CT Real Estate Investment Trust (CRT-UN) Q4 2024 earnings summary

Executive summary

• Maintained a national portfolio of 376 properties valued at ~$7.2B and 31.0M sq. ft. of GLA, with a 99.4% occupancy rate and a weighted average lease term of 7.7 years.

• Achieved strong growth in key operating metrics, including NOI, same-store NOI, same-property NOI, and AFFO per unit for both Q4 and the full year, supported by a stable, nearly fully occupied portfolio and a robust relationship with Canadian Tire Corporation.

• Portfolio grew by approximately 400,000–500,000 sq. ft. of GLA in 2024, with 881,000 sq. ft. under development and significant new investments announced.

• Strategic relationship with Canadian Tire Corporation provides unique growth opportunities through acquisitions, developments, and intensifications.

• Focus on ESG initiatives, including net zero developments and community investments, with over 30% female board representation for four consecutive years.

Financial highlights

• Q4 net operating income increased by 3.6%, same-store NOI by 1.5%, same-property NOI by 2.0%, and AFFO per unit by 1.7% year-over-year.

• Full-year net operating income rose 4.3%, same-store NOI 1.6%, same-property NOI 2.4%, and AFFO per unit 3% year-over-year.

• Q4 2024 property revenue rose 3.9% to $145.4M; full-year revenue up 4.7% to $578.7M.

• Q4 FFO per unit (diluted) was $0.334, up 1.2%; AFFO per unit (diluted) was $0.308, up 1.7%; full-year FFO per unit up 1.9% to $1.33.

• Distributions per unit increased 3.2% year-over-year to $0.912 for 2024, with the AFFO payout ratio at 73.6%.

Outlook and guidance

• Development pipeline expected to add over 600,000 sq. ft. of GLA in 2025, with 881,000 sq. ft. of ongoing activity totaling $328M.

• Approximately half of 19 active development projects are anticipated to complete in 2025, with the remainder in 2026 and beyond.

• Embedded organic growth supported by 1.5% average annual rent escalations on Canadian Tire leases and a 7.9-year weighted average remaining lease term.

• Management remains optimistic about future growth, supported by ample liquidity and a strong balance sheet.