SmartCentres Real Estate Investment Trust (“SmartCentres”, the
“Trust” or the “REIT”) (TSX: SRU.UN) is pleased to report its
financial and operating results for the quarter ended June 30,
2023.
“Building on Q1, we are pleased to report
stronger performances in all areas of the business for Q2,”
said Mitchell Goldhar, CEO of SmartCentres. “Our defensive
portfolio has become more offensive, with even stronger numbers in
our Walmart anchored centres, which drove a $7.0 million increase
in net rental income(1) compared to the same quarter of last year.
In-place and committed occupancy increased 20 basis points to 98.2%
in the quarter, demonstrating our industry leadership. We expect to
continue delivering strong occupancy levels and solid rental income
for the balance of the year.”
“In addition to the strength of our core
recurring retail income, our mixed-use development business also
continues to grow and deliver strong results. We are delighted with
the progress we have made on our Transit City 4 & 5 condominium
projects at the Vaughan Metropolitan Centre,” said Mr. Goldhar.
“During the quarter, we closed on an additional 452 units in
Transit City 4 & 5, resulting in FFO(1) at the REIT’s share of
$10.6 million or $0.06 per Unit(1). The remaining 380 units at
these two towers are expected to close over the balance of the
year.”
“With the recent opening of our self-storage
rental facilities at our Kingspoint Plaza in Brampton, the Trust
reached a milestone of 1.0 million square feet of gross floor area
of self-storage rental facilities (at 100%) in four short
years. Excluding the two facilities that have been open for less
than a year, the Trust’s self-storage portfolio has an average
occupancy rate of 93%. We also have a further 1.6 million square
feet in the pipeline, mostly on properties we already own, along
with numerous other highly accretive initiatives.”
“Additionally, we currently have 10 mixed-use
development initiatives that are under construction. Collectively,
these projects have an estimated total development cost, at the
REIT’s share, of $547.9 million, of which $202.5 million
is required to complete construction. We have ample liquidity
available, not only to complete these projects, but also to
commence several new initiatives where construction is expected to
begin later in the year. These new projects include Phase I of our
sold-out Art Walk condominium tower at the VMC, a townhome
community in Vaughan Northwest, a large pre-leased retail project
in Leaside, and several new self-storage locations.”
“In May 2023, the Trust issued $300.0 million of
5.354% Series Z senior unsecured debentures with a maturity date of
May 29, 2028. We used the net proceeds from the offering to repay
the $200.0 million aggregate principal of Series I senior unsecured
debentures in full upon their maturity and other existing
indebtedness. The issuance of the debentures has improved the
Trust’s debt maturity profile by extending the term of previous
short-term debt and reducing its exposure to floating rate
debt.”
“Despite a more challenging current economic
environment for launching new development initiatives, we remain
nimble and we are continuing to move forward with fewer,
albeit impactful, projects in the near term,” continued Mr.
Goldhar. “As always, we are focused on the long term, which
includes advancing new entitlements and zoning applications for
multiple opportunities within our large network of retail centres.
We are confident that the ongoing and future intensification on
these strategically-located properties will be highly complementary
to our existing retail centres and will deliver strong returns to
unitholders for decades to come.”
(1) |
Represents a non-GAAP measure. The Trust’s method of calculating
non-GAAP measures may differ from other reporting issuers’ methods
and, accordingly, may not be comparable. For additional
information, please see “Non-GAAP Measures” in this Press
Release. |
|
|
Selected Consolidated Operational,
Mixed-Use Development and Financial InformationKey
consolidated operational, mixed-use development and financial
information shown in the table below includes the Trust’s
proportionate share of equity accounted investments:
(in thousands of
dollars, except per Unit and other non-financial data) |
|
|
|
As
at |
|
June 30, 2023 |
|
December 31, 2022 |
|
June 30, 2022 |
|
Portfolio Information (Number of properties) |
|
|
|
|
Retail properties |
|
155 |
|
155 |
|
155 |
|
Office properties |
|
4 |
|
4 |
|
4 |
|
Self-storage properties |
|
8 |
|
6 |
|
6 |
|
Residential properties |
|
2 |
|
2 |
|
2 |
|
Properties under development |
|
20 |
|
19 |
|
19 |
|
Total number of properties with an ownership interest |
|
189 |
|
186 |
|
186 |
|
Leasing and Operational
Information(1) |
|
|
|
|
Gross leasable
retail and office area (in thousands of sq. ft.) |
34,922 |
|
34,750 |
|
34,661 |
|
In-place and committed
occupancy rate (%) |
|
98.2 |
|
98.0 |
|
97.6 |
|
Average lease term to maturity
(in years) |
|
4.2 |
|
4.2 |
|
4.4 |
|
Net
annualized retail rental rate excluding Anchors (per occupied sq.
ft.) ($) |
22.27 |
|
22.20 |
|
22.26 |
|
Mixed-Use Development
Information |
|
|
|
|
Trust’s
share of future development area (in thousands of sq. ft.) |
40,425 |
|
41,200 |
|
40,200 |
|
Financial
Information |
|
|
|
|
Investment properties(2) |
|
10,336,527 |
|
10,250,392 |
|
10,285,753 |
|
Total unencumbered
assets(3) |
|
8,844,821 |
|
8,415,900 |
|
8,413,000 |
|
Debt to Aggregate Assets
(%)(3)(4)(5) |
|
43.2 |
|
43.6 |
|
43.0 |
|
Adjusted Debt to Adjusted
EBITDA(3)(4)(5) |
|
9.9X |
|
10.3X |
|
10.0X |
|
Weighted average interest rate
(%)(3)(4) |
|
4.03 |
|
3.86 |
|
3.30 |
|
Weighted average term of debt
(in years) |
|
4.1 |
|
4.0 |
|
4.4 |
|
Interest coverage
ratio(3)(4) |
|
2.8X |
|
3.1X |
|
3.3X |
|
Weighted average number of units outstanding – diluted |
|
180,045,789 |
|
179,696,944 |
|
179,662,689 |
|
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Financial Information |
|
|
|
|
Rentals from investment
properties and other(2) |
206,950 |
|
198,585 |
|
417,544 |
|
401,413 |
|
Net income and comprehensive
income(2) |
167,902 |
|
161,997 |
|
280,763 |
|
532,107 |
|
FFO(3)(4)(6) |
98,534 |
|
88,464 |
|
195,667 |
|
180,699 |
|
AFFO(3)(4)(6) |
87,848 |
|
81,436 |
|
176,449 |
|
167,135 |
|
Cash flows provided by
operating activities(2) |
61,322 |
|
43,970 |
|
143,253 |
|
146,789 |
|
Net rental income and
other(2) |
129,887 |
|
125,253 |
|
254,708 |
|
245,972 |
|
NOI(3)(4) |
147,105 |
|
130,034 |
|
280,573 |
|
253,902 |
|
Change in net rental income
and other(3) |
3.7% |
|
4.9% |
|
3.6% |
|
4.3% |
|
Change in SPNOI(3) |
3.2% |
|
5.0% |
|
3.7% |
|
3.5% |
|
Net income and comprehensive
income per Unit(2) |
$0.94/$0.93 |
|
$0.91/$0.90 |
|
$1.58/$1.56 |
|
$2.99/$2.96 |
|
FFO per Unit(3)(4)(6) |
$0.55/$0.55 |
|
$0.50/$0.49 |
|
$1.10/$1.09 |
|
$1.01/$1.01 |
|
FFO with adjustments per
Unit(3)(4) |
$0.55/$0.54 |
|
$0.53/$0.53 |
|
$1.06/$1.05 |
|
$1.04/$1.03 |
|
AFFO per Unit(3)(4)(6) |
$0.49/$0.49 |
|
$0.46/$0.45 |
|
$0.99/$0.98 |
|
$0.94/$0.93 |
|
AFFO with adjustments per
Unit(3)(4) |
$0.49/$0.48 |
|
$0.50/$0.49 |
|
$0.95/$0.94 |
|
$0.97/$0.96 |
|
Payout Ratio to
AFFO(3)(4)(6) |
93.8% |
|
101.2% |
|
93.4% |
|
98.7% |
|
Payout Ratio to AFFO with
adjustments(3)(4) |
95.2% |
|
93.4% |
|
97.5% |
|
95.8% |
|
Payout
Ratio to cash flows provided by operating activities |
134.4% |
|
187.4% |
|
115.1% |
|
112.2% |
|
(1) |
Excluding residential and self-storage area. |
(2) |
Represents a GAAP measure. |
(3) |
Represents a non-GAAP measure. The Trust’s method of calculating
non-GAAP measures may differ from other reporting issuers’ methods
and, accordingly, may not be comparable. For additional
information, please see “Non-GAAP Measures” in this Press
Release. |
(4) |
Includes the Trust’s proportionate share of equity accounted
investments. |
(5) |
As at June 30, 2023, cash-on-hand of $43.3 million was
excluded for the purposes of calculating the applicable ratios
(December 31, 2022 – $33.4 million, June 30, 2022 –
$133.2 million). |
(6) |
The calculation of the Trust’s FFO and AFFO and related payout
ratios, including comparative amounts, are financial metrics that
were determined based on the REALpac White Paper on FFO and AFFO
issued in January 2022. Comparison with other reporting issuers may
not be appropriate. The payout ratio to AFFO is calculated as
declared distributions divided by AFFO. |
Development and Intensification
SummaryThe following table provides additional details on
the Trust’s 10 development initiatives that are currently under
construction (in order of estimated initial occupancy/closing
date):
Projects under construction (Location/Project
Name) |
Type |
Trust’s Share (%) |
Actual / estimated initial occupancy / closing
date |
% of completion |
GFA(2) (sq. ft.) |
No. of units |
Vaughan / Transit City 4 |
Condo |
25 |
Q1
2023 |
94 % |
— |
498 |
Vaughan / Transit City 5 |
Q2
2023 |
94 % |
528 |
Vaughan / The Millway |
Apartment |
50 |
Q1
2023 |
85 % |
— |
458 |
Pickering (Seaton Lands) |
Industrial |
100 |
Q2
2023 |
93 % |
229,000 |
— |
Laval Centre |
Apartment |
50 |
Q3
2023 |
83 % |
— |
211 |
Markham East / Boxgrove |
Self-storage |
50 |
Q1
2024 |
51 % |
133,000 |
910 |
Whitby |
Self-storage |
50 |
Q1
2024 |
52 % |
126,000 |
811 |
Vaughan NW |
Townhouse |
50 |
Q3/Q4
2024 |
15 % |
— |
174 |
Ottawa SW (1) |
Retirement Residence |
50 |
Q1/Q2 2025 |
24 % |
— |
402 |
Ottawa SW
(1) |
Seniors’
Apartments |
|
|
|
|
|
|
|
|
|
|
In millions of dollars |
|
|
Total Capital Spend to Date at 100%
(3) |
|
847.9 |
|
|
Estimated Cost to Complete at
100% |
|
414.7 |
|
|
Total Expected Capital Spend by Completion at 100%
(3) |
|
1,262.6 |
|
|
Total
Capital Spend to Date at Trust’s share (3) |
|
345.4 |
|
|
Estimated Cost to Complete at Trust’s
share |
|
202.5 |
|
|
Total Expected Capital Spend by Completion at Trust’s share
(3) |
|
547.9 |
|
|
(1) |
Figure represents capital spend of both retirement residence and
seniors’ apartments projects. |
(2) |
GFA represents Gross Floor Area. |
(3) |
Total capital spend to date and total expected capital spend by
completion include land value. |
Reconciliations of Non-GAAP
MeasuresThe following tables reconcile the non-GAAP
measures to the most comparable GAAP measures for the three and six
months ended June 30, 2023 and the comparable periods in 2022.
Such measures do not have a standardized meaning prescribed by IFRS
and may not be comparable to similar measures disclosed by other
issuers.
Net Operating Income (including the
Trust’s Interests in Equity Accounted
Investments)Quarterly Comparison to Prior
Year
(in
thousands of dollars) |
Three Months Ended June 30, 2023 |
|
Three Months Ended June 30, 2022 |
|
|
GAAP Basis |
|
Proportionate Share Reconciliation |
|
Total Proportionate Share(1) |
|
GAAP Basis |
|
Proportionate Share Reconciliation |
|
Total Proportionate Share(1) |
|
Net rental income and other |
|
|
|
|
|
|
Rentals from investment properties and other |
206,950 |
|
8,469 |
|
215,419 |
|
198,585 |
|
6,729 |
|
205,314 |
|
Property operating costs and other |
(75,400 |
) |
(4,146 |
) |
(79,546 |
) |
(73,332 |
) |
(3,108 |
) |
(76,440 |
) |
|
131,550 |
|
4,323 |
|
135,873 |
|
125,253 |
|
3,621 |
|
128,874 |
|
Residential sales revenue and other(2) |
— |
|
62,634 |
|
62,634 |
|
— |
|
4,511 |
|
4,511 |
|
Residential cost of sales and other |
(1,663 |
) |
(49,739 |
) |
(51,402 |
) |
— |
|
(3,351 |
) |
(3,351 |
) |
|
(1,663 |
) |
12,895 |
|
11,232 |
|
— |
|
1,160 |
|
1,160 |
|
NOI |
129,887 |
|
17,218 |
|
147,105 |
|
125,253 |
|
4,781 |
|
130,034 |
|
(1) |
This column contains non-GAAP measures because it includes figures
that are recorded in equity accounted investments. The Trust’s
method of calculating non-GAAP measures may differ from other
reporting issuers’ methods and, accordingly, may not be comparable.
For additional information, please see “Non-GAAP Measures” in this
Press Release. |
(2) |
Includes additional partnership profit and other revenues. |
Year-to-Date Comparison to Prior
Year
(in
thousands of dollars) |
Six Months Ended June 30, 2023 |
|
Six Months Ended June 30, 2022 |
|
|
GAAP Basis |
|
Proportionate Share Reconciliation |
|
Total Proportionate Share(1) |
|
GAAP Basis |
|
Proportionate Share Reconciliation |
|
Total Proportionate Share(1) |
|
Net rental income and other |
|
|
|
|
|
|
Rentals from investment properties and other |
417,544 |
|
16,525 |
|
434,069 |
|
401,413 |
|
12,916 |
|
414,329 |
|
Property operating costs and other |
(160,523 |
) |
(8,283 |
) |
(168,806 |
) |
(155,441 |
) |
(6,121 |
) |
(161,562 |
) |
|
257,021 |
|
8,242 |
|
265,263 |
|
245,972 |
|
6,795 |
|
252,767 |
|
Residential sales revenue and other(2) |
— |
|
87,467 |
|
87,467 |
|
— |
|
4,517 |
|
4,517 |
|
Residential cost of sales and other |
(2,313 |
) |
(69,844 |
) |
(72,157 |
) |
— |
|
(3,382 |
) |
(3,382 |
) |
|
(2,313 |
) |
17,623 |
|
15,310 |
|
— |
|
1,135 |
|
1,135 |
|
NOI |
254,708 |
|
25,865 |
|
280,573 |
|
245,972 |
|
7,930 |
|
253,902 |
|
(1) |
This column contains non-GAAP measures because it includes figures
that are recorded in equity accounted investments. The Trust’s
method of calculating non-GAAP measures may differ from other
reporting issuers’ methods and, accordingly, may not be comparable.
For additional information, please see “Non-GAAP Measures” in this
Press Release. |
(2) |
Includes additional partnership profit and other revenues. |
Same Properties NOI
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
|
(in thousands of dollars) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
NOI |
129,887 |
|
125,253 |
|
254,708 |
|
245,972 |
|
NOI
from equity accounted investments(1) |
17,218 |
|
4,781 |
|
25,865 |
|
7,930 |
|
Total portfolio NOI before adjustments(1) |
147,105 |
|
130,034 |
|
280,573 |
|
253,902 |
|
|
|
|
|
|
Adjustments: |
|
|
|
|
Lease termination |
(49 |
) |
97 |
|
(461 |
) |
(145 |
) |
Net profit on condo and townhome closings |
(11,232 |
) |
(791 |
) |
(15,310 |
) |
(740 |
) |
Non-recurring items and other adjustments(2) |
992 |
|
1,981 |
|
3,510 |
|
3,072 |
|
Total portfolio NOI after adjustments(1) |
136,816 |
|
131,321 |
|
268,312 |
|
256,089 |
|
|
|
|
|
|
NOI
sourced from: |
|
|
|
|
Acquisitions |
(285 |
) |
178 |
|
(3,604 |
) |
(2,296 |
) |
Dispositions |
— |
|
(38 |
) |
1 |
|
(13 |
) |
Earnouts and Developments |
(1,129 |
) |
(294 |
) |
(1,880 |
) |
(426 |
) |
Same Properties NOI(1) |
135,402 |
|
131,167 |
|
262,829 |
|
253,354 |
|
(1) |
Represents a non-GAAP measure. The Trust’s method of calculating
non-GAAP measures may differ from other reporting issuers’ methods
and, accordingly, may not be comparable. For additional
information, please see “Non-GAAP Measures” in this Press
Release. |
(2) |
Includes non-recurring items such as one-time adjustments relating
to COVID ECL and vaccination centre costs, royalties, straight-line
rent and amortization of tenant incentives. |
Reconciliation of FFO
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
|
(in thousands of dollars) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net income and comprehensive income |
167,902 |
|
161,997 |
|
280,763 |
|
532,107 |
|
Add (deduct): |
|
|
|
|
Fair value adjustment on investment properties and financial
instruments(1) |
(68,918 |
) |
(71,166 |
) |
(90,926 |
) |
(360,493 |
) |
Loss on derivative – TRS |
(9,333 |
) |
(7,843 |
) |
(8,037 |
) |
(6,238 |
) |
Loss (gain) on sale of investment properties |
45 |
|
(18 |
) |
23 |
|
104 |
|
Amortization of intangible assets and tenant improvement
allowance |
2,250 |
|
1,911 |
|
4,645 |
|
3,903 |
|
Distributions on Units classified as liabilities and vested
deferred units |
2,145 |
|
1,811 |
|
4,149 |
|
3,532 |
|
Adjustment on debt modification |
— |
|
(1,960 |
) |
— |
|
(1,960 |
) |
Salaries and related costs attributed to leasing activities(2) |
1,954 |
|
1,952 |
|
4,034 |
|
3,778 |
|
Acquisition-related costs |
— |
|
323 |
|
— |
|
323 |
|
Adjustments relating to equity accounted investments(3) |
2,489 |
|
1,457 |
|
1,016 |
|
5,643 |
|
FFO(4) |
98,534 |
|
88,464 |
|
195,667 |
|
180,699 |
|
Add (deduct) non-recurring
adjustments: |
|
|
|
|
Loss on derivative – TRS |
9,333 |
|
7,843 |
|
8,037 |
|
6,238 |
|
FFO sourced from condominium and townhome closings |
(10,620 |
) |
(1,100 |
) |
(14,436 |
) |
(1,076 |
) |
Transactional FFO – loss on sale of land to co-owner |
— |
|
— |
|
(1,008 |
) |
— |
|
FFO with adjustments(4) |
97,247 |
|
95,207 |
|
188,260 |
|
185,861 |
|
(1) |
Includes fair value adjustments on investment properties and
financial instruments. Fair value adjustment on investment
properties is described in “Investment Properties” in the Trust’s
MD&A. Fair value adjustment on financial instruments comprises
the following financial instruments: units classified as
liabilities, Deferred Unit Plan (“DUP”), Equity Incentive Plan
(“EIP”), TRS, interest rate swap agreements, and LTIP recorded in
the same period in 2022. The significant assumptions made in
determining the fair value are more thoroughly described in the
Trust’s unaudited interim condensed consolidated financial
statements for the three and six months ended June 30, 2023.
For details, please see discussion in “Results of Operations” in
the Trust’s MD&A. |
(2) |
Salaries and related costs attributed to leasing activities of $4.0
million were incurred in the six months ended June 30, 2023
(six months ended June 30, 2022 – $3.8 million) and were
eligible to be added back to FFO based on the definition of FFO, in
the REALpac White Paper published in January 2022, which provided
for an adjustment to incremental leasing expenses for the cost of
salaried staff. This adjustment to FFO results in more
comparability between Canadian publicly traded real estate entities
that expensed their internal leasing departments and those that
capitalized external leasing expenses. |
(3) |
Includes tenant improvement amortization, indirect interest with
respect to the development portion, fair value adjustment on
investment properties, loss (gain) on sale of investment
properties, and adjustment for supplemental costs. |
(4) |
Represents a non-GAAP measure. The Trust’s method of calculating
non-GAAP measures may differ from other reporting issuers’ methods
and, accordingly, may not be comparable. For additional
information, please see “Non-GAAP Measures” in this Press
Release. |
Reconciliation of AFFO
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
|
(in thousands of dollars) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
FFO(1) |
98,534 |
|
88,464 |
|
195,667 |
|
180,699 |
|
Add (Deduct): |
|
|
|
|
Straight-line of rents |
149 |
|
(304 |
) |
199 |
|
(381 |
) |
Adjusted salaries and related costs attributed to leasing |
(1,954 |
) |
(1,952 |
) |
(4,034 |
) |
(3,778 |
) |
Actual sustaining capital expenditures, leasing commissions, and
tenant improvements |
(8,881 |
) |
(4,772 |
) |
(15,383 |
) |
(9,405 |
) |
AFFO(1) |
87,848 |
|
81,436 |
|
176,449 |
|
167,135 |
|
Add (deduct) non-recurring
adjustments: |
|
|
|
|
Loss on derivative – TRS |
9,333 |
|
7,843 |
|
8,037 |
|
6,238 |
|
FFO sourced from condominium
and townhome closings |
(10,620 |
) |
(1,100 |
) |
(14,436 |
) |
(1,076 |
) |
Transactional FFO – loss on sale of land to co-owner |
— |
|
— |
|
(1,008 |
) |
— |
|
AFFO with adjustments(1) |
86,561 |
|
88,179 |
|
169,042 |
|
172,297 |
|
(1) |
Represents a non-GAAP measure. The Trust’s method of calculating
non-GAAP measures may differ from other reporting issuers’ methods
and, accordingly, may not be comparable. For additional
information, please see “Non-GAAP Measures” in this Press
Release. |
Adjusted EBITDAThe following
table presents a reconciliation of net income and comprehensive
income to Adjusted EBITDA:
|
Rolling 12 Months Ended |
(in
thousands of dollars) |
June 30, 2023 |
|
June 30, 2022 |
|
Net income and comprehensive income |
384,681 |
|
1,362,238 |
|
Add
(deduct) the following items: |
|
|
Net interest expense |
146,908 |
|
135,397 |
|
Amortization of equipment,
intangible assets and tenant improvements |
11,622 |
|
10,705 |
|
Fair value adjustments on
investment properties and financial instruments |
(28,557 |
) |
(1,021,276 |
) |
Fair value adjustment on
TRS |
(6,717 |
) |
(1,666 |
) |
Adjustment for supplemental
costs |
4,899 |
|
4,919 |
|
(Gain) loss on sale of
investment properties |
(156 |
) |
20 |
|
Gain on sale of land to
co-owners (Transactional FFO) |
— |
|
336 |
|
Acquisition-related costs |
(24 |
) |
3,114 |
|
Adjusted EBITDA(1) |
512,656 |
|
493,787 |
|
(1) |
Represents a non-GAAP measure. The Trust’s method of calculating
non-GAAP measures may differ from other reporting issuers’ methods
and, accordingly, may not be comparable. For additional
information, please see “Non-GAAP Measures” in this Press
Release. |
Non-GAAP Measures
The non-GAAP measures used in this Press
Release, including but not limited to, AFFO, AFFO with adjustments,
AFFO per Unit, AFFO with adjustments per Unit, Payout Ratio to
AFFO, Payout Ratio to AFFO with adjustments, Unencumbered Assets,
NOI, Debt to Aggregate Assets, Interest Coverage Ratio, Adjusted
Debt to Adjusted EBITDA, Unsecured/Secured Debt Ratio, FFO, FFO
with adjustments, FFO per Unit, FFO with adjustments per Unit, Same
Properties NOI, Debt to Gross Book Value, Weighted Average Interest
Rate, Transactional FFO, and Total Proportionate Share, do not have
any standardized meaning prescribed by International Financial
Reporting Standards (“IFRS”) and are therefore unlikely to be
comparable to similar measures presented by other issuers.
Additional information regarding these non-GAAP measures is
available in the Management’s Discussion and Analysis of the Trust
for the three and six months ended June 30, 2023, dated
August 9, 2023 (the “MD&A), and is incorporated by
reference. The information is found in the “Presentation of Certain
Terms Including Non-GAAP Measures” and “Non-GAAP Measures” sections
of the MD&A, which is available on SEDAR+ at www.sedarplus.ca.
Reconciliations of non-GAAP financial measures to the most directly
comparable IFRS measures are found in “Reconciliations of Non-GAAP
Measures” of this Press Release.
Full reports of the financial results of the
Trust for the three and six months ended June 30, 2023 are
outlined in the unaudited interim condensed consolidated financial
statements and the related MD&A of the Trust for the three and
six months ended June 30, 2023, which are available on SEDAR+
at www.sedarplus.ca.
Conference Call
SmartCentres will hold a conference call on
Thursday, August 10, 2023 at 3:00 p.m. (ET). Participating on
the call will be members of SmartCentres’ senior management.
Investors are invited to access the call by
dialing 1-855-353-9183 and then keying in the participant access
code 30006#. You will be required to identify yourself and the
organization on whose behalf you are participating.
A recording of this call will be made available
Thursday, August 10, 2023 beginning at 8:30 p.m. (ET) through
to 8:30 p.m. (ET) on Thursday, August 17, 2023. To access the
recording, please call 1-855-201-2300, enter the conference access
code 30006# and then key in the playback access code 0113627#.
About SmartCentres
SmartCentres Real Estate Investment Trust is one
of Canada’s largest fully integrated REITs, with a best-in-class
portfolio featuring 189 strategically located properties in
communities across the country. SmartCentres has approximately
$11.8 billion in assets and owns 34.9 million square feet of income
producing value-oriented retail and first-class office space with
98.2% in-place and committed occupancy, on 3,500 acres of owned
land across Canada.
SmartCentres continues to focus on enhancing the
lives of Canadians by planning and developing complete, connected,
mixed-use communities on its existing retail properties. The
publicly announced $16.0 billion intensification program ($10.9
billion at SmartCentres' share) represents the REIT’s current major
development focus on which construction is expected to commence
within the next five years. This intensification program consists
of rental apartments, condos, seniors’ residences and hotels, to be
developed under the SmartLiving banner, and retail, office, and
storage facilities, to be developed under the SmartCentres
banner.
SmartCentres' intensification program is
expected to produce an additional 55.5 million square feet (40.4
million square feet at SmartCentres’ share) of space, 26.6 million
square feet (18.1 million square feet at SmartCentres’ share) of
which has or will commence construction within the next five years.
From shopping centres to city centres, SmartCentres is uniquely
positioned to reshape the Canadian urban and urban-suburban
landscape.
Included in this intensification program is the
Trust’s share of SmartVMC which, when completed, is expected to
include approximately 20.0 million square feet of mixed-use space
in Vaughan, Ontario. Final closings of the first three phases of
Transit City Condominiums began ahead of budget and ahead of
schedule in August 2020 and all 1,741 units, in addition to the 22
townhomes that complete these phases, have now closed. The fourth
and fifth sold-out phases representing 1,026 units commenced
closing and occupancy in March 2023.
Certain statements in this Press Release are "forward-looking
statements" that reflect management's expectations regarding the
Trust's future growth, results of operations, performance and
business prospects and opportunities. More specifically, certain
statements including, but not limited to, statements related to
SmartCentres’ expectations relating to cash collections,
SmartCentres’ expected or planned development plans and joint
venture projects, including the described type, scope, costs and
other financial metrics and the expected timing of construction and
condominium closings and statements that contain words such as
"could", "should", "can", "anticipate", "expect", "believe",
"will", "may" and similar expressions and statements relating to
matters that are not historical facts, constitute "forward-looking
statements". These forward-looking statements are presented for the
purpose of assisting the Trust's Unitholders and financial analysts
in understanding the Trust's operating environment and may not be
appropriate for other purposes. Such forward-looking statements
reflect management's current beliefs and are based on information
currently available to management.
However, such forward-looking statements involve
significant risks and uncertainties. A number of factors could
cause actual results to differ materially from the results
discussed in the forward-looking statements, including risks
associated with potential acquisitions not being completed or not
being completed on the contemplated terms, public health crises
such as the COVID-19 pandemic, real property ownership and
development, debt and equity financing for development, interest
and financing costs, construction and development risks, and the
ability to obtain commercial and municipal consents for
development. These risks and others are more fully discussed under
the heading “Risks and Uncertainties” and elsewhere in
SmartCentres’ most recent Management’s Discussion and Analysis, as
well as under the heading “Risk Factors” in SmartCentres’ most
recent annual information form. Although the forward-looking
statements contained in this Press Release are based on what
management believes to be reasonable assumptions, SmartCentres
cannot assure investors that actual results will be consistent with
these forward-looking statements. The forward-looking statements
contained herein are expressly qualified in their entirety by this
cautionary statement. These forward-looking statements are made as
at the date of this Press Release and SmartCentres assumes no
obligation to update or revise them to reflect new events or
circumstances unless otherwise required by applicable securities
legislation.
Material factors or assumptions that were
applied in drawing a conclusion or making an estimate set out in
the forward-looking information may include, but are not limited
to: a stable retail environment; a continuing trend toward land use
intensification, including residential development in urban markets
and continued growth along transportation nodes; access to equity
and debt capital markets to fund, at acceptable costs, future
capital requirements and to enable our refinancing of debts as they
mature; that requisite consents for development will be obtained in
the ordinary course, construction and permitting costs consistent
with the past year and recent inflation trends.
For more information, please visit
www.smartcentres.com or contact:
Mitchell
Goldhar |
Peter
Slan |
Executive Chairman and CEO |
Chief Financial Officer |
SmartCentres |
SmartCentres |
(905) 326-6400 ext. 7674 |
(905) 326-6400 ext. 7571 |
mgoldhar@smartcentres.com |
pslan@smartcentres.com |
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