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Canadian Net REIT Announces Its Results for the Quarter and Year Ended December 31, 2021, and Q2 2022 Monthly Distributions – Press Releases


MONTRÉAL, March 23, 2022 (GLOBE NEWSWIRE) — (TSX-V: NET.UN) Canadian Net Real Estate Investment Trust (“Canadian Net” or the “Trust”) announces its results for the quarter and the year ended December 31st, 2021, and monthly distributions for the months of April, May and June 2022.

RESULTS

For the quarter ended December 31st, 2021, Canadian Net reported recurring funds from operations (“Recurring FFO”) per unit of $0.147 compared to $0.125 per unit for the quarter ended December 31st, 2020, an increase of 18%. Recurring FFO was $2,971,560, an increase of 50% relative to $1,977,869 in Q4 2020. The increase was primarily due to the impact of the newly acquired properties, partially offset by interest on mortgages associated with said properties.

During Q4 2021, the Trust’s property rental income was $4,932,753 compared to $3,690,482 in Q4 2020, an increase of 34%. Net Operating Income was $3,904,277 compared to $2,742,292 in Q4 2020, an increase of 42%. The increases were primarily due to the impact of the newly acquired properties.

Canadian Net recorded a net income attributable to unitholders of $7,453,246, or $0.369 per unit, compared to $847,652, or $0.054 per unit in Q4 2020. The positive variance was primarily due to the impact of NOI from newly acquired properties, partially offset by interest on mortgages associated with said properties, as well as the change in fair value of investment properties.

For the twelve-month period ended December 31st, 2021, Canadian Net reported Recurring FFO per unit of $0.582 compared to $0.487 per unit for the comparable period in 2020, an increase of 20%. Recurring FFO was $10,819,566, an increase of 52% relative to $7,117,442 for the same period in 2020. The increase was primarily due to the impact of the newly acquired properties, partially offset by interest on mortgages associated with said properties.

During the 12-month period ended December 31st, 2021, the Trust’s property rental income was $18,953,524 compared to $12,976,848 for the same period in 2020, an increase of 46%. Net operating Income was $14,321,735 compared to $9,869,068 for the same period in 2020, an increase of 45%. The increases were primarily due to the impact of the newly acquired properties.

Canadian Net recorded a net income attributable to unitholders of $25,090,167, or $1.351 per unit, compared to a net income of $9,621,177, or $0.658 per unit for the same period in 2020. The positive variance was primarily due to the impact of NOI from newly acquired properties, partially offset by interest on mortgages associated with said properties, as well as the change in fair value of investment properties.

DISTRIBUTIONS

Canadian Net announces that it will make monthly cash distributions of $0.0283 per unit, representing $0.34 per unit on an annualized basis, on April 29th, May 31st and June 30th, 2022, to unitholders of record on April 14th, May 13th and June 15th, 2022, respectively.

Jason Parravano, President and CEO says: “It is my pleasure to share with you our annual results for 2021. We once again grew the portfolio while staying focused on delivering per unit growth. 2021 was filled with many accomplishments, such as continued portfolio diversification, a successful equity raise and the announcement of our 11th consecutive distribution increase for 2022. We look forward to sharing our progress with you as we continue into 2022.”

The tables below represent other financial highlights as well as the reconciliation from net income to FFO for the periods ended December 31st, 2021, and its comparative period. This information should be read in conjunction with the Audited Consolidated Financial Statements and MD&A for the quarter ended December 31st, 2021 and Audited Consolidated Financial Statements and MD&A for the quarter ended December 31st, 2020.

SUMMARY OF SELECTED FINANCIAL INFORMATION

  12 months  
Periods ended December 31 2021 2020 Δ %
Financial info        
Property rental income 18,953,524 12,976,848 5,976,676 46 %
Total revenue 18,953,524 12,987,262 5,966,262 46 %
Net income and        
comprehensive income 25,090,167 9,621,177 15,468,990 161 %
NOI (1) 14,321,735 9,869,068 4,452,667 45 %
FFO (1) 10,791,751 7,127,856 3,663,895 51 %
Recurring FFO (1)(2) 10,819,566 7,117,442 3,702,124 52 %
AFFO (1) 10,033,624 6,562,370 3,471,254 53 %
EBITDA 29,646,790 12,641,196 17,005,594 135 %
Adjusted EBITDA (1) 14,946,751 9,918,347 5,028,404 51 %
Investment properties 252,947,654 185,991,100 66,956,554 36 %
Adjusted investment properties (3) 298,465,593 221,711,905 76,753,688 35 %
Total assets 278,165,686 209,705,999 68,459,687 33 %
Total mortgage/loans/long term debt (4) 133,405,859 107,652,001 25,753,858 24 %
(including revolving line of credit) 136,290,859 107,652,001 28,638,858 27 %
Total convertible debentures 8,416,510 8,134,379 282,131 3 %
Total equity 129,814,467 90,206,351 39,608,116 44 %
Weighted average units o/s – basic 18,575,569 14,628,913 3,946,656 27 %
Amounts on a per unit basis        
FFO 0.581 0.487 0.094 19 %
Recurring FFO 0.582 0.487 0.096 20 %
AFFO 0.540 0.449 0.092 20 %
Distributions 0.300 0.256 0.045 17 %
(1) See appropriate sections for reconciliation to the closest IFRS measure and section “Explanation of non-IFRS financial measures”
(2) Recurring FFO excludes ”Other revenues” as presented on the Consolidated Financial Statements
(3) Adjusted Investment Properties includes the Trust’s proportionate share of value of investment properties owned through joint ventures; Refer to Note 4 Properties) and Note 5 ([1] value of developed properties, [2] leased properties and [3] properties under development) in Canadian Net’s financial statements
(4) Excludes convertible debentures


RECONCILIATION OF NET INCOME TO FFO

  3 months     12 months  
Periods ended December 31 2021 2020 Δ   2021 2020 Δ
Net income attributable              
to unitholders 7,453,246   847,652   6,605,594     25,090,167   9,621,177   15,468,990  
Δ in value of investment properties (3,354,091 ) 1,951,657   (5,305,748 )   (13,356,401 ) (309,372 ) (13,047,029 )
Δ in value of investment              
properties in joint ventures (642,015 ) (513,351 ) (128,664 )   (1,258,966 ) (1,512,138 ) 253,172  
Unit based compensation 49   (912 ) 961     308,595   37,492   271,103  
Δ fair value adjustments on derivative              
financial instruments (564,707 ) (337,544 ) (227,163 )   (91,487 ) (939,825 ) 848,338  
Accretion of lease payments 7,383   6,991   392     28,936   27,405   1,531  
Income taxes 154,868   23,500   131,368     154,080   23,117   130,963  
Realized (gain) loss on sale of              
investment properties (57,674 )   (57,674 )   (57,674 ) 180,000   (237,674 )
Realized (gain) loss on sale of investment              
properties in joint ventures (25,499 )   (25,499 )   (25,499 )   (25,499 )
FFO(1) 2,971,560   1,977,993   50 %   10,791,751   7,127,856   51 %
FFO per unit 0.147   0.125   18 %   0.581   0.487   19 %
Other (revenues) expenses   (124 )     27,815   (10,414 ) 38,229  
Recurring FFO(1) 2,971,560   1,977,869   50 %   10,819,566   7,117,442   52 %
Recurring FFO per unit 0.147   0.125   18 %   0.582   0.487   20 %
Distributions 1,513,944   998,731   515,213     5,577,658   3,754,484   1,823,174  
Distributions per unit 0.075   0.064   17 %   0.300   0.256   17 %
FFO per unit – after distributions 0.072   0.061   18 %   0.281   0.232   21 %
Recurring FFO per unit – after distributions 0.072   0.061   18 %   0.282   0.231   22 %
Distributions per unit as a % of              
FFO per unit 51 % 51 %     52 % 52 %  
Recurring FFO per unit 51 % 51 %     52 % 53 % (1 %)
Weighted avg. units o/s              
Basic 20,193,078   15,794,450   4,398,628     18,575,569   14,628,913   3,946,656  
(1) See appropriate sections for reconciliation to the closest IFRS measure and section “Explanation of non-IFRS financial measures”


About Canadian Net –
Canadian Net Real Estate Investment Trust is an open-ended trust that acquires and owns high quality triple net and management-free commercial real estate properties.

Forward-Looking Statements – This press release contains forward-looking statements and information as defined by applicable securities laws. Canadian Net warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence to the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new IFRS standards, as well as other risks and factors described from time to time in the documents filed by Canadian Net with securities regulators, including the management report. Canadian Net does not update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.

Neither the TSX Venture Exchange Inc., nor its Regulatory Services Provider (as that term is defined in the Policy of the TSX Venture Exchange and its Regulatory Services Provide) accepts any responsibility for the adequacy or accuracy of this release.

The December 31st, 2021, financial statements and management discussion & analysis of Canadian Net may be viewed on SEDAR at www.sedar.com.

For further information please contact Jason Parravano at (450) 536-5328.



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