Canadian Net Real Estate Investment Trust Reports Q2 2024 Results
Canadian Net Real Estate Investment Trust (“Canadian Net” or the “REIT”) (TSX-V: NET.UN) has released its results for the quarter ended June 30, 2024. The REIT also announced distributions for the months of October, November, and December 2024.
CEO Comments on Performance
“Our Funds from Operations (FFO) per unit saw a 4% decrease while managing to absorb the full impact of interest rate increases,” said Kevin Henley, President and CEO. “With lower interest rates, we are already benefiting from reduced costs on our credit facilities and mortgage renewals. Additionally, we sold five gas station properties, one during Q2 and four after the quarter as part of our strategy to optimize our portfolio and reallocate capital to more profitable opportunities. With fresh capital from dispositions, decreasing rates, and opportunities in our highly fragmented niche, Canadian Net is well positioned to resume its growth.”
Financial Highlights for Q2 2024
Canadian Net reported that Funds from Operations (FFO) decreased slightly to $3.2 million, or $0.154 per unit compared to $3.3 million, or $0.161 per unit for the same period a year ago.
Rental income rose to $6.6 million in Q2 2024, representing a 1.7% increase from the previous year. Net Operating Income (NOI) for this quarter was $4.8 million, a decrease of 1.4% primarily due to property dispositions.
The REIT reported a net loss attributable to unitholders of $8.9 million in Q2 2024, compared to net income of $6.0 million in Q2 2023.
Half-Year Financial Results
For the six-month period ended June 30, 2024, FFO decreased to $6.3 million, or $0.306 per unit compared to $6.5 million, or $0.318 per unit for the same period in 2023.
Rental income for the six-month period was $13.1 million, a 1.8% increase year-over-year. NOI was reported at $9.6 million, down 1.1% driven by similar factors as outlined previously.
The net loss attributable to unitholders for the six-month period was $7.7 million, compared to net income of $10.8 million for the prior year.
Future Distributions
Canadian Net has announced monthly cash distributions of $0.02875 per unit, equating to $0.345 per unit on an annualized basis, scheduled for October 31, November 29, and December 31, 2024, to unitholders of record on October 15, November 15, and December 13, 2024, respectively.
About Canadian Net
Canadian Net Real Estate Investment Trust is an open-ended trust that focuses on acquiring and owning high-quality, triple net lease and management-free commercial real estate properties. The Trust discloses certain non-IFRS measures such as FFO and NOI to provide insight into its underlying operating performance.
Frequently Asked Questions
What are the main highlights of Canadian Net's Q2 2024 report?
Key highlights include a slight decrease in FFO, an increase in rental income, and a net loss attributable to unitholders of $8.9 million.
How does Canadian Net plan to navigate market challenges?
Management highlighted strategies such as optimizing the property portfolio and reallocation of capital towards more profitable opportunities.
What is the schedule for Canadian Net's upcoming distributions?
Monthly cash distributions of $0.02875 per unit are planned for October 31, November 29, and December 31, 2024.
What does FFO mean in the context of Canadian Net’s financials?
FFO, or Funds from Operations, is a key performance metric used by real estate investment trusts to measure cash generated from operations.
How does Canadian Net's performance compare year-over-year?
Compared to Q2 2023, FFO decreased by 4%, but rental income showed a slight increase of 1.7% year-over-year.
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