PRO Real Estate Investment Trust (PRV-UN) Q3 2024 earnings summary

Executive summary

• Advanced strategic goal to become a pure-play industrial REIT, increasing industrial segment to 85.6% of GLA from 81.3% year-over-year.

• Disposed of three non-core properties for CAD 31.6 million and acquired a key industrial property near Montreal Airport for CAD 32.6 million.

• Portfolio now consists of 116 properties, down from 126 last year, with office segment reduced to 2.5% of GLA and less than $30 million in asset value.

• Maintained strong leasing momentum and high occupancy at 97.2%, with 83.6% of 2024 maturing GLA renewed at a 38.5% average spread.

• Same Property NOI up 8.1% (4.4% excluding a temporary vacancy), marking 15 consecutive quarters of growth.

Financial highlights

• Property revenue for Q3 2024 was CAD 24.0 million, flat year-over-year despite a reduction of 10 properties.

• Net operating income rose 1.5% to CAD 14.3 million.

• Net income for Q3 2024 was $3.3 million, down from $11.3 million in Q3 2023, mainly due to non-cash fair value adjustments.

• FFO for Q3 2024 was $6.5 million, stable year-over-year; AFFO was $7.0 million, also flat.

• Basic AFFO payout ratio was 97.7% for Q3, up slightly from 96.9% last year.

Outlook and guidance

• Well positioned for 2025, aiming to reach 90% industrial base rent and $2 billion in assets within 3–5 years.

• No major asset dispositions expected for the remainder of 2024; potential CAD 40+ million in sales identified for 2025, subject to market conditions.

• Strategic focus remains on expanding the industrial portfolio and capital recycling from non-core assets.