WINNIPEG, MB, Aug. 4, 2022
/CNW/ - Artis Real Estate Investment Trust ("Artis" or the "REIT")
(TSX: AX.UN) (TSX: AX.PR.A) (TSX: AX.PR.E) (TSX: AX.PR.I)
announced today its financial results for the three and six months
ended June 30, 2022. The second
quarter press release should be read in conjunction with the REIT's
consolidated financial statements and Management's Discussion and
Analysis ("MD&A") for the period ended June 30, 2022. All amounts are in thousands of
Canadian dollars, unless otherwise noted.
"Leasing activity was strong across all of our asset classes and
markets throughout the second quarter," said Samir Manji, President and Chief Executive
Officer of Artis. "Occupancy including commitments increased to
92.0%, the highest level reported in over a year. Interest from new
prospective tenants has improved noticeably while the volume of
renewals completed (in square feet) during the quarter increased
51.8% over the prior quarter and 19.0% over the comparative quarter
last year. The renewals that commenced in the quarter were
negotiated at a healthy weighted-average rate increase of 3.7%. We
are also pleased to report that FFO per unit and AFFO per unit for
the three months ended June 30, 2022,
increased 11.8% and 8.0%, respectively, over the comparative
quarter last year and that FFO and AFFO payout ratios remain
conservative at 39.5% and 55.6%, respectively. We remain focused on
the execution of our Business Transformation Plan announced in
March 2021 including our commitment
to enhance net asset value per unit. This is our most important key
performance indicator and reflects our long-term objective of
maximizing value for our unitholders."
SECOND QUARTER HIGHLIGHTS
Business Strategy Update
- Utilized the normal course issuer bid ("NCIB") to purchase
3,543,855 common units at a weighted-average price of $12.54 and 59,300 preferred units at a
weighted-average price of $24.32.
- Invested in equity securities for an aggregate cost of
$158.1 million.
- Disposed of one office property located in Canada and one industrial property located in
the U.S. for an aggregate sale price of $68.7 million.
- Completed the development of Blaine 35 I, an industrial property comprising
118,500 square feet, located in the Twin
Cities Area, Minnesota.
Balance Sheet and Liquidity
- Issued Series E senior unsecured debentures for gross proceeds
of $200.0 million, maturing on
April 29, 2025 and bearing interest
at a fixed rate of 5.60% per annum.
- Renewed the non-revolving credit facility maturing July 18, 2022 in the amount of $150.0 million for a one-year term.
- Increased NAV per unit (1) to $19.37 at June 30,
2022, compared to $17.37 at
December 31, 2021.
- Reported total debt to GBV (1) of 46.0% at
June 30, 2022, compared to 42.9% at
December 31, 2021.
- Reported total debt to Adjusted EBITDA (1) of 8.9 at
June 30, 2022, compared to 8.2 at
December 31, 2021.
- Reported Adjusted EBITDA interest coverage ratio (1)
of 3.35 for the second quarter of 2022, compared to 3.86 for the
second quarter of 2021.
Financial and Operational
- Increased FFO per unit (1) to $0.38 for the second quarter of 2022, compared to
$0.34 for the second quarter of 2021,
and increased AFFO per unit (1) to $0.27 for the second quarter of 2022, compared to
$0.25 for the second quarter of
2021.
- Reported a conservative AFFO payout ratio (1) of
55.6% for the second quarter of 2022, improved from 60.0% for the
second quarter of 2021.
- Same Property NOI (1) in Canadian dollars for the
second quarter of 2022 increased 0.7% compared to the second
quarter of 2021.
- Reported portfolio occupancy of 90.7% (92.0% including
commitments) at June 30, 2022,
increased from 89.5% (91.6% including commitments) at March 31, 2022.
- Renewals totalling 388,424 square feet and new leases totalling
227,201 square feet commenced during the second quarter of
2022.
- Weighted-average rental rate on renewals that commenced during
the second quarter of 2022 increased 3.7%.
|
(1) Represents a
non-GAAP measure, ratio or other supplementary financial measure.
Refer to the Notice with Respect to Non-GAAP & Supplementary
Financial Measures Disclosure.
|
BUSINESS STRATEGY UPDATE
Strengthening the Balance Sheet
A pillar of the REIT's strategy is to strengthen the balance
sheet through accretive dispositions, unit repurchases and debt
reduction.
During Q2-22, the REIT continued unlocking value through the
monetization of certain assets and sold one office property located
in Canada and one industrial
property located in the U.S. for an aggregate sale price of
$68.7 million. The sale proceeds, net
of costs of $1.9 million and related
debt of $20.7 million, were
$46.1 million.
Also during Q2-22, the REIT utilized the NCIB to purchase
3,543,855 common units at a weighted-average price of $12.54 and 59,300 preferred units at a
weighted-average price of $24.32. The
REIT has purchased the maximum number of common units permitted
under its NCIB that was renewed on December
17, 2021.
Driving Organic Growth
Blaine 35 is a two-phase
industrial development project located in the Twin Cities Area, Minnesota, with prominent interstate frontage
at the intersection of I-35W and 85th Ave N. During Q2-22,
construction of the first phase of the project, Blaine 35 I, comprising 118,500 square feet of
leasable area was complete. Approximately 73.4% of the
building was leased upon completion of construction while leasing
for the remainder of the building is in progress. Construction of
the second phase, Blaine 35 II, is
currently underway and will comprise two buildings expected to
total approximately 198,900 square feet of leasable area upon
completion. Pre-leasing is in progress and Artis has negotiated a
lease for approximately 50.3% of the gross leasable area of
Blaine 35 II.
The REIT also has a commercial and residential development
project under construction. 300 Main is a 580,000 square foot
building located in Winnipeg,
Manitoba. 300 Main will be a best-in-class amenity-rich
apartment building with main floor commercial space.
Pre-leasing of the first 20 floors of the 40-storey residential
apartments is currently underway.
Focusing on Value
Investing
During Q2-22, the REIT invested in equity securities for an
aggregate cost of $158.1 million.
This includes equity securities of Dream Office Real Estate
Investment Trust where, together with its joint-actors, Artis
announced on June 22, 2022, that it
had acquired a 14% ownership position.
BALANCE SHEET AND LIQUIDITY
The REIT's balance sheet highlights and metrics, are as
follows:
|
June
30,
|
|
December
31,
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
Total investment
properties
|
$ 4,016,838
|
|
$ 3,999,609
|
|
Unencumbered
assets
|
1,954,006
|
|
1,902,748
|
|
NAV per unit
(1)
|
|
19.37
|
|
|
17.37
|
|
Total debt to GBV
(1)
|
46.0 %
|
|
42.9 %
|
|
Total debt to Adjusted
EBITDA (1)
|
|
8.9
|
|
|
8.2
|
|
Adjusted EBITDA
interest coverage ratio (1)
|
|
3.35
|
|
|
3.77
|
|
Unencumbered assets to
unsecured debt (1)
|
1.56
|
|
2.20
|
|
(1) Represents a
non-GAAP measure, ratio or other supplementary financial measure.
Refer to the Notice with Respect to Non-GAAP & Supplementary
Financial Measures Disclosure.
|
At June 30, 2022, Artis had
$79.7 million of cash on hand and
$272.0 million available on its
revolving term credit facilities. Under the terms of the revolving
credit facilities, the REIT must maintain certain financial
covenants which limit the total borrowing capacity of the revolving
credit facilities to $572.9
million.
Liquidity and capital resources may be impacted by financing
activities, portfolio acquisition, disposition and development
activities or debt repayments occurring subsequent to June 30, 2022.
FINANCIAL AND OPERATIONAL RESULTS
|
Three months
ended
June
30,
|
|
|
Six months
ended
June
30,
|
|
|
$000's, except per
unit amounts
|
2022
|
|
2021
|
%
Change
|
|
2022
|
|
2021
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 91,055
|
|
$
103,299
|
(11.9) %
|
|
$
184,296
|
|
$
224,176
|
(17.8) %
|
|
Net operating
income
|
52,425
|
|
62,037
|
(15.5) %
|
|
103,887
|
|
126,269
|
(17.7) %
|
|
Net (loss)
income
|
(19,556)
|
|
217,056
|
(109.0) %
|
|
217,457
|
|
288,916
|
(24.7) %
|
|
Total comprehensive
income
|
30,553
|
|
198,431
|
(84.6) %
|
|
244,329
|
|
253,422
|
(3.6) %
|
|
Distributions per
common unit
|
0.15
|
|
0.15
|
— %
|
|
0.30
|
|
0.29
|
3.4 %
|
|
|
|
|
|
|
|
|
|
|
|
FFO
(1)
|
$ 44,939
|
|
$ 45,428
|
(1.1) %
|
|
$ 86,947
|
|
$ 92,001
|
(5.5) %
|
|
FFO per unit
(1)
|
0.38
|
|
0.34
|
11.8 %
|
|
0.72
|
|
0.69
|
4.3 %
|
|
FFO payout ratio
(1)
|
39.5 %
|
|
44.1 %
|
(4.6) %
|
|
41.7 %
|
|
42.0 %
|
(0.3) %
|
|
|
|
|
|
|
|
|
|
|
|
AFFO
(1)
|
$ 31,567
|
|
$ 32,795
|
(3.7) %
|
|
$ 61,138
|
|
$ 66,730
|
(8.4) %
|
|
AFFO per unit
(1)
|
0.27
|
|
0.25
|
8.0 %
|
|
0.51
|
|
0.50
|
2.0 %
|
|
AFFO payout ratio
(1)
|
55.6 %
|
|
60.0 %
|
(4.4) %
|
|
58.8 %
|
|
58.0 %
|
0.8 %
|
|
(1) Represents a
non-GAAP measure, ratio or other supplementary financial measure.
Refer to the Notice with Respect to Non-GAAP & Supplementary
Financial Measures Disclosure.
|
Artis reported portfolio occupancy of 90.7% at June 30, 2022, increased from 89.5% at
March 31, 2022. Weighted-average
rental rate on renewals that commenced during the second quarter of
2022 increased 3.7%.
Artis' portfolio has a stable lease expiry profile with 48.5% of
gross leasable area expiring in 2026 or later. Weighted-average
in-place rents for the total portfolio are $13.56 per square foot and are estimated to be
1.5% below market rents. Information about Artis' lease
expiry profile is as follows:
|
Current
vacancy
|
|
Monthly
tenants
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
|
2026 &
later
|
|
Total
portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expiring square
footage
|
9.3 %
|
|
0.3 %
|
|
9.1 %
|
|
13.0 %
|
|
12.3 %
|
|
7.5 %
|
|
48.5 %
|
|
100.0 %
|
|
In-place
rents
|
N/A
|
|
N/A
|
|
$ 14.19
|
|
$ 14.27
|
|
$ 11.62
|
|
$ 16.30
|
|
$ 13.33
|
|
$
13.56
|
|
Market rents
|
N/A
|
|
N/A
|
|
$ 14.03
|
|
$ 15.05
|
|
$ 11.71
|
|
$ 16.25
|
|
$ 13.53
|
|
$
13.77
|
UPCOMING WEBCAST AND CONFERENCE CALL
A conference call with management will be held on Friday, August 5, 2022, at 12:00 p.m. CT (1:00 p.m.
ET). In order to participate, please dial 1-416-764-8688 or
1-888-390-0546. You will be required to identify yourself and the
organization on whose behalf you are participating.
Alternatively, you may access the simultaneous webcast by
following the link from our website at
http://www.artisreit.com/investor-link/conference-calls/. Prior to
the webcast, you may follow the link to confirm you have the right
software and system requirements.
If you cannot participate on Friday,
August 5, 2022, a replay of the conference call will be
available by dialing 1-416-764-8677 or 1-888-390-0541 and entering
passcode 181748#. The replay will be available until Friday, August 12, 2022. The webcast will be
archived 24 hours after the end of the conference call and will be
accessible for 90 days.
CAUTIONARY STATEMENTS
This press release contains forward-looking statements within
the meaning of applicable Canadian securities laws. For this
purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements.
Without limiting the foregoing, the words "outlook", "objective",
"expects", "anticipates", "intends", "estimates", "projects",
"believes", "plans", "seeks", and similar expressions or variations
of such words and phrases suggesting future outcomes or events, or
which state that certain actions, events or results ''may'',
''would'', "should" or ''will'' occur or be achieved are intended
to identify forward-looking statements. Such forward-looking
information reflects management's current beliefs and is based on
information currently available to management.
Forward-looking statements are based on a number of factors and
assumptions which are subject to numerous risks and uncertainties,
which have been used to develop such statements, but which may
prove to be incorrect. Although Artis believes that the
expectations reflected in the forward-looking statements are
reasonable, it cannot guarantee future results, levels of activity,
performance or achievement since such expectations are inherently
subject to significant business, economic, competitive, political
and social uncertainties and contingencies. Assumptions have been
made regarding, among other things: the general stability of the
economic and political environment in which Artis operates,
treatment under governmental regulatory regimes, securities laws
and tax laws, the ability of Artis and its service providers to
obtain and retain qualified staff, equipment and services in a
timely and cost efficient manner, currency, exchange and interest
rates, global economic, financial markets and economic conditions
in Canada and the United States will not, in the long term,
be adversely impacted by the COVID-19 pandemic, disruptions
resulting from the temporary restrictions that governments imposed
on businesses to address the COVID-19 pandemic will not be long
term.
Artis is subject to significant risks and uncertainties which
may cause the actual results, performance or achievements of the
REIT to be materially different from any future results,
performance or achievements expressed or implied in these
forward-looking statements. Such risk factors include, but are not
limited to risk related to tax matters; and, credit, market,
currency, operational, liquidity and funding risks generally and
relating specifically to the Cominar Transaction; the COVID-19
pandemic, real property ownership, geographic concentration,
current economic conditions, strategic initiatives, debt financing,
interest rate fluctuations, foreign currency, tenants, SIFT rules,
other tax-related factors, illiquidity, competition, reliance on
key personnel, future property transactions, general uninsured
losses, dependence on information technology, cyber security,
environmental matters and climate change, land and air rights
leases, public markets, market price of common units, changes in
legislation and investment eligibility, availability of cash flow,
fluctuations in cash distributions, nature of units, legal rights
attaching to units, preferred units, debentures, dilution,
unitholder liability, failure to obtain additional financing,
potential conflicts of interest, developments and trustees.
For more information on the risks, uncertainties and assumptions
that could cause Artis' actual results to materially differ from
current expectations, refer to the section entitled "Risk Factors"
of Artis' Annual Information Form for the year ended December 31, 2021, the section entitled "Risk and
Uncertainties" of Artis' Q2-22 MD&A, as well as Artis' other
public filings, available at www.sedar.com.
Artis cannot assure investors that actual results will be
consistent with any forward-looking statements and Artis assumes no
obligation to update or revise such forward-looking statements to
reflect actual events or new circumstances other than as required
by applicable securities laws. All forward-looking statements
contained in this press release are qualified by this
cautionary statement.
NOTICE WITH RESPECT TO NON-GAAP
& SUPPLEMENTARY FINANCIAL MEASURES DISCLOSURE
In addition to reported IFRS measures, certain non-GAAP and
supplementary financial measures are commonly used by Canadian real
estate investment trusts as an indicator of financial performance.
"GAAP" means the generally accepted accounting principles described
by the CPA Canada Handbook - Accounting, which are applicable as at
the date on which any calculation using GAAP is to be made. Artis
applies IFRS, which is the section of GAAP applicable to publicly
accountable enterprises.
Non-GAAP measures and ratios include Same Property Net Operating
Income ("Same Property NOI"), Funds From Operations ("FFO"),
Adjusted Funds from Operations ("AFFO"), FFO per Unit, AFFO per
Unit, FFO Payout Ratio, AFFO Payout Ratio, NAV per Unit, Total Debt
to GBV, Adjusted EBITDA Interest Coverage Ratio and Total Debt to
Adjusted EBITDA.
Supplementary financial measures includes unencumbered assets to
unsecured debt.
Management believes that these measures are helpful to investors
because they are widely recognized measures of Artis' performance
and provide a relevant basis for comparison among real estate
entities.
These non-GAAP and supplementary financial measures are not
defined under IFRS and are not intended to represent financial
performance, financial position or cash flows for the period, nor
should any of these measures be viewed as an alternative to net
income, cash flow from operations or other measures of financial
performance calculated in accordance with IFRS.
The above measures are not standardized financial measures under
the financial reporting framework used to prepare the financial
statements of Artis. Readers should be further cautioned that the
above measures as calculated by Artis may not be comparable to
similar measures presented by other issuers. Refer to the Notice
With Respect to Non-GAAP & Supplementary Financial Measures
Disclosure of Artis' Q2-22 MD&A, which is incorporated by
reference herein, for further information (available on SEDAR at
www.sedar.com or Artis' website at www.artisreit.com).
The reconciliation for each non-GAAP measure or ratio and other
supplementary financial measures included in this Press Release is
outlined below.
NAV per Unit
|
June 30,
2022
|
|
December 31,
2021
|
|
|
|
|
|
Unitholders'
equity
|
$
2,550,704
|
|
$
2,455,353
|
|
Less face value of
preferred equity
|
(296,174)
|
|
(299,017)
|
|
|
|
|
|
NAV attributable to
common unitholders
|
$
2,254,530
|
|
$
2,156,336
|
|
|
|
|
|
Total number of
dilutive units outstanding:
|
|
|
|
|
Common
units
|
115,787,008
|
|
123,544,536
|
|
Restricted
units
|
465,254
|
|
462,891
|
|
Deferred
units
|
164,957
|
|
133,552
|
|
|
|
|
|
116,417,219
|
|
124,140,979
|
|
|
|
|
|
NAV per unit
|
$
19.37
|
|
$
17.37
|
Total Debt to GBV
|
June 30,
2022
|
|
December 31,
2021
|
|
|
|
|
|
Total assets
|
$ 4,998,257
|
|
$ 4,576,024
|
|
Add: accumulated
depreciation
|
9,916
|
|
9,275
|
|
|
|
|
|
Gross book
value
|
5,008,173
|
|
4,585,299
|
|
|
|
|
|
Secured mortgages and
loans
|
1,024,668
|
|
1,085,039
|
|
Preferred shares
liability
|
904
|
|
889
|
|
Carrying value of
debentures
|
448,807
|
|
249,346
|
|
Credit
facilities
|
827,510
|
|
631,253
|
|
|
|
|
|
Total debt
|
$ 2,301,889
|
|
$ 1,966,527
|
|
|
|
|
|
Total debt to
GBV
|
46.0 %
|
|
42.9 %
|
Unencumbered Assets to Unsecured Debt
|
June 30,
2022
|
|
December 31,
2021
|
|
|
|
|
|
Unencumbered
assets
|
$
1,954,006
|
|
$
1,902,748
|
|
Unencumbered assets in
properties held under joint venture arrangements
|
37,408
|
|
36,805
|
|
|
|
|
|
Total unencumbered
assets
|
1,991,414
|
|
1,939,553
|
|
|
|
|
|
Senior unsecured
debentures
|
448,807
|
|
249,346
|
|
Unsecured credit
facilities
|
827,510
|
|
631,253
|
|
|
|
|
|
Total unsecured
debt
|
$
1,276,317
|
|
$
880,599
|
|
|
|
|
|
Unencumbered assets to
unsecured debt
|
1.56
|
|
2.20
|
Adjusted EBITDA Interest Coverage Ratio
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(19,556)
|
|
$
217,056
|
|
$
217,457
|
|
$
288,916
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
Tenant inducements
amortized to revenue
|
6,429
|
|
6,420
|
|
12,835
|
|
12,743
|
|
Straight-line rent
adjustments
|
(243)
|
|
(1,178)
|
|
(531)
|
|
(2,217)
|
|
Interest
expense
|
19,903
|
|
17,562
|
|
35,960
|
|
36,350
|
|
Net (income) loss from
equity accounted investments
|
(7,310)
|
|
136
|
|
(147,594)
|
|
(6,209)
|
|
Distributions from
equity accounted investments (1)
|
728
|
|
628
|
|
2,613
|
|
2,173
|
|
Fair value loss (gain)
on investment properties
|
18,767
|
|
(173,874)
|
|
(52,174)
|
|
(192,221)
|
|
Foreign currency
translation loss
|
2,573
|
|
3,716
|
|
1,310
|
|
5,771
|
|
Transaction
costs
|
—
|
|
—
|
|
—
|
|
11
|
|
Strategic
initiative expenses
|
—
|
|
—
|
|
—
|
|
18
|
|
Fair value loss
(gain) on financial instruments
|
43,854
|
|
(6,026)
|
|
23,661
|
|
(13,144)
|
|
Depreciation of
property and equipment
|
314
|
|
344
|
|
628
|
|
671
|
|
Income tax (recovery)
expense
|
(790)
|
|
667
|
|
31,177
|
|
801
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
64,669
|
|
65,451
|
|
125,342
|
|
133,663
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
19,903
|
|
17,562
|
|
35,960
|
|
36,350
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
Amortization of
financing costs
|
(801)
|
|
(803)
|
|
(1,528)
|
|
(1,730)
|
|
Amortization of above-
and below-market mortgages, net
|
219
|
|
185
|
|
437
|
|
366
|
|
|
|
|
|
|
|
|
|
Adjusted interest
expense
|
$
19,321
|
|
$
16,944
|
|
$
34,869
|
|
$
34,986
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
interest coverage ratio
|
3.35
|
|
3.86
|
|
3.59
|
|
3.82
|
|
(1) Excludes
distributions from proceeds of the sale of investment
properties.
|
Total Debt to Adjusted EBITDA
|
June 30,
2022
|
|
December 31,
2021
|
|
|
|
|
|
Secured mortgages and
loans
|
$
1,024,668
|
|
$
1,085,039
|
|
Preferred shares
liability
|
904
|
|
889
|
|
Carrying value of
debentures
|
448,807
|
|
249,346
|
|
Credit
facilities
|
827,510
|
|
631,253
|
|
|
|
|
|
Total debt
|
2,301,889
|
|
1,966,527
|
|
|
|
|
|
Quarterly Adjusted
EBITDA
|
64,669
|
|
59,781
|
|
Annualized Adjusted
EBITDA
|
258,676
|
|
239,124
|
|
|
|
|
|
Total Debt to Adjusted
EBITDA
|
8.9
|
|
8.2
|
Same Property NOI
|
Three months
ended
|
|
|
|
|
Six months
ended
|
|
|
|
|
June
30,
|
|
|
%
Change
|
|
June
30,
|
|
|
%
Change
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
$
52,425
|
|
$
62,037
|
|
|
|
|
$ 103,887
|
|
$ 126,269
|
|
|
|
|
Add (deduct) net
operating income from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joint venture
arrangements
|
2,607
|
|
2,044
|
|
|
|
|
4,864
|
|
4,434
|
|
|
|
|
Dispositions and unconditional dispositions
|
(395)
|
|
(7,744)
|
|
|
|
|
(505)
|
|
(16,407)
|
|
|
|
|
(Re)development properties
|
462
|
|
196
|
|
|
|
|
742
|
|
322
|
|
|
|
|
Lease
termination income adjustments
|
(1,470)
|
|
(220)
|
|
|
|
|
(3,006)
|
|
(419)
|
|
|
|
|
Disposition of
condominium units
|
—
|
|
(133)
|
|
|
|
|
—
|
|
(1,091)
|
|
|
|
|
Other
|
(423)
|
|
(1,454)
|
|
|
|
|
(359)
|
|
(2,441)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
781
|
|
(7,311)
|
|
|
|
|
1,736
|
|
(15,602)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line rent
adjustments (1)
|
(358)
|
|
(1,476)
|
|
|
|
|
(776)
|
|
(2,826)
|
|
|
|
|
Tenant inducements
amortized to revenue (1)
|
6,513
|
|
5,707
|
|
|
|
|
13,081
|
|
11,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Property
NOI
|
$
59,361
|
|
$
58,957
|
|
$ 404
|
0.7 %
|
|
$ 117,928
|
|
$ 119,079
|
|
$
(1,151)
|
(1.0) %
|
|
(1) Includes joint
venture arrangements.
|
FFO and AFFO
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(19,556)
|
|
$
217,056
|
|
$
217,457
|
|
$
288,916
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
Fair value loss (gain)
on investment properties
|
18,767
|
|
(173,874)
|
|
(52,174)
|
|
(192,221)
|
|
Tenant inducements
amortized to revenue
|
6,429
|
|
6,420
|
|
12,835
|
|
12,743
|
|
Transaction costs on
acquisitions
|
—
|
|
—
|
|
—
|
|
11
|
|
Adjustments for equity
accounted investments
|
(2,112)
|
|
1,638
|
|
(139,936)
|
|
(2,898)
|
|
Strategic initiative
expenses
|
—
|
|
—
|
|
—
|
|
18
|
|
Foreign currency
translation loss
|
2,573
|
|
3,716
|
|
1,310
|
|
5,771
|
|
Fair value loss (gain)
on financial instruments
|
43,854
|
|
(6,026)
|
|
23,661
|
|
(13,144)
|
|
Deferred income tax
(recovery) expense
|
(1,054)
|
|
(19)
|
|
30,819
|
|
(15)
|
|
Remeasurement
component of unit-based compensation
|
(611)
|
|
(4)
|
|
(271)
|
|
(129)
|
|
Distributions on
preferred shares treated as interest expense
|
59
|
|
41
|
|
117
|
|
83
|
|
Incremental leasing
costs
|
849
|
|
802
|
|
1,665
|
|
1,525
|
|
Preferred unit
distributions
|
(4,259)
|
|
(4,322)
|
|
(8,536)
|
|
(8,659)
|
|
|
|
|
|
|
|
|
|
FFO
|
$
44,939
|
|
$
45,428
|
|
$
86,947
|
|
$
92,001
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
Amortization of
recoverable capital expenditures
|
$ (1,899)
|
|
$ (2,301)
|
|
$ (3,775)
|
|
$ (4,738)
|
|
Straight-line rent
adjustments
|
(243)
|
|
(1,178)
|
|
(531)
|
|
(2,217)
|
|
Adjustments for equity
accounted investments
|
(2,130)
|
|
(154)
|
|
(3,303)
|
|
(316)
|
|
Non-recoverable
property maintenance reserve
|
(1,100)
|
|
(1,100)
|
|
(2,200)
|
|
(2,200)
|
|
Leasing costs
reserve
|
(8,000)
|
|
(7,900)
|
|
(16,000)
|
|
(15,800)
|
|
|
|
|
|
|
|
|
|
AFFO
|
$
31,567
|
|
$
32,795
|
|
$
61,138
|
|
$
66,730
|
FFO and AFFO Per Unit
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Basic units
|
118,364,595
|
|
131,594,822
|
|
120,116,779
|
|
132,843,890
|
|
Add:
|
|
|
|
|
|
|
|
|
Restricted
units
|
425,446
|
|
384,412
|
|
391,093
|
|
362,845
|
|
Deferred
units
|
164,957
|
|
78,817
|
|
158,371
|
|
69,817
|
|
|
|
|
|
|
|
|
|
Diluted
units
|
118,954,998
|
|
132,058,051
|
|
120,666,243
|
|
133,276,552
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
FFO per
unit:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.38
|
|
$
0.35
|
|
$
0.72
|
|
$
0.69
|
|
Diluted
|
0.38
|
|
0.34
|
|
0.72
|
|
0.69
|
|
|
|
|
|
|
|
|
|
AFFO per
unit:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.27
|
|
$
0.25
|
|
$
0.51
|
|
$
0.50
|
|
Diluted
|
0.27
|
|
0.25
|
|
0.51
|
|
0.50
|
FFO and AFFO Payout Ratios
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Distributions per
common unit
|
$
0.15
|
|
$
0.15
|
|
$
0.30
|
|
$
0.29
|
|
FFO per unit
|
0.38
|
|
0.34
|
|
0.72
|
|
0.69
|
|
|
|
|
|
|
|
|
|
FFO payout
ratio
|
39.5 %
|
|
44.1 %
|
|
41.7 %
|
|
42.0 %
|
|
|
|
|
|
|
|
|
|
Distributions per
common unit
|
$
0.15
|
|
$
0.15
|
|
$
0.30
|
|
$
0.29
|
|
AFFO per
unit
|
0.27
|
|
0.25
|
|
0.51
|
|
0.50
|
|
|
|
|
|
|
|
|
|
AFFO payout
ratio
|
55.6 %
|
|
60.0 %
|
|
58.8 %
|
|
58.0 %
|
ABOUT ARTIS REAL ESTATE INVESTMENT TRUST
Artis is a diversified Canadian real estate investment trust
with a portfolio of industrial, office and retail properties in
Canada and the United States. Artis' vision is to build a
best-in-class asset management and investment platform focused on
growing net asset value per unit and distributions for investors
through value investing in real estate.
600 - 220 Portage Avenue
Winnipeg, MB R3C 0A5
T 204.947.1250 F 204.947.0453
www.artisreit.com
AX.UN on the TSX
SOURCE Artis Real Estate Investment Trust