Boardwalk Real Estate: First Quarter Results Snapshot
Nexus REIT Reports First Quarter 2021 Results
TORONTO and MONTREAL, May 13, 2021 (GLOBE NEWSWIRE) – Nexus Real Estate Investment Trust (the “REIT”) (TSX: NXR.UN) today announced its results for the quarter ended March 31, 2021. Highlights Interest rates 94% occupancy as of March 31, 2021 has fallen from 93% as of December 31, 2020 and has remained constant from Q1 2020. Rent collections continue to be strong despite challenges from COVID-19. a 1 for 4 consolidation of outstanding units. Comparative figures have been restated to reflect consolidation. Completed $ 14 million acquisition of two industrial properties in Edmonton, Alta. On March 1, 2021 Closed bought deal offering of $ 34.9 million on March 4, 2021 with 4,255,000 REIT units issued (the “Offer”), including 555,000 units issued as part of a fully exercised overuse. Additional units outstanding as a result of the Offering will adversely affect the unit metrics and AFFO payout ratio of the REIT until the proceeds of the Offering are fully deployed to acquire industrial properties. Q1 2021 of $ 10,565,713, up $ 792,078 or 8.1% over Q1 2020 Net operating income of $ 9,773,635 and $ 867,412 or 8.9% over net operating income Q4 2020 of $ 9,698,301 Q1 2021 same property of $ 9,501,869 increased by $ 19,044 or 0.2% compared to Q1 2020 same property of $ 9,482,825 Q1 2021 normalized FFO per unit of $ 0.203, compared to $ 0.219 for the first quarter of 2020 and $ 0.206 for the fourth quarter of 2020 Q1 2021 AFFO normalized per unit of $ 0.183, compared to $ 0.197 for the first quarter of 2020 and $ 0.185 for the fourth quarter of 2020 Normalized AFFO for the first quarter of 2021 of 87.7%, con tre 81.3% for the first quarter of 2020 and 86.1% for the fourth quarter of 2020. End of the first quarter of 2021 with $ 52 million in liquidity and full availability of a credit facility of $ 5 million; debt to total assets of 45.8% compared to 48.2% as at December 31, 2020 Accounting NAV per unit, including Class B LP units, of $ 10.09 as at March 31, 2021 compared to 10 , $ 16 as of December 31, 2020 and $ 9.80 as of March 31, 2020 Acquisition of six industrial properties in London, Ontario for $ 103.5 million on April 1, 2021. $ 144.9 million of industrial properties totaling 1.1 million square feet of gross leasable area under contract. Upon closing of the announced transactions, more than 70% of the REIT’s ROI will be generated by its industrial portfolio. Management of the REIT will hold a conference call on Friday, May 14 at 1:00 p.m. EST to review results and transactions. “The first quarter saw the REIT move to TSX as well as our successful fundraising of $ 35 million, which will allow us to acquire a number of industrial properties,” commented Kelly Hanczyk, Chief Executive Officer. management of the REIT. “We are putting our equity to work and have announced that we have entered into agreements to buy and sell industrial assets totaling approximately $ 144.9 million. Upon closing of these transactions, our industry weighting will have increased to over 70% of our NOI. We have additional deals that we are currently working on and the remainder of the year will see a further shift in our portfolio weighting to industry. During the quarter, we completed a $ 14 million acquisition in Edmonton, Alberta, with $ 7 million of the satisfied purchase price in units. On April 1, we completed a $ 103.5 million acquisition in London, Ontario with $ 65.6 million of the purchase price satisfied in units. One of the buy and sell contracts we recently entered into is with the portfolio sellers in London, Ontario, and we are very happy to see that this relationship gives us access to yet another non-industrial acquisition opportunity. marketed. This relationship has the potential to provide a very important pipeline of acquisition opportunities for the REIT. Summary of Results The tables that follow and elsewhere in this press release contain non-IFRS measures which should not be construed as an alternative to net profit / loss, cash from operations or other measures. of financial performance calculated in accordance with IFRS and may not be comparable to similar measures as presented by other issuers. Readers are encouraged to consult the REIT’s MD&A for a more in-depth discussion of the non-IFRS measures presented. Three months ended March 31, 20212020 Financial results $$ Real estate income16,587,72415,592,759 Net operating income (NOI) 10,565,7139,773,635 Net income10,207,77313,671,000 Three months ended March 31, 20212020 Financial highlights $$ Funds from operations (FFO) (1) 6,684,0536,283,632 Normalized FFO (1) (2) 7,321,3796,893,562 Adjusted funds from operations (AFFO) (1) 5,953,5965,590,259 Normalized AFFO (1) (2 ) 6,590,9226,200,189 Net operating income of the same buildings (1) 9,501,8699,482,825 Distributions declared (3) 5,777,0475,040,412 Weighted average of units in circulation – basic (4) 36,041,44831435,903 Weighted average of units in circulation – diluted (4) 36,124,35931, 465380 Distributions per unit, basic and diluted (3) (4) 0.1600.160FFO per unit, basic (1) (4) 0.1850.200FFO normalized by unit, basic (1) (2) (4) 0.2030,219AFFO per unit, basic (1) (4) 0.1650,178 AFFO standardized per unit, basic (1) (2) (4) 0,1830,197 Payout ratio on Normalized AFFO, basic (1) (2) (3) 87.7% 81.3% Debt / total assets ratio45 0.8% 47.6% (1) Non-IFRS measure e (2) The Normalized FFO and Normalized FFO include adjustments for the amounts of the seller’s lease obligations related to the REIT’s Richmond and Ajax properties, which are payable by the seller of the building until construction of the building is completed. and that all tenants occupy and pay rent. . The amount of the seller’s lease obligation is not included in the NOI for IFRS accounting purposes. Standardized FFOs and Standardized AFFOs exclude amounts recognized in other income related to estimated future amounts of vendor lease obligations. For the three months ended March 31, 2021, Normalized FFOs and AFFOs are also adjusted to exclude $ 207,355 of one-time TSX registration fees related to TSX graduation, which is included in overhead. and administrative matters of the period. (3) Includes distributions payable to holders of Class B limited partnership units which are recorded as interest expense in the condensed consolidated interim financial statements. (4) The weighted average number of units includes Class B limited partnership units. Update of COVID-19 recoveries The following table summarizes the rent recoveries presented as a percentage of the gross contractual rent: Q1 2021 Cash received from tenants 97.8% Still to be collected 2.2% Total 100.0% Revenue and results Operating Q1 2021 The RON of $ 10,565,713 was $ 792,078 more than the first quarter 2020 interest rate of $ 9,773,635. The properties acquired in 2021 and 2020 generated an additional NOI of approximately $ 930,000 in the first quarter of 2021 compared to the first quarter of 2020. Partly offset was the impact of a vacancy in a REIT industrial building in Calgary, in Alberta, reduced the NOI in the first quarter of 2021 by approximately $ 150,000 from the first quarter. 2020. The occupancy rate remained stable at 94% as at March 31, 2020 and 2021. The first quarter 2021 RNI of $ 10,565,713 was $ 867,412 higher than the fourth quarter 2020 interest rate of 9,698,301 $. Properties acquired in 2021 and 2020 generated an additional NOI of approximately $ 512,000 in the first quarter of 2021 compared to the fourth quarter of 2020. A reduction in COVID-19-related spending increased the NOI in the first quarter of 2021 by $ 128,000 compared to the fourth quarter of 2020. General and administrative expenses of $ 1,429,051 for the quarter increased by $ 436,389 compared to Q1 2020 and by $ 655,834 compared to Q4 2020. General and administrative expenses increased by compared to Q4 2020 mainly due to the one-time TSX registration fee related to graduation from the TSX of approximately $ 207,000, the timing of expenses related to the REIT’s share-settled PSU plan. approximately $ 210,000, other personnel costs and the schedule of professional fees and public company costs. The REIT’s earnings management will hold a conference call at 1:00 p.m. Eastern Standard Time on Friday, May 14, 2021 to review the financial results and operations. To participate in the conference call, please dial 416-915-3239 or 1-800-319-4610 (toll free in Canada and the United States) at least five minutes before the start time and ask to join. on the Nexus REIT conference call. A recording of the conference call will be available until June 14, 2021. To access the recording, please dial 604-674-8052 or 1-855-669-9658 (toll-free in Canada and the United States) and enter access code 6814. About Nexus REIT Nexus is a growth-oriented real estate investment trust that aims to increase value for unitholders through the acquisition, ownership and management of industrial properties , office and retail stores located in primary and secondary markets in North America. The REIT currently has a portfolio of 82 properties representing approximately 5.7 million square feet of gross leasable area. The REIT has approximately 33,582,000 units issued and outstanding. In addition, there are Class B LP units of subsidiaries of Nexus limited partnerships issued and outstanding, which are convertible into approximately 14,701,000 units. Forward-Looking Statements Certain statements contained in this press release constitute forward-looking statements that reflect the REIT’s current expectations and projections with respect to future results. Often, but not always, forward-looking statements can be identified by the use of words such as “expects”, “expects” or “does not expect”, “is expected”, “believes”, “a l ‘intention’, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions or declares that certain actions, events or results “could”, “could”, “would”, ” could ”or“ will ”be undertaken, occur or be achieved. Forward-looking statements involve risks, uncertainties and other known and unknown factors that may cause the REIT’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in the statements. forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. These forward-looking statements are based on a number of assumptions which may prove to be incorrect. Although the REIT anticipates that subsequent events and developments could cause a change of opinion, the REIT expressly disclaims any obligation to update these forward-looking statements, except as required by applicable law. These forward-looking statements should not be relied upon as representing the views of the REIT as of a date subsequent to the date of this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking statements. The factors mentioned above are not intended to represent a complete list of factors that could affect the REIT. For more information, please contact: Kelly C. Hanczyk, CEO at (416) 906-2379 or Rob Chiasson, CFO at (416) 613-1262.