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Automotive Properties REIT Reports Financial Results for Second Quarter of 2020

I¶A  The REIT also announced the acquisition of a development property in Laval, QuebecA  I¶ TORONTO, Aug. 13, 2020 /CNW/ -A Automotive Properties Real Estate Investment Trust (TSX: APR.UN) ("Automotive Properties REIT" or the "REIT") today announced its financial results for the three-month ("Q2 2020") and six-month periods ended June 30, 2020."The combination of a tenant base consisting of some of the leading automotive dealership operators in Canada, and our strong liquidity position, enabled us to work with certain of our tenant partners to provide support through partial rent deferrals as they manage the economic challenges imposed by the COVID-19 pandemic. As a result, we have collected approximately 78% of our base rent for Q2 2020, with the remaining amount subject to rent deferral agreements with tenants. This is reflected in our continued solid growth in revenue, NOI and AFFO for the quarter," said Milton Lamb, CEO of Automotive Properties REIT. "Looking ahead our near-term focus will remain on capital preservation. While our acquisition momentum has been muted by the impacts of the pandemic, we expect to see increased opportunities in future quarters as industry fundamentals stabilize and dealer consolidation accelerates. In evaluating potential opportunities, we will maintain our strategic acquisition criteria, focusing on select markets, property location, automotive brand and the financial strength of the dealership business operator."A A  Q2 2020 Highlights

The REIT has collected approximately 78% of its base rent for Q2 2020, with the remaining amount subject to rent deferral agreements (the "Deferral Agreements"). The REIT has collected approximately 99% of its expected July and August 2020 contractual base rent, including required payments under the Deferral Agreements.



The REIT paid monthly cash distributions of $0.067 per Unit (defined below), resulting in total distributions declared and paid of approximately $9.6 million in Q2 2020, representing an AFFO payout ratio of approximately 98.0%, compared to total distributions paid of approximately $6.4 million in the three-month period ended June 30, 2019 ("Q2 2019"), representing an AFFO payout ratio of approximately 81.4%. The higher AFFO payout ratio in Q2 2020 reflects the REIT's issuance of 7.9 million REIT units for gross proceeds of $92 million in December 2019 (the "December 2019 Equity Offering"), and the partial deployment of proceeds therefrom.



The December 2019 Equity Offering contributed to deleveraging the REIT's balance sheet and enhancing its liquidity position, resulting in a Debt to Gross Book Value ("Debt to GBV") of 44.4% as at June 30, 2020.



The REIT made a fair value adjustment to its property portfolio for the three months ended June 30, 2020, resulting in a decrease of $10.9 million, mainly due to adjustments made to valuation inputs, reflecting the impact of COVID-19 on all tenants. The overall capitalization rate applicable to the REIT's entire portfolio increased by 30 basis points to 6.9% as at June 30, 2020, compared to 6.6% as at December 31, 2019. The overall capitalization rate applicable to the REIT's portfolio was 6.8% as at March 31, 2020.

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