PROREIT ANNOUNCES SECOND QUARTER RESULTS FOR FISCAL 2024
Second Quarter of Fiscal 2024 Highlights
- Property revenue remained relatively stable in Q2 year-over-year despite owning 12 fewer properties compared to the same period last year
- Net operating income (NOI) up 2.3% in Q2 year-over-year despite owning 12 fewer properties compared to the same period last year
- Same Property NOI* up 11.4% in Q2 year-over-year; up 6.4% excluding the impact of a one-time revenue adjustment and a 2023 temporary property vacancy (see table 4)
- Sale of three non-core properties for gross proceeds of
$13.5 million in Q2 - Entered into binding agreements in Q2 for the sale of three non-core properties, which are expected to close in Q3, for gross proceeds of
$31.6 million - Occupancy rate of 97.1%, including committed occupancy, at
June 30, 2024 - Approximately 66.0% of gross leasable area ("GLA") maturing in 2024 has been renewed at 34.6% average spread
- Total debt (current and non-current) of
$486.6 million atJune 30, 2024 , a decrease of$47.7 million compared to the same date last year - Debt to Gross Book Value* of 49.5% at
June 30, 2024 , compared to 50.9% at same date last year -
$38.0 million available through credit facility, in addition to$8.9 million in cash, atJune 30, 2024
"Our second quarter and year-to-date 2024 results demonstrate our capacity to generate FFO* growth while optimizing our portfolio and strengthening our balance sheet through the disposal of non-core assets" said
"We are pleased with the quality of our asset base, which generates recurring Same Property NOI* growth. In the second quarter, we achieved an 11.4% increase in Same Property NOI, or 6.4% when excluding a one-time revenue adjustment and the impact of a 102,000-square-foot temporary property vacancy in 2023. That property was fully re-leased in 2024 at an average positive spread of 55%. Furthermore, we are pleased with the 2.3% increase in net operating income despite owning 12 fewer properties compared to the same period last year.
* Measures followed by the suffix "*" in this release are non-IFRS measures. See "Non-IFRS Measures" |
"Our strategic focus on prime locations in strong secondary markets continues to prove its value, such as
"With our completed disposition of six non-core properties for proceeds of
"We continue to maintain our financial flexibility and successfully manage our balance sheet, with upcoming debt maturities expiring in 2024 limited to $4.1 million. On the acquisition front, we remain vigilant of opportunities that may arise in the industrial sector. While the market continues to present some challenges, which we anticipate will persist until there is additional interest rate relief, we remain fully focused on our goal to increase our asset base and to create additional long-term value for our stakeholders," concluded
Financial Results
Table 1 - Financial H ighlights
(CAD $ thousands except unit, per unit amounts and unless otherwise stated) |
3 Months
2024 |
3 Months Ended
2023 |
6 Months Ended
2024 |
6 Months Ended
2023 |
Financial data |
|
|
|
|
Property revenue |
|
|
|
|
Net operating income (NOI) |
|
|
|
|
Same Property NOI (1) |
|
|
|
|
Net income (loss) and comprehensive income (loss) |
|
|
|
|
Net income (loss) and comprehensive income (loss) per Unit - Basic (2) |
|
|
|
|
Net income (loss) and comprehensive income (loss) per Unit - Diluted (2) |
|
|
|
|
Total assets |
|
|
|
|
Total debt |
|
|
|
|
Total debt to total assets |
49.1 % |
50.5 % |
49.1 % |
50.5 % |
Adjusted Debt to Gross Book Value (1) |
49.5 % |
50.9 % |
49.5 % |
50.9 % |
Interest Coverage Ratio (1) |
2.5x |
2.5x |
2.5x |
2.6x |
Debt Service Coverage Ratio (1) |
1.6x |
1.5x |
1.6x |
1.6x |
Adjusted Debt to Annualized Adjusted EBITDA Ratio (1) |
8.8x |
10.3x |
8.9x |
10.1x |
Weighted average interest rate on mortgage debt |
3.94 % |
3.75 % |
3.94 % |
3.75 % |
Net cash flows provided from operating activities |
|
|
|
|
Funds from Operations (FFO) (1) |
|
|
|
|
Basic FFO per unit (1)(2) |
|
|
|
$0.2022 |
Diluted FFO per unit (1)(2) |
|
|
|
$0.1989 |
Adjusted Funds from Operations (AFFO) (1) |
|
|
|
|
Basic AFFO per unit (1)(2) |
|
|
|
|
Diluted AFFO per unit (1)(2) |
|
|
|
|
AFFO Payout Ratio – Basic (1) |
93.1 % |
97.3 % |
92.4 % |
91.8 % |
AFFO Payout Ratio – Diluted (1) |
94.1 % |
98.5 % |
93.1 % |
93.4 % |
(1) |
Represents a non-IFRS measure. See "Non-IFRS Measures". |
(2) |
Total basic units consist of trust units of the REIT and Class B LP Units (as defined herein). Total diluted units also includes deferred trust units and restricted trust units issued under the REIT's long-term incentive plan. |
At
For the three-month period ended
- Property revenue amounted to
$24.6 million , a slight decrease of$0.3 million or 1.4%, compared to$24.9 million for the same prior year period, mainly resulting from the change in the number of properties in the portfolio during the twelve-month period endedJune 30, 2024 , partially offset by contractual rent increases and higher rental rates on lease renewals and new leases. - Net operating income (NOI) amounted to
$14.8 million , compared to$14.5 million in the same period in 2023, an increase of 2.3% mainly driven by contractual rent increases and higher rental rates on lease renewals and new leases, partially offset by the decrease in the number of properties in the portfolio during the twelve-month period endedJune 30, 2024 . - Same Property NOI* reached
$14.4 million , an increase of$1.5 million or 11.4%, compared to the same prior year period, primarily attributable to contractual rent increases and higher rental rates on lease renewals and on new leases across all asset classes, combined with higher occupancy rates in the retail and office asset classes. Excluding the impact of a one-time$0.1 million revenue adjustment and the temporary vacancy of a 102,000-square-foot industrial property inMontreal, Quebec betweenApril 1, 2023 , andSeptember 30, 2023 , which was fully leased in 2024, overall Same Property NOI* for the three-month period endedJune 30, 2024 increased by 6.4%. - Net cash flows provided from operating activities were
$(0.2) million , compared to$0.6 million in the second quarter of 2023, largely as a result of the timing of cash receipts and the prepayment of property taxes and property insurance. - FFO* reached
$7.4 million , compared to$7.3 million in the same period in 2023, an increase of 1.5% achieved with 12 fewer properties compared to the same period in 2023.This increase was primarily driven by general increases in contractual base rent and higher rates on renewals and new leases, offset by an increase in interest expense. - AFFO Payout Ratio – Basic* was 93.1%, compared to 97.3% for the same period in the prior year, primarily resulting from general increases in contractual base rent and higher rates on renewals and new leases, offset by an increase in interest expense.
For the six-month period ended
- Property revenue amounted to
$50.3 million , relatively flat compared to the same prior year period. - NOI amounted to
$29.6 million , compared to$29.0 million in the same period in 2023, an increase of 2.1% mainly driven by the net impact of the number of properties in the portfolio during the twelve-month period endedJune 30, 2024 , and by contractual rent increases and higher rental rates on lease renewals and new leases. - Same Property NOI* reached
$28.8 million , an increase of$2.5 million or 9.7%, compared to the same prior year period, primarily attributable to contractual rent increases and higher rental rates on lease renewals and on new leases, combined with higher occupancy rates across all asset classes. Excluding the impact of a one-time$0.1 million revenue adjustment and the temporary vacancy of a 102,000-square-foot industrial property inMontreal, Quebec betweenApril 1, 2023 andSeptember 30, 2023 , which was fully leased in 2024, overall Same Property NOI* for the six-month period endedJune 30, 2024 increased by 6.7%. - Net cash flows provided from operating activities reached
$9.5 million , compared to$11.2 million in the first half of 2023, largely as a result of the timing of cash receipts and the prepayment of property taxes and property insurance. - FFO* reached
$15.1 million , compared to$12.2 million in the first half of 2023, an increase of$2.8 million or 23.6%, achieved with 12 fewer properties compared to the same period in 2023. This increase was primarily driven by a general increase in contractual base rent, higher rates on renewals and new leases, and a reduction of one-time costs, including CEO succession costs, partially offset by an increase in interest rate expense. - AFFO Payout Ratio – Basic* was 92.4%, compared to 91.8% for the same period in the prior year, an increase primarily resulting from the increase in interest expense and stabilized leasing costs, partially offset by a general increase in contractual base rent and higher rates on renewals and new leases.
TABLE 2 - Reconciliation of net operating income to net income (loss) and comprehensive income (loss)
(CAD $ thousands) |
3 Months |
3 Months |
6 Months |
6 Months |
|
||
Net operating income |
14,786 |
14,450 |
29,608 |
28,990 |
|
||
|
|
|
|
|
|
||
General and administrative expenses |
1,273 |
1,278 |
2,658 |
4,796 |
|||
Long-term incentive plan expense |
(140) |
395 |
1,218 |
976 |
|||
Depreciation of property and equipment |
168 |
108 |
316 |
213 |
|||
Amortization of intangible assets |
62 |
93 |
123 |
186 |
|||
Interest and financing costs |
5,848 |
5,473 |
11,641 |
10,604 |
|||
Distributions - Class B LP Units |
147 |
157 |
299 |
314 |
|||
Fair value adjustment - Class B LP Units |
(871) |
(964) |
104 |
(992) |
|||
Fair value adjustment - investment properties |
4,591 |
6,250 |
17,866 |
(1,401) |
|||
Fair value adjustment - derivative financial instrument |
(2,520) |
21 |
(1,015) |
21 |
|||
Other income |
(1,067) |
(748) |
(2,101) |
(1,583) |
|||
Other expenses |
547 |
398 |
1,025 |
819 |
|||
Debt settlement costs |
128 |
53 |
306 |
53 |
|||
Transaction costs |
– |
194 |
– |
194 |
|||
Net income (loss) and comprehensive income (loss) |
|
|
|
|
|||
|
|
|
|
|
|
|
|
For the three months ended
For the six months ended
Sustained Operating Environment
At
The occupancy rate of the portfolio was 97.1% as at June 30, 2024 (including committed space), compared to 99.0% at the same date last year. The decrease in occupancy rate mainly relates to two larger-space vacancies in industrial properties located in
The weighted average in‐place rent for industrial properties at
At
In addition, for a tenant expiry in
Portfolio Transactions
In the second quarter of 2024, PROREIT completed the sale of three non-core properties for gross proceeds of
On
On
On
Subsequent to the second quarter of 2024, PROREIT entered into binding agreements for the sale of three non-core properties for gross proceeds of
On
On
On
On
With only four office properties remaining in our portfolio on a pro forma basis, the office segment will represent less than
Financial Position
At
Total debt (current and non-current) was
PROREIT only has 4% of total debt at a variable rate, and only
Debt to Gross Book Value* was 49.5% at
Sustainability
PROREIT released its 2023 Sustainability Report on
Distributions
Distributions to unitholders of
On
Strategy
PROREIT remains focused on the successful execution of its strategy for growth by expanding its portfolio organically and through disciplined acquisitions, while optimizing its balance sheet and capital allocation. Management continues to evaluate acquisition opportunities under strict criteria, while also implementing its capital recycling program to move assets away from non-core properties to increase holdings in quality industrial properties in strong secondary markets. Over the next three to five years, PROREIT has a target of reaching $2 billion in assets, 90% industrial base rent and 45% Adjusted Debt to Gross Book Value*. These targets are based on the REIT's current business plan and strategies and are not intended to be a forecast of future results. See "Forward-Looking Statements".
Investor Conference Call and Webcast Details
PROREIT will hold a conference call to discuss its second quarter 2024 results on
The conference call will also be accessible via live webcast on PROREIT's website at www.proreit.com or at https://app.webinar.net/3bKp1kNX4ZG.
About PROREIT
PROREIT (TSX:PRV.UN) is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of
For more information on PROREIT, please visit the website at: https://proreit.com.
Non-IFRS Measures
PROREIT's consolidated financial statements are prepared in accordance with International Reporting Standards ("IFRS"), as issued by the
As a complement to results provided in accordance with IFRS, PROREIT discloses and discusses in this press release (i) certain non-IFRS financial measures, including: adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA"); annualized adjusted earnings before interest, tax, depreciation and amortization ("Annualized Adjusted EBITDA"); adjusted funds from operations ("AFFO"); funds from operations ("FFO"); gross book value ("Gross Book Value"); net operating income ("NOI"); Same Property NOI; and (ii) certain non-IFRS ratios, including: Adjusted Debt to Annualized Adjusted EBITDA Ratio; Adjusted Debt to Gross Book Value; AFFO Payout Ratio – Basic; AFFO Payout Ratio – Diluted; Basic AFFO per Unit; Diluted AFFO per Unit; Basic FFO per Unit; Diluted FFO per Unit; Debt Service Coverage Ratio; Interest Coverage Ratio. These non-IFRS measures are not defined by IFRS and do not have a standardized meaning under IFRS. PROREIT's method of calculating these non-IFRS measures may differ from other issuers and may not be comparable with similar measures presented by other income trusts. PROREIT has presented such non-IFRS measures and ratios as management believes they are relevant measures of PROREIT's underlying operating and financial performance. For information on the most directly comparable IFRS measures, composition of the non-IFRS measures, a description of how PROREIT uses these measures and an explanation of how these measures provide useful information to investors, refer to the "Non-IFRS Measures" section of PROREIT's management's discussion and analysis for the three and six months ended
TABLE 3 - Reconciliation of Same Property NOI to net operating income (as reported in the consolidated financial statements)
(CAD $ thousands) |
3 Months Ended
2024 |
3 Months Ended
2023 |
6 Months Ended
2024 |
6 Months Ended
2023 |
Property revenue |
|
|
|
|
Property operating expenses |
9,809 |
10,495 |
20,689 |
21,233 |
Net operating income (NOI) as reported in the financial statements |
14,786 |
14,450 |
29,608 |
28,990 |
Straight-line rent adjustment |
(112) |
(457) |
(254) |
(578) |
NOI after straight-line rent adjustment |
14,674 |
13,993 |
29,354 |
28,412 |
|
|
|
|
|
NOI sourced from: |
|
|
|
|
Dispositions |
(232) |
(1,026) |
(601) |
(2,202) |
Same Property NOI (1) |
|
|
|
|
Number of same properties |
117 |
117 |
117 |
117 |
(1) |
Represents a non-IFRS measure. See "Non-IFRS Measures". |
TABLE 4 – Same Property NOI and Same Property NOI by asset class, adjusted to exclude a one-time revenue adjustment and one 2023 vacancy impact fully leased in 2024
|
3 Months Ended |
|
6 Months Ended |
||||
(CAD $ thousands) |
Number of same |
2024 |
2023 |
|
Number of same |
2024 |
2023 |
Same Property NOI(1) |
117 |
|
|
|
117 |
|
|
NOI of the temporary vacancy of one industrial property |
(1) |
(396) |
141 |
|
(1) |
(785) |
(81) |
One-time revenue adjustment of one industrial property |
|
(100) |
– |
|
|
(100) |
– |
Same Property NOI (adjusted for one temporary vacancy and one-time revenue adjustment) (1) |
116 |
|
|
|
116 |
|
|
|
|
|
|
|
|
|
|
Industrial (excluding one temporary vacancy and one-time revenue adjustment) |
83 |
|
|
|
83 |
|
|
Retail |
27 |
2,195 |
2,073 |
|
27 |
4,346 |
4,154 |
Office |
6 |
1,147 |
1,051 |
|
6 |
2,373 |
2,094 |
Same Property NOI (adjusted for one temporary vacancy and one-time revenue adjustment) (1) |
116 |
|
|
|
116 |
|
|
(1) |
Non-IFRS measure. See "Non-IFRS Measures". |
TABLE 5 - Reconciliation of AFFO and FFO to net income and comprehensive income
(CAD $ thousands except unit, per unit amounts and unless otherwise stated) |
3 Months Ended
2024 |
3 Months Ended
2023 |
6 Months Ended
2024 |
6 Months Ended
2023 |
Net income and comprehensive income (loss) for the period |
|
|
$ (2,832) |
|
Add: |
|
|
|
|
Long-term incentive plan |
(650) |
(29) |
556 |
(700) |
Distributions - Class B LP Units |
147 |
157 |
299 |
314 |
Fair value adjustment - investment properties |
4,591 |
6,250 |
17,866 |
(1,401) |
Fair value adjustment - Class B LP Units |
(871) |
(964) |
104 |
(992) |
Fair value adjustment - derivative financial instrument |
(2,520) |
21 |
(1,015) |
21 |
Amortization of intangible assets |
62 |
93 |
123 |
186 |
FFO (1) |
|
|
|
|
Deduct: |
|
|
|
|
Straight-line rent adjustment |
|
|
|
|
Maintenance capital expenditures |
(123) |
(174) |
(186) |
(359) |
Stabilized leasing costs |
(891) |
(592) |
(1,779) |
(1,098) |
Add: |
|
|
|
|
Long-term incentive plan |
510 |
424 |
662 |
1,676 |
Amortization of financing costs |
342 |
253 |
731 |
439 |
Accretion expense - Convertible Debentures |
94 |
19 |
187 |
19 |
Debt settlement costs |
128 |
53 |
306 |
53 |
Transaction costs |
– |
194 |
– |
194 |
CEO Succession plan costs |
– |
– |
– |
2,240 |
AFFO (1) |
|
|
|
|
Basic FFO per unit (1)(2) |
|
|
|
$0.2022 |
Diluted FFO per unit (1)(2) |
|
|
|
$0.1989 |
Basic AFFO per unit (1)(2) |
|
|
|
|
Diluted AFFO per unit (1)(2) |
|
|
|
|
Distributions declared per Unit and Class B LP Unit |
|
|
|
|
AFFO Payout Ratio – Basic (1) |
93.1 % |
97.3 % |
92.4 % |
91.8 % |
AFFO Payout Ratio – Diluted (1) |
94.1 % |
98.5 % |
93.1 % |
93.4 % |
Basic weighted average number of units (2)(3) |
60,634,909 |
60,447,230 |
60,620,903 |
60,429,395 |
Diluted weighted average number of units (2)(3) |
61,260,167 |
61,234,171 |
61,137,743 |
61,426,665 |
(1) |
Represents a non-IFRS measure. See "Non-IFRS Measures". |
(2) |
FFO and AFFO per unit is calculated as FFO or AFFO, as the case may be, divided by the total of the weighted average number of basic or diluted units, as applicable, added to the weighted average number of Class B LP Units outstanding during the period. |
(3) |
Total basic units consist of Units and Class B LP Units. Total diluted units also includes deferred trust units and restricted trust units issued under the REIT's long- term incentive plan. |
TABLE 6 - Reconciliation of Adjusted EBITDA to net income and comprehensive income
(CAD $ thousands) |
3 Months Ended
2024 |
3 Months Ended
2023 |
6 Months Ended
2024 |
6 Months Ended
2023 |
Net income and comprehensive income (loss) |
|
|
|
|
Interest and financing costs |
5,848 |
5,473 |
11,641 |
10,604 |
Depreciation of property and equipment |
168 |
108 |
316 |
213 |
Amortization of intangible assets |
62 |
93 |
123 |
186 |
Fair value adjustment - Class B LP Units |
(871) |
(964) |
104 |
(992) |
Fair value adjustment - investment properties |
4,591 |
6,250 |
17,866 |
(1,401) |
Fair value adjustment - derivative financial instrument |
(2,520) |
21 |
(1,015) |
21 |
Distributions - Class B LP Units |
147 |
157 |
299 |
314 |
Straight-line rent |
(112) |
(457) |
(254) |
(578) |
Long-term incentive plan expense |
(140) |
395 |
1,218 |
976 |
Debt settlement costs |
128 |
53 |
306 |
53 |
Transaction costs |
– |
194 |
– |
194 |
CEO succession plan costs |
– |
– |
– |
2,240 |
Adjusted EBITDA (1) |
|
|
|
|
Annualized Adjusted EBITDA (1) |
|
|
|
|
(1) |
Represents a non-IFRS measure. See "Non-IFRS Measures". |
TABLE 7 - Calculation of Debt to Annualized Adjusted EBITDA Ratio
|
(CAD $ thousands) |
3 Months |
3 Months |
6 Months |
6 Months |
|
Adjusted Debt (1) |
|
|
|
|
||
|
|
|
|
|
||
Adjusted EBITDA (1) |
|
|
|
|
||
Annualized Adjusted EBITDA (1) |
|
|
|
|
||
Adjusted Debt to Annualized Adjusted EBITDA Ratio (1) |
8.8x |
10.3x |
8.9x |
10.1x |
||
|
|
|
|
|
|
|
(1) |
Represents a non-IFRS measure. See "Non-IFRS Measures". |
TABLE 8 - Calculation of the Interest Coverage Ratio
(CAD $ thousands) |
3 Months Ended
2024 |
3 Months Ended
2023 |
6 Months Ended
2024 |
6 Months Ended
2023 |
Adjusted EBITDA (1) |
|
|
|
|
Interest expense |
|
|
|
|
Interest Coverage Ratio (1) |
2.5x |
2.5x |
2.5x |
2.6x |
(1) |
Represents a non-IFRS measure. See "Non-IFRS Measures". |
TABLE 9 - Calculation of Gross Book Value and Adjusted Debt to Gross Book Value
(CAD $ thousands except unit, per unit amounts and unless otherwise stated) |
3 Months |
3 Months |
3 Months |
3 Months |
3 Months |
3 Months |
3 Months |
3 Months |
Total assets, including investment properties stated at fair value |
|
|
|
|
|
|
|
|
Accumulated depreciation on property and equipment and intangible assets |
3,649 |
3,409 |
3,201 |
3,619 |
3,451 |
3,251 |
3,054 |
2,838 |
Gross Book Value (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt (non-current and current portion) |
486,646 |
493,624 |
515,257 |
519,075 |
534,394 |
518,668 |
514,325 |
517,143 |
Unamortized financing costs |
4,541 |
4,721 |
5,108 |
5,430 |
5,701 |
2,196 |
2,379 |
2,582 |
Cumulative accretion expense - Convertible Debentures |
(404) |
(310) |
(217) |
(124) |
(19) |
– |
– |
– |
Cumulative fair value adjustment - derivative financial instrument |
1,602 |
(918) |
587 |
1,127 |
(21) |
– |
– |
– |
|
|
|
|
|
|
|
|
|
Adjusted Debt (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Debt to Gross Book Value (1) |
49.5 % |
49.5 % |
50.2 % |
50.0 % |
50.9 % |
49.2 % |
49.7 % |
49.8 % |
(1) |
Represents a non-IFRS measure. See "Non-IFRS Measures". |
Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation, including statements relating to certain expectations, projections, growth plans and other information related to PROREIT's business strategy and future plans. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond PROREIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements.
Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intent", "estimate", "anticipate", "believe", "should", "plans", or "continue", or similar expressions suggesting future outcomes or events. Forward-looking statements contained in this press release include, without limitation, statements pertaining to the execution by PROREIT of its growth strategy, the future financial and operating performance of PROREIT, the proposed increase of PROREIT's footprint in the light industrial sector, the proposed sale of three non-core office properties for gross proceeds of
PROREIT's objectives and forward-looking statements are based on its current assumptions about future events, including that (i) PROREIT will receive financing on favourable terms; (ii) the future level of indebtedness of PROREIT and its future growth potential will remain consistent with PROREIT's current expectations; (iii) there will be no changes to tax laws adversely affecting PROREIT's financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on PROREIT's operations, including its financing capacity and asset value, will remain consistent with PROREIT's current expectations; (v) the performance of PROREIT's investments in
Without limiting the foregoing, the medium-term targets of PROREIT are based on PROREIT's current business plan and strategies and are not intended to be a forecast of future results. The medium-term targets contemplate the REIT's historical growth and certain assumptions including but not limited to (i) current global capital market conditions, (ii) access to capital, (iii) interest rate exposure, (iv) availability of high-quality industrial properties for acquisitions, (v) dispositions of retail and office properties, and (vi) capacity to finance acquisitions on an accretive basis.
Although PROREIT believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct, and since forward-looking statements inherently involve risks and uncertainties, undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such forward-looking statements. The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. PROREIT 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 under "Risk Factors" in PROREIT's latest annual information form and "Risk and Uncertainties" in PROREIT's management's discussion and analysis for the three and six months ended
SOURCE