Press Release Details

View all news

CT REIT Announces Strong First Quarter Results

May 12, 2015
  • Announces intention to make an additional 11 investments in 2015
  • 11.1% increase in AFFO per unit driven by 2.5% same store NOI growth and 8.6% of NOI growth from incremental investments

TORONTO, May 12, 2015 /CNW/ - CT Real Estate Investment Trust (CT REIT), (TSX: CRT.UN) today reported its consolidated financial results for the first quarter ended March 31, 2015.

"Our solid year over year growth in AFFO per unit is evidence that we are executing well on our growth strategy," said Ken Silver, CEO, CT REIT. "We are building on a solid foundation and are continuing to take advantage of some attractive opportunities."

New Investment Activity

Today, CT REIT announces that it intends to make a further 11 investments in acquisitions and property intensifications over the year, all of which are properties with Canadian Tire stores and will require an estimated investment of $73.5 million. The investments are, in the aggregate, expected to earn a 6.88% weighted average going in cap rate and represent approximately 433,000 square feet of incremental GLA. CT REIT expects to fund these investments by a combination of Class B LP Units, Class C LP Units, cash, and draws on its credit facility. The table below summarizes the new investments and anticipated completion dates:



GLA (sf.)

Anticipated Timing


South Edmonton Common, AB*



Q2 2015

New Canadian Tire store

Hawkesbury, ON



Q2 2015

Existing Canadian Tire store

Montreal (Pointe Aux Trembles), QC



Q2 2015

Existing Canadian Tire store and gas bar

Wallaceburg, ON



Q2 2015

Existing Canadian Tire store

Yarmouth, NS



Q2 2015

Existing Canadian Tire store

Kemptville, ON

Intensification – Expansion


Q2 2015

Expansion of existing Canadian Tire store

Dryden, ON

Intensification – Expansion


Q2 2015

Expansion of existing Canadian Tire store

Roberval, QC

Intensification – Expansion


Q2 2015

Expansion of existing Canadian Tire store

Saint John, NB

Intensification – Expansion


Q2 2015

Expansion of existing Canadian Tire store

Peace River, AB

Intensification – Expansion


Q2 2015

Expansion of existing Canadian Tire store

Repentigny, QC

Intensification – Expansion


Q4 2015

Expansion of existing Canadian Tire store

* Ground lease


Update on Previously Announced Investments

In the first quarter, CT REIT completed five property investments, one development land investment and three intensifications at a total cost of $75.7 million. The table below provides current activity updates on previously announced properties. Property investments, development land investments and intensifications were funded through a combination of issuances of Class B LP Units and draws on its credit facility.



GLA (sf.)


Dawson Creek, BC




Edmonton, AB  

Intensification - Expansion



Kamloops, BC

Intensification - Expansion



High River, AB



Construction of Canadian Tire store to be completed in Q4 2015

Martensville, SK



Land purchase complete; construction of Canadian Tire store to be completed in Q4 2015

Swift Current, SK



Construction to be completed in Q4 2015

Waterdown, ON

Intensification - pad


Construction to be completed Q3 2015

Selkirk, MB

Intensification- pad


Construction to be completed Q4 2015


Financial and Operational Summary

Summary of Selected Quarterly Information

(in thousands of Canadian dollars, except per Unit, Unit and square footage amounts)

Three months ended March 31,




Property revenue






Net operating income 1






Net income






Net income/Unit (basic) 2






Net income/Unit (diluted) 4






Funds from operations 1






Funds from operations/Unit (diluted, non-GAAP) 1,2,3






Adjusted funds from operations 1






Adjusted funds from operations/Unit (diluted, non-GAAP) 1,2,3






Distributions/Unit - paid 2, 7






AFFO payout ratio 1




Weighted average number of Units outstanding2





Diluted 4




Diluted (non-GAAP) 1,3




Indebtedness ratio 1




Interest coverage (times) 1




Debt / enterprise value ratio 1




Gross leaseable area 5




Occupancy rate 6




1 Non-GAAP key performance indicators. Refer to section 9.0 of the MD&A for further information.

2 Total Units consists of REIT Units and Class B LP Units outstanding.

3 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 C LP Units will be settled with Class B LP Units.

4 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 C LP Units will be settled with Class B LP Units. Refer to section 6.0 of the MD&A.

5 Gross leaseable area refers to retail, mixed-use and distribution properties and excludes development lands.

6 Refers to retail, mixed-use and distribution properties and excludes development lands.

7 Period-over-period percentage change is calculated based on exact fractional amounts rather than rounded fractional amounts.


Financial Highlights

Net Operating Income (NOI)* –  In the first quarter, NOI increased $6.4 million or 11.1% over the same period last year primarily due to acquisitions completed in 2015 and 2014. These acquisitions contributed a total of $4.7 million to NOI. Same store NOI and same property NOI increased $1.4 million or 2.5% and $1.8 million or 3.2%, respectively, primarily due to the contractual rent escalations built into the property leases, intensifications completed in 2015 and 2014 and due to capital expenditure recoveries. Approximately 52,000 square feet of intensification activities were completed in the first quarter.   

Net Income – Net income was $55.6 million for the quarter, down 67.2% over the prior year primarily due to a fair value adjustment of $127.0 million that was recorded in the first quarter of 2014.

Funds from Operations (FFO)* – FFO for the first quarter was $47.4 million or $0.258 per unit as compared to $42.7 million or $0.238 per unit for the first quarter of 2014. This is $4.7 million (11.1%) or $0.02 per unit (8.4%) higher than the same period last year. This is largely due to the impact of NOI variances discussed earlier.

Adjusted Funds From Operations (AFFO)* – In the first quarter, AFFO increased $4.6 million or 14.1% to $36.9 million. AFFO per unit increased to $0.200 per unit (diluted non-GAAP), or 11.1% higher than $0.180 per unit over the same period last year. This is largely due to the impact of NOI variances discussed earlier.

Distributions – Distributions in the quarter amounted to $0.166, 2% higher than 2014 due to the increase in the annual rate of distributions effective with the first distribution paid in 2015. 

Class C Units, Series 1 – CT REIT intends to redeem the Series 1 Class C LP Units expiring May 31, 2015.  The redemption may be funded by way of a draw on its Bank Credit Facility, the issuance of public debt or equity, the issuance of LP Units, an alternative arrangement with Canadian Tire Corporation or any combination thereof.

*AFFO, FFO and NOI are non-GAAP measures. Refer to Non-GAAP section in the Q1 2015 Management's Discussion & Analysis which is available on the Company's website and on SEDAR.

Operating Results

Leasing – CTC is CT REIT's largest tenant. At March 31, 2015, CTC represented 97.9% of total GLA and 96.4% of annualized base minimum rent.

Occupancy – At March 31, 2015, CT REIT's portfolio occupancy rate was unchanged from the prior quarter at 99.9%.

Management Discussion and Analysis (MD&A) and Unaudited Consolidated Financial Statements 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 March 31, 2015 ("the Q1  MD&A") and Condensed Consolidated Financial Statements and Notes for the period ended March 31, 2015, which are available on CT REIT's website at: and on SEDAR at

To view a PDF version of CT REIT's 2015 first quarter results please see:

Forward–Looking Statements
This document contains forward-looking information that reflects management's current expectations related to matters such as increases in distribution, future financial performance and operating results of CT REIT. Forward-looking statements are provided for the purposes of providing information about CT REIT's future outlook and anticipated events or results. Readers are cautioned that such information may not be appropriate for other purposes.

All statements other than statements of historical facts included in this document may constitute forward–looking information, including but not limited to, statements concerning future acquisitions under the heading, "New Investment Activity" and other statements concerning developments, intensifications, results, performance, achievements, 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 us to make assumptions and is subject to inherent risks and uncertainties, which give rise to the possibility that the REIT's assumptions, estimates, analyses, beliefs and opinions may not be 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 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 the "Risk Factors" section of our Annual Information Form for fiscal 2014, and to Part X (Enterprise Risk Management) and all subsections thereunder of our 2014 Management's Discussion and Analysis, as well as the REIT's other public filings, available at and at

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 (other than CT REIT's profile on SEDAR at 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 Canada through SEDAR and is available online at   

Conference Call
CT REIT will conduct a conference call to discuss information included in this news release and related matters at 3:00 p.m. ET on May 12, 2015. The conference call will be available simultaneously and in its entirety to all interested investors and the news media through a webcast at, and will be available through replay at this website for 12 months.

About CT Real Estate Investment Trust
CT Real Estate Investment Trust (TSX:CRT.UN) is an unincorporated, closed end real estate investment trust formed to own income producing commercial properties primarily located in Canada. Its portfolio is comprised of more than 275 properties totaling over 20 million square feet of GLA, consisting primarily of retail properties located across Canada. Canadian Tire Corporation, Limited is CT REIT's most significant tenant. For more information, visit

SOURCE CT Real Estate Investment Trust (CT REIT)

For further information: Media: Jane Shaw, 416-480-8581,; Investors: Andrea Orzech, 416-480-3195,

Categories: Press Releases
View all news