Automotive Properties Real Estate Investment Trust (APR-UN) Q4 2024 earnings summary

Executive summary

• Achieved strong and consistent performance in 2024, with property portfolio growth driven by fixed and CPI-linked rent increases and active capital recycling from asset sales into new acquisitions.

• Entered the U.S. market with acquisitions in Tampa and Columbus, and expanded into heavy equipment dealership properties in Greater Montreal, enhancing geographic and tenant diversification.

• Declared a special distribution to unitholders related to the Kennedy Land sale, with a mix of cash and REIT units.

• The sale of Kennedy Lands for $54.0 million in October 2024 provided liquidity for acquisitions and debt repayment.

Financial highlights

• Property rental revenue increased by 1.5% year-over-year; Q4 rental revenue was CAD 23.4 million, up 0.5% from Q4 2023.

• Cash NOI rose 2.5% year-over-year; Q4 cash NOI was CAD 19.6 million, up 1.4% from Q4 2023.

• Same property NOI increased by 2.3% year-over-year; Q4 same property NOI up 2%.

• AFFO per unit (diluted) increased to CAD 0.932 from CAD 0.918; Q4 AFFO up 1.3% year-over-year.

• Net income for Q4 was CAD 12 million, compared to a net loss of CAD 15.2 million in Q4 2023, mainly due to non-cash fair value adjustments; full-year net income was CAD 72 million, up 41.2% from 2023, including a $23.8 million gain from the Kennedy Lands sale.

Outlook and guidance

• Well-positioned for ongoing growth in 2025, with a focus on essential retail and service properties in prime urban markets and continued organic and acquisition-driven expansion.

• Acquisition capacity remains at approximately CAD 100 million, with no immediate need to access equity markets.

• Expect continued activity in both Canadian and U.S. markets, with a preference for dealership and OEM properties.

• Actively monitoring risks from inflation, interest rates, currency fluctuations, and potential trade tariffs.