Dream Industrial REIT Reports Strong Q4 2023 and Year-End Financial Results
This press release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release. All dollar amounts are in Canadian dollars unless otherwise indicated.
HIGHLIGHTS
-
Diluted funds from operations (“FFO”) per Unit(1) was
$0.98 in 2023, a 10.1% increase when compared to$0.89 in 2022. For the quarter, diluted FFO per Unit was$0.24 , a 3.9% increase when compared to Q4 2022; -
Comparative properties net operating income (“CP NOI”) (constant currency basis)(2) was
$310.0 million in 2023, a 11.3% increase when compared to$278.5 million in 2022. The Canadian portfolio posted a year-over-year CP NOI (constant currency basis) growth of 12.6% and the European portfolio saw 10.5% year-over-year CP NOI (constant currency basis) growth. For the quarter, CP NOI (constant currency basis) was$85.6 million , a 9.6% increase when compared to$78.1 million in Q4 2022, driven by 11.1% CP NOI (constant currency basis) growth inCanada and 8.5% CP NOI (constant currency basis) growth inEurope . -
Net rental income was
$334.2 million in 2023, a 18.7% increase when compared to$281.6 million in 2022. For the year, net rental income increased by 20.5% inOntario , 10.1% inQuébec , 5.6% inWestern Canada and 22.7% inEurope excluding disposed investment properties, primarily driven by strong CP NOI (constant currency basis) growth in 2023, the impact of acquired investment properties in the past year and higher net property management fees. For the quarter, net rental income was$85.2 million , a 12.8% increase when compared to$75.6 million in Q4 2022, driven by 12.8% inOntario , 4.3% inQuébec , 8.1% inWestern Canada and 13.5% inEurope . -
Net income was
$104.3 million in 2023, compared to net income of$705.9 million in 2022, mainly driven by fair value adjustments to financial instruments and investment properties. The net income in 2023 was comprised of net rental income of$334.2 million , fair value decrease in investment properties of$66.7 million , fair value decrease in financial instruments of$68.1 million and other expenses of$95.1 million . For the quarter, net loss was$8.8 million , compared to net loss of$34.1 million in Q4 2022. -
Total assets were
$7.9 billion as atDecember 31, 2023 , a 7.9% increase when compared to$7.3 billion as atDecember 31, 2022 , driven by investments in the Dream Summit joint venture and development projects. -
Total equity (including LP B Units)(2) and total equity (per consolidated financial statements) was
$4.8 billion and$4.6 billion as atDecember 31, 2023 , respectively. This represents a 2.0% increase and 2.7% increase, respectively, when compared toDecember 31, 2022 . -
Net asset value (“NAV”) per Unit(1) was
$16.61 as atDecember 31, 2023 , compared to the NAV per Unit of$16.97 as atDecember 31, 2022 .
(1) Diluted FFO per Unit and NAV per Unit are non-GAAP ratios. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
(2) CP NOI (constant currency basis) and Total equity (including LP B Units) are non-GAAP financial measures. The tables included in the Appendices section of this press release reconcile these non-GAAP financial measures with their most directly comparable IFRS financial measures. For further information on this non-GAAP financial measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
FINANCIAL HIGHLIGHTS
SELECTED FINANCIAL INFORMATION |
|||||||||
|
Three months ended |
|
Year ended |
||||||
|
|
|
|
|
|
|
|
|
|
(in thousands of dollars except per Unit amounts) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Operating results |
|
|
|
|
|
|
|
|
|
Net rental income |
$ |
85,181 |
$ |
75,548 |
$ |
334,180 |
$ |
281,587 |
|
CP NOI (constant currency basis)(1) |
|
85,578 |
|
78,054 |
|
310,035 |
|
278,463 |
|
Net income |
|
(8,817) |
|
(34,147) |
|
104,299 |
|
705,885 |
|
Funds from operations (“FFO”)(2) |
|
69,286 |
|
64,033 |
|
274,634 |
|
240,493 |
|
Per Unit amounts |
|
|
|
|
|
|
|
|
|
FFO – diluted(3)(4) |
$ |
0.24 |
$ |
0.23 |
$ |
0.98 |
$ |
0.89 |
|
Distribution rate |
$ |
0.17 |
$ |
0.17 |
$ |
0.70 |
$ |
0.70 |
|
See footnotes at end. |
|
|
|
|
|
|
|
|
PORTFOLIO INFORMATION | ||||
As at |
||||
|
|
|
|
|
(in thousands of dollars) |
|
2023 |
|
2022 |
Total portfolio |
|
|
|
|
Number of assets(5)(6) |
|
327 |
|
257 |
Investment properties fair value |
$ |
6,924,274 |
$ |
6,759,425 |
Gross leasable area (“GLA”) (in millions of sq. ft.)(6) |
|
71.4 |
|
47.3 |
Occupancy rate – in-place and committed (period-end)(7) |
|
96.2% |
|
98.9% |
Occupancy rate – in-place (period-end)(7) |
|
96.0% |
|
97.9% |
See footnotes at end. |
FINANCING AND CAPITAL INFORMATION | ||||
(unaudited) |
|
As at |
||
|
|
|
|
|
(in thousands of dollars except per Unit amounts) |
|
2023 |
|
2022 |
FINANCING |
|
|
|
|
Credit rating- DBRS |
|
BBB (mid) |
|
BBB (mid) |
Net total debt-to-total assets (net of cash and cash equivalents) ratio(8) |
|
36.0% |
|
31.7% |
Net total debt-to-normalized adjusted EBITDAFV ratio (years)(9) |
|
7.7 |
|
8.3 |
Interest coverage ratio (times)(10) |
|
6.0 |
|
12.3 |
Weighted average face interest rate on debt |
|
2.35% |
|
1.21% |
Unencumbered investment properties(11) |
$ |
5,401,880 |
$ |
5,313,083 |
Total assets |
$ |
7,858,340 |
$ |
7,280,493 |
Cash and cash equivalents |
$ |
49,916 |
$ |
83,802 |
Available liquidity (period-end)(12) |
$ |
491,868 |
$ |
529,587 |
CAPITAL |
|
|
|
|
Total equity (excluding LP B Units) |
$ |
4,574,897 |
$ |
4,452,741 |
Total equity (including LP B Units)(13) |
$ |
4,761,215 |
$ |
4,669,612 |
Total number of Units (in thousands)(14) |
|
286,590 |
|
275,156 |
Net asset value (“NAV”)per Unit(15) |
$ |
16.61 |
$ |
16.97 |
Unit price |
$ |
13.96 |
$ |
11.69 |
See footnotes at end. |
“Dream Industrial achieved significant milestones in 2023, delivering over 11% of CP NOI growth and over 10% of FFO per Unit growth for the year.” said
ORGANIC GROWTH
-
Continued strong leasing momentum at attractive rental spreads – From the end of Q3 2023 until
January 31, 2024 , the Trust has transacted approximately 1.3 million square feet of leases across its portfolio at an average rental rate spread of 41.6% over prior or expiring rents.-
In
Canada , the Trust signed 948,000 million square feet of leases, achieving an average rental rate spread to expiry of 50.3% and an annual contractual rent growth of over 3%. -
In
Europe , the Trust signed 368,000 square feet of leases at an average rental rate spread of 7%. All of the leases are fully indexed to local consumer price indices (“CPI”) or have contractual rent steps of 2%.
-
In
As at
Since the closing of the Dream Summit JV transaction in
-
Solid pace of CP NOI (constant currency basis)(1) growth – CP NOI (constant currency basis) for the three months and year ended
December 31, 2023 was$85.6 million and$310.0 million , respectively. For the same periods in 2022, CP NOI (constant currency basis) was$78.1 million and$278.5 million , respectively. This represents an increase of 9.6% and 11.3% for the three months and year endedDecember 31, 2023 , respectively, compared to the prior year comparative periods.
The Canadian portfolio posted a year-over-year CP NOI (constant currency basis) growth of 11.1% for the three months ended
Year-over-year CP NOI (constant currency basis) growth in
In
In
Excluding the impact of expansions in
-
Strong occupancy levels – The Trust’s in-place and committed occupancy remained strong at 96.2% as at
December 31, 2023 , compared to 97.2% as atSeptember 30, 2023 and 98.9% as atDecember 31, 2022 . The decrease was primarily attributable to the recently completed 154,000 square foot development inCaledon , which is 55% leased, and transitory vacancies, including the 225,000 square foot vacancy near the Port ofMontréal and expected expiries inEurope . We are in discussions with prospective tenants and we expect significant opportunities to capture strong income growth as these spaces are leased.
Over the next two years, the Trust has nearly 8.4 million square feet of GLA maturing. Approximately 6 million square feet of this space is located in
-
Continued growth in net rental income for the quarter and year-to-date – Net rental income for the three months and year ended
December 31, 2023 was$85.2 million and$334.2 million , respectively, representing an increase of$9.6 million , or 12.8%, and$52.6 million , or 18.7%, relative to the prior year comparative periods. For the quarter, net rental income increased by 12.8% inOntario , 4.3% inQuébec , 8.1% inWestern Canada and 13.5% inEurope , excluding disposed investment properties. For the year, net rental income increased by 20.5% inOntario , 10.1% inQuébec , 5.6% inWestern Canada and 22.7% inEurope . The increase was mainly driven by strong CP NOI (constant currency basis) growth in 2023, the impact of acquired investment properties in the past year and higher net property management fees.
INVESTMENT UPDATE
The Trust continues to evaluate investments that meet its objective of improving the cash flow growth profile and overall quality of the portfolio, while preserving balance sheet flexibility. The Dream Summit JV provides a new source of growth capital for the Trust to pursue strategic acquisitions and strengthens the Trust’s property management and leasing fee stream.
During the quarter, the Dream Summit JV acquired six income-producing assets located in the GTA totalling 0.9 million square feet. Furthermore, the Dream Summit JV is in exclusive negotiations or under contract to acquire ten assets totalling 2.5 million square feet.
DEVELOPMENT UPDATE
The Trust’s development pipeline provides a significant opportunity to add high-quality assets in core markets at attractive economics to the Trust. The Trust has approximately 2.8 million square feet of development projects that are recently completed, currently underway or in advanced planning stages.
-
Over the past 18 months, the Trust has completed and substantially completed approximately 0.9 million square feet of development projects across
Canada andEurope . These completed developments are more than 92% leased and the Trust is targeting to achieve an unlevered yield of 7.4% upon full stabilization. -
The Trust currently has 1.7 million square feet of projects underway across
Canada including the Trust’s share of projects held in its Development JV. With total estimated costs to completion of$125 million , the Trust expects unlevered yield on development cost of approximately 6.4% upon completion. The Trust expects these projects to be completed in the next 6–18 months and is currently engaging with prospective tenants. The Trust recently signed a 10-year conditional lease at its 209,000 square foot redevelopment project inMississauga for over 60% of the space, achieving a starting rent of over$20 per square foot with annual contractual rent growth of approximately 4%.
CAPITAL STRATEGY
The Trust continues to maintain significant financial flexibility as it executes on its strategy to grow and upgrade portfolio quality. The Trust’s proportion of secured debt(16) is 7.4% of total assets and represents 20.5% of total debt(17). The Trust’s unencumbered asset pool(11) totalled
The Trust ended 2023 with available liquidity(12) of
“Notwithstanding the higher interest rate environment, our focus on optimizing our cost of debt and maintaining financial flexibility have allowed us to successfully advance our development and solar pipeline, contribute towards our private capital partnerships, and execute on strategic initiatives that are accretive to our total return profile,” said
CONFERENCE CALL
Senior management will host a conference call to discuss the financial results on
OTHER INFORMATION
Information appearing in this press release is a select summary of financial results. The consolidated financial statements and management’s discussion and analysis for the Trust will be available at www.dreamindustrialreit.ca and on www.sedarplus.com.
Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. As at
FOOTNOTES |
|
1. |
CP NOI (constant currency basis) is a non-GAAP financial measure. The most directly comparable financial measure to CP NOI (constant currency basis) is net rental income. The table included in the Appendices section of this press release reconcile CP NOI (constant currency basis) for the three months and year ended |
2. |
FFO is a non-GAAP financial measure. The most directly comparable financial measure to FFO is net income. The tables included in the Appendices section of this press release reconcile FFO for the three months and year ended |
3. |
Diluted FFO per Unit is a non-GAAP ratio. Diluted FFO per Unit is comprised of FFO (a non-GAAP financial measure) divided by the weighted average number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
4. |
A description of the determination of diluted amounts per Unit can be found in the Trust’s Management’s Discussion and Analysis for the three months and year ended |
5. |
“Number of assets” comprise a building, or a cluster of buildings in close proximity to one another attracting similar tenants. |
6. |
Includes the Trust’s owned and managed properties as at |
7. |
Includes the Trust’s share of equity accounted investments as at |
8. |
Net total debt-to-total assets (net of cash and cash equivalents) ratio is a non-GAAP ratio. Net total debt-to-total assets (net of cash and cash equivalents) ratio is comprised of net total debt (a non-GAAP financial measure) divided by total assets (net of cash and cash equivalents) (a non-GAAP financial measure). The most directly comparable IFRS financial measure to net total debt is non-current debt, and the most directly comparable IFRS financial measure to total assets (net of cash and cash equivalents) is total assets. The tables included in the Appendices section of this press release reconcile net total debt to non-current debt and total assets (net of cash and cash equivalents) to total assets as at |
9. |
Net total debt-to-normalized adjusted EBITDAFV is a non-GAAP ratio. Net total debt-to-normalized adjusted EBITDAFV is comprised of net total debt (a non-GAAP financial measure) divided by normalized adjusted EBITDAFV (a non-GAAP financial measure). The most directly comparable IFRS financial measure to normalized adjusted EBITDAFV is net income. The tables included in the Appendices section of this press release reconcile adjusted EBITDAFV to net income (loss) for the three months and year ended |
10. |
Interest coverage ratio is a non-GAAP ratio. Interest coverage ratio is comprised of trailing 12-month period adjusted EBITDAFV (a non-GAAP financial measure) divided by trailing 12-month period interest expense on debt and other financing costs. The most directly comparable IFRS financial measure to adjusted EBITDAFV is net income. For further information on this non-GAAP ratio and non-GAAP financial measure, please refer to the statements under the heading “Non-GAAP financial measures and ratios and supplementary financial measures” in this press release. |
11. |
Unencumbered investment properties is a supplementary financial measure. For further information on this supplementary financial measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
12. |
Available liquidity is a non-GAAP financial measure. The most directly comparable financial measure to available liquidity is cash and cash equivalents. The tables included in the Appendices section of this press release reconcile available liquidity to cash and cash equivalents as at |
13. |
Total equity (including LP B Units or subsidiary redeemable units) is a non-GAAP financial measure. The most directly comparable financial measure to total equity (including LP B Units) is total equity (per consolidated financial statements). The tables included in the Appendices section of this press release reconcile total equity (including LP B Units) to total equity (per consolidated financial statements) as at |
14. |
Total number of Units includes 13.3 million LP B Units that are classified as a liability under IFRS. |
15. |
NAV per Unit is a non-GAAP ratio. NAV per Unit is comprised of total equity (including LP B Units) (a non-GAAP financial measure) divided by the total number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
16. |
Secured debt is a supplementary financial measure. Please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
17. |
Total debt is a non-GAAP financial measure. The most directly comparable financial measure to total debt is non-current debt. The tables included in the Appendices section of this press release reconcile total debt to non-current debt as at |
Non-GAAP financial measures, ratios and supplementary financial measures
The Trust’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this press release, as a complement to results provided in accordance with IFRS, the Trust discloses and discusses certain non- GAAP financial measures and ratios, including FFO, diluted FFO per Unit, CP NOI (constant currency basis), total debt, net total debt-to-total assets (net of cash and cash equivalents) ratio, net total debt, total assets (net of cash and cash equivalents), net total debt-to-normalized adjusted EBITDAFV ratio, adjusted EBITDAFV, normalized adjusted EBITDAFV – annualized, interest coverage ratio, available liquidity, total equity (including LP B Units) and NAV per Unit as well as other measures discussed elsewhere in this press release. These non-GAAP financial measures and ratios are not defined by IFRS and do not have a standardized meaning under IFRS. The Trust’s method of calculating these non-GAAP financial measures and ratios may differ from other issuers and may not be comparable with similar measures presented by other issuers. The Trust has presented such non-GAAP financial measures and ratios as Management believes they are relevant measures of the Trust’s underlying operating and financial performance. Certain additional disclosures such as the composition, usefulness and changes, as applicable, of the non-GAAP financial measures and ratios included in this press release have been incorporated by reference from the management’s discussion and analysis of the financial condition and results from operations of the Trust for the three months and year ended
Forward looking information
This press release may contain forward-looking information within the meaning of applicable securities legislation, including statements regarding the Trust’s objectives and strategies to achieve those objectives; the impact of the Trust’s development and solar programs on FFO and NAV growth; the organic growth outlook embedded in the Trust’s portfolio; the impact of the Trust’s strong balance sheet on its continued focus on driving cash flow growth and creating significant long-term value for unitholders; the Trust’s continued evaluation of investments that meet its objectives; the use of proceeds from the re-opening of the Series F debentures; the value-creation potential from growth opportunities and the expected results from private capital partnerships; the Trust’s opportunities to enhance the quality and organic cash flow growth profile while preserving balance sheet quality and flexibility; the Trust’s goal of delivering strong total returns to its unitholders through secure cash flows underpinned by its high-quality portfolio and an investment grade balance sheet as well as growth in its net asset value and cash flow per unit; the performance and quality of its portfolio; the Trust’s ability and expectations to achieve strong rental growth over time as it sets rents on expiring leases to market; maturing GLA; the Trust’s development pipeline and its expectations with respect to the opportunity provided by such development pipeline; the Trust’s development, expansion and redevelopment plans, including the timing of construction and expansion, costs, square footage, unlevered yields and anticipated yields; the Dream Summit JV, the status of new leases and renewals, the opportunities provided by the venture to pursue acquisitions and boost its property management and leasing fee stream, and potential acquisitions; the Trust’s expectations for further growth, growing cash flows, net asset value and overall returns to unitholders; the Trust’s opportunities to access debt financing; the strength, flexibility and liquidity of the Trust’s balance sheet; and similar statements concerning anticipated future events, financials, future leasing activity, including those associated with user demand relative to supply of quality industrial product in the Trust’s operating markets, the ability to lease vacant space, results of operations, performance, business prospects and opportunities, and the real estate industry in general.
Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward- looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; employment levels; mortgage and interest rates and regulations; inflation; risks related to a potential economic slowdown in certain of the jurisdictions in which we operate and the effect inflation and any such economic slowdown may have on market conditions and lease rates; uncertainties around the timing and amount of future financings; uncertainties surrounding public health crises and epidemics; geopolitical events, including disputes between nations, war and international sanctions; the financial condition of tenants; leasing risks, including those associated with the ability to lease vacant space; rental rates and the strength of rental rate growth on future leasing; and interest and currency rate fluctuations. The Trust’s objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable; inflation and interest rates will not materially increase beyond current market expectations; conditions within the real estate market remain consistent; competition for acquisitions remains consistent with the current climate; and the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in the Trust’s filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at the Trust’s website at www.dreamindustrialreit.ca.
Appendices
All dollar amounts in the Appendices are presented in thousands of Canadian dollars, except for per square foot amounts, per Unit amounts, or unless otherwise stated.
R
econciliation of CP NOI (constant currency basis) to net rental income
The tables below reconcile CP NOI (constant currency basis) for the three months and year ended
|
Three months ended |
|||
|
|
|
||
|
2023 |
2022 |
||
|
$ |
23,088 |
$ |
20,243 |
|
|
13,664 |
|
12,258 |
|
|
12,529 |
|
11,871 |
Canadian portfolio |
|
49,281 |
|
44,372 |
European portfolio (constant currency basis) |
|
32,326 |
|
29,795 |
|
|
3,971 |
|
3,887 |
CP NOI (constant currency basis) |
|
85,578 |
|
78,054 |
Impact of foreign currency translation on CP NOI |
|
— |
|
(1,608) |
NOI from acquired properties – |
|
928 |
|
419 |
NOI from acquired properties – |
|
103 |
|
— |
NOI from acquired properties – Dream Summit JV |
|
5,549 |
|
— |
NOI from acquired properties – |
|
370 |
|
28 |
NOI from disposed properties |
|
76 |
|
220 |
Net property management and other income |
|
2,283 |
|
729 |
Straight-line rent |
|
1,356 |
|
2,709 |
Amortization of lease incentives |
|
(744) |
|
(1,321) |
Lease termination fees and other |
|
6 |
|
551 |
Bad debt provisions |
|
(661) |
|
(446) |
NOI from properties transferred to properties held for development |
|
319 |
|
362 |
Less: NOI from equity accounted investments |
|
(9,982) |
|
(4,149) |
Net rental income |
$ |
85,181 |
$ |
75,548 |
|
Year ended |
|||
|
|
|
||
|
2023 |
2022 |
||
|
$ |
82,841 |
$ |
70,026 |
|
|
51,435 |
|
46,772 |
|
|
48,977 |
|
45,963 |
Canadian portfolio |
|
183,253 |
|
162,761 |
European portfolio (constant currency basis) |
|
113,673 |
|
102,858 |
|
|
13,109 |
|
12,844 |
CP NOI (constant currency basis) |
|
310,035 |
|
278,463 |
Impact of foreign currency translation on CP NOI |
|
— |
|
(6,780) |
NOI from acquired properties – |
|
10,092 |
|
4,738 |
NOI from acquired properties – |
|
15,735 |
|
8,626 |
NOI from acquired properties – Dream Summit JV |
|
18,192 |
|
— |
NOI from acquired properties – |
|
3,359 |
|
1,579 |
NOI from disposed properties |
|
305 |
|
841 |
Net property management and other income |
|
9,006 |
|
3,594 |
Straight-line rent |
|
6,857 |
|
7,596 |
Amortization of lease incentives |
|
(3,119) |
|
(3,073) |
Lease termination fees and other |
|
460 |
|
(38) |
Bad debt provisions |
|
(2,292) |
|
(1,074) |
NOI from properties transferred to properties held for development |
|
581 |
|
1,946 |
Less: NOI from equity accounted investments |
|
(35,031) |
|
(14,831) |
Net rental income |
$ |
334,180 |
$ |
281,587 |
Appendices
Reconciliation of FFO to net income
The table below reconciles FFO for the three months and year ended
|
Three months ended |
|
Year ended |
||||||
|
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
Net (loss) income for the period |
$ |
(8,817) |
$ |
(34,147) |
|
$ |
104,299 |
$ |
705,885 |
Add (deduct): |
|
|
|
|
|
|
|
|
|
Fair value adjustments to investment properties |
|
43,944 |
|
65,503 |
|
|
66,689 |
|
(363,025) |
Fair value adjustments to financial instruments |
|
27,695 |
|
19,852 |
|
|
68,059 |
|
(122,532) |
Share of net (income) loss from equity accounted investments |
|
(1,441) |
|
9,222 |
|
|
(4,941) |
|
(38,482) |
Interest expense on subsidiary redeemable units |
|
2,336 |
|
3,247 |
|
|
10,557 |
|
12,986 |
Amortization and write-off of lease incentives |
|
710 |
|
1,335 |
|
|
3,240 |
|
3,078 |
Internal leasing costs |
|
1,396 |
|
908 |
|
|
4,620 |
|
4,128 |
Fair value adjustments to deferred trust units included in G&A |
|
(120) |
|
(173) |
|
|
(213) |
|
(223) |
Foreign exchange (gain) loss |
|
130 |
|
7,835 |
|
|
(1,212) |
|
11,817 |
Share of FFO from equity accounted investments |
|
7,449 |
|
2,836 |
|
|
25,844 |
|
10,126 |
Deferred income tax expense |
|
(4,702) |
|
(12,471) |
|
|
(3,832) |
|
16,043 |
Current income tax expense related to dispositions |
|
142 |
|
6 |
|
|
142 |
|
132 |
Transaction costs on acquisitions and dispositions |
|
564 |
|
80 |
|
|
1,382 |
|
560 |
FFO for the period |
$ |
69,286 |
$ |
64,033 |
|
$ |
274,634 |
$ |
240,493 |
Reconciliation of available liquidity to cash and cash equivalents
The table below reconciles available liquidity to cash and cash equivalents as at
|
|
|
||
Cash and cash equivalents per consolidated financial statements |
$ |
49,916 |
$ |
83,802 |
Undrawn unsecured revolving credit facility(1) |
|
441,952 |
|
445,785 |
Available liquidity |
$ |
491,868 |
$ |
529,587 |
(1) Net of letters of credit totalling |
Reconciliation of total equity (including LP B Units) to total equity (excluding LP B Units)
The table below reconciles total equity (including LP B Units) to total equity (excluding LP B Units) as at
|
As at |
||||||
|
|
|
|
||||
|
Number of
|
|
Amount |
|
Number of
|
|
Amount |
REIT Units and unitholders’ equity |
273,243,349 |
$ |
3,339,660 |
|
256,604,207 |
$ |
3,106,904 |
Retained earnings |
— |
|
1,191,907 |
|
— |
|
1,274,974 |
Accumulated other comprehensive income |
— |
|
43,330 |
|
— |
|
70,863 |
Total equity per consolidated financial statements |
273,243,349 |
|
4,574,897 |
|
256,604,207 |
|
4,452,741 |
Add: LP B Units |
13,346,572 |
|
186,318 |
|
18,551,855 |
|
216,871 |
Total equity (including LP B Units) |
286,589,921 |
$ |
4,761,215 |
|
275,156,062 |
$ |
4,669,612 |
NAV per Unit |
|
$ |
16.61 |
|
|
$ |
16.97 |
Reconciliation of total debt to non-current debt
The table below reconciles total debt to non-current debt as at
Amounts per consolidated financial statements |
|
|
||
Non-current debt |
$ |
2,537,090 |
$ |
2,137,412 |
Current debt |
|
310,277 |
|
275,536 |
Fair value of CCIRS(1) |
|
(7,614) |
|
(75,581) |
Total debt |
$ |
2,839,753 |
$ |
2,337,367 |
(1) |
As at |
Reconciliation of net total debt to non-current debt and total assets (net of cash and cash equivalents) to total assets
The table below reconciles net total debt to non-current debt and total assets (net of cash and cash equivalents) to total assets as at
|
|
|
||
Non-current debt |
$ |
2,537,090 |
$ |
2,137,412 |
Add (deduct): |
|
|
|
|
Current debt |
|
310,277 |
|
275,536 |
Fair value of CCIRS |
|
(7,614) |
|
(75,581) |
Unamortized financing costs |
|
11,410 |
|
7,426 |
Unamortized fair value adjustments |
|
(189) |
|
(1,881) |
Cash and cash equivalents |
|
(49,916) |
|
(83,802) |
Net total debt |
$ |
2,801,058 |
$ |
2,259,110 |
Total assets |
|
7,858,340 |
|
7,280,493 |
Less: Fair value of CCIRS |
|
(30,981) |
|
(75,581) |
Less: Cash and cash equivalents |
|
(49,916) |
|
(83,802) |
Total assets (net of cash and cash equivalents) |
$ |
7,777,443 |
$ |
7,121,110 |
Reconciliation of adjusted EBITDAFV to net income (loss) and normalized adjusted EBITDAFV
The table below reconciles adjusted EBITDAFV to net income (loss) for the three months and year ended
|
For the three months ended |
|
For the year ended |
|||||
|
December 31, 2023 |
|
|
December 31, 2023 |
|
|||
Net (loss) income for the period |
$ |
(8,817) |
$ |
(34,147) |
$ |
104,299 |
$ |
705,885 |
Add (deduct): |
|
|
|
|
|
|
|
|
Fair value adjustments to investment properties |
|
43,944 |
|
65,503 |
|
66,689 |
(363,025) |
|
Fair value adjustments to financial instruments |
|
27,695 |
|
19,852 |
|
68,059 |
(122,532) |
|
Share of net (income) loss from equity accounted investments |
|
(1,441) |
|
9,222 |
|
(4,941) |
(38,482) |
|
Interest expense on debt and other financing costs |
|
15,520 |
|
6,349 |
|
54,379 |
20,622 |
|
Interest expense on subsidiary redeemable units |
|
2,336 |
|
3,247 |
|
10,557 |
12,986 |
|
Other items included in investment properties revenue(1) |
|
(238) |
|
(1,391) |
|
(3,655) |
(4,792) |
|
Distributions from equity accounted investment |
|
14,543 |
|
2,066 |
|
25,519 |
6,026 |
|
Deferred and current income tax expenses (recovery), net |
|
(4,354) |
|
(11,855) |
|
(1,200) |
19,481 |
|
Net loss on transactions and other activities |
|
2,131 |
|
8,673 |
|
4,762 |
16,805 |
|
Debt settlement costs |
|
— |
|
257 |
|
— |
257 |
|
Adjusted EBITDAFV for the period |
$ |
91,319 |
$ |
67,776 |
$ |
324,468 |
$ |
253,231 |
(1) |
Includes lease termination fees and other items, straight-line rent and amortization of lease incentives. |
|
|
|
||
Adjusted EBITDAFV – quarterly(1) |
$ |
91,319 |
$ |
67,776 |
Add (deduct): |
|
|
|
|
Normalized NOI of acquisitions and dispositions in the quarter(2) |
|
(76) |
|
77 |
Normalized adjusted EBITDAFV – quarterly |
|
91,243 |
|
67,853 |
Normalized adjusted EBITDAFV – annualized |
$ |
364,972 |
$ |
271,412 |
(1) |
Adjusted EBITDAFV (a non-GAAP financial measure) for the three months ended |
|
(2) |
Represents the NOI had the acquisitions and dispositions in the respective periods occurred for the full quarter. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213506812/en/
Dream Industrial REIT
President & Chief Executive Officer
(416) 365-4106
asannikov@dream.ca
Chief Financial Officer
(416) 365-2353
lquan@dream.ca
Source: