WINNIPEG, MB, Nov. 2, 2023
/CNW/ - Artis Real Estate Investment Trust ("Artis" or the "REIT")
(TSX: AX.UN) (TSX: AX.PR.E) (TSX: AX.PR.I) announced today its
financial results for the three and nine months ended September 30, 2023. The third quarter press
release should be read in conjunction with the REIT's consolidated
financial statements and Management's Discussion and Analysis
("MD&A") for the period ended September
30, 2023. All amounts are in thousands of Canadian
dollars, unless otherwise noted.
"We are pleased to report strong same property growth in
Canadian dollars of 6.0% for the three months ended September 30, 2023, compared to the same period
of 2022, and a 3.5% weighted-average increase in rental rates for
177,787 square feet of renewals that commenced during the
three-month period," said Samir
Manji, President and Chief Executive Officer of Artis.
"We continue to see the quality of our real estate reflected in the
interest and traction achieved on the disposition front to
date. During and subsequent to the third quarter, we closed
or went unconditional on dispositions for an aggregate sale price
of $112.7 million, including five
office properties totalling 493,820 square feet. Proceeds
from these transactions, along with additional dispositions
underway, will enable us to continue reducing our overall debt,
which is a key near-term priority for Artis. As at
September 30, 2023, we had purchased
the maximum number of common units allowable under the REIT's
normal course issuer bid. We believe that the current market
price of Artis's units does not reflect the fundamental intrinsic
value of the REIT and, as such, unit buybacks are viewed as a
compelling tool that effectively returns capital to unitholders
while concurrently enhancing value for our owners. With our
NCIB now fully utilized for 2023, the Board may consider additional
mechanisms that are available to the REIT for returning capital to
unitholders, including, subject to market and other conditions,
other unit repurchases. The Special Committee continues to
evaluate strategic alternatives to close the value gap between our
trading price and our IFRS net asset value of $15.26 per unit. As we continue to monetize
assets to pay down debt, our current distribution program remains
unchanged."
THIRD QUARTER HIGHLIGHTS
Business Strategy Update
- Artis's Board of Trustees ("the Board") established a Special
Committee (the "Special Committee") to initiate a strategic review
process to consider and evaluate strategic alternatives that may be
available to the REIT to unlock and maximize value for
unitholders.
- The Board announced that the Special Committee retained BMO
Nesbitt Burns Inc. to provide financial advisory services to the
REIT and Special Committee in connection with the strategic review
process.
- Disposed of one office property located in Canada for a sale price of $3.5 million.
- Utilized the normal course issuer bid ("NCIB") to purchase
1,698,736 common units at a weighted-average price of $6.92 and 147,200 preferred units at a
weighted-average price of $18.11. The
REIT has purchased the maximum number of common units allowed under
the applicable NCIB term.
Balance Sheet and Liquidity
- Repaid the Series D senior unsecured debentures upon maturity
in the amount of $250.0 million.
- Improved Total Debt to Adjusted EBITDA (1) to 8.0 at
September 30, 2023, compared to 8.3
at December 31, 2022.
Financial and Operational
- Same Property NOI (1) in Canadian dollars for the
third quarter of 2023 increased 6.0% compared to the third quarter
of 2022.
- Renewals totalling 177,787 square feet and new leases totalling
58,867 square feet commenced during the third quarter of 2023.
- Weighted-average rental rate on renewals that commenced during
the third quarter of 2023 increased 3.5%.
(1)
Represents a non-GAAP measure, ratio or other supplementary
financial measure. Refer to the Notice with Respect to
Non-GAAP & Supplementary Financial Measures
Disclosure.
BUSINESS STRATEGY UPDATE
Strategic Review Process
The Board established a Special Committee to initiate a
strategic review process to consider and evaluate strategic
alternatives that may be available to the REIT to unlock and
maximize value for unitholders.
The Board announced that the Special Committee retained BMO
Nesbitt Burns Inc. to provide financial advisory services to the
REIT and Special Committee in connection with the strategic review
process.
There can be no assurance that the strategic review process will
result in the REIT pursuing any transaction or that any alternative
transaction will be available to the REIT. Neither the Board
nor the Special Committee has set a timetable for completion of
this process and the REIT does not intend to disclose further
developments unless and until it determines that disclosure is
appropriate or necessary.
Strengthening the Balance Sheet
During the third quarter of 2023, the REIT continued unlocking
value through the monetization of certain assets and sold one
office property in Canada for a
sale price of $3.5 million. The sale
proceeds, net of costs of $0.2
million, were $3.3
million.
The REIT's NCIB program has remained active since the
announcement of the Business Transformation Plan. During the third
quarter of 2023, the REIT purchased 1,698,736 units at a
weighted-average price of $6.92
compared to NAV per unit of $15.26 at
September 30, 2023. The REIT
has purchased the maximum number of common units allowed under the
applicable NCIB term.
Driving Organic Growth
The REIT has a commercial and residential development project
underway. 300 Main is a 580,000 square foot building located
in Winnipeg, Manitoba. 300 Main is
a best-in-class amenity-rich apartment building with main floor
commercial space. Residential tenants began moving into the
building on July 1, 2023 and leasing
of the remaining apartment units is currently underway.
Focusing on Value Investing
At September 30, 2023, Artis
invested in equity securities with an aggregate fair value of
$133.8 million. This
includes equity securities of Dream Office Real Estate Investment
Trust and First Capital Real Estate Investment Trust.
BALANCE SHEET AND LIQUIDITY
The REIT's balance sheet metrics are as follows:
|
September
30,
|
|
December
31,
|
|
2023
|
|
2022
|
|
|
|
|
|
|
Total investment
properties
|
$
3,227,633
|
|
$
3,683,571
|
Unencumbered
assets
|
1,650,006
|
|
2,034,409
|
NAV per unit
(1)
|
15.26
|
|
17.38
|
Total Debt to GBV
(1)
|
49.4 %
|
|
48.5 %
|
Total Debt to Adjusted
EBITDA (1)
|
8.0
|
|
8.3
|
Adjusted EBITDA
interest coverage ratio (1)
|
2.10
|
|
2.98
|
Unencumbered assets to
unsecured debt (1)
|
1.67
|
|
1.54
|
(1) Represents a non-GAAP measure, ratio or other
supplementary financial measure. Refer to the Notice with
Respect to Non-GAAP & Supplementary Financial Measures
Disclosure.
At September 30, 2023, Artis had
$34.7 million of cash on hand and
$112.3 million available on its
revolving credit facilities.
Liquidity and capital resources may be impacted by financing
activities, portfolio acquisition, disposition and development
activities or debt repayments occurring subsequent to September 30, 2023.
FINANCIAL AND OPERATIONAL RESULTS
|
Three months
ended
September 30,
|
|
|
Nine months
ended
September 30,
|
|
$000's, except per
unit amounts
|
2023
|
|
2022
|
%
Change
|
|
2023
|
|
2022
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
80,412
|
|
$
94,114
|
(14.6) %
|
|
$
254,945
|
|
$
278,410
|
(8.4) %
|
Net operating
income
|
43,737
|
|
53,716
|
(18.6) %
|
|
138,665
|
|
157,603
|
(12.0) %
|
Net (loss)
income
|
(137,516)
|
|
(94,450)
|
45.6 %
|
|
(245,231)
|
|
123,007
|
(299.4) %
|
Total comprehensive
(loss) income
|
(109,017)
|
|
8,867
|
(1329.5) %
|
|
(248,129)
|
|
253,196
|
(198.0) %
|
Distributions per
common unit
|
0.15
|
|
0.15
|
— %
|
|
0.45
|
|
0.45
|
— %
|
|
|
|
|
|
|
|
|
|
|
FFO (1)
(2)
|
$
29,501
|
|
$
41,552
|
(29.0) %
|
|
$
93,264
|
|
$
128,499
|
(27.4) %
|
FFO per unit (1)
(2)
|
0.27
|
|
0.36
|
(25.0) %
|
|
0.82
|
|
1.08
|
(24.1) %
|
FFO payout ratio
(1)
|
55.6 %
|
|
41.7 %
|
13.9 %
|
|
54.9 %
|
|
41.7 %
|
13.2 %
|
|
|
|
|
|
|
|
|
|
|
AFFO (1)
(2)
|
$
16,640
|
|
$
28,505
|
(41.6) %
|
|
$
54,580
|
|
$
89,643
|
(39.1) %
|
AFFO per unit (1)
(2)
|
0.15
|
|
0.24
|
(37.5) %
|
|
0.48
|
|
0.75
|
(36.0) %
|
AFFO payout ratio
(1)
|
100.0 %
|
|
62.5 %
|
37.5 %
|
|
93.8 %
|
|
60.0 %
|
33.8 %
|
(1) Represents a non-GAAP measure, ratio or other
supplementary financial measure. Refer to the Notice with
Respect to Non-GAAP & Supplementary Financial Measures
Disclosure.
(2) The REIT also calculates FFO and
AFFO, adjusted for the impact of the realized gain (loss) on equity
securities. Refer to FFO and AFFO section of Artis's Q3-23
MD&A.
Artis reported portfolio occupancy of 89.9% at September 30, 2023, compared to 90.3% at
June 30, 2023. Weighted-average
rental rate on renewals that commenced during the third quarter of
2023 increased 3.5%.
Artis's portfolio has a stable lease expiry profile with 54.6%
of gross leasable area expiring in 2027 or later. Weighted-average
in-place rents for the total portfolio are $15.21 per square foot and are estimated to be
0.9% above market rents. Information about Artis's lease
expiry profile is as follows:
|
Current
vacancy
|
|
Monthly
tenants
|
|
2023
|
|
2024
|
|
2025
|
|
2026
|
|
2027
&
later
|
|
Total
portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expiring square
footage
|
10.1 %
|
|
0.2 %
|
|
4.8 %
|
|
8.8 %
|
|
9.5 %
|
|
12.0 %
|
|
54.6 %
|
|
100.0 %
|
In-place
rents
|
N/A
|
|
N/A
|
|
$ 17.60
|
|
$ 16.29
|
|
$ 16.59
|
|
$ 17.06
|
|
$ 14.17
|
|
$
15.21
|
Market rents
|
N/A
|
|
N/A
|
|
$ 17.58
|
|
$ 15.90
|
|
$ 16.49
|
|
$ 17.03
|
|
$ 14.04
|
|
$
15.07
|
UPCOMING WEBCAST AND CONFERENCE CALL
A conference call with management will be held on Friday, November 3, 2023, at 12:00 p.m. CT (1:00 p.m.
ET). In order to participate, please dial 1-416-764-8688 or
1-888-390-0546. You will be required to identify yourself and the
organization on whose behalf you are participating.
Alternatively, you may access the simultaneous webcast by
following the link from our website at
https://www.artisreit.com/investor-link/conference-calls/. Prior to
the webcast, you may follow the link to confirm you have the right
software and system requirements.
If you cannot participate on Friday,
November 3, 2023, a replay of the conference call will be
available by dialing 1-416-764-8677 or 1-888-390-0541 and entering
passcode 193966#. The replay will be available until Friday, November 10, 2023. The webcast will be
archived 24 hours after the end of the conference call and will be
accessible for 90 days.
CAUTIONARY STATEMENTS
This press release contains forward-looking statements within
the meaning of applicable Canadian securities laws. For this
purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements.
Without limiting the foregoing, the words "outlook", "objective",
"expects", "anticipates", "intends", "estimates", "projects",
"believes", "plans", "seeks", and similar expressions or variations
of such words and phrases suggesting future outcomes or events, or
which state that certain actions, events or results ''may'',
''would'', "should" or ''will'' occur or be achieved are intended
to identify forward-looking statements. Such forward-looking
information reflects management's current beliefs and is based on
information currently available to management.
Forward-looking statements are based on a number of factors and
assumptions which are subject to numerous risks and uncertainties,
which have been used to develop such statements, but which may
prove to be incorrect. Although Artis believes that the
expectations reflected in the forward-looking statements are
reasonable, it cannot guarantee future results, levels of activity,
performance or achievement since such expectations are inherently
subject to significant business, economic, competitive, political
and social uncertainties and contingencies. Assumptions have been
made regarding, among other things: the general stability of the
economic and political environment in which Artis operates,
treatment under governmental regulatory regimes, securities laws
and tax laws, the ability of Artis and its service providers to
obtain and retain qualified staff, equipment and services in a
timely and cost efficient manner, currency, exchange and interest
rates, global economic, financial markets and economic conditions
in Canada and the United States will not, in the long term,
be adversely impacted by the COVID-19 pandemic.
Artis is subject to significant risks and uncertainties which
may cause the actual results, performance or achievements of the
REIT to be materially different from any future results,
performance or achievements expressed or implied in these
forward-looking statements. Such risk factors include, but are not
limited to risk related to tax matters; credit, market, currency,
operational, liquidity and funding risks; the COVID-19 pandemic,
real property ownership, geographic concentration, current economic
conditions, strategic initiatives, debt financing, interest rate
fluctuations, foreign currency, tenants, SIFT rules, other
tax-related factors, illiquidity, competition, reliance on key
personnel, future property transactions, general uninsured losses,
dependence on information technology, cyber security, environmental
matters and climate change, land and air rights leases, public
markets, market price of common units, changes in legislation and
investment eligibility, availability of cash flow, fluctuations in
cash distributions, nature of units and legal rights attaching to
units, preferred units and debentures, dilution, unitholder
liability, failure to obtain additional financing, potential
conflicts of interest and risks and uncertainties regarding
strategic alternatives including the terms of their availability,
whether they will be available at all and the effects of their
implementation.
For more information on the risks, uncertainties and assumptions
that could cause Artis's actual results to materially differ from
current expectations, refer to the section entitled "Risk Factors"
of Artis's Annual Information Form for the year ended December 31, 2022, the section entitled "Risk and
Uncertainties" of Artis's Q3-23 MD&A, as well as Artis's other
public filings, available on SEDAR+ at www.sedarplus.ca.
Artis cannot assure investors that actual results will be
consistent with any forward-looking statements and Artis assumes no
obligation to update or revise such forward-looking statements to
reflect actual events or new circumstances other than as required
by applicable securities laws. All forward-looking statements
contained in this press release are qualified by this
cautionary statement.
NOTICE WITH RESPECT TO NON-GAAP & SUPPLEMENTARY FINANCIAL
MEASURES DISCLOSURE
In addition to reported IFRS measures, certain non-GAAP and
supplementary financial measures are commonly used by Canadian real
estate investment trusts as an indicator of financial performance.
"GAAP" means the generally accepted accounting principles described
by the CPA Canada Handbook - Accounting, which are applicable as at
the date on which any calculation using GAAP is to be made. Artis
applies IFRS, which is the section of GAAP applicable to publicly
accountable enterprises.
Non-GAAP measures and ratios include Same Property Net Operating
Income ("Same Property NOI"), Funds From Operations ("FFO"),
Adjusted Funds from Operations ("AFFO"), FFO per Unit, AFFO per
Unit, FFO Payout Ratio, AFFO Payout Ratio, NAV per Unit, Total Debt
to GBV, Adjusted EBITDA Interest Coverage Ratio and Total Debt to
Adjusted EBITDA.
Supplementary financial measures includes unencumbered assets to
unsecured debt.
Management believes that these measures are helpful to investors
because they are widely recognized measures of Artis's performance
and provide a relevant basis for comparison among real estate
entities.
These non-GAAP and supplementary financial measures are not
defined under IFRS and are not intended to represent financial
performance, financial position or cash flows for the period, nor
should any of these measures be viewed as an alternative to net
income, cash flow from operations or other measures of financial
performance calculated in accordance with IFRS.
The above measures are not standardized financial measures under
the financial reporting framework used to prepare the financial
statements of Artis. Readers should be further cautioned that
the above measures as calculated by Artis may not be comparable to
similar measures presented by other issuers. Refer to the Notice
With Respect to Non-GAAP & Supplementary Financial Measures
Disclosure of Artis's Q3-23 MD&A, which is incorporated by
reference herein, for further information (available on SEDAR+ at
www.sedarplus.ca or Artis's website at www.artisreit.com).
The reconciliation for each non-GAAP measure or ratio and other
supplementary financial measures included in this Press Release is
outlined below.
NAV per Unit
|
September 30,
2023
|
|
December 31,
2022
|
|
|
|
|
Unitholders'
equity
|
$ 1,857,660
|
|
$
2,229,159
|
Less face value of
preferred equity
|
(199,196)
|
|
(212,547)
|
|
|
|
|
NAV attributable to
common unitholders
|
1,658,464
|
|
2,016,612
|
|
|
|
|
Total number of
dilutive units outstanding:
|
|
|
|
Common
units
|
107,946,943
|
|
115,409,234
|
Restricted
units
|
484,368
|
|
440,617
|
Deferred
units
|
284,063
|
|
203,430
|
|
|
|
|
|
108,715,374
|
|
116,053,281
|
|
|
|
|
NAV per unit
|
$
15.26
|
|
$
17.38
|
Total Debt to GBV
|
September 30,
2023
|
|
December 31,
2022
|
|
|
|
|
Total assets
|
$
3,871,689
|
|
$ 4,553,913
|
Add: accumulated
depreciation
|
11,498
|
|
10,585
|
|
|
|
|
Gross book
value
|
3,883,187
|
|
4,564,498
|
|
|
|
|
Secured mortgages and
loans
|
901,342
|
|
864,698
|
Preferred shares
liability
|
948
|
|
950
|
Carrying value of
debentures
|
199,562
|
|
449,091
|
Credit
facilities
|
817,034
|
|
901,159
|
|
|
|
|
Total debt
|
$
1,918,886
|
|
$ 2,215,898
|
|
|
|
|
Total debt to
GBV
|
49.4 %
|
|
48.5 %
|
Unencumbered Assets to Unsecured Debt
|
September 30,
2023
|
|
December 31,
2022
|
|
|
|
|
Unencumbered
assets
|
$
1,650,006
|
|
$
2,034,409
|
Unencumbered assets in
properties held under joint venture arrangements
|
49,034
|
|
50,557
|
|
|
|
|
Total unencumbered
assets
|
1,699,040
|
|
2,084,966
|
|
|
|
|
Senior unsecured
debentures
|
199,562
|
|
449,091
|
Unsecured credit
facilities
|
817,034
|
|
901,159
|
|
|
|
|
Total unsecured
debt
|
$
1,016,596
|
|
$
1,350,250
|
|
|
|
|
Unencumbered assets to
unsecured debt
|
1.67
|
|
1.54
|
Adjusted EBITDA Interest Coverage Ratio
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(137,516)
|
|
$ (94,450)
|
|
$
(245,231)
|
|
$ 123,007
|
Add
(deduct):
|
|
|
|
|
|
|
|
Tenant
inducements amortized to revenue
|
6,026
|
|
6,269
|
|
18,418
|
|
19,104
|
Straight-line rent
adjustments
|
(714)
|
|
(424)
|
|
(2,045)
|
|
(955)
|
Depreciation of
property and equipment
|
314
|
|
314
|
|
915
|
|
942
|
Net loss (income) from
equity accounted investments
|
49,728
|
|
44,739
|
|
55,581
|
|
(102,855)
|
Distributions from
equity accounted investments
|
1,017
|
|
819
|
|
2,973
|
|
3,432
|
Interest
expense
|
29,095
|
|
24,464
|
|
89,060
|
|
60,424
|
Strategic review
expenses
|
179
|
|
—
|
|
179
|
|
—
|
Fair value loss on
investment properties
|
87,675
|
|
74,072
|
|
224,483
|
|
21,898
|
Fair value loss on
financial instruments
|
22,727
|
|
15,544
|
|
53,931
|
|
39,205
|
Foreign currency
translation loss (gain)
|
2,485
|
|
6,956
|
|
(3,052)
|
|
8,266
|
Income tax (recovery)
expense
|
(1,228)
|
|
(10,928)
|
|
(8,672)
|
|
20,249
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
59,788
|
|
67,375
|
|
186,540
|
|
192,717
|
|
|
|
|
|
|
|
|
Interest
expense
|
29,095
|
|
24,464
|
|
89,060
|
|
60,424
|
Add
(deduct):
|
|
|
|
|
|
|
|
Amortization of
financing costs
|
(865)
|
|
(862)
|
|
(2,604)
|
|
(2,390)
|
Amortization of above-
and below-market mortgages, net
|
230
|
|
225
|
|
694
|
|
662
|
|
|
|
|
|
|
|
|
Adjusted interest
expense
|
$
28,460
|
|
$
23,827
|
|
$
87,150
|
|
$
58,696
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
interest coverage ratio
|
2.10
|
|
2.83
|
|
2.14
|
|
3.28
|
Total Debt to Adjusted EBITDA
|
September 30,
2023
|
|
December 31,
2022
|
|
|
|
|
Secured mortgages and
loans
|
$
901,342
|
|
$
864,698
|
Preferred shares
liability
|
948
|
|
950
|
Carrying value of
debentures
|
199,562
|
|
449,091
|
Credit
facilities
|
817,034
|
|
901,159
|
|
|
|
|
Total debt
|
1,918,886
|
|
2,215,898
|
|
|
|
|
Quarterly Adjusted
EBITDA
|
59,788
|
|
66,812
|
Annualized Adjusted
EBITDA
|
239,152
|
|
267,248
|
|
|
|
|
Total Debt to Adjusted
EBITDA
|
8.0
|
|
8.3
|
Same Property NOI
|
Three months
ended
|
|
|
|
|
September
30,
|
|
|
%
Change
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
Net operating
income
|
$
43,737
|
|
$
53,716
|
|
|
|
Add (deduct) net
operating income from:
|
|
|
|
|
|
|
Joint venture
arrangements
|
3,295
|
|
2,474
|
|
|
|
Dispositions and
unconditional dispositions
|
278
|
|
(9,643)
|
|
|
|
(Re)development properties
|
(53)
|
|
(2,355)
|
|
|
|
Lease termination
income adjustments
|
(286)
|
|
(122)
|
|
|
|
Other
|
(17)
|
|
301
|
|
|
|
|
|
|
|
|
|
|
|
3,217
|
|
(9,345)
|
|
|
|
|
|
|
|
|
|
|
Straight-line rent
adjustments (1)
|
(952)
|
|
(840)
|
|
|
|
Tenant inducements
amortized to revenue (1)
|
6,116
|
|
5,653
|
|
|
|
|
|
|
|
|
|
|
Same Property
NOI
|
$
52,118
|
|
$
49,184
|
|
$
2,934
|
6.0 %
|
(1) Includes joint venture arrangements.
FFO and AFFO
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(137,516)
|
|
$ (94,450)
|
|
$
(245,231)
|
|
$ 123,007
|
Add
(deduct):
|
|
|
|
|
|
|
|
Tenant inducements
amortized to revenue
|
6,026
|
|
6,269
|
|
18,418
|
|
19,104
|
Incremental leasing
costs
|
524
|
|
662
|
|
1,818
|
|
2,327
|
Distributions on
preferred shares treated as interest expense
|
62
|
|
60
|
|
186
|
|
177
|
Remeasurement component
of unit-based compensation
|
(461)
|
|
(1,019)
|
|
(1,399)
|
|
(1,290)
|
Strategic review
expenses
|
179
|
|
—
|
|
179
|
|
—
|
Adjustments for equity
accounted investments
|
52,257
|
|
48,585
|
|
62,481
|
|
(91,351)
|
Fair value loss on
investment properties
|
87,675
|
|
74,072
|
|
224,483
|
|
21,898
|
Fair value loss on
financial instruments
|
22,727
|
|
15,544
|
|
53,931
|
|
39,205
|
Foreign currency
translation loss (gain)
|
2,485
|
|
6,956
|
|
(3,052)
|
|
8,266
|
Deferred income tax
(recovery) expense
|
(1,295)
|
|
(10,884)
|
|
(9,196)
|
|
19,935
|
Preferred unit
distributions
|
(3,162)
|
|
(4,243)
|
|
(9,354)
|
|
(12,779)
|
|
|
|
|
|
|
|
|
FFO
|
$
29,501
|
|
$
41,552
|
|
$
93,264
|
|
$ 128,499
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
Amortization of
recoverable capital expenditures
|
$
(1,790)
|
|
$
(2,012)
|
|
$
(5,418)
|
|
$
(5,787)
|
Straight-line rent
adjustments
|
(714)
|
|
(424)
|
|
(2,045)
|
|
(955)
|
Non-recoverable
property maintenance reserve
|
(550)
|
|
(1,100)
|
|
(1,800)
|
|
(3,300)
|
Leasing costs
reserve
|
(7,500)
|
|
(8,000)
|
|
(22,900)
|
|
(24,000)
|
Adjustments for equity
accounted investments
|
(2,307)
|
|
(1,511)
|
|
(6,521)
|
|
(4,814)
|
|
|
|
|
|
|
|
|
AFFO
|
$
16,640
|
|
$
28,505
|
|
$
54,580
|
|
$
89,643
|
FFO and AFFO Per Unit
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Basic units
|
109,216,628
|
|
115,787,788
|
|
112,422,202
|
|
118,657,925
|
Add:
|
|
|
|
|
|
|
|
Restricted
units
|
484,368
|
|
450,989
|
|
437,958
|
|
401,654
|
Deferred
units
|
283,317
|
|
180,881
|
|
260,554
|
|
167,358
|
|
|
|
|
|
|
|
|
Diluted
units
|
109,984,313
|
|
116,419,658
|
|
113,120,714
|
|
119,226,937
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
FFO per
unit:
|
|
|
|
|
|
|
|
Basic
|
$
0.27
|
|
$
0.36
|
|
$
0.83
|
|
$
1.08
|
Diluted
|
0.27
|
|
0.36
|
|
0.82
|
|
1.08
|
|
|
|
|
|
|
|
|
AFFO per
unit:
|
|
|
|
|
|
|
|
Basic
|
$
0.15
|
|
$
0.25
|
|
$
0.49
|
|
$
0.76
|
Diluted
|
0.15
|
|
0.24
|
|
0.48
|
|
0.75
|
FFO and AFFO Payout Ratios
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Distributions per
common unit
|
$
0.15
|
|
$
0.15
|
|
$
0.45
|
|
$
0.45
|
FFO per unit
|
0.27
|
|
0.36
|
|
0.82
|
|
1.08
|
|
|
|
|
|
|
|
|
FFO payout
ratio
|
55.6 %
|
|
41.7 %
|
|
54.9 %
|
|
41.7 %
|
|
|
|
|
|
|
|
|
Distributions per
common unit
|
$
0.15
|
|
$
0.15
|
|
$
0.45
|
|
$
0.45
|
AFFO per
unit
|
0.15
|
|
0.24
|
|
0.48
|
|
0.75
|
|
|
|
|
|
|
|
|
AFFO payout
ratio
|
100.0 %
|
|
62.5 %
|
|
93.8 %
|
|
60.0 %
|
ABOUT ARTIS REAL ESTATE INVESTMENT TRUST
Artis is a diversified Canadian real estate investment trust
with a portfolio of industrial, office and retail properties in
Canada and the United
States. Artis's vision is to build a best-in-class asset
management and investment platform focused on growing net asset
value per unit and distributions for investors through value
investing in real estate.
SOURCE Artis Real Estate Investment Trust