Dream Industrial REIT Reports Strong Q2 2024 Financial Results and Announces Over 500,000 Square Feet of Development Leasing
This press release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release. All dollar amounts are in Canadian dollars unless otherwise indicated.
HIGHLIGHTS
-
Over 500,000 square feet leased or conditionally leased within the Trust’s various development projects during the quarter, including the 209,000 square foot redevelopment in
Mississauga, ON which is now fully leased and significant progress on the Trust’s developments nearCalgary, AB .
-
Diluted funds from operations (“FFO”) per Unit(1) was
$0.25 in Q2 2024, a 0.4% increase when compared to Q2 2023.
-
Comparative properties net operating income (“CP NOI”) (constant currency basis)(2) was
$92.9 million in Q2 2024, a 5.0% increase when compared to$88.5 million in Q2 2023, driven by 6.7% CP NOI (constant currency basis) growth inCanada and 2.3% CP NOI (constant currency basis) growth inEurope . The Dream Summit portfolio produced 6.2% CP NOI growth for the quarter.
-
Net rental income was
$87.7 million in Q2 2024, a 5.6% increase when compared to$83.0 million in Q2 2023. Year-over-year net rental income increased by 9.5% inOntario , 7.2% inQuébec and 3.1% inEurope , and decreased by 4.2% inWestern Canada excluding disposed investment properties, primarily driven by strong CP NOI (constant currency basis) growth in 2024 and 2023.
-
Net income was
$61.6 million in Q2 2024, compared to net income of$80.4 million in Q2 2023, with the change mainly driven by fair value adjustments to investment properties and financial instruments, and share of net income from equity accounted investments. The net income in Q2 2024 was comprised of net rental income of$87.7 million , fair value loss in investment properties of$7.0 million , fair value increase in financial instruments of$5.1 million and other net expenses of$24.2 million .
-
Total assets were
$8.0 billion as atJune 30, 2024 , a 2.1% increase when compared to$7.9 billion as atDecember 31, 2023 , driven by investments in the Dream Summit JV(3) and development projects.
-
Total equity (per condensed consolidated financial statements) was
$4.7 billion as atJune 30, 2024 , a 2.0% increase when compared toDecember 31, 2023 . Total equity (including LP B Units)(2) was$4.8 billion as atJune 30, 2024 , an increase of$74 million when compared toDecember 31, 2023 .
-
Net asset value (“NAV”) per Unit(1) was
$16.73 as atJune 30, 2024 , a 0.7% increase when compared to the NAV per Unit of$16.61 as atDecember 31, 2023 .
1. |
Diluted FFO per Unit and NAV per Unit are non-GAAP ratios. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
|
2. |
CP NOI (constant currency basis) and Total equity (including LP B Units) are non-GAAP financial measures. The tables included in the Appendices section of this press release reconcile these non-GAAP financial measures with their most directly comparable IFRS financial measures. For further information on this non-GAAP financial measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
|
3. |
A joint venture between GIC and the Trust in which the Trust has a 10% interest. |
|
FINANCIAL HIGHLIGHTS
SELECTED FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
(unaudited) |
Three months ended |
|
Six months ended |
|||||
|
|
|
|
|
|
|
|
|
(in thousands of dollars except per Unit amounts) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Operating results |
|
|
|
|
|
|
|
|
Net rental income |
$ |
87,654 |
$ |
83,035 |
$ |
173,515 |
$ |
164,495 |
CP NOI (constant currency basis)(1) |
|
92,911 |
|
88,457 |
|
174,436 |
|
164,581 |
Net income |
|
61,572 |
|
80,352 |
|
136,147 |
|
62,622 |
Funds from operations (“FFO”)(2) |
|
71,053 |
|
67,821 |
|
140,356 |
|
135,953 |
Per Unit amounts |
|
|
|
|
|
|
|
|
FFO – diluted(3)(4) |
$ |
0.25 |
$ |
0.25 |
$ |
0.49 |
$ |
0.49 |
Distribution rate |
$ |
0.17 |
$ |
0.17 |
$ |
0.35 |
$ |
0.35 |
See footnotes at end. |
|
|
|
|
|
|
|
|
PORTFOLIO INFORMATION |
|
|
|
|
|
|
|
|
As at |
||||
|
|
|
|
|
|
|
(in thousands of dollars) |
|
2024 |
|
2023 |
|
2023 |
Total portfolio |
|
|
|
|
|
|
Number of assets(5)(6) |
|
339 |
|
344 |
|
341 |
Investment properties fair value |
$ |
6,962,841 |
$ |
6,924,274 |
$ |
6,835,012 |
Gross leasable area (“GLA”) (in millions of sq. ft.)(6) |
|
71.9 |
|
71.4 |
|
70.3 |
Occupancy rate – in-place and committed (period-end)(7) |
|
95.4% |
|
96.2% |
|
98.0% |
Occupancy rate – in-place (period-end)(7) |
|
95.0% |
|
96.0% |
|
97.6% |
See footnotes at end. |
|
|
|
|
|
|
FINANCING AND CAPITAL INFORMATION |
|
|
|
|
|
|
(unaudited) |
|
As at |
||||
|
|
|
|
|
|
|
(in thousands of dollars except per Unit amounts) |
|
2024 |
|
2023 |
|
2023 |
FINANCING |
|
|
|
|
|
|
Credit rating - DBRS |
|
BBB (mid) |
|
BBB (mid) |
|
BBB (mid) |
Net total debt-to-total assets (net of cash and cash equivalents) ratio(8) |
|
35.9% |
|
36.0% |
|
36.2% |
Net total debt-to-normalized adjusted EBITDAFV ratio (years)(9) |
|
8.1 |
|
7.7 |
|
9.0 |
Interest coverage ratio (times)(10) |
|
5.4 |
|
6.0 |
|
7.9 |
Weighted average face interest rate on debt (period-end) |
|
2.47% |
|
2.35% |
|
2.28% |
Unencumbered investment properties (period-end)(11) |
$ |
5,683,435 |
$ |
5,401,880 |
$ |
5,869,611 |
Unencumbered investment properties as a percentage of investment properties(11) |
|
81.6% |
|
78.0% |
|
85.9% |
Total assets |
$ |
8,019,581 |
$ |
7,858,340 |
|
7,784,409 |
Cash and cash equivalents |
$ |
103,358 |
$ |
49,916 |
$ |
43,491 |
Available liquidity(12) |
$ |
596,253 |
$ |
491,868 |
$ |
243,032 |
CAPITAL |
|
|
|
|
|
|
Total equity (per condensed consolidated financial statements) |
$ |
4,666,106 |
$ |
4,574,897 |
$ |
4,511,382 |
Total equity (including LP B Units)(13) |
$ |
4,835,207 |
$ |
4,761,215 |
$ |
4,699,702 |
Total number of Units (in thousands)(14) |
|
289,019 |
|
286,590 |
|
276,950 |
Net asset value (“NAV”)per Unit(15) |
$ |
16.73 |
$ |
16.61 |
$ |
16.97 |
Unit price |
$ |
12.67 |
$ |
13.96 |
$ |
14.11 |
See footnotes at end. |
|
|
|
|
|
|
“Dream Industrial reported strong operating and financial results in the second quarter, delivering 5% CP NOI growth. We continue to see strong leasing activity for our well-located assets and recently completed developments,” said
DEVELOPMENT LEASING UPDATE
During the quarter, the Trust completed new leases or conditional new leases on approximately 150,000 square feet of development projects in
The Trust has successfully leased its entire Courtneypark redevelopment project totalling 0.2 million square feet located in
During the quarter, the Trust substantially completed its 20-acre development in
Subsequent to the quarter, the Trust’s development venture substantially completed its first project in
ORGANIC GROWTH
-
Continued strong leasing momentum at attractive rental spreads – Since the end of Q1 2024, the Trust has transacted approximately 2.4 million square feet of leases across its portfolio at an average rental rate spread of 56.4% over prior or expiring rents.
-
In
Canada , the Trust signed 1.7 million square feet of leases, achieving an average rental rate spread to expiry of 79.9% and an average annual contractual rent growth of over 3%. -
In
Europe , the Trust signed 0.8 million square feet of leases at an average rental rate spread of 10.6%. All of the leases are fully indexed to local consumer price indices (“CPI”) or have contractual rent steps.
-
In
As at
Since the closing of the Dream Summit JV transaction in
-
Solid pace of CP NOI (constant currency basis)(1) growth – CP NOI (constant currency basis) for the three and six months ended
June 30, 2024 was$92.9 million and$174.4 million , respectively. For the same periods in 2023, CP NOI (constant currency basis) was$88.5 million and$164.6 million , respectively. This represents an increase of 5.0% for the three months endedJune 30, 2024 and 6.0% for the six months endedJune 30, 2024 , compared to the prior year comparative periods.
The Canadian portfolio posted year-over-year CP NOI (constant currency basis) growth of 6.7% for the three months endedJune 30, 2024 , driven by 8.9%, 8.0% and 1.1% CP NOI growth inOntario ,Québec andWestern Canada , respectively.
InEurope , year-over-year CP NOI (constant currency basis) growth was 2.3% for the three months endedJune 30, 2024 . The increase was driven by higher rental rates on new and renewed leases, in addition to CPI indexation, resulting in a 5.8% increase in in-place base rent for the three months endedJune 30, 2024 . -
Healthy occupancy levels – The Trust’s in-place and committed occupancy was 95.4% as at
June 30, 2024 , compared to 96.4% as atMarch 31, 2024 . The anticipated decrease quarter-over-quarter was driven primarily by a few expected transitory vacancies across theGreater Toronto Area (“GTA”),Québec andEurope . The Trust continues to be in active discussions with prospective tenants and it expects significant opportunities to capture strong income growth as spaces are leased.
Subsequent to quarter-end, the Trust has signed three conditional new leases representing approximately 20% of its existing vacancies inCanada .
-
Continued growth in net rental income for the quarter – Net rental income for the three and six months ended
June 30, 2024 was$87.7 million and$173.5 million , respectively, representing an increase of$4.6 million , or 5.6%, and$9.0 million , or 5.5%, relative to the relative to the prior year comparative periods. For the quarter, year-over-year net rental income increased by 9.5% inOntario , 7.2% inQuébec and 3.1% inEurope , and decreased by 4.2% inWestern Canada , excluding disposed investment properties. The increase was mainly driven by strong CP NOI (constant currency basis) growth in 2024, the impact of acquired investment properties in the past year and higher net property management fees.
INVESTMENT UPDATE
During the quarter, the Trust completed the disposition of six non-strategic assets totalling 0.3 million square feet located in
Subsequent to the quarter, the Trust completed an additional disposition in
The Trust continues to evaluate investments that meet its objective of improving the cash flow growth profile and overall quality of the portfolio, while preserving balance sheet flexibility. The Dream Summit JV provides a new source of growth capital for the Trust to pursue strategic acquisitions and strengthen the Trust’s property management and leasing fee stream.
During the quarter, the Dream Summit JV acquired four income-producing assets located in the GTA totalling 0.5 million square feet, bringing the total acquisitions to nearly
“We continue to uncover attractive opportunities to add to our high-quality portfolio in core Canadian markets such as
CAPITAL STRATEGY
The Trust continues to maintain significant financial flexibility as it executes on its strategic initiatives. The Trust’s proportion of secured debt(16) is 6.2% of total assets and represents 16.9% of total debt(17). The Trust’s unencumbered asset pool(11) totalled
The Trust refinanced its maturing
Subsequent to the quarter, the Trust extended the maturity of its
“With one remaining European mortgage maturity at the end of August that we expect to repay, we have effectively addressed all our 2024 debt maturities. With the successful refinancing of our largest 2024 debt maturity at favourable rates, we remain focused on executing on our organic growth initiatives which we expect will exceed the pressure from higher interest rates, translating into FFO per unit growth,” said
CONFERENCE CALL
Senior management will host a conference call to discuss the financial results on
Other information
Information appearing in this press release is a select summary of financial results. The condensed consolidated financial statements and management’s discussion and analysis for the Trust will be available at www.dreamindustrialreit.ca and on www.sedarplus.com.
Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. As at
FOOTNOTES
1. |
CP NOI (constant currency basis) is a non-GAAP financial measure. The most directly comparable financial measure to CP NOI (constant currency basis) is net rental income. The table included in the Appendices section of this press release reconcile CP NOI (constant currency basis) for the three and six months ended |
|
2. |
FFO is a non-GAAP financial measure. The most directly comparable financial measure to FFO is net income. The tables included in the Appendices section of this press release reconcile FFO for the three and six months ended |
|
3. |
Diluted FFO per Unit is a non-GAAP ratio. Diluted FFO per Unit is comprised of FFO (a non-GAAP financial measure) divided by the weighted average number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
|
4. |
A description of the determination of diluted amounts per Unit can be found in the Trust’s Management’s Discussion and Analysis for the three and six months ended |
|
5. |
“Number of assets” comprise a building, or a cluster of buildings in close proximity to one another attracting similar tenants. |
|
6. |
Includes the Trust’s owned and managed properties as at |
|
7. |
Includes the Trust’s share of equity accounted investments as at |
|
8. |
Net total debt-to-total assets (net of cash and cash equivalents) ratio is a non-GAAP ratio. Net total debt-to-total assets (net of cash and cash equivalents) ratio is comprised of net total debt (a non-GAAP financial measure) divided by total assets (net of cash and cash equivalents) (a non-GAAP financial measure). The most directly comparable IFRS financial measure to net total debt is non-current debt, and the most directly comparable IFRS financial measure to total assets (net of cash and cash equivalents) is total assets. The tables included in the Appendices section of this press release reconcile net total debt to non-current debt and total assets (net of cash and cash equivalents) to total assets as at |
|
9. |
Net total debt-to-normalized adjusted EBITDAFV is a non-GAAP ratio. Net total debt-to-normalized adjusted EBITDAFV is comprised of net total debt (a non-GAAP financial measure) divided by normalized adjusted EBITDAFV (a non-GAAP financial measure). The most directly comparable IFRS financial measure to normalized adjusted EBITDAFV is net income. The tables included in the Appendices section of this press release reconcile adjusted EBITDAFV to net income (loss) for the three and six months ended |
|
10. |
Interest coverage ratio is a non-GAAP ratio. Interest coverage ratio is comprised of trailing 12-month period adjusted EBITDAFV (a non-GAAP financial measure) divided by trailing 12-month period interest expense on debt and other financing costs. The most directly comparable IFRS financial measure to adjusted EBITDAFV is net income. For further information on this non-GAAP ratio and non-GAAP financial measure, please refer to the statements under the heading “Non-GAAP financial measures and ratios and supplementary financial measures” in this press release. |
|
11. |
Unencumbered investment properties and unencumbered investment properties as a percentage of investment properties are supplementary financial measures. For further information on these supplementary financial measures, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
|
12. |
Available liquidity is a non-GAAP financial measure. The most directly comparable financial measure to available liquidity is cash and cash equivalents. The tables included in the Appendices section of this press release reconcile available liquidity to cash and cash equivalents as at |
|
13. |
Total equity (including LP B Units or subsidiary redeemable units) is a non-GAAP financial measure. The most directly comparable financial measure to total equity (including LP B Units) is total equity (per consolidated financial statements). The tables included in the Appendices section of this press release reconcile total equity (including LP B Units) to total equity (per consolidated financial statements) as at |
|
14. |
Total number of Units includes 13.3 million LP B Units that are classified as a liability under IFRS Accounting Standards. |
|
15. |
NAV per Unit is a non-GAAP ratio. NAV per Unit is comprised of total equity (including LP B Units) (a non-GAAP financial measure) divided by the total number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
|
16. |
Secured debt is a supplementary financial measure. Please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
|
17. |
Total debt is a non-GAAP financial measure. The most directly comparable financial measure to total debt is non-current debt. The tables included in the Appendices section of this press release reconcile total debt to non-current debt as at |
|
Non-GAAP financial measures and ratios and supplementary financial measures
The Trust’s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this press release, as a complement to results provided in accordance with IFRS, the Trust discloses and discusses certain non-GAAP financial measures and ratios, including FFO, diluted FFO per Unit, CP NOI (constant currency basis), total debt, net total debt-to-total assets (net of cash and cash equivalents) ratio, net total debt, total assets (net of cash and cash equivalents), net total debt-to-normalized adjusted EBITDAFV ratio, adjusted EBITDAFV, normalized adjusted EBITDAFV – annualized, interest coverage ratio, available liquidity, total equity (including LP B Units) and NAV per Unit as well as other measures discussed elsewhere in this press release. These non-GAAP financial measures and ratios are not defined by IFRS and do not have a standardized meaning under IFRS. The Trust’s method of calculating these non-GAAP financial measures and ratios may differ from other issuers and may not be comparable with similar measures presented by other issuers. The Trust has presented such non-GAAP financial measures and ratios as Management believes they are relevant measures of the Trust’s underlying operating and financial performance. Certain additional disclosures such as the composition, usefulness and changes, as applicable, of the non-GAAP financial measures and ratios included in this press release have been incorporated by reference from the management’s discussion and analysis of the financial condition and results from operations of the Trust for the three and six months ended
Forward looking information
This press release may contain forward-looking information within the meaning of applicable securities legislation, including statements regarding the Trust’s objectives and strategies to achieve those objectives; the outlook for organic NOI growth embedded in the Trust’s portfolio and expectations for its development program to more meaningfully contribute to its NOI and FFO as projects are competed and stabilize; dispositions and related opportunities to upgrade the Trust’s portfolio quality and improve FFO, cash flow and total return profile; the seeking of opportunities to recycle capital from non-core assets and markets and re-invest proceeds towards opportunities that are accretive on a total return basis; debt maturities; organic growth initiative and the Trust’s expectations that it will exceed pressure from higher interest rates, translating into FFO per unit growth; the Trust's continued evaluation of investments that meet its objectives; the Trust's maintenance of significant financial flexibility; the Trust’s goal of delivering strong total returns to its unitholders through secure distributions as well as growth in net asset value and cash flow per unit underpinned by its high-quality portfolio and an investment grade balance sheet; the performance and quality of its portfolio; the Trust’s development pipeline and its expectations with respect to the opportunity provided by such development pipeline; the Trust’s development, expansion and redevelopment plans, including the timing of construction and expansion, costs, square footage, unlevered yields and anticipated yields; the status of lease negotiations and expectation to capture strong income growth as spaces are leased; the Dream Summit JV and the opportunities provided by the venture to pursue acquisitions and boost its property management and leasing fee stream; and similar statements concerning anticipated future events, financials, future leasing activity, including those associated with user demand relative to supply of quality industrial product in the Trust’s operating markets, the ability to lease vacant space, results of operations, performance, business prospects and opportunities, and the real estate industry in general.
Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; employment levels; mortgage and interest rates and regulations; inflation; risks related to a potential economic slowdown in certain of the jurisdictions in which we operate and the effect inflation and any such economic slowdown may have on market conditions and lease rates; uncertainties around the timing and amount of future financings; uncertainties surrounding public health crises and epidemics; geopolitical events, including disputes between nations, war and international sanctions; the financial condition of tenants; leasing risks, including those associated with the ability to lease vacant space; rental rates and the strength of rental rate growth on future leasing; and interest and currency rate fluctuations. The Trust’s objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable; inflation and interest rates will not materially increase beyond current market expectations; conditions within the real estate market remain consistent; competition for acquisitions remains consistent with the current climate; and the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in the Trust’s filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at the Trust’s website at www.dreamindustrialreit.ca.
Appendices
All dollar amounts in the Appendices are presented in thousands of Canadian dollars, except for per square foot amounts, per Unit amounts, or unless otherwise stated.
Reconciliation of CP NOI (constant currency basis) to net rental income
The tables below reconcile CP NOI (constant currency basis) for the three and six months ended
|
Three months ended |
|||
|
|
|
||
|
|
2024 |
|
2023 |
|
$ |
24,837 |
$ |
22,809 |
|
|
13,798 |
|
12,781 |
|
|
11,521 |
|
11,395 |
Canadian portfolio |
|
50,156 |
|
46,985 |
European portfolio (constant currency basis) |
|
33,315 |
|
32,558 |
Dream Summit JV |
|
5,016 |
|
4,721 |
|
|
4,424 |
|
4,193 |
CP NOI (constant currency basis) |
|
92,911 |
|
88,457 |
Impact of foreign currency translation on CP NOI |
|
— |
|
(389) |
NOI from acquired properties – |
|
103 |
|
— |
NOI from acquired properties – Dream Summit JV |
|
560 |
|
— |
NOI from disposed properties |
|
782 |
|
856 |
Net property management and other income |
|
2,515 |
|
2,383 |
Straight-line rent |
|
2,647 |
|
2,304 |
Amortization of lease incentives |
|
(864) |
|
(705) |
Lease termination fees and other |
|
73 |
|
(28) |
Bad debt provisions |
|
(647) |
|
(723) |
NOI from properties transferred from/to properties held for development |
|
44 |
|
(13) |
Less: NOI from equity accounted investments |
|
(10,470) |
|
(9,107) |
Net rental income |
$ |
87,654 |
$ |
83,035 |
|
Six months ended |
|||
|
|
|
||
|
|
2024 |
|
2023 |
|
$ |
48,739 |
$ |
44,925 |
|
|
27,730 |
|
24,746 |
|
|
23,129 |
|
22,513 |
Canadian portfolio |
|
99,598 |
|
92,184 |
European portfolio (constant currency basis) |
|
66,108 |
|
64,246 |
|
|
8,730 |
|
8,151 |
CP NOI (constant currency basis) |
|
174,436 |
|
164,581 |
Impact of foreign currency translation on CP NOI |
|
— |
|
(677) |
NOI from acquired properties – |
|
— |
|
— |
NOI from acquired properties – |
|
203 |
|
— |
NOI from acquired properties – Dream Summit JV |
|
11,244 |
|
7,515 |
NOI from acquired properties – |
|
— |
|
— |
NOI from disposed properties |
|
1,774 |
|
1,783 |
Net property management and other income |
|
5,032 |
|
4,025 |
Straight-line rent |
|
3,906 |
|
4,017 |
Amortization of lease incentives |
|
(1,669) |
|
(1,430) |
Lease termination fees and other |
|
54 |
|
1,166 |
Bad debt provisions |
|
(1,782) |
|
(913) |
NOI from properties transferred from/to properties held for development |
|
655 |
|
172 |
Less: NOI from equity accounted investments |
|
(20,338) |
|
(15,744) |
Net rental income |
$ |
173,515 |
$ |
164,495 |
Appendices
Reconciliation of FFO to net income
The table below reconciles FFO for the three and six months ended
|
Three months ended |
Six months ended |
||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net income for the period |
$ |
61,572 |
$ |
80,352 |
$ |
136,147 |
$ |
62,622 |
Add (deduct): |
|
|
|
|
|
|
|
|
Fair value adjustments to investment properties |
|
7,043 |
|
(2,033) |
|
5,534 |
|
(10,777) |
Fair value adjustments to financial instruments |
|
(5,115) |
|
(9,131) |
|
(15,752) |
|
55,458 |
Share of net (income) loss from equity accounted investments |
|
(6,629) |
|
(13,091) |
|
(15,514) |
|
6,654 |
Interest expense on subsidiary redeemable units |
|
2,336 |
|
2,639 |
|
4,672 |
|
5,885 |
Amortization and write-off of lease incentives |
|
859 |
|
691 |
|
1,628 |
|
1,425 |
Internal leasing costs |
|
1,407 |
|
973 |
|
2,696 |
|
2,097 |
Fair value adjustments to deferred trust units included in G&A |
|
(73) |
|
(18) |
|
(101) |
|
(58) |
Foreign exchange loss (gain) |
|
1,945 |
|
(1,194) |
|
1,891 |
|
(143) |
Share of FFO from equity accounted investments |
|
7,590 |
|
6,707 |
|
14,641 |
|
11,593 |
Deferred income tax (recovery) expense, net |
|
(454) |
|
1,701 |
|
3,557 |
|
455 |
Current income tax recovery related to dispositions |
|
(35) |
|
— |
|
(35) |
|
— |
Transaction costs on acquisitions and dispositions and other |
|
607 |
|
225 |
|
992 |
|
742 |
FFO for the period |
$ |
71,053 |
$ |
67,821 |
$ |
140,356 |
$ |
135,953 |
Reconciliation of available liquidity to cash and cash equivalents
The table below reconciles available liquidity to cash and cash equivalents as at
|
|
|
|
|||
Cash and cash equivalents per condensed consolidated financial statements |
$ |
103,358 |
$ |
49,916 |
$ |
43,491 |
Undrawn unsecured revolving credit facility(1) |
|
492,895 |
|
441,952 |
|
199,541 |
Available liquidity |
$ |
596,253 |
$ |
491,868 |
$ |
243,032 |
(1) Net of letters of credit totalling |
Reconciliation of total equity (including LP B Units) to total equity (excluding LP B Units)
The table below reconciles total equity (including LP B Units) to total equity (excluding LP B Units) as at
|
As at |
||||||||||
|
|
|
|
|
|
||||||
|
Number of
|
|
Amount |
|
Number of
|
|
Amount |
|
Number of
|
|
Amount |
REIT Units and unitholders’ equity |
275,672,359 |
$ |
3,371,347 |
|
273,243,349 |
$ |
3,339,660 |
|
263,603,598 |
$ |
3,206,077 |
Retained earnings |
— |
|
1,231,124 |
|
— |
|
1,191,907 |
|
— |
|
1,246,144 |
Accumulated other comprehensive income |
— |
|
63,635 |
|
— |
|
43,330 |
|
— |
|
59,161 |
Total equity per condensed consolidated financial statements |
275,672,359 |
|
4,666,106 |
|
273,243,349 |
|
4,574,897 |
|
263,603,598 |
|
4,511,382 |
Add: LP B Units |
13,346,572 |
|
169,101 |
|
13,346,572 |
|
186,318 |
|
13,346,572 |
|
188,320 |
Total equity (including LP B Units) |
289,018,931 |
$ |
4,835,207 |
|
286,589,921 |
$ |
4,761,215 |
|
276,950,170 |
$ |
4,699,702 |
NAV per Unit |
|
$ |
16.73 |
|
|
$ |
16.61 |
|
|
$ |
16.97 |
Reconciliation of total debt to non-current debt
The table below reconciles total debt to non-current debt as at
Amounts per condensed consolidated financial statements |
|
|
|
|||||
Non-current debt |
$ |
2,870,312 |
$ |
2,537,090 |
$ |
2,469,082 |
||
Current debt |
|
80,545 |
|
310,277 |
|
397,102 |
||
Fair value of CCIRS(1)(2) |
|
(25,712) |
|
(7,614) |
|
(51,472) |
||
Total debt |
$ |
2,925,145 |
$ |
2,839,753 |
$ |
2,814,712 |
(1) |
As at |
|
(2) |
As at |
|
Reconciliation of net total debt to non-current debt and total assets (net of cash and cash equivalents) to total assets
The table below reconciles net total debt to non-current debt and total assets (net of cash and cash equivalent) to total assets as at
|
|
|
|
|||||
Non-current debt |
$ |
2,870,312 |
$ |
2,537,090 |
$ |
2,469,082 |
||
Add (deduct): |
|
|
|
|
|
|
||
Current debt |
|
80,545 |
|
310,277 |
|
397,102 |
||
Fair value of CCIRS |
|
(25,712) |
|
(7,614) |
|
(51,472) |
||
Unamortized financing costs |
|
11,791 |
|
11,410 |
|
7,919 |
||
Unamortized fair value adjustments |
|
(804) |
|
(189) |
|
(577) |
||
Cash and cash equivalents |
|
(103,358) |
|
(49,916) |
|
(43,491) |
||
Net total debt |
$ |
2,832,774 |
$ |
2,801,058 |
$ |
2,778,563 |
||
Total assets |
|
8,019,581 |
|
7,858,340 |
|
7,784,409 |
||
Less: Fair value of CCIRS assets |
|
(33,388) |
|
(30,981) |
|
(59,827) |
||
Less: Cash and cash equivalents |
|
(103,358) |
|
(49,916) |
|
(43,491) |
||
Total assets (net of cash and cash equivalents) |
$ |
7,882,835 |
$ |
7,777,443 |
$ |
7,681,091 |
Reconciliation of adjusted EBITDAFV to net income (loss) and normalized adjusted EBITDAFV
The table below reconciles adjusted EBITDAFV to net income (loss) for the three months ended
|
For the three months ended |
For the six months ended |
For the year ended |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income (loss) for the period |
$ |
61,572 |
$ |
(8,817) |
$ |
80,352 |
$ |
136,147 |
$ |
62,622 |
$ |
614,369 |
$ |
104,299 |
$ |
705,885 |
|||||||
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fair value adjustments to investment properties |
|
7,043 |
|
43,944 |
|
(2,033) |
|
5,534 |
|
(10,777) |
|
(385,395) |
|
66,689 |
|
(363,025) |
|||||||
Fair value adjustments to financial instruments |
|
(5,115) |
|
27,695 |
|
(9,131) |
|
(15,752) |
|
55,458 |
|
(111,903) |
|
68,059 |
|
(122,532) |
|||||||
Share of net (income) loss from equity accounted investments |
|
(6,629) |
|
(1,441) |
|
(13,091) |
|
(15,514) |
|
6,654 |
|
(41,425) |
|
(4,941) |
|
(38,482) |
|||||||
Interest expense on debt and other financing costs |
|
17,387 |
|
15,520 |
|
13,919 |
|
34,389 |
|
24,494 |
|
9,085 |
|
54,379 |
|
20,622 |
|||||||
Interest expense on subsidiary redeemable units |
|
2,336 |
|
2,336 |
|
2,639 |
|
4,672 |
|
5,885 |
|
6,493 |
|
10,557 |
|
12,986 |
|||||||
Other items included in investment properties revenue(1) |
|
(1,328) |
|
(238) |
|
(1,155) |
|
(1,981) |
|
(3,305) |
|
(1,418) |
|
(3,655) |
|
(4,792) |
|||||||
Distributions from equity accounted investments |
|
9,202 |
|
14,543 |
|
3,254 |
|
13,856 |
|
5,150 |
|
2,152 |
|
25,519 |
|
6,026 |
|||||||
Deferred and current income tax expense (recovery), net |
|
5 |
|
(4,354) |
|
2,202 |
|
4,782 |
|
1,814 |
|
22,791 |
|
(1,200) |
|
19,481 |
|||||||
Net loss on transactions and other activities |
|
3,946 |
|
2,131 |
|
94 |
|
5,690 |
|
2,772 |
|
6,203 |
|
4,762 |
|
16,805 |
|||||||
Debt settlement costs |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
257 |
|||||||
Adjusted EBITDAFV for the period |
$ |
88,419 |
$ |
91,319 |
$ |
77,050 |
$ |
171,823 |
$ |
150,767 |
$ |
120,952 |
$ |
324,468 |
$ |
253,231 |
|||||||
(1) Includes lease termination fees and other items, straight-line rent and amortization of lease incentives. |
|
|
|
|
|||
Adjusted EBITDAFV – quarterly(1) |
$ |
88,419 |
$ |
91,319 |
$ |
77,050 |
Add (deduct): |
|
|
|
|
|
|
Normalized NOI of acquisitions and dispositions in the quarter(2) |
|
(784) |
|
(76) |
|
— |
Normalized adjusted EBITDAFV – quarterly |
|
87,635 |
|
91,243 |
|
77,050 |
Normalized adjusted EBITDAFV – annualized |
$ |
350,540 |
$ |
364,972 |
$ |
308,200 |
(1) |
Adjusted EBITDAFV (a non-GAAP financial measure) for the three months ended |
|
(2) |
Represents the NOI had the acquisitions and dispositions in the respective periods occurred for the full quarter. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806658730/en/
For further information, please contact:
Dream Industrial REIT
President & Chief Executive Officer
(416) 365-4106
asannikov@dream.ca
Chief Financial Officer
(416) 365-2353
lquan@dream.ca
Source: