Allied Properties Real Estate Investment Trust ("Allied") (TSX:
"AP.UN") today announced results for its fourth quarter and year
ended December 31, 2022. “Allied’s operating performance in
2022 was strong,” said Michael Emory, President & CEO. “Our
AFFO per unit was up 4% from the prior year, underpinning our 11th
consecutive annual distribution increase and providing a take-off
point for our 2023 outlook of low-to-mid-single-digit growth in
same-asset NOI, FFO per unit and AFFO per unit.”
Financial Results
Allied’s fourth-quarter financial results were
in-line with its internal forecast and with external expectations.
FFO per unit was 61.8 cents, up 3.0% from the comparable quarter
last year and up 2.0% from the third quarter. AFFO per unit was
54.8 cents, up 5.8% from the comparable quarter last year and up
4.2% from the third quarter. NAV per unit at quarter-end was
$50.96, down slightly from the end of the third quarter due to
macroeconomic conditions.
As a result of the recent implementation of a
comprehensive sales process, the UDC segment is classified as a
discontinued operation and asset held for sale for the three months
and year ended December 31, 2022. It is classified as assets held
for sale on the consolidated balance sheets as at December 31,
2022, and the comparative period is not revised. It is classified
as a discontinued operation on the consolidated statements of
income and comprehensive income for the three months and years
ended December 31, 2022, and December 31, 2021.
The financial results are summarized below:
|
As at December 31 |
(In
thousands except for per unit and % amounts) |
2022 |
|
2021 |
|
Change |
% Change |
Investment
properties(1) |
$ |
9,669,005 |
|
|
$ |
9,527,105 |
|
|
$ |
141,900 |
|
1.5 |
% |
Unencumbered
investment
properties(2) |
$ |
8,345,530 |
|
|
$ |
9,064,010 |
|
|
$ |
(718,480 |
) |
(7.9 |
)% |
Total
Assets(1) |
$ |
11,906,350 |
|
|
$ |
10,384,691 |
|
|
$ |
1,521,659 |
|
14.7 |
% |
Cost of PUD as a % of
GBV(2) |
|
12.6 |
% |
|
|
11.2 |
% |
|
|
— |
|
1.4 |
% |
NAV per
unit(4) |
$ |
50.96 |
|
|
$ |
50.30 |
|
|
$ |
0.66 |
|
1.3 |
% |
Debt(1) |
$ |
4,211,185 |
|
|
$ |
3,453,284 |
|
|
$ |
757,901 |
|
21.9 |
% |
Total indebtedness
ratio(2) |
|
35.6 |
% |
|
|
33.5 |
% |
|
|
— |
|
2.1 |
% |
Annualized Adjusted
EBITDA(2) |
$ |
426,520 |
|
|
$ |
363,372 |
|
|
$ |
63,148 |
|
17.4 |
% |
Net debt as a multiple
of Annualized Adjusted
EBITDA(2) |
9.8x |
|
|
9.4x |
|
|
|
0.4x |
|
— |
|
Interest-coverage ratio including capitalized interest and
excluding financing prepayment
costs(2)(3) |
2.8x |
|
|
3.4x |
|
|
|
(0.6x) |
|
— |
|
|
For the three months ended December 31 |
(In
thousands except for per unit and % amounts) |
2022 |
|
2021 |
|
Change |
% Change |
Rental
Revenue(1)(5) |
$ |
135,924 |
|
|
$ |
122,534 |
|
|
$ |
13,390 |
|
10.9 |
% |
Net income and
comprehensive
income(1) |
$ |
41,392 |
|
|
$ |
159,921 |
|
|
$ |
(118,529 |
) |
(74.1 |
%) |
Net income
attributable to
Unitholders(1) |
$ |
39,223 |
|
|
$ |
159,921 |
|
|
$ |
(120,698 |
) |
(75.5 |
%) |
Net income
attributable to Unitholders per unit (basic and
diluted)(1) |
$ |
0.28 |
|
|
$ |
1.25 |
|
|
$ |
(0.97 |
) |
(77.6 |
%) |
Net income from
continuing
operations(1)(5) |
$ |
20,178 |
|
|
$ |
113,518 |
|
|
$ |
(93,340 |
) |
(82.2 |
%) |
Net income from
continuing operations attributable to
Unitholders(1)(5) |
$ |
18,009 |
|
|
$ |
113,518 |
|
|
$ |
(95,509 |
) |
(84.1 |
%) |
Net income from
continuing operations attributable to Unitholders per unit (basic
and
diluted)(1)(5) |
$ |
0.13 |
|
|
$ |
0.89 |
|
|
$ |
(0.76 |
) |
(85.4 |
%) |
Net income from
continuing operations excluding fair value adjustments, financing
prepayment costs and
impairment(2)(3)(5) |
$ |
60,814 |
|
|
$ |
50,672 |
|
|
$ |
10,142 |
|
20.0 |
% |
Adjusted
EBITDA(2) |
$ |
106,630 |
|
|
$ |
90,843 |
|
|
$ |
15,787 |
|
17.4 |
% |
Same asset NOI -
rental
portfolio(2)(5) |
$ |
67,326 |
|
|
$ |
68,499 |
|
|
$ |
(1,173 |
) |
(1.7 |
%) |
Same asset NOI -
rental portfolio and assets held for
sale(2) |
$ |
84,146 |
|
|
$ |
83,979 |
|
|
$ |
167 |
|
0.2 |
% |
Same Asset NOI - total
portfolio(2) |
$ |
88,186 |
|
|
$ |
86,669 |
|
|
$ |
1,517 |
|
1.8 |
% |
FFO(2) |
$ |
86,755 |
|
|
$ |
75,691 |
|
|
$ |
11,064 |
|
14.6 |
% |
FFO per unit
(diluted)(2) |
$ |
0.621 |
|
|
$ |
0.593 |
|
|
$ |
0.028 |
|
4.7 |
% |
FFO pay-out
ratio(2) |
|
70.5 |
% |
|
|
71.6 |
% |
|
|
— |
|
(1.1 |
)% |
All amounts below are
excluding condominium related items, financing prepayment costs and
the mark-to-market adjustment on unit-based
compensation(2)(3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO |
$ |
86,325 |
|
|
$ |
76,520 |
|
|
$ |
9,805 |
|
12.8 |
% |
FFO per unit (diluted) |
$ |
0.618 |
|
|
$ |
0.600 |
|
|
$ |
0.018 |
|
3.0 |
% |
FFO pay-out ratio |
|
70.8 |
% |
|
|
70.9 |
% |
|
|
— |
|
(0.1 |
%) |
AFFO |
$ |
76,553 |
|
|
$ |
66,076 |
|
|
$ |
10,477 |
|
15.9 |
% |
AFFO per unit (diluted) |
$ |
0.548 |
|
|
$ |
0.518 |
|
|
$ |
0.030 |
|
5.8 |
% |
AFFO pay-out ratio |
|
79.9 |
% |
|
|
82.1 |
% |
|
|
— |
|
(2.2 |
%) |
|
|
|
|
|
|
For the year ended December 31 |
(In
thousands except for per unit and % amounts) |
2022 |
|
2021 |
|
Change |
% Change |
Rental
Revenue(1)(5) |
$ |
519,468 |
|
|
$ |
472,799 |
|
|
$ |
46,669 |
|
9.9 |
% |
Net income and
comprehensive
income(1) |
$ |
375,363 |
|
|
$ |
443,151 |
|
|
$ |
(67,788 |
) |
(15.3 |
%) |
Net income
attributable to
Unitholders(1) |
$ |
368,855 |
|
|
$ |
443,151 |
|
|
$ |
(74,296 |
) |
(16.8 |
%) |
Net income
attributable to Unitholders per unit (basic and
diluted)(1) |
$ |
2.69 |
|
|
$ |
3.48 |
|
|
$ |
(0.79 |
) |
(22.7 |
%) |
Net income from
continuing
operations(1)(5) |
$ |
174,669 |
|
|
$ |
331,381 |
|
|
$ |
(156,712 |
) |
(47.3 |
%) |
Net income from
continuing operations attributable to
Unitholders(1)(5) |
$ |
168,161 |
|
|
$ |
331,381 |
|
|
$ |
(163,220 |
) |
(49.3 |
%) |
Net income from
continuing operations attributable to Unitholders per unit (basic
and
diluted)(1)(5) |
$ |
1.23 |
|
|
$ |
2.60 |
|
|
$ |
(1.37 |
) |
(52.7 |
%) |
Net income from
continuing operations excluding fair value adjustments, financing
prepayment costs and
impairment(2)(3)(5) |
$ |
225,118 |
|
|
$ |
206,419 |
|
|
$ |
18,699 |
|
9.1 |
% |
Adjusted
EBITDA(2) |
$ |
403,119 |
|
|
$ |
365,050 |
|
|
$ |
38,069 |
|
10.4 |
% |
Same asset NOI -
rental
portfolio(2)(5) |
$ |
268,443 |
|
|
$ |
270,441 |
|
|
$ |
(1,998 |
) |
(0.7 |
%) |
Same asset NOI -
rental portfolio and assets held for
sale(2) |
$ |
333,774 |
|
|
$ |
332,450 |
|
|
$ |
1,324 |
|
0.4 |
% |
Same Asset NOI - total
portfolio(2) |
$ |
342,496 |
|
|
$ |
341,964 |
|
|
$ |
532 |
|
0.2 |
% |
FFO(2) |
$ |
334,477 |
|
|
$ |
253,376 |
|
|
$ |
81,101 |
|
32.0 |
% |
FFO per unit
(diluted)(2) |
$ |
2.443 |
|
|
$ |
1.988 |
|
|
$ |
0.455 |
|
22.9 |
% |
FFO pay-out
ratio(2) |
|
71.6 |
% |
|
|
85.5 |
% |
|
|
— |
|
(13.9 |
%) |
All amounts below are
excluding condominium related items, financing prepayment costs and
the mark-to-market adjustment on unit-based
compensation(2)(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO |
$ |
333,392 |
|
|
$ |
306,559 |
|
|
$ |
26,833 |
|
8.8 |
% |
FFO per unit (diluted) |
$ |
2.435 |
|
|
$ |
2.405 |
|
|
$ |
0.030 |
|
1.2 |
% |
FFO pay-out ratio |
|
71.8 |
% |
|
|
70.6 |
% |
|
|
— |
|
1.2 |
% |
AFFO |
$ |
297,579 |
|
|
$ |
266,517 |
|
|
$ |
31,062 |
|
11.7 |
% |
AFFO per unit (diluted) |
$ |
2.174 |
|
|
$ |
2.091 |
|
|
$ |
0.083 |
|
4.0 |
% |
AFFO pay-out ratio |
|
80.4 |
% |
|
|
81.2 |
% |
|
|
— |
|
(0.8 |
%) |
(1) This measure is presented on an IFRS
basis.(2) This is a non-IFRS measure. These non-IFRS measures
include the results of the continuing operations and the
discontinued operations (except for unencumbered investment
properties, net income from continuing operations excluding fair
value adjustments, financing prepayments costs and impairment, and
same asset NOI - rental portfolio, which only include continuing
operations). Refer to the Non-IFRS Measures section below and on
page 21 of the Management's Discussion and Analysis of Results of
Operations and Financial Condition (the "MD&A") as at
December 31, 2022.(3) For the three months and year ended
December 31, 2022, Allied incurred $(564) and $(564),
respectively, (December 31, 2021 - $721 and $52,610,
respectively) of financing prepayment costs in connection with the
favourable refinancing of unsecured debentures and first mortgages.
(4) Net asset value per unit ("NAV per unit") is calculated as
follows: total equity as at the corresponding period ended, (per
the audited condensed consolidated balance sheets) divided by the
actual number of Units and class B limited partnership units of
Allied Properties Exchangeable Limited Partnership ("Exchangeable
LP Units") outstanding at period end.(5) For the three months and
years ended December 31, 2022, and December 31, 2021,
this metric includes only the results of the continuing
operations.
Leasing Results and
Highlights
For the year ended December 31, 2022,
Allied leased 57.9% of the GLA covered by expiring leases, with an
average increase in net rent per square foot of 5.6%. Combined with
new leasing activity, this gave rise to the lease metrics set out
in the table below:
|
For the year ended December 31 |
|
2022 |
|
2021 |
|
Change |
% Change |
Leased area(1) |
|
90.8 |
% |
|
|
90.4 |
% |
|
|
— |
|
0.4 |
% |
Occupied
area(1) |
|
89.6 |
% |
|
|
89.9 |
% |
|
|
— |
|
(0.3 |
%) |
Average in-place net
rent per occupied square foot(1) |
$ |
23.10 |
|
|
$ |
24.64 |
|
|
$ |
(1.54 |
) |
(6.3 |
)% |
Average in-place net rent per occupied square foot -
excluding UDC in both periods |
$ |
23.10 |
|
|
$ |
21.98 |
|
|
$ |
1.12 |
|
5.1 |
% |
(1) This metric excludes the assets held for
sale based on the assets held for sale classification at the end of
each period.
Given the scale of Allied’s rental portfolio,
upgrade activity is now constant in all markets, particularly
Montréal, Toronto and Vancouver. The goal of the upgrade activity
is to serve users better and boost net rent per occupied square
foot over time. At the end of the fourth quarter, Allied’s rental
portfolio was comprised of (i) 13,942,153 square feet of GLA in
buildings that are largely stabilized and (ii) 375,026 square feet
of GLA in buildings that are undergoing active upgrade. The
occupied area of the former was 90.2%, with leased area at 91.3%.
The occupied area of the latter was 67.8%, with leased area at
72.2%.
Commitment to the Balance Sheet
Allied has demonstrated an unwavering commitment
to the balance sheet from the outset. It utilized its balance-sheet
flexibility and leverage capacity over the past three years to fund
upgrade and development activity and to take advantage of in-fill
acquisition opportunities that would not have arisen in a stable
economic environment, pushing its debt metrics to the high end of
target ranges.
Having propelled the UDC portfolio materially
closer to the point of earnings and value optimization, Allied
recently concluded that selling it now is in its best interest,
operationally and financially. The principal motivation is
two-fold. First, Allied wants to reaffirm its mission and pursue it
over the next few years with low-cost capital. Second, Allied wants
to supercharge its balance sheet and reduce its dependence on the
capital markets going forward.
The UDC portfolio was connected to Allied's
mission from the beginning, but it is not core to its mission in
the way urban workspace is. As a stabilized asset in a currently
favoured sector, the portfolio represents a promising and timely
monetization opportunity, one that could enable Allied to grow its
business going forward in the most flexible and prudent manner.
Allied plans to use a significant portion of the
sale proceeds to retire debt and the balance to fund current
development activity. Allied may elect to use a portion of the sale
proceeds to buy back units under its NCIB. Allied does not expect
to use any of the proceeds to fund acquisitions, nor does it expect
to engage in material acquisition activity in 2023.
Outlook
Allied’s internal forecast for 2023 calls for
low-to-mid-single-digit percentage growth in each of same asset
NOI, FFO per unit and AFFO per unit. Allied does not forecast NAV
per unit growth in any given time period.
Allied continues to have deep confidence in, and
commitment to, its strategy of consolidating and intensifying
distinctive urban workspace in Canada’s major cities. Allied firmly
believes that its strategy is underpinned by the most important
secular trends in Canadian and global real estate. Allied also
firmly believes that it has the properties, the financial strength,
the people and the platform necessary to execute its strategy for
the ongoing benefit of its Unitholders and other constituents.
Non-IFRS MeasuresManagement
uses financial measures based on International Financial Reporting
Standards ("IFRS") and non-IFRS measures to assess Allied's
performance. Non-IFRS measures do not have any standardized meaning
prescribed under IFRS, and therefore, should not be construed as
alternatives to net income or cash flow from operating activities
calculated in accordance with IFRS. Refer to the Non-IFRS Measures
section on page 21 of the MD&A as at December 31, 2022,
available on www.sedar.com, for an explanation of the composition
of the non-IFRS measures used in this press release and their
usefulness for readers in assessing Allied's performance. Such
explanation is incorporated by reference herein.
Reconciliations of Non-IFRS
Measures
The following tables reconcile the non-IFRS
measures to the most comparable IFRS measures for the three months
and year ended December 31, 2022 and the comparable periods in
2021. These terms do not have any standardized meaning prescribed
under IFRS and may not be comparable to similarly titled measures
presented by other publicly traded entities.
Adjusted Earnings Before Interest,
Taxes, Depreciation and Amortization ("Adjusted
EBITDA")The following table reconciles Allied's net income
and comprehensive income to Adjusted EBITDA, a non-IFRS measure,
for the three months and years ended December 31, 2022 and
December 31, 2021.
|
Three months ended |
|
Year ended |
|
December 31, 2022 |
|
December 31, 2021 |
|
|
December 31, 2022 |
|
December 31, 2021 |
|
Net income and comprehensive income for the period |
$ |
41,392 |
|
$ |
159,921 |
|
|
$ |
375,363 |
|
$ |
443,151 |
|
Interest expense(1) |
|
22,500 |
|
|
17,454 |
|
|
|
79,334 |
|
|
120,351 |
|
Amortization of other
assets |
|
385 |
|
|
273 |
|
|
|
1,325 |
|
|
1,167 |
|
Amortization of improvement
allowances |
|
8,279 |
|
|
8,259 |
|
|
|
32,915 |
|
|
32,424 |
|
Impairment of residential
inventory |
|
— |
|
|
— |
|
|
|
15,729 |
|
|
— |
|
Fair value loss (gain) on
investment properties and investment properties held for
sale(2) |
|
35,862 |
|
|
(95,070 |
) |
|
|
(63,081 |
) |
|
(215,693 |
) |
Fair value gain on derivative
instruments |
|
(1,733 |
) |
|
6 |
|
|
|
(37,343 |
) |
|
(16,350 |
) |
Mark-to-market adjustment on unit-based compensation |
|
(55 |
) |
|
— |
|
|
|
(1,123 |
) |
|
— |
|
Adjusted EBITDA(3) |
$ |
106,630 |
|
$ |
90,843 |
|
|
$ |
403,119 |
|
$ |
365,050 |
|
(1) Includes Allied's proportionate share of the
equity accounted investment's interest expense of $nil and $nil for
the three months and year ended December 31, 2022,
respectively (December 31, 2021 - $16 and $206,
respectively).(2) Includes Allied's proportionate share of the
equity accounted investment's fair value gain on investment
properties of $693 and fair value loss of $6,101 for the three
months and year ended December 31, 2022, respectively
(December 31, 2021 - fair value loss on investment properties
of $1,134 and $1,864, respectively).(3) Includes the Urban Data
Centre segment which was classified as a discontinued operation in
Q4 2022.
Net income from continuing operations excluding fair
value adjustments, financing prepayment costs and
impairment
The following table reconciles Allied's net
income and comprehensive income to net income from continuing
operations excluding fair value adjustments, financing prepayment
costs and impairment, a non-IFRS measure, for the three months and
years ended December 31, 2022, and December 31, 2021.
|
Three months ended |
|
Year ended |
|
December 31, 2022 |
|
December 31, 2021 |
|
|
December 31, 2022 |
|
December 31, 2021 |
|
Net income and comprehensive income from continuing
operations(1) |
$ |
20,178 |
|
$ |
113,518 |
|
|
$ |
174,669 |
|
$ |
331,381 |
|
Fair value loss (gain) on
investment properties and investment properties held for sale |
|
42,988 |
|
|
(63,573 |
) |
|
|
73,750 |
|
|
(161,222 |
) |
Fair value (gain) loss on
derivative instruments |
|
(1,733 |
) |
|
6 |
|
|
|
(37,343 |
) |
|
(16,350 |
) |
Mark-to-market adjustment on
unit-based compensation |
|
(55 |
) |
|
— |
|
|
|
(1,123 |
) |
|
— |
|
Financing prepayment
costs |
|
(564 |
) |
|
721 |
|
|
|
(564 |
) |
|
52,610 |
|
Impairment of residential inventory |
|
— |
|
|
— |
|
|
|
15,729 |
|
|
— |
|
Net income from continuing operations excluding fair value
adjustments, financing prepayment costs and
impairment(1) |
$ |
60,814 |
|
$ |
50,672 |
|
|
$ |
225,118 |
|
$ |
206,419 |
|
(1) This excludes the Urban Data Centre segment
which was classified as a discontinued operation in Q4 2022. The
prior period comparative figures have been revised accordingly.
Same Asset NOI
Same asset NOI, a non-IFRS measure, is measured
as the net operating income for the properties that Allied owned
and operated for the entire duration of both the current and
comparative period. Same asset NOI of the assets held for sale for
the three months and year ended December 31, 2022, consists of
five investment properties.
|
Three months ended |
|
Change |
|
December 31, 2022 |
|
December 31, 2021 |
|
$ |
% |
Rental Portfolio - Same Asset NOI |
$ |
67,326 |
|
$ |
68,499 |
|
$ |
(1,173 |
) |
(1.7 |
)% |
Assets
Held for Sale - Same Asset NOI |
|
16,820 |
|
|
15,480 |
|
$ |
1,340 |
|
8.7 |
% |
Rental Portfolio and Assets Held for Sale - Same Asset
NOI |
$ |
84,146 |
|
$ |
83,979 |
|
$ |
167 |
|
0.2 |
% |
Development Portfolio - Same Asset NOI |
|
4,040 |
|
|
2,690 |
|
$ |
1,350 |
|
50.2 |
% |
Total Portfolio - Same Asset NOI |
$ |
88,186 |
|
$ |
86,669 |
|
$ |
1,517 |
|
1.8 |
% |
Acquisitions |
|
9,415 |
|
|
247 |
|
|
9,168 |
|
|
Dispositions |
|
(5 |
) |
|
393 |
|
|
(398 |
) |
|
Lease terminations |
|
741 |
|
|
268 |
|
|
473 |
|
|
Development fees and corporate items |
|
2,064 |
|
|
2,661 |
|
|
(597 |
) |
|
Total NOI |
$ |
100,401 |
|
$ |
90,238 |
|
$ |
10,163 |
|
11.3 |
% |
|
Year ended |
|
Change |
|
December 31,2022 |
December 31,2021 |
|
$ |
|
% |
Rental Portfolio - Same Asset NOI |
$ |
268,443 |
$ |
270,441 |
|
$ |
(1,998 |
) |
(0.7 |
)% |
Assets
Held for Sale - Same Asset NOI |
|
65,331 |
|
62,009 |
|
$ |
3,322 |
|
5.4 |
% |
Rental Portfolio and Assets Held for Sale - Same Asset
NOI |
$ |
333,774 |
$ |
332,450 |
|
$ |
1,324 |
|
0.4 |
% |
Development Portfolio - Same Asset NOI |
|
8,722 |
|
9,514 |
|
$ |
(792 |
) |
(8.3 |
)% |
Total Portfolio - Same Asset NOI |
$ |
342,496 |
$ |
341,964 |
|
$ |
532 |
|
0.2 |
% |
Acquisitions |
|
33,420 |
|
2,366 |
|
|
31,054 |
|
|
Dispositions |
|
1,319 |
|
1,548 |
|
|
(229 |
) |
|
Lease terminations |
|
1,094 |
|
1,281 |
|
|
(187 |
) |
|
Development fees and corporate items |
|
9,581 |
|
11,560 |
|
|
(1,979 |
) |
|
Total NOI |
$ |
387,910 |
$ |
358,719 |
|
$ |
29,191 |
|
8.1 |
% |
Funds from operations ("FFO") and
Adjusted funds from operations ("AFFO")The following
tables reconcile Allied's net income to FFO, FFO excluding
condominium related items, financing prepayment costs and the
mark-to-market adjustment on unit-based compensation, AFFO, and
AFFO excluding condominium related items, financing prepayment
costs and the mark-to-market adjustment on unit-based compensation,
which are non-IFRS measures, for the three months and year ended
December 31, 2022 and December 31, 2021.
|
Three months ended |
|
December 31, 2022 |
|
|
December 31, 2021 |
|
|
Change |
Net income and comprehensive income from continuing operations |
$ |
20,178 |
|
|
$ |
113,518 |
|
|
$ |
(93,340 |
) |
Net income and comprehensive
income from discontinued operations |
|
21,214 |
|
|
|
46,403 |
|
|
|
(25,189 |
) |
Adjustment to fair value of
investment properties and investment properties held for sale |
|
36,555 |
|
|
|
(96,204 |
) |
|
|
132,759 |
|
Adjustment to fair value of
derivative instruments |
|
(1,733 |
) |
|
|
6 |
|
|
|
(1,739 |
) |
Incremental leasing costs |
|
2,479 |
|
|
|
2,249 |
|
|
|
230 |
|
Amortization of improvement
allowances |
|
8,115 |
|
|
|
8,129 |
|
|
|
(14 |
) |
Amortization of property,
plant and equipment(1) |
|
99 |
|
|
|
— |
|
|
|
99 |
|
Adjustments relating to joint
venture: |
|
|
|
Adjustment to fair value on investment properties |
|
(693 |
) |
|
|
1,134 |
|
|
|
(1,827 |
) |
Amortization of improvement allowances |
|
164 |
|
|
|
130 |
|
|
|
34 |
|
Interest expense(2) |
|
377 |
|
|
|
326 |
|
|
|
51 |
|
FFO |
$ |
86,755 |
|
|
$ |
75,691 |
|
|
$ |
11,064 |
|
Condominium marketing
costs |
|
189 |
|
|
|
108 |
|
|
|
81 |
|
Financing prepayment
costs |
|
(564 |
) |
|
|
721 |
|
|
|
(1,285 |
) |
Mark-to-market adjustment on unit-based compensation |
|
(55 |
) |
|
|
— |
|
|
|
(55 |
) |
FFO excluding condominium related items, financing
prepayment costs and the mark-to-market adjustment on unit-based
compensation |
$ |
86,325 |
|
|
$ |
76,520 |
|
|
$ |
9,805 |
|
Amortization of straight-line
rents |
|
(2,807 |
) |
|
|
(902 |
) |
|
|
(1,905 |
) |
Regular leasing
expenditures |
|
(2,855 |
) |
|
|
(3,253 |
) |
|
|
398 |
|
Regular maintenance capital
expenditures |
|
(354 |
) |
|
|
(1,566 |
) |
|
|
1,212 |
|
Incremental leasing costs
(related to regular leasing expenditures) |
|
(1,736 |
) |
|
|
(1,574 |
) |
|
|
(162 |
) |
Recoverable maintenance
capital expenditures |
|
(1,995 |
) |
|
|
(2,910 |
) |
|
|
915 |
|
Adjustment relating to joint
venture: |
|
|
|
Amortization of straight-line rents |
|
(25 |
) |
|
|
(239 |
) |
|
|
214 |
|
AFFO excluding condominium related items, financing
prepayment costs and the mark-to-market adjustment on unit-based
compensation |
$ |
76,553 |
|
|
$ |
66,076 |
|
|
$ |
10,477 |
|
|
|
|
|
Weighted average number of
units(3) |
|
|
|
Basic |
|
139,765,128 |
|
|
|
127,441,142 |
|
|
|
12,323,986 |
|
Diluted |
|
139,765,128 |
|
|
|
127,611,273 |
|
|
|
12,153,855 |
|
|
|
|
|
Per unit - basic |
|
|
|
FFO |
$ |
0.621 |
|
|
$ |
0.594 |
|
|
$ |
0.027 |
|
FFO excluding condominium
related items, financing prepayment costs and the mark-to-market
adjustment on unit-based compensation |
$ |
0.618 |
|
|
$ |
0.600 |
|
|
$ |
0.018 |
|
AFFO excluding condominium
related items, financing prepayment costs and the mark-to-market
adjustment on unit-based compensation |
$ |
0.548 |
|
|
$ |
0.518 |
|
|
$ |
0.030 |
|
|
|
|
|
Per unit - diluted |
|
|
|
FFO |
$ |
0.621 |
|
|
$ |
0.593 |
|
|
$ |
0.028 |
|
FFO excluding condominium
related items, financing prepayment costs and the mark-to-market
adjustment on unit-based compensation |
$ |
0.618 |
|
|
$ |
0.600 |
|
|
$ |
0.018 |
|
AFFO excluding condominium
related items, financing prepayment costs and the mark-to-market
adjustment on unit-based compensation |
$ |
0.548 |
|
|
$ |
0.518 |
|
|
$ |
0.030 |
|
|
|
|
|
Pay-out Ratio |
|
|
|
FFO |
|
70.5 |
% |
|
|
71.6 |
% |
|
|
(1.1 |
%) |
FFO excluding condominium
related items, financing prepayment costs and the mark-to-market
adjustment on unit-based compensation |
|
70.8 |
% |
|
|
70.9 |
% |
|
|
(0.1 |
%) |
AFFO
excluding condominium related items, financing prepayment costs and
the mark-to-market adjustment on unit-based compensation |
|
79.9 |
% |
|
|
82.1 |
% |
|
|
(2.2 |
%) |
|
Year ended |
|
December 31, 2022 |
|
|
December 31, 2021 |
|
|
Change |
Net income and comprehensive income from continuing operations |
$ |
174,669 |
|
|
$ |
331,381 |
|
|
$ |
(156,712 |
) |
Net income and comprehensive
income from discontinued operations |
|
200,694 |
|
|
|
111,770 |
|
|
|
88,924 |
|
Adjustment to fair value of
investment properties and investment properties held for sale |
|
(69,182 |
) |
|
|
(217,557 |
) |
|
|
148,375 |
|
Adjustment to fair value of
derivative instruments |
|
(37,343 |
) |
|
|
(16,350 |
) |
|
|
(20,993 |
) |
Impairment of residential
inventory |
|
15,729 |
|
|
|
— |
|
|
|
15,729 |
|
Incremental leasing costs |
|
9,281 |
|
|
|
8,038 |
|
|
|
1,243 |
|
Amortization of improvement
allowances |
|
32,302 |
|
|
|
32,305 |
|
|
|
(3 |
) |
Amortization of property,
plant and equipment(1) |
|
224 |
|
|
|
— |
|
|
|
224 |
|
Adjustments relating to joint
venture: |
|
|
|
Adjustment to fair value on investment properties |
|
6,101 |
|
|
|
1,864 |
|
|
|
4,237 |
|
Amortization of improvement allowances |
|
613 |
|
|
|
119 |
|
|
|
494 |
|
Interest expense(2) |
|
1,389 |
|
|
|
1,806 |
|
|
|
(417 |
) |
FFO |
$ |
334,477 |
|
|
$ |
253,376 |
|
|
$ |
81,101 |
|
Condominium marketing
costs |
|
602 |
|
|
|
573 |
|
|
|
29 |
|
Financing prepayment
costs |
|
(564 |
) |
|
|
52,610 |
|
|
|
(53,174 |
) |
Mark-to-market adjustment on unit-based compensation |
|
(1,123 |
) |
|
|
— |
|
|
|
(1,123 |
) |
FFO excluding condominium related items, financing prepayment costs
and the mark-to-market adjustment on unit-based compensation |
$ |
333,392 |
|
|
$ |
306,559 |
|
|
$ |
26,833 |
|
Amortization of straight-line
rents |
|
(6,825 |
) |
|
|
(3,682 |
) |
|
|
(3,143 |
) |
Regular leasing
expenditures |
|
(13,956 |
) |
|
|
(17,177 |
) |
|
|
3,221 |
|
Regular maintenance capital
expenditures |
|
(1,979 |
) |
|
|
(4,327 |
) |
|
|
2,348 |
|
Incremental leasing costs
(related to regular leasing expenditures) |
|
(6,497 |
) |
|
|
(5,626 |
) |
|
|
(871 |
) |
Recoverable maintenance
capital expenditures |
|
(5,947 |
) |
|
|
(8,183 |
) |
|
|
2,236 |
|
Adjustment relating to joint
venture: |
|
|
|
Amortization of straight-line rents |
|
(609 |
) |
|
|
(1,047 |
) |
|
|
438 |
|
AFFO excluding condominium related items, financing prepayment
costs and the mark-to-market adjustment on unit-based
compensation |
$ |
297,579 |
|
|
$ |
266,517 |
|
|
$ |
31,062 |
|
|
|
|
|
Weighted average number of
units(3) |
|
|
|
Basic |
|
136,880,675 |
|
|
|
127,305,384 |
|
|
|
9,575,291 |
|
Diluted |
|
136,904,082 |
|
|
|
127,455,829 |
|
|
|
9,448,253 |
|
|
|
|
|
Per unit - basic |
|
|
|
FFO |
$ |
2.444 |
|
|
$ |
1.990 |
|
|
$ |
0.454 |
|
FFO excluding condominium
related items, financing prepayment costs and the mark-to-market
adjustment on unit-based compensation |
$ |
2.436 |
|
|
$ |
2.408 |
|
|
$ |
0.028 |
|
AFFO excluding condominium
related items, financing prepayment costs and the mark-to-market
adjustment on unit-based compensation |
$ |
2.174 |
|
|
$ |
2.094 |
|
|
$ |
0.080 |
|
|
|
|
|
Per unit - diluted |
|
|
|
FFO |
$ |
2.443 |
|
|
$ |
1.988 |
|
|
$ |
0.455 |
|
FFO excluding condominium
related items, financing prepayment costs and the mark-to-market
adjustment on unit-based compensation |
$ |
2.435 |
|
|
$ |
2.405 |
|
|
$ |
0.030 |
|
AFFO excluding condominium
related items, financing prepayment costs and the mark-to-market
adjustment on unit-based compensation |
$ |
2.174 |
|
|
$ |
2.091 |
|
|
$ |
0.083 |
|
|
|
|
|
Pay-out Ratio |
|
|
|
FFO |
|
71.6 |
% |
|
|
85.5 |
% |
|
|
(13.9 |
%) |
FFO excluding condominium
related items, financing prepayment costs and the mark-to-market
adjustment on unit-based compensation |
|
71.8 |
% |
|
|
70.6 |
% |
|
|
1.2 |
% |
AFFO
excluding condominium related items, financing prepayment costs and
the mark-to-market adjustment on unit-based compensation |
|
80.4 |
% |
|
|
81.2 |
% |
|
|
(0.8 |
%) |
(1) Property, plant and equipment relates to owner-occupied
property.(2) This amount represents interest expense on Allied's
joint venture investment in TELUS Sky and is not capitalized under
IFRS, but is allowed as an adjustment under REALPAC's definition of
FFO. (3) The weighted average number of units includes Units and
Exchangeable LP Units. The Exchangeable LP Units are classified as
equity in the audited consolidated financial statements as
non-controlling interests.
Cautionary Statements
This press release may contain forward-looking
statements with respect to Allied, its operations, strategy,
financial performance and condition and the expected impact of the
global pandemic and consequent economic disruption. These
statements generally can be identified by use of forward-looking
words such as "forecast", “may”, “will”, “expect”, “estimate”,
“anticipate”, “intends”, “believe” or “continue” or the negative
thereof or similar variations. Allied’s actual results and
performance discussed herein could differ materially from those
expressed or implied by such statements. Such statements are
qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations, including the effect of the global
pandemic and consequent economic disruption. Important factors that
could cause actual results to differ materially from expectations
include, among other things, general economic and market factors,
competition, changes in government regulations and the factors
described under “Risk Factors” in Allied’s Annual Information Form
which is available at www.sedar.com. The cautionary statements
qualify all forward-looking statements attributable to Allied and
persons acting on its behalf. Unless otherwise stated, all
forward-looking statements speak only as of the date of this press
release, and Allied has no obligation to update such
statements.
About Allied
Allied is a leading operator of distinctive
urban workspace in Canada’s major cities and network-dense UDC
space in Toronto. Allied’s mission is to provide knowledge-based
organizations with workspace that is sustainable and conducive to
human wellness, creativity, connectivity and diversity. Allied’s
vision is to make a continuous contribution to cities and culture
that elevates and inspires the humanity in all people.
FOR FURTHER INFORMATION, PLEASE
CONTACT:
Michael EmoryPresident & Chief Executive Officer(416)
977-0643memory@alliedreit.com
Tom BurnsExecutive Vice President & Chief Operating
Officer(416) 977-9002tburns@alliedreit.com
Cecilia WilliamsExecutive Vice President & Chief Financial
Officer(416) 977-9002cwilliams@alliedreit.com
Allied Properties Real E... (TSX:AP.UN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Allied Properties Real E... (TSX:AP.UN)
Historical Stock Chart
From Apr 2023 to Apr 2024