Choice Properties Real Estate Investment Trust (CHP.UN) Q4 2024 earnings summary

Executive summary

• Achieved strong operating and financial results for 2024, meeting or exceeding earnings outlook and strategic priorities, with high occupancy and a third consecutive annual distribution increase announced.

• FFO per unit for 2024 was $1.032, up 2.9% year-over-year; AFFO per unit rose 4.5% to $0.864.

• Same-asset NOI (cash basis) grew 3.2% to $958.0M for 2024; occupancy remained high at 97.6%.

• Completed approximately $425M in real estate transactions in 2024, including $260M of acquisitions and $166M of dispositions.

• Recognized for ESG leadership, including top industry rankings and climate action awards.

Financial highlights

• Q4 2024 FFO per unit was $0.260, up 2.0% year-over-year; AFFO per unit for Q4 was $0.151, down 14.2% year-over-year.

• Full-year net income was $784.4M, slightly down from $796.7M in 2023, mainly due to non-cash fair value changes.

• NAV per unit increased to $14.07 at year-end 2024, up 2.9% from 2023.

• Debt-to-EBITDA ratio at 7.0x, with $1.5B undrawn credit facility and $13B unencumbered assets.

• Distribution per unit increased 1.3% to $0.77, effective March 2025.

Outlook and guidance

• Expect stable occupancy and 2–3% year-over-year growth in same-asset cash NOI for 2025.

• Annual FFO per unit (diluted) guidance for 2025 is $1.05–$1.06, reflecting 2–3% growth.

• Industrial occupancy expected to improve to above 98.5% by year-end 2025.

• Debt to EBITDA expected to remain below 7.5x.

• Targeting a third consecutive annual distribution increase in 2025.