | 30,568 | — | — | — |
Trust expenses | (24,385) | (4,850) | (29,235) | (22,121) | (3,242) | (25,363) |
Fair value adjustment on financial instruments | 30,555 | 856 | 31,411 | 38,349 | 2,910 | 41,259 |
Fair value adjustment on real estate assets | (486,104) | 91,146 | (394,958) | 546,081 | (4,802) | 541,279 |
Gain (loss) on sale of real estate assets, net of related costs | (7,247) | (2,173) | (9,420) | 7,332 | 161 | 7,493 |
Net income before income taxes and non-controlling interest | 31,147 | 1,313 | 32,460 | 946,260 | 1,164 | 947,424 |
Income tax (expense) recovery | 30,543 | (59) | 30,484 | (101,437) | (197) | (101,634) |
Net income before non-controlling interest | 61,690 | 1,254 | 62,944 | 844,823 | 967 | 845,790 |
Non-controlling interest | — | (1,254) | (1,254) | — | (967) | (967) |
Net income | 61,690 | — | 61,690 | 844,823 | — | 844,823 |
Other comprehensive income (loss): | ||||||
Items that are or may be reclassified subsequently to net income | (131,202) | — | (131,202) | 321,570 | — | 321,570 |
Total comprehensive income (loss) attributable to unitholders | ( | $— | ( | $— |
Same-Property net operating income (cash basis)
The following table reconciles net operating income per the REIT's Financial Statements to Same-Property net operating income (cash basis):
Three months ended | Year ended | |||||
(in thousands of Canadian dollars) | 2023 | 2022 | Change | 2023 | 2022 | Change |
Rentals from investment properties | ( | |||||
Property operating costs | (58,544) | (68,723) | 10,179 | (300,542) | (299,691) | (851) |
Net operating income per the REIT's Financial Statements | 147,360 | 148,112 | (752) | 546,604 | 534,949 | 11,655 |
Adjusted for: | ||||||
Net operating income from equity accounted investments(1) | 27,980 | 27,994 | (14) | 109,669 | 92,082 | 17,587 |
Straight-lining of contractual rent at the REIT's proportionate share(1) | (2,623) | (3,588) | 965 | (12,100) | (6,890) | (5,210) |
Realty taxes in accordance with IFRIC 21 at the REIT's proportionate share(1) | (14,946) | (12,600) | (2,346) | — | — | — |
Net operating income (cash basis) from Transactions at the REIT's proportionate share(1) | (30,072) | (38,504) | 8,432 | (136,609) | (159,794) | 23,185 |
Same-Property net operating income (cash basis)(1) |
(1) | These are non-GAAP measures . Refer to the "Non-GAAP Measures" section of this news release. |
NAV per Unit (a non-GAAP Ratio)
The following table reconciles Unitholders' equity per Unit to NAV per Unit:
Unitholders' Equity per Unit and NAV per Unit | ||
(in thousands except for per Unit amounts) | 2023 | 2022 |
Unitholders' equity | ||
Exchangeable units | 177,944 | 217,668 |
Deferred tax liability | 437,214 | 483,048 |
Total | ||
Units outstanding | 261,868 | 265,885 |
Exchangeable units outstanding | 17,974 | 17,974 |
Total | 279,842 | 283,859 |
Unitholders' equity per Unit(1) | ||
NAV per Unit |
(1) | Unitholders' equity per Unit is calculated by dividing unitholders' equity by Units outstanding. |
Funds from Operations and Adjusted Funds from Operations
The following table reconciles net income per the REIT's Financial Statements to FFO and AFFO:
FFO AND AFFO | Three Months ended | Year ended | ||
(in thousands of Canadian dollars except per Unit amounts) | 2023 | 2022 | 2023 | 2022 |
Net income per the REIT's Financial Statements | ( | ( | ||
Realty taxes in accordance with IFRIC 21 | (13,762) | (11,284) | — | — |
FFO adjustments from equity accounted investments | (132,732) | (39,685) | (89,829) | 2,064 |
Exchangeable unit distributions | 4,494 | 3,368 | 12,582 | 10,692 |
Fair value adjustments on financial instruments and real estate assets | 241,193 | 254,714 | 455,549 | (584,430) |
Fair value adjustment to unit-based compensation | 529 | 6,476 | (5,134) | 2,172 |
(Gain) loss on sale of real estate assets, net of related costs | 1,119 | 3,322 | 7,247 | (7,332) |
Deferred income tax expense (recoveries) applicable to | 3,577 | (4,096) | (32,345) | 100,108 |
Incremental leasing costs | 425 | 411 | 2,163 | 2,252 |
The Bow and 100 Wynford non-cash rental income and accretion adjustments | (9,880) | (9,223) | (38,572) | (29,166) |
FFO(1) | ||||
Straight-lining of contractual rent | (2,453) | (3,280) | (11,404) | (6,512) |
Rent amortization of tenant inducements | 1,130 | 1,209 | 4,514 | 4,691 |
Capital expenditures | (10,881) | (15,731) | (41,168) | (35,582) |
Leasing expenses and tenant inducements | (980) | (4,874) | (4,747) | (8,516) |
Incremental leasing costs | (425) | (411) | (2,163) | (2,252) |
AFFO adjustments from equity accounted investments | (1,364) | (2,304) | (5,212) | (5,676) |
AFFO(1) | ||||
Weighted average number of Units and exchangeable units (in thousands of Units)(2) | 279,842 | 283,859 | 281,815 | 290,782 |
FFO per basic and diluted Unit(3) | ||||
AFFO per basic and diluted Unit(3) | ||||
Cash Distributions per Unit | ||||
Payout ratio as a % of FFO(3) | 83.6 % | 60.6 % | 52.8 % | 50.3 % |
Payout ratio as a % of AFFO(3) | 102.0 % | 85.5 % | 63.0 % | 59.7 % |
(1) | These are non-GAAP measures defined in the "Non-GAAP Measures" section of this news release. |
(2) | For the three months and year ended |
(3) | These are non-GAAP ratios defined in the "Non-GAAP Measures" section of this news release. |
Additional information regarding H&R is available at www.hr-reit.com and on www.sedarplus.com
SOURCE
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