A landlord has lost a claims dispute after he used his rental property as an undisclosed wedding and events venue.
The complainant lodged two claims in April and July last year relating to rent default and storm damage under his building and contents policy.
Hollard declined the claims after discovering the property had been advertised and used to host weddings and other events.
The insurer says the claimant misrepresented his position after he declared the property was not used for any business purposes beyond a rental holiday home for tenants when he first purchased the policy in February 2021.
Hollard says it informed the complainant of his duty to ensure he provided accurate and correct information regarding the property’s business status when the policy was renewed last year.
It says that it would not have issued the policy if it had been aware that the property was used to host the events.
The claimant says he believed the business purpose question only related to the insured building and not the surrounding grounds, which he acknowledged “may have been used to host events”.
He says the building was used as a “short-term rental” for guests, who were the only people allowed to access the building, besides photographers to take wedding photos.
He argues that the policy question had been poorly worded, and he did not need to correct the disclosed information because the building had not been used for business purposes beyond what he had already acknowledged.
The Australian Financial Complaints Authority (AFCA) says it was reasonable to interpret the policy’s references to “property” as “more than just the accommodation building”.
AFCA says that even if the business purposes question had been worded differently, the claimant would have likely breached the policy terms, noting that the Product Disclosure Statement’s definition of “building” included landscaping, paved driveways and pathways, fences and gates, which had been used as part of the events service.
“The complainant was clearly offering the property commercially for event hire, particularly weddings, and actively promoted that business activity,” AFCA said.
“On balance, it appears more likely than not that the accommodation building was involved in and used as part of the wedding venue business.
“Even if that is not the case, some aspects of the surrounding grounds more likely than not form part of the ‘building’, taking into account the definition of that term in the PDS.”
The ruling acknowledged a statutory declaration from one of the insurer’s underwriting managers, which declared that it would not have offered cover if it had been aware that the property had been “wholly or partly used for the business purpose of organising and hosting wedding events”.
“I am satisfied those documents confirm that had the property’s commercial use been disclosed, the insurer would have deemed the proposal an unacceptable risk and renewal terms would have not been offered,” AFCA said.
Click here for the ruling.
A consulting firm focused on strategic execution, growth, and business effectiveness has been launched today by former insurance executive Lisa Jeffery.
Raven Advisory provides strategic and execution support for insurance businesses aiming to transform, grow or maximise their effectiveness.
Ms Jeffery has more than 25 years’ industry experience including executive roles across underwriting, claims, operations, distribution and broking, including internationally.
She was until recently Head of Client and Broker Engagement at AIG Australia, and previously held senior roles at Gallagher and IAG.
“There are so many layers to business success,” she told insuranceNEWS.com.au.
“Bringing to life the vision of a business and being able to execute well on strategy can be a source of frustration for many business owners and executives.
“Overlay the many distractions and headwinds impacting the insurance industry and we have an incredibly complex environment.
“There is no silver bullet, however there is so much that can be done to positively impact a business. A clear and executable strategy underpinned by the most effective and efficient business possible, is more critical than ever.”
Ms Jeffery says she established Raven Advisory to broaden her impact and help businesses deliver on their plans, solve problems, and create opportunity.
“I’ve been fortunate in my career to experience so many facets of this critical and dynamic industry. Insurance is complex and I am excited to bring the insights I’ve gained from working in the industry and partner with businesses to help deliver their goals.
“In their world, ravens are known to be complex problem solvers by creativity and focus, not by chance. Seeking practical and successful outcomes, no matter the challenge, is the essence of this business.”
Click here for more information.
FRANKFURT, June 21 (Reuters) – A German bank that
finances property worldwide is bracing for a possible hit from
the U.S. office market this year as it looks for “solutions”
with clients to keep loans from souring, its chief executive
said.
Banks and regulators around the world have identified
commercial real estate as a weak link in global finance, with
low occupancy rates after the pandemic and a surge in interest
rates pressuring the sector.
Jochen Kloesges, CEO of German bank Aareal, said
the U.S. office market was challenging, though it should be seen
in shades of grey rather than black-and-white.
“The U.S. is dark grey. You have to be honest about it,” he
told journalists on Tuesday evening.
Aareal has a U.S. office loan portfolio of around 3.9
billion euros ($4.26 billion) across some 50 transactions.
Around 4% of the portfolio is so-called Stage 3 loans that are
at risk.
“It’s clear that individual cases can hit us in this
portfolio this year. This can result in risk provisions here and
there that are perhaps somewhat higher, or also considerably
higher, than we originally anticipated,” he said.
The bank has previously expected allowances for possible
loan losses this year of between 170 million euros and 210
million euros, but it has said it is comfortable if it exceeds
that level because it is generating healthy interest income.
Aareal has been working with customers over the past year to
deal with the sector’s weakness, Kloesges said.
“It is not our goal to make customers sweat. We try to find
solutions together,” he said.
Aareal will still meet its targets for the year, and the
other property sectors it finances, including hotels, retail and
student housing, are going strong, the CEO said.
($1 = 0.9157 euros)
(Reporting by Tom Sims; Editing by Sharon Singleton)
FORM 8.5 (EPT/RI)
PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY
Rule 8.5 of the Takeover Code (the “Code”)
1. KEY INFORMATION
(a) Name of exempt principal trader: | Investec Bank plc |
(b) Name of offeror/offeree in relation to whose relevant securities this form relates:
Use a separate form for each offeror/offeree |
Ediston Property Investment Company plc |
(c) Name of the party to the offer with which exempt principal trader is connected: | Investec are Broker for Ediston Property Investment Company plc, and Lead Financial Adviser for this review. |
(d) Date dealing undertaken: |
16th June 2023 |
(e) In addition to the company in 1(b) above, is the exempt principal trader making disclosures in respect of any other party to this offer?
If it is a cash offer or possible cash offer, state “N/A” |
No |
2. DEALINGS BY THE EXEMPT PRINCIPAL TRADER
Where there have been dealings in more than one class of relevant securities of the offeror or offeree named in 1(b), copy table 2(a), (b), (c) or (d) (as appropriate) for each additional class of relevant security dealt in.
The currency of all prices and other monetary amounts should be stated.
(a) Purchases and sales
Class of relevant security | Purchases/ sales | Total number of securities | Highest price per unit paid/received (pence) | Lowest price per unit paid/received (pence) |
Ordinary Shares |
Purchase |
60,600 |
60.4 |
60.272 |
Ordinary Shares |
Sales |
7,500 |
62.4 |
61.2 |
(b) Cash-settled derivative transactions
Class of relevant security | Product description
e.g. CFD |
Nature of dealing
e.g. opening/closing a long/short position, increasing/reducing a long/short position |
Number of reference securities | Price per unit |
(c) Stock-settled derivative transactions (including options)
(i) Writing, selling, purchasing or varying
Class of relevant security | Product description e.g. call option | Writing, purchasing, selling, varying etc. | Number of securities to which option relates | Exercise price per unit | Type
e.g. American, European etc. |
Expiry date | Option money paid/ received per unit |
(ii) Exercise
Class of relevant security | Product description
e.g. call option |
Exercising/ exercised against | Number of securities | Exercise price per unit |
(d) Other dealings (including subscribing for new securities)
Class of relevant security | Nature of dealing
e.g. subscription, conversion |
Details | Price per unit (if applicable) |
3. OTHER INFORMATION
(a) Indemnity and other dealing arrangements
Details of any indemnity or option arrangement, or any agreement or understanding, formal or informal, relating to relevant securities which may be an inducement to deal or refrain from dealing entered into by the exempt principal trader making the disclosure and any party to the offer or any person acting in concert with a party to the offer:
Irrevocable commitments and letters of intent should not be included. If there are no such agreements, arrangements or understandings, state “none” |
(b) Agreements, arrangements or understandings relating to options or derivatives
Details of any agreement, arrangement or understanding, formal or informal, between the exempt principal trader making the disclosure and any other person relating to:
(i) the voting rights of any relevant securities under any option; or (ii) the voting rights or future acquisition or disposal of any relevant securities to which any derivative is referenced: If there are no such agreements, arrangements or understandings, state “none” |
Date of disclosure: | 19th June 2023 |
Contact name: | Rich White |
Telephone number: | +44 207 597 5462 |
Public disclosures under Rule 8 of the Code must be made to a Regulatory Information Service.
The Panel’s Market Surveillance Unit is available for consultation in relation to the Code’s dealing disclosure requirements on +44 (0)20 7638 0129.
The Code can be viewed on the Panel’s website at www.thetakeoverpanel.org.uk.


VIEW THE INTERACTIVE DIGITAL REPORT: https://blog.remax.ca/commercial-real-estate-report/
The RE/MAX 2023 Commercial Property Report examined 12 commercial real estate markets from
- Industrial real estate continued to outperform almost every other asset class, with all markets reporting strong sales and lease activity. With both property and lease values climbing, investors and end users in
British Columbia andOntario have extended their search perimeter for distribution and warehousing facilities to neighbouring provinces with more affordable pricing. A spillover of demand from these provinces and key markets have bolstered sales of industrial product inEdmonton ,Calgary ,Regina ,Saskatoon ,London –St. Thomas ,Halifax andSt. John’s . While demand has softened from peak levels reported in 2022 in most Canadian markets, inventory levels remain extraordinarily low, given the headwinds the industry has encountered. - Land sales remain solid, despite higher interest rates and construction costs, with acreage zoned industrial, multi-family and retail most sought-after in major Canadian centres. Approvals in place have been a critical component in bringing deals to fruition, given the lengthy approval process that exists in most markets. Red tape and development fees have been a barrier in all types of new construction. Vendor take-back mortgages have also re-emerged in several markets as sellers work with buyers to close the deal.
- Retail continues to be surprisingly robust, given the growth of online sales in recent years, with almost 92 per cent of markets (11/12) reporting solid activity in retail nodes and shopping centres. From storefront on major arteries to strip plazas and shopping malls, the bricks and mortar experience is resonating with today’s consumers. Investment dollars have been pouring into major shopping malls across the country as landlords seek to enhance the shopping experience. Landlords are also cashing in the live-work-shop phenomenon, with the number of residential applications on commercially zoned property growing across the country.
- The office sector continues to struggle in markets across the country as employers wrestle with hybrid work models, particularly in the downtown core. While reducing the physical footprint to reduce costs is top of mind with some companies, others are looking to incentivize employees return by creating a more social component within the workplace.
- Repurposing of commercial office space to residential planned or underway in major Canadian centres hold key to healthy, vibrant downtown cores, with 50 per cent of markets (6/12) surveyed reporting conversion activity in this growing segment.
“Although activity has come off peak levels reported in the first quarter of 2022, demand for commercial real estate remains relatively healthy in most major centres,” says
In key centres, RE/MAX brokers have noted that buyers and sellers rose to the challenge in the first quarter of the year, pulling out all stops to make deals happen. In an analysis of closed transactions in the
Real estate investment trusts (REITs) are now slowly venturing back into the market, driving demand for industrial, multi-family, retail and, to a lesser degree, office product. Conditions are ripe for investment, particularly for multi-family properties, given growing demand for housing in markets across the country. According to
“On the office front, with the work-from-home model taking root, many corporations within the downtown core of major Canadian centres are envisioning smaller footprints in their future,” says Alexander. “As sublet space expands and lease renewals involve reduced space requirements, management is reconsidering their options.”
RE/MAX found that for some Class B and C buildings, the answer may lie in repurposing their buildings, as demand for residential housing reaches critical levels. Although not all buildings will be ideally suited for retrofit, some major centres are providing incentives to encourage conversion to residential.
“Commercial office markets are experiencing a transformational shift in the aftermath of the pandemic,” says Alexander. “Downtown cores were virtually decimated by Covid restrictions and have yet to come back to life in many Canadian centres. The conversion programs now underway ensure that our city centres remain vibrant in the future, restoring vital foot traffic that is the lifeblood of the country’s core urban areas. The retrofit and renovation activity not only brings desperately needed residential product online, but it also supports the surrounding retail shops and restaurants, transit systems, and the overall health of our downtown neighbourhoods.”
The most significant holdback is the red tape that currently exists in regard to zoning amendments, applications and approvals at local and provincial government levels. With housing supply at critical levels and an immigration commitment of at least 800,000 new Canadians over the next two years, governments must be prepared to act quickly.
“Population and GDP growth will continue to be a strong driver bolstering urban expansion in cities across the country,” says
RE/MAX also found that lower inventory levels, across the board and in almost every asset class, have hampered activity to some extent. In the first three months of the year, the shortages sparked competition, particularly in the industrial segment. Once again, supply plays a critical role and availability remains tight for quality product. Without an influx of available listings, this trend is expected to continue through to year-end, assuming supporting positive fundamentals remain in place.
“Overall, a number of encouraging indicators characterize
*Compiled from data available from RealTrack.
Market-by-Market Overview:
- Industrial remains the top performing sector in
Greater Vancouver with vacancy rates under one per cent. Consistent demand exists for warehousing and distribution space throughout the GVA, with conditionals tightest in suburban areas outside Vancouver Proper inRichmond ,Delta ,Burnaby andLangley . - Area malls are rethinking the value proposition of their expansive parking lots and replacing them with multi-family buildings and commercial office space. Multiple malls and shopping centres are in various stages of development, with many offering a mix of multi-family, office, retail and restaurants.
- Housing continues to be
Vancouver’s greatest challenge and residential builders and developers can’t get their shovels in the ground fast enough, but red tape and delays from application to approvals and development fees are dragging out the development process.
While the rising cost of borrowing against an inflationary backdrop has somewhat stifled demand for commercial real estate in the
Industrial remains the top performing sector in
Availability rates for industrial space have edged higher, at 2.1 per cent in the first quarter of 2023, compared to the same period in 2022, but are still amongst the lowest in the country at present, according to data from the Altus Group. The greater influx of space in the market has yet to impact lease rates, which have risen by double-digits (almost 20%) year-over-year to $22 net per square foot on average. Prospective tenants are exercising patience in their decision-making as a result, while existing tenants are looking to achieve greater efficiencies by reducing their footprints.
Land sales continued but at a more tempered pace in the first quarter of the year. Property zoned residential, industrial, and some retail throughout the
A resurgence in foot traffic has contributed to a brighter outlook for the retail sector. Retail nodes in the downtown core continue to evolve, with storefront on arteries including
Edmonton’s ideally positioned for strong investment activity in 2023 as the city posts one of its strongest first quarters in recent history.- Out-of-province investors are increasingly drawn to the city’s affordable price point for land, young and educated labour force, and favourable provincial tax structure and incentive programs.
- While the Industrial sector leads the way, other asset classes are experiencing an uptick in activity this year.
Commercial investment in the
Momentum continues to ramp up in the industrial sector as logistics, warehousing and distribution tenancies spillover from the Lower Mainland and
Owner-users and single tenants continue to seek industrial product, but inventory remains tight, especially for multi-bay properties, despite on-going construction in
Development land has seen significant growth over the past year, with 54 sales in
Multi-family land sales fell just short of last year’s levels, with eight sales valued at over
Activity in the office sector softened in the first quarter of the year despite greater inducements, with availability rates edging slightly higher to 20.4 per cent, according to data available from Altus Group. Vacancy rates remain high, even with the traffic the
Retail continues to be exceptionally strong, particularly in the city suburbs, given population growth and higher disposable incomes within the province. Twenty-six sales were reported in the first quarter of 2023 in
- Investors from
British Columbia andOntario are exceptionally active inCalgary’s commercial market, driving demand for industrial and multi-unit residential product. Calgary has bucked the national trend, with availability rates in both industrial and office leasing trending downward in the first quarter of 2023.- With a growing tech presence and 10 commercial buildings slated to undergo conversion to residential, excitement is building in
Calgary’s downtown core, with demand for retail and restaurant space on the upswing.
Spillover from out of province remains a major source of business in the industrial sector, with warehousing and distribution properties topping the list of investor demands. Given limited availability of industrial space in the lower mainland, most containers that are shipped to BC are now loaded onto trucks for a 13-hour journey to
Suburban office space, particularly in
Low vacancy rates characterize demand for retail space and buildings in
Land sales overall remain brisk, with out-of-province investors seeking industrial, multi-family, and retail properties for development. Existing multi-family is experiencing solid demand from
Strong population growth, government incentives, and lower tax structures continue to draw companies both east and west of the province to
- Industrial sales are the driving force in the commercial sector, with REITs and institutional investors vying against end users. Lack of supply continues to hamper activity, prompting some end users to purchase older, existing buildings and rehabilitate or tear down, according to their requirements.
- Retail in suburban neighbourhoods has also soared, with limited inventory contributing to skyrocketing rates. Retail leases are hovering between
$25 to$30 per square foot, with common costs amounting to another$12 to 15 per square foot. Demand is so strong that landlords feel no pressure to negotiate, especially for newer, up and coming areas, where product is few and far between. - Office leasing on the other hand has faced some challenges in the downtown core with key players such as banks and corporate offices leaving former A class space for new A class office buildings on the riverfront. The new construction has drawn so many tenants from neighbouring offices that an estimated 50 per cent of B class buildings are vacant.
Industrial is extremely tight, with any space coming to market immediately scooped up. In 2018, lease rates hovered between
Office leasing on the other hand has faced some challenges in the downtown core with key players such as banks and corporate offices leaving former A class space for new A class office buildings on the riverfront. The new construction has drawn so many tenants from neighbouring offices that an estimated 50 per cent of B class buildings are vacant. Landlords are willing to work with the right tenant, offering step leases and long-term improvement allowance.
The multi-family residential segment remains strong, with door values climbing about 17 per cent year-over-year, rising from
Land is available for sale but is primarily situated on the city’s borders. Priced from
Industrial sales are the driving force in the commercial sector, with REITS and institutional investors vying against end users. Lack of supply continues to hamper activity, prompting some end users to purchaser older, existing buildings and rehabilitate or tear down, according to their requirements. In one recent instance, three large buildings at least 35,000 square feet in size were torn down for a massive, three-storey building constructed on the same footprint. While
Retail in suburban neighbourhoods has also soared, with limited inventory contributing to skyrocketing rates. Retail leases are hovering between
Strong demand and heated activity now characterize the market for farmland, where no comparable sales currently exist. Every quarter sale is now setting a new record. Rents are up significantly, with current costs rising from
- Industrial sales and leasing are at the forefront for most, with vacancy rates at less than one per cent. Developers are scrambling to meet demand but with little or no serviced land left in the city, industrial continues to be pushed to
Regina’s peripheral areas. Regina’s housing shortage, coupled with strong population growth, has accelerated the development of purpose-built rentals, with some spillover into neighbouringWeyburn andEstevan .- Farmland remains buoyant, with record sales occurring as large farm operations continue to expand into adjacent properties.
Industrial sales and leasing are at the forefront for most, with vacancy rates at less than one per cent. Developers are scrambling to meet demand but with little or no serviced land left in the city, industrial continues to be pushed to
Developments east of
The retail market has been relatively steady over the past year, with demand greatest for leased space in sought-after locations.
Office space in the core continues to drag on the
Farmland remains buoyant, with record sales occurring as large farm operations continue to expand into adjacent properties. Price increases have followed in lock step, with percentage gains in North Eastern and West Central Saskatchewan experiencing the greatest upswing in 2022, climbing 24.2 per cent and 17.2 per cent respectively, according to the 2022 FCC Farmland Values Report. Irrigated farmland in the province’s West Central and South Western areas have jumped 26 per cent, rising from
Financing, however, is becoming increasingly challenging in today’s high interest environment, particularly with the big six chartered banks who are tightening lending criteria. Arranging financing on farmland or the sale of businesses remains most frustrating for investors, with lenders now demanding down payments upwards of 45 per cent. While there are alternative lenders available to farmland investors, those selling businesses in
With
- Industrial remains at the forefront in 2023, leading development citywide, while the multi-family sector has reignited buyer attention this year in large part due to attractive
CMHC financing. - Fewer investors have been active in the industrial market this year, with end users picking up the slack. Newer warehousing and distribution space remains most sought-after, generating competition, with lease rates rising year-over-year and prompting some to consider older product in secondary markets.
- The office sector remains soft in the downtown core, prompting some conversions, but the suburban market has been robust.
- The retail sector experiences solid demand, demonstrated by tighter vacancy rates. Strip malls and shopping plazas remain a coveted asset.
Stability continues to be the hallmark of
As the perennial favourite, industrial sales and leasing enjoy strong demand in
A lack of supply of serviced land within the city limits has created tighter market conditions for industrial and multi-family. Most new industrial developments currently under construction are fully or partially pre-leased, with just a handful of projects built on speculation. Fewer investors have been active in the industrial market this year, with end users picking up the slack.
Multi-family residential continues to experience solid demand as
Purpose-built rentals are popping up in locations surrounding concentrated retail nodes, with the latest billion-dollar announcement the proposed Shindico/
Downtown office space has struggled in the aftermath of the pandemic. While landlords in these properties are offering attractive incentives to potential tenants, it will likely take eight to ten years to absorb all the excess office space in the core.
The crux of the retail shopping experience in
Given solid economic fundamentals, the stage is set for a continuation of healthy commercial activity in 2023. GDP growth in the province is forecast to climb just under one per cent in the year ahead, with new trade agreements and higher commodity prices for wheat and canola contributing to the provinces’ prosperity. Immigration continues to bolster population growth with an estimated 1.5-per-cent increase in the number of residents recorded between 2021 and 2022 to reach close to 872,000, according to
- Industrial continues to lead the way, with lease rates and sale prices rising substantially over year-ago levels. Vacancy rates remain at historically low levels, with solid demand for warehousing and distribution space prompting an abundance of new construction in the region.
- Land sales remain solid in both the residential and industrial segment, while the pace of activity has slowed somewhat from year-ago levels. The challenge to date has been the development process, which is cumbersome and slow moving.
- Office leasing and sales remain soft, with the effects of the pandemic still lingering. The downtown core has been particularly hard hit, with availability rates now hovering over 20 per cent. Older B and C class buildings will have to undergo major upgrades to attract tenants, with landlords offering inducements and step leases to sweeten the deal.
Despite rising interest rates and the fallout from the pandemic,
Industrial continues to lead the way, with lease rates and sale prices rising substantially over year-ago levels. Vacancy rates remain at historically low levels, with solid demand for warehousing and distribution space prompting an abundance of new construction in the region. The city’s geographic proximity to major arteries and rail lines at an affordable price point continue to attract global investment. Prominent examples include large-scale operations such as the new high-tech Amazon facility boasting 2.8 million sq. ft. on four levels on the old Ford Talbotville site and the multi-billion-dollar
Land sales remain solid in both the residential and industrial segment, while the pace of activity has slowed somewhat from year-ago levels. The challenge to date has been the development process, which is cumbersome and slow moving. Fees charged by the municipality and the province also continue to impede development and need to be streamlined to increase new building activity.
There continues to be strong interest demonstrated in new multi-unit residential construction. REITs remain active in this segment of the market. Higher rental rates –up significantly year-over-year in the
The retail sector has performed quite well over the past year, with strip malls in new and older housing developments in high demand. Supply is tight, falling well short of demand, with the number of properties listed for sale few and far between. The area’s major malls, however, are struggling to lease space and some have converted their retail space to office and commercial in an effort to attract new tenants.
Office leasing and sales remain soft, with the effects of the pandemic still lingering. The downtown core has been particularly hard hit, with availability rates now hovering over 20 per cent. Older B and C class buildings will have to undergo major upgrades to attract tenants, with landlords offering inducements and step leases to sweeten the deal. There has been some talk about converting some commercial buildings in the core to residential, but not all floor plates are an easy transition.
Lower interest rates and greater clarity surrounding the remote work issue should help to revive the ailing commercial office sector. The only question is when?
- Manufacturing facilities are most sought-after in
Hamilton , representing approximately 50 to 60 per cent of all sales/leasing activity, followed by warehousing and distribution sites. Inventory remains tight throughout the area, with new industrial parks in and around theHamilton Airport now fully leased. - Owners of malls and plazas continue to find exceptional value in their parking lots, submitting proposals to convert underutilized areas into high-density residential/commercial developments that promote live-work-shop communities.
- While some improvement has been noted in demand for urban/suburban office space, the work from home phenomenon has had a significant impact on the city’s commercial office space.
The industrial asset class continues to lead
Manufacturing facilities are most sought-after in
Retail product, especially strip plazas, has also experienced strong demand in the first quarter of the year in
The availability rate for office space in
REITs continue to be an active participant in industrial real estate but have stepped back from other commercial asset classes in the
- Industrial remains by far the strongest sector, with vacancy rates still under one per cent. Lack of inventory continues to hamper activity in the industrial sector, with both sales and leasing opportunities few and far between.
- Land with approvals in place is most sought after. Industrial, retail, and residential apartments in all sizes – multi-plex to high-rise – all represent opportunity but finding land at a decent price is challenging, especially after taking into consideration the additional cost of construction, project management, and development charges.
- Shopping centres and malls in and around the 416-area code continue to innovate, with residential condominium developments currently under construction or proposed. Construction is already underway at the
Promenade Mall where residential development will provide a captive audience for the site’s retail presence.
Industrial remains by far the strongest sector, with vacancy rates still under one per cent. The shift from manufacturing to warehousing and distribution that was accelerated during the pandemic will remain the top usage for industrial space. Large transactions continue to occur in the GTA, as evidenced by the recent sale of a
Land with approvals in place is most sought after, with the weighted average of estimated approval timelines for residential applications climbing from 21 months to 32 months between 2020 and 2022, according to the Municipal Benchmarking Report by the
As prices continue to climb in the industrial sector, some companies that moved their offices into their industrial facilities may be prompted to re-investigate opportunities available in the office sector. According to Altus Group, availability in
In the suburbs, office space has fared slightly better with an uptick in small-sized companies looking for commercial space, particularly in stand-alone buildings. Medical space, and space for schools and daycare facilities are especially coveted.
Retail has shown remarkable resilience, especially urban retail storefront along the city’s main arteries. As construction winds down on streets like
Shopping centres and malls in and around the 416-area code continue to innovate, with residential condominium developments currently under construction or proposed. Construction is already underway at the
Perhaps the strongest sign of well-being in the retail sector is the recent closing of Bed, Bath and Beyond. Within days of liquidation, Canadian Tire announced that they had acquired 10 leases (nearly 250,000 square feet) in
Multi-unit residential continues to be a top performer, with demand soaring for existing portfolios and values accelerating at a rapid pace. Population growth and a shortage of available rental apartments have contributed to increased demand for purpose-built rentals throughout the GTA, but recent policies regarding rent control and zoning regulations have had an impact on new construction. However, some condominium developers watching the recent pull-back in buying activity over the past year have turned to purpose-built rentals, taking advantage of inducements and credits offered by government and
Those in the industry remain cautiously optimistic with regards to the commercial real estate market in the
- Industrial sales and leasing remain tightest, with demand greatest for manufacturing, warehousing and distribution facilities. While availability rates edged up year-over-year in
Ottawa , according to a recent report by Altus Group, vacancy rates remain stubbornly low, hovering at just over one per cent. - Land sales have soared in 2023 with industrial now fetching
$1 million an acre (and has moved for as high as$1.2 million an acre in recent months). - Opportunities currently exist within
Ottawa for commercial investors, many of whom are attracted to the market because of its reasonable price point. Small office buildings, industrial buildings, and residential land, particularly product on the greenbelt, all represent a solid investment strategy.
Scarcity best describes the state of the commercial real estate market in the nation’s capital, with all asset classes reporting product shortages except for office space in the city’s downtown core.
Industrial sales and leasing remain tightest, with demand greatest for manufacturing, warehousing and distribution facilities. While availability rates edged up year-over-year in
Land sales have exploded in 2023 with industrial land now fetching
Retail has also experienced growth this year, especially in sought-after areas such as Westboro, Glebe, Centertown, and downtown. Demand for retail storefront in high traffic areas has been especially brisk. Malls and shopping centres are also doing well, with the
The office sector has had its challenges during the pandemic and its aftermath, with civil servants recently identifying the ability to work from home as a major bargaining chip in their contract negotiations. There are some very real questions regarding the future of commercial office space in downtown
Opportunities currently exist within
- Commercial office vacancies hovering at 18 to 20 per cent in the core, coupled with the shrinking footprints of existing corporate offices, have prompted a seismic shift in the office market. While not all office buildings are well-suited for residential conversion, the city’s abundance of heritage buildings offer a unique opportunity to preserve history and provide homeownership opportunities in prime real estate on
Halifax’s picturesque waterfront. - Vacancy rates under one per cent are behind much of the push for purpose-built rentals in
Halifax and the surrounding areas, with not enough product to accommodate the city’s rapidly growing population. With the population approaching 500,000, the need for housing has never been greater, yet the estimated 24,000 units planned in 10 to 15 buildings throughout theHalifax Regional Municipality , are on hold, with developers waiting for more favourable conditions to present. - The city’s malls continue to fare well, with few vacancies despite higher lease rates. Retailers are reducing their footprints in area malls, given robust on-line shopping sales while management is looking to enhance the shopping experience by adding more restaurants, gyms, and in some cases, higher-end grocery stores. Some landlords have revamped large parking lots, adding office towers and a residential element to complement existing retail.
Commercial real estate activity continues to ramp up as investor appetite for key asset classes escalates within
Commercial office vacancies hovering at 18 to 20 per cent in the core, coupled with the shrinking footprints of existing corporate offices, have prompted a seismic shift in the office market. While not all office buildings are well-suited for residential conversion, the city’s abundance of heritage buildings offer a unique opportunity to preserve history and provide homeownership opportunities in prime real estate on
Vacancy rates under one per cent are behind much of the push for purpose-built rentals in
The city’s malls continue to fare well, with few vacancies despite higher lease rates. Retailers are reducing their footprints in area malls, given robust on-line shopping sales while management is looking to enhance the shopping experience by adding more restaurants, gyms, and in some cases, higher-end grocery stores. Some landlords have revamped large parking lots, adding office towers and a residential element to complement existing retail. Big box retail power centres are having difficulty leasing larger stores ranging from 5,000 to 10,000 square feet or larger in today’s retail climate, as evidenced by the 30 to 40 per cent vacancy rate at
Inventory in the city’s industrial parks remains tight, with availability levels falling to four per cent in the first quarter of 2023, according to data from the Altus Group. Halifax was one of two markets in the country that experienced further decline this year. Warehousing, distribution and flex-space is most sought-after, although there is some demand for manufacturing facilities. The shipyards have experienced tremendous growth over the past decade, with more than
With growth in Halifax and the surrounding areas on an upward trajectory, the outlook for commercial real estate is bright. Last year alone, interprovincial migration accounted for 40 per cent of the surge in population growth, while international migration accounted for the remainder of growth. According to
Newfoundland –Labrador is forecast to leadAtlantic Canada in GDP growth in 2023 as capital spending ramps up in the province.- Industrial inventory shortage in
Ontario may spill over intoNewfoundland –Labrador as potential buyers and tenants’ express interest in theSt. John’s industrial product. - After moving en masse to the suburbs, is there a potential return to downtown core for corporate offices?
With
Industrial remains the strongest commercial asset class in
While vacancy rates for commercial office space in the core topped 20 per cent in the first quarter of the year, the outlook is improving. Recent inquiries suggest a potential shift back into the downtown core. Several years ago, the province’s largest corporations moved their office space from the core to the suburbs, where greater square footage and available parking at a lower cost proved irresistible. With the shift to remote working, the abundance of space is unnecessary for many employers, and the move back to the vibrancy of the city centre is attractive to employees from both a recreational and social point of view. The Bank of Montreal, for example, just located their corporate offices to the new Class A commercial space at
Retail sales and leasing continue to thrive in
Investment in the province has ramped up significantly, with the natural resource sector behind much of the push this year. Of the
About the RE/MAX Network
As one of the leading global real estate franchisors,
RE/MAX was founded in 1973 by Dave and
Forward looking statements
This report includes “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect,” “estimate,” “plan,” “outlook,” “project,” and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company’s results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the
SOURCE RE/MAX
© Canada Newswire, source
Commercial property insurer FM Global is crediting members a record $US800 million ($1.2 billion) after an outstanding year in which successful risk mitigation efforts led to fewer losses.
FM Global clients holding policies for fewer than five consecutive years will be eligible for a 5% credit, 5-20 years a 10% credit, and over 20 consecutive years a 15% credit.
The mutual insurer has now returned more than $US5 billion ($7.51 billion) in credits since 2001.
VP Client Service Manager Australia Greg Duncan tells insuranceNEWS.com.au FM Global will give around $30 million back to Australian clients in the form of a membership credit, and that the operation in Australia has more than $350 million in premium.
“We’ve become a substantial player in the local property insurance market. We’ve experienced some strong growth over the past five years or so which really has just been a result of the quality of the product that we’re providing,” Mr Duncan said.
“Next time they renew their policy with us, they will get an automatic discount on the cost of that renewal policy, returning some of our profits to our mutual policyholders.”
FM Global offers risk consultancy, sending engineers to client locations to gauge exposures and recommend how clients can improve. Mr Duncan says the cost of a few additional screws in the roof “might save you a disruption to your business that takes six months to fix or costs many millions of dollars to repair”.
“Clients are not just getting an insurance product if something goes wrong. With that understanding, they can then invest in minimising the chance of something going wrong in the first place,” he said. “It works, that’s something we’re really proud of.”
The Société Anonyme under the name “FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY” and the distinctive title “FLEXOPACK S.A.” (hereinafter referred to as the “Company”), announces that on the 18thof May 2023, commences the trading in the Athens Stock Exchange of 74,200 new, common, registered shares of the Company of nominal value of 0.54 Euro each, resulting from the recent increase of the share capital of the Company by 40,068.00Euro, due to the exercise of stock options (Stock Option Plan) by the members of the Board of Directors, the Managers and employees of the Company, amounting to a total of twenty-two (22) persons, at a share offer price of 3.00 Euro, in accordance with the resolution of the Annual Ordinary General Meeting of the shareholders dated 29.06.2018 and the relevant resolution of the Board of Directors of the Company dated 17.05.2021.
The above share capital increase was certified by the Board of Directors of the Company on 02.05.2023, pursuant to the resolutions of the above Annual Ordinary General Meeting of the shareholders and was registered in the General Commercial Registry (G.E.MI.) on 03.05.2023, through the Division of Companies (Department of Listed S.A.) of the Ministry of Development and Investments as the competent Supervisory Authority.
It is noted that, following the above increase, the share capital of the Company now amounts to 6,409,380.96 Euro, divided into 11,869,224 common, registered shares of nominal value 0,54 Euro each.
The Corporate Actions Committee of the Athens Stock Exchange at its meeting on the 11thof May 2023 approved the admission to trading of the above 74,200new common, registered shares of the Company.
By decision of the Company, it is determined that the above new shares will be traded in the Athens Exchange from the 18thof May 2023.
From the same date, the starting price of the Company’s shares in the Athens Stock Exchange will be formed in accordance with the ATHEX Exchange Rulebook together with the decision No. 26 of the ATHEX Board of Directors, as in force, and the new shares will have been credited to the shares and securities accounts of the beneficiary shareholders in the Dematerialized Securities System (DSS).
Messrs. shareholders may receive more information from the Form for the provision of information in accordance with article 1 par. 5 (h) of Regulation (EU) 2017/1129 of the 14thof June 2017, which is available electronically on the Company’s website (http://www.flexopack.com) and on the website of the Athens Stock Exchange (http://www.athexgroup.gr), as well as to contact the Investor Relations and Corporate Announcements Department of the Company (Mrs. Stamatina Gkinosati, tel. +30 210 6680000).
Koropi, May 12, 2023
For FLEXOPACK S.A.
- Announces distribution increase of 3.5%, a cumulative increase of 38.2% since initial public offering
Receives Zero Carbon Building Design Certification for new distribution centre development in Calgary,Alberta
“CT REIT’s resilient fundamentals and consistent growth were once again on display in Q1, and this dynamic combination gave our board the confidence to approve yet another distribution increase, our tenth since our Initial Public Offering in
“We look forward to hosting our Annual Meeting of Unitholders on
Distribution Increase
The Board of Trustees of CT REIT has approved a 3.5% distribution increase that will be effective with the
Update on net zero distribution centre development in Calgary,
In
New Investment Activity
CT REIT announced one new investment, which will require an estimated
The table below summarizes the new investment and its anticipated completion date:
Property |
Type |
GLA (sf.) |
Timing |
Activity |
Fergus, ON |
Third-Party Acquisition/ Intensification |
22,000 |
Q2 2023 / Q4 2024 |
Acquisition of adjacent land from a third-party and expansion of an existing Canadian Tire store |
Update on Previously Announced Investment and Development Activity
CT REIT invested $13 million in a project that was completed in the first quarter and added 39,000 square feet of incremental GLA to the portfolio. This project consists of the development of mid-box and CRU space for third-party tenants adjacent to the recently-built
The table below provides an activity update on the previously announced investment.
Property |
Type |
GLA (sf.) |
Timing |
Activity |
Moose Jaw, SK |
Development |
39,000 |
Q1 2023 |
Development of mid-box and CRU space for third-party tenants |
As of
Financial and Operational Summary
Summary of Selected Information |
|||||
(in thousands of Canadian dollars, except unit, per unit and square footage amounts) |
Three Months Ended March 31, |
||||
2023 |
2022 |
Change |
|||
Property revenue |
$ |
137,506 |
$ |
131,950 |
4.2 % |
Net operating income 1 |
$ |
107,417 |
$ |
102,786 |
4.5 % |
Net income |
$ |
70,511 |
$ |
93,079 |
(24.2) % |
Net income per unit – basic 2 |
$ |
0.300 |
$ |
0.399 |
(24.8) % |
Net income per unit – diluted 3 |
$ |
0.265 |
$ |
0.345 |
(23.2) % |
Funds from operations 1 |
$ |
75,328 |
$ |
71,825 |
4.9 % |
Funds from operations per unit – diluted 2,4,5 |
$ |
0.320 |
$ |
0.307 |
4.2 % |
Adjusted funds from operations 1 |
$ |
69,231 |
$ |
65,053 |
6.4 % |
Adjusted funds from operations per unit – diluted 2,4,5 |
$ |
0.294 |
$ |
0.278 |
5.8 % |
Distributions per unit – paid 2 |
$ |
0.217 |
$ |
0.210 |
3.3 % |
AFFO payout ratio 4 |
73.8 % |
75.5 % |
(1.7) % |
||
Cash generated from operating activities |
$ |
104,856 |
$ |
99,396 |
5.5 % |
Weighted average number of units outstanding 2 |
|||||
Basic |
234,837,356 |
233,356,669 |
0.6 % |
||
Diluted 3 |
326,359,367 |
315,798,786 |
3.3 % |
||
Diluted (non-GAAP) 5 |
235,147,397 |
233,643,504 |
0.6 % |
||
Indebtedness ratio |
40.7 % |
40.9 % |
(0.2) % |
||
Gross leasable area (square feet) 6 |
30,040,543 |
29,182,918 |
2.9 % |
||
Occupancy rate 6,7 |
99.2 % |
99.3 % |
(0.1) % |
1 This is a non-GAAP financial measure. See “Specified Financial Measures” below for more information. |
2 Total units means Units and Class B LP Units outstanding. |
3 Diluted units determined in accordance with IFRS includes restricted and deferred units issued under various plans and the effect of assuming that all of the Class |
4 This is a non-GAAP ratio. See “Specified Financial Measures” below for more information. |
5 Diluted units used in calculating non-GAAP measures include restricted and deferred units issued under various plans and exclude the effect of assuming that all of the Class |
6 Refers to retail, mixed-use commercial and industrial properties and excludes |
7 Occupancy and other leasing key performance measures have been prepared on a committed basis which includes the impact of existing lease agreements contracted on or before |
Financial Highlights
Net Income – Net income was
Net Operating Income (NOI)* – Total property revenue for the quarter was
Funds from Operations (FFO)* – FFO for the quarter was
Adjusted Funds from Operations (AFFO)* – AFFO for the quarter was
Distributions – Distributions per unit in the quarter amounted to $0.217, which was 3.3% higher than the same period in 2022 due to increases in the rate of distribution which became effective with the monthly distributions paid in
Operating Results
Leasing – CTC is CT REIT’s most significant tenant. As at March 31, 2023, CTC represented 92.0% of total GLA and 91.3% of annualized base minimum rent.
Occupancy – As at March 31, 2023, CT REIT’s portfolio occupancy rate, on a committed basis, was 99.2%.
*NOI, FFO and AFFO are Specified Financial Measures. See below for additional information.
Specified Financial Measures
CT REIT uses specified financial measures as defined by National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure of the Canadian Securities Administrators (“NI 52-112”). CT REIT believes these specified financial measures provide useful information to both management and investors in measuring the financial performance of CT REIT and its ability to meet its principal objective of creating Unitholder value over the long term by generating reliable, durable and growing monthly cash distributions on a tax-efficient basis.
These specified financial measures used in this document include non-GAAP financial measures and non- GAAP ratios, within the meaning of NI 52-112. Non-GAAP financial measures and non-GAAP ratios do not have a standardized meaning prescribed by IFRS, also referred to as generally accepted accounting principles (“GAAP”), and therefore they may not be comparable to similarly titled measures and ratios presented by other publicly traded entities and should not be construed as an alternative to other financial measures determined in accordance with GAAP.
See below for further information on specified financial measures used by management in this document and, where applicable, for reconciliations to the nearest GAAP measures.
Net Operating Income
NOI is a non-GAAP financial measure defined as property revenue less property expense, adjusted for straight-line rent. The most directly comparable primary financial statement measure is property revenue. Management believes that NOI is a useful key indicator of performance as it represents a measure of property operations over which management has control. NOI is also a key input in determining the fair value of the portfolio of Properties. NOI should not be considered as an alternative to property revenue or net income and comprehensive income, both of which are determined in accordance with IFRS.
(in thousands of Canadian dollars) |
Three Months Ended |
||||
For the periods ended March 31, |
2023 |
2022 |
Change 1 |
||
Property revenue |
$ |
137,506 |
$ |
131,950 |
4.2 % |
Less: |
|||||
Property expense |
(30,511) |
(28,702) |
6.3 % |
||
Property straight-line rent revenue |
422 |
(462) |
NM |
||
Net operating income |
$ |
107,417 |
$ |
102,786 |
4.5 % |
1 NM – not meaningful. |
Funds From Operations and Adjusted Funds From Operations
Certain non-GAAP financial measures for the real estate industry have been defined by the
The following table reconciles GAAP net income and comprehensive income to FFO and further reconciles FFO to AFFO:
(in thousands of Canadian dollars) |
Three Months Ended |
||
For the periods ended |
2023 |
2022 |
Change 1 |
Net Income and comprehensive income |
$ 70,511 |
$ 93,079 |
(24.2) % |
Fair value adjustment on investment property |
4,180 |
(22,077) |
NM |
GP income tax expense |
444 |
541 |
(17.9) % |
Lease principal payments on right-of-use assets |
(351) |
(112) |
NM |
Fair value adjustment of unit-based compensation |
298 |
191 |
56.0 % |
Internal leasing expense |
246 |
203 |
21.2 % |
Funds from operations |
$ 75,328 |
$ 71,825 |
4.9 % |
Property straight-line rent revenue |
422 |
(462) |
NM |
Direct leasing costs 2, 3 |
(192) |
(97) |
97.9 % |
Capital expenditure reserve 2 |
(6,327) |
(6,213) |
1.8 % |
Adjusted funds from operations |
$ 69,231 |
$ 65,053 |
6.4 % |
1 NM – not meaningful. |
2 Comparatives have been restated to conform with current year’s presentation. |
3 Excludes internal and external leasing costs related to development projects. |
Funds From Operations
FFO is a non-GAAP financial measure of operating performance used by the real estate industry, particularly by those publicly traded entities that own and operate income-producing properties. The most directly comparable primary financial statement measure is net income and comprehensive income. FFO should not be considered as an alternative to net income or cash flows provided by operating activities determined in accordance with IFRS. The use of FFO, together with the required IFRS presentations, has been included for the purpose of improving the understanding of the operating results of CT REIT.
Management believes that FFO is a useful measure of operating performance that, when compared period- over-period, reflects the impact on operations of trends in occupancy levels, rental rates, operating costs and property taxes, acquisition activities and interest costs, and provides a perspective of the financial performance that is not immediately apparent from net income determined in accordance with IFRS.
FFO adds back to net income items that do not arise from operating activities, such as fair value adjustments. FFO, however, still includes non-cash revenues related to accounting for straight-line rent and makes no deduction for the recurring capital expenditures necessary to sustain the existing earnings stream.
Adjusted Funds From Operations
AFFO is a non-GAAP financial measure of recurring economic earnings used in the real estate industry to assess an entity’s distribution capacity. The most directly comparable primary financial statement measure is net income and comprehensive income. AFFO should not be considered as an alternative to net income or cash flows provided by operating activities determined in accordance with IFRS.
CT REIT calculates AFFO by adjusting FFO for non-cash income and expense items such as amortization of straight-line rents. AFFO is also adjusted for a reserve for maintaining the productive capacity required for sustaining property infrastructure and revenue from real estate properties and direct leasing costs. As property capital expenditures do not occur evenly during the fiscal year or from year to year, the capital expenditure reserve in the AFFO calculation, which is used as an input in assessing the REIT’s distribution payout ratio, is intended to reflect an average annual spending level. The reserve is primarily based on average expenditures as determined by building condition reports prepared by independent consultants.
Management believes that AFFO is a useful measure of operating performance similar to FFO as described above, adjusted for the impact of non-cash income and expense items.
Capital Expenditure Reserve
The following table compares and reconciles recoverable capital expenditures during the 2022-2023 period to the capital expenditure reserve used in the calculation of AFFO:
(in thousands of Canadian dollars) |
Capital |
Recoverable capital |
||||
For the periods indicated |
Variance |
|||||
Year ended December 31, 2022 |
$ |
25,030 |
$ |
26,835 |
$ |
(1,805) |
Period ended March 31, 2023 |
$ |
6,327 |
$ |
824 |
$ |
5,503 |
1 Comparatives have been restated to conform with current year’s presentation. |
The capital expenditure reserve is a non-GAAP financial measure and management believes the reserve is a useful measure to understand the normalized capital expenditures required to maintain property infrastructure. Recoverable capital expenditures are the most directly comparable measure that is disclosed in the REIT’s primary financial statements. The capital expenditure reserve should not be considered as an alternative to recoverable capital expenditures, which is determined in accordance with IFRS.
The capital expenditure reserve varies from the capital expenditures incurred due to the seasonal nature of the expenditures. As such, CT REIT views the capital expenditure reserve as a meaningful measure.
FFO per unit – Basic, FFO per unit – Diluted (non-GAAP), AFFO per unit – Basic and AFFO per unit – Diluted (non-GAAP)
FFO per unit – basic, FFO per unit – diluted (non-GAAP), AFFO per unit – basic and AFFO per unit – diluted (non-GAAP) are non-GAAP ratios and reflect FFO and AFFO on a weighted average per unit basis. Management believes these non-GAAP ratios are useful measures to investors since the measures indicate the impact of FFO and AFFO, respectively, in relation to an individual per unit investment in the REIT. For the purpose of calculating diluted per unit amounts, diluted units include restricted and deferred units issued under various plans and exclude the effects of settling the Class
Management believes that FFO per unit ratios are useful measures of operating performance that, when compared period-over-period, reflect the impact on operations of trends in occupancy levels, rental rates, operating costs and property taxes, acquisition activities and interest costs, and provides a perspective of the financial performance that is not immediately apparent from net income per unit determined in accordance with IFRS. Management believes that AFFO per unit ratios are useful measures of operating performance similar to FFO as described above, adjusted for the impact of non-cash income and expense items. The FFO per unit and AFFO per unit ratios are not standardized financial measures under IFRS and should not be considered as an alternative to other ratios determined in accordance with IFRS. The component of the FFO per unit ratios, which is a non-GAAP financial measure, is FFO, and the component of AFFO per unit ratios, which is a non-GAAP financial measure, is AFFO.
Three Months Ended
For the periods ended March 31, |
2023 |
2022 |
Change |
||
Funds from operations/unit – basic |
$ |
0.321 |
$ |
0.308 |
4.2 % |
Funds from operations/unit – diluted |
$ |
0.320 |
$ |
0.307 |
4.2 % |
Three Months Ended
For the periods ended March 31, |
2023 |
2022 |
Change |
||
Adjusted funds from operations/unit – basic |
$ |
0.295 |
$ |
0.279 |
5.7 % |
Adjusted funds from operations/unit – diluted |
$ |
0.294 |
$ |
0.278 |
5.8 % |
Management calculates the weighted average units outstanding – diluted (non-GAAP) by excluding the full conversion of the Class
AFFO Payout Ratio
The AFFO payout ratio is a non-GAAP ratio which is a measure of the sustainability of the REIT’s distribution payout. Management believes this is a useful measure to investors since this metric provides transparency on performance. Management considers the AFFO payout ratio to be the best measure of the REIT’s distribution capacity. The AFFO payout ratio is not a standardized financial measure under IFRS and should not be considered as an alternative to other ratios determined in accordance with IFRS. The component of the AFFO payout ratio, which is a non-GAAP financial measure, is AFFO, and the composition of the AFFO payout ratio is as follows:
Three Months Ended
For the periods ended March 31, |
2023 |
2022 |
Change |
||
Distribution per unit – paid (A) |
$ |
0.217 |
$ |
0.210 |
3.3 % |
AFFO per unit – diluted (non-GAAP) 1 (B) |
$ |
0.294 |
$ |
0.278 |
5.8 % |
AFFO payout ratio (A)/(B) |
73.8 % |
75.5 % |
(1.7) % |
1 For the purposes of calculating diluted per unit amounts, diluted units include restricted and deferred units issued under various plans and excludes the effects of settling the Class |
Same Store NOI
Same store NOI is a non-GAAP financial measure which reports the period-over-period performance of the same asset base having consistent GLA in both periods. CT REIT management believes same store NOI is a useful measure to gauge the change in asset productivity and asset value. The most directly comparable primary financial statement measure is property revenue. Same store NOI should not be considered as an alternative to property revenue or net income and comprehensive income, both of which are determined in accordance with IFRS.
Same Property NOI
Same property NOI is a non-GAAP financial measure that is consistent with the definition of same store NOI above, except that same property includes the NOI impact of intensifications. Management believes same property NOI is a useful measure to gauge the change in asset productivity and asset value, as well as measure the additional return earned by incremental capital investments in existing assets. The most directly comparable primary financial statement measure is property revenue. Same property NOI should not be considered as an alternative to property revenue or net income and comprehensive income, both of which are determined in accordance with IFRS.
Acquisitions, Developments and Dispositions NOI
Acquisitions, developments and dispositions NOI is a non-GAAP financial measure that is consistent with the definition of NOI above with respect to new property or dispositions of property not included in same property NOI. CT REIT management believes acquisitions, developments, and dispositions NOI is a useful measure to gauge the change in asset productivity and asset value. The most directly comparable primary financial statement measure is property revenue. Acquisitions, developments, and dispositions NOI should not be considered as an alternative to property revenue or net income and comprehensive income, both of which are determined in accordance with IFRS.
The following table summarizes the same store and same property components of NOI:
(in thousands of Canadian dollars) |
Three Months Ended |
||||
For the periods ended March 31, |
2023 |
2022 |
Change 1 |
||
Same store |
$ |
104,346 |
$ |
101,827 |
2.5 % |
Intensifications |
|||||
2023 |
15 |
— |
NM |
||
2022 |
2,158 |
117 |
NM |
||
Same property |
$ |
106,519 |
$ |
101,944 |
4.5 % |
Acquisitions, developments and dispositions |
|||||
2023 |
(16) |
808 |
NM |
||
2022 |
914 |
34 |
NM |
||
Net operating income |
$ |
107,417 |
$ |
102,786 |
4.5 % |
Add: |
|||||
Property expense |
30,511 |
28,702 |
6.3 % |
||
Property straight-line rent revenue |
(422) |
462 |
NM |
||
Property Revenue |
$ |
137,506 |
$ |
131,950 |
4.2 % |
1 NM – not meaningful. |
Management’s Discussion and Analysis (MD&A) and Interim Condensed Consolidated Financial Statements (Unaudited) and Notes
Information in this press release is a select summary of results. This press release should be read in conjunction with CT REIT’s MD&A for the period ended
Note: Unless otherwise indicated, all figures in this press release are as at March 31, 2023, and are presented in Canadian dollars.
Forward-Looking Statements
This press release contains forward-looking statements and information that reflect management’s current expectations related to matters such as future financial performance and operating results. Forward-looking statements are provided for the purposes of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our future outlook, anticipated events or results and our operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
Certain statements other than statements of historical facts included in this document may constitute forward-looking information, including, but not limited to, statements concerning the REIT’s ability to complete the investments under the heading “New Investment Activity”, the timing and terms of any such investments and the benefits expected to result from such investments, statements concerning developments, intensifications, results, performance, achievements, and prospects or opportunities for CT REIT. Forward-looking information is based on reasonable assumptions, estimates, analyses, beliefs, and opinions of management made in light of its experience and perception of prospects and opportunities, current conditions and expected trends, as well as other factors that management believes to be relevant and reasonable at the date such information is provided.
By its very nature, forward-looking information requires the use of estimates and assumptions and is subject to inherent risks and uncertainties. It is possible that the REIT’s assumptions, estimates, analyses, beliefs, and opinions are not correct, and that the REIT’s expectations and plans will not be achieved. Although the forward-looking information contained in this press release is based on information, assumptions and beliefs which are reasonable in the opinion of management and complete, this information is necessarily subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking information.
For more information on the risks, uncertainties and assumptions that could cause the REIT’s actual results to differ from current expectations, refer to section 4 “Risk Factors” of CT REIT’s Annual Information Form for fiscal 2022, and to section 12.0 “Enterprise Risk Management” and 14.0 “Forward- looking Information” of CT REIT’s MD&A for fiscal 2022 as well as the REIT’s other public filings available at http://www.sedar.com and at http://www.ctreit.com.
The forward-looking statements and information contained herein are based on certain factors and assumptions as of the date hereof. CT REIT does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as is required by applicable securities laws.
Information contained in or otherwise accessible through the websites referenced in this press release does not form part of this press release and is not incorporated by reference into this press release. All references to such websites are inactive textual references and are for information only.
Additional information about CT REIT has been filed electronically with various securities regulators in
Annual Meeting
As previously announced, CT REIT’s Annual Meeting of Unitholders will take place on
Conference Call
CT REIT will conduct a conference call to discuss information included in this news release and related matters at
About CT Real Estate Investment Trust
CT REIT is an unincorporated, closed-end real estate investment trust formed to own income-producing commercial properties located primarily in
SOURCE
© Canada Newswire, source
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On
“Company”) of his intention to resign as President and Chief Executive Officer
of the Company and as a member of the Company’s Board of Directors (the “Board”)
effective
Bevis’
matter, including any matter relating to its operations, policies or practices.
In connection with
directors on the Board will be reduced from seven to six directors effective
immediately following the Company’s 2023 Annual Meeting of Stockholders (the
“Annual Meeting”).
definitive proxy statement and proxy card for the Annual Meeting. In light of
his resignation,
the Annual Meeting, and the Company’s proxy materials are hereby deemed amended
to remove
nominees otherwise remains unchanged. Previously voted proxies remain valid,
other than with respect to
re-election, and the Company’s stockholders eligible to vote at the Annual
Meeting may continue to use their proxy cards to vote their shares as to the
Board’s remaining nominees and the other matters being voted on at the Annual
Meeting.
Board as the Company’s interim President and Chief Executive Officer, effective
Officer until his successor is chosen and qualified, or until his earlier
resignation or removal. The Company is the process of conducting a comprehensive
search for a permanent President and Chief Executive Officer and will name
Griffin’s
to serve as Chairman of the Board during the time that he is serving as interim
President and Chief Executive Officer.
elected Chairman in 2019.
financial sector until he retired from
Management Committee. Prior to joining
member of the
Securities
Executive Vice President and Head of Global Debt Capital Raising and as a
Management Council
public and private, including during the last five years, the boards of the
following public companies: The
Builders FirstSource, Inc. (ending in 2019).
In connection with
Executive Officer, the Company and
agreement providing for compensation and benefits consistent with his new role,
which the Company will disclose once finalized.
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