Expensive Liz: My siblings and I are considering providing a triplex. It was bequeathed to us by our mother when she died in 2007. There is no mortgage loan and it is fully occupied. If we promote, my wife and I (equally more than 50) would get roughly $200,000, and we’d like to lessen the tax effect. We individual our property no cost and clear and have no personal debt. We’d like to use this windfall to assistance our son obtain a house. We’d also give our daughter a hard cash gift. We have no curiosity in purchasing one more expenditure property making use of a 1031 exchange. Any strategies to minimize our tax bill offered our conditions?
Remedy: Speak to a tax pro, because marketing a rental house is much more sophisticated than offering your individual residence.
You are not suitable for the $250,000-for every-man or woman home sale profit exclusion, and in addition to spending funds gains tax you also confront a depreciation recapture tax of 25{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. (Depreciation is the quantity of don-and-tear you wrote off during your ownership of the residence the IRS calls for you to repay that tax split when you offer.)
A massive funds achieve could impact other regions of your finances, these as Medicare premiums, and the pro can help you strategy for that as effectively.
A 1031 exchange would allow you to defer taxes on a rental house by purchasing a very similar alternative house.
One more option would be to hang on to the house, carry on to love the rental money and bequeath your part of it to your little ones when you die. Your portion will acquire a favorable action-up in tax foundation so that your heirs won’t owe taxes on the funds gains that transpired for the duration of your ownership. They also won’t deal with the tax on depreciation recapture you would usually owe.
But that naturally is not a superior remedy if you no for a longer time want to be a landlord or want the hard cash rather. In that situation, the tax professional can enable you thoroughly account for selling charges, legal charges and improvement bills that could minimize the tax hit and may perhaps be equipped to advise other methods to take care of your tax invoice.
Opening an IRA for a retired husband or wife
Dear Liz: Are spousal IRAs a great idea for a pair when a person spouse is retired but the other is working? I’m 63 and operate total time. My partner is 76 and retired. I have a Roth IRA he does not. I lead the utmost amount of money to my IRA. If we produce a spousal IRA for him, would we be ready to contribute as if it were a common Roth IRA?
Respond to: Certainly. Ordinarily individuals have to have earned revenue — these kinds of as wages, salary, commissions, strategies or self-work earnings — to add to an IRA or a Roth IRA. If you’re married and doing work, however, you can lead up to the highest amount of money on behalf of a nonworking wife or husband. In 2023, the maximum contribution for individuals 50 and more mature is $7,500. As lengthy as you make at minimum $15,000 ($7,500 instances two), you can max out equally accounts.
There is no particular “spousal IRA” account, by the way. Just open a common IRA or Roth IRA in his title.
Ins and outs of HELOCs
Dear Liz: We have a dwelling equity line of credit score as a result of our credit rating union. I have been paying out it down very aggressively and it will be compensated off in two months. That is our only credit card debt. I was considering leaving a modest ($100) balance. It would value $7.50 a 12 months to have the mortgage out there but we would have fast entry to $200,000 with no paperwork, etc. Your ideas?
Solution: Call your credit union and ask if it’s necessary to keep a harmony to maintain the line of credit history open, simply because ordinarily that’s not the situation.
You need to know, even so, that HELOCs normally have two phases: a five- to 10-calendar year “draw” time period, for the duration of which you can borrow and repay the line considerably as you would a credit card, adopted by a compensation period of time of 10 to 20 a long time for the duration of which you pay out down any total still owed. You normally just cannot attract out more revenue during the reimbursement time period.
If your HELOC is nearing its compensation stage, you can replace it with a new HELOC that you go away open up and unused for emergencies. Closing prices often array from 2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} to 5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of the financial loan volume, while some loan providers price cut these expenses.
Liz Weston, Licensed Money Planner, is a individual finance columnist for NerdWallet. Issues may well be sent to her at 3940 Laurel Canyon, No. 238, Studio Metropolis, CA 91604, or by making use of the “Contact” form at asklizweston.com.
Lincoln’s 51st annual Nebraska Builders Home & Garden Show is poised to be one of the largest in recent years.
The event, which features home builders and home-improvement businesses who specialize in everything from landscaping and hot tubs to banking and financing, includes more than 200 vendors at the Lancaster Event Center.
Michaela Harrison, the executive vice president of the Home Builders Association of Lincoln, which hosts the event, said this year’s show attracted several businesses that are relatively new to the industry.
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“This is a good way for them to build their business,” Harrison said. “We have people tell us they get a year’s worth of leads off the show.”
Matt Firestone, the owner of Concrete Craft in Lincoln, attested to that value. The decorative flooring business made its first appearance at the annual show just a few weeks after opening in 2021. Firestone said it hasn’t looked back since.
“We had great success that first year and each year gets a little bit better,” Firestone said.
Frank and Joan Ekstein check out the Champion Windows display at the Nebraska Builders Home & Garden Show on Friday.
LARRY ROBINSON, Journal Star
Even as interest rates remain high and inflation drives up costs, Firestone said his company hasn’t seen a significant dip in business, success he partially attributed to the luxury nature of its services, as well as a culture shift over the past few years.
“Part of it’s still what happened with COVID. People are spending more time at home; they want to enjoy their space,” he said.
Bill Kuhlman has had a Kuhlman Construction Inc. booth at the Home & Garden Show for approximately three decades. Although existing home sales have slowed over the past year, sales of newly built homes are still up significantly compared with prepandemic years. Kuhlman said one reason for that is because most people building new homes have built up a lot of equity in their current homes.
“The people that are building these type of homes are staying pretty strong,” he said.
The show will run through Sunday.
Historic designation sought for neighborhood with homes built by Lincoln woman
Proposed development would bring homes, commercial uses to east Lincoln
Lincoln home sales slowing as interest rates, prices soar
Redevelopment plan for former Lincoln golf course approved after changes made
Plan would turn Lincoln church into residential building
Reach the writer at 402-473-2634 or sbelair@journalstar.com.
We all hanker after a good-sized dining room, especially for those with families or if you love entertaining. But unfortunately, a large dining room space isn’t always on the cards. If your dining space falls into the small size category, there are several small dining room decorating mistakes you should aim to avoid if you want to create a beautiful fully functioning space.
Get your small dining room ideas right and the space will become an easy-on-the-eye room that’s practical and stylish. Colour is a big factor and one that can dramatically change the size of a room visually and paler shades can be a winning option.
Another area to research is small dining room lighting ideas – get the proportions right and the result will be a light room that has layers of lighting that will ensure your dining room is lit well from the rushed breakfast during the week to a relaxing dinner with friends.
Small dining room decorating mistakes to avoid
Dark, and cramped with oversized furniture is the opposite of what you want one of the most social spaces in your home to feel like. Knowing what small dining room decor ideas work is as important as knowing what doesn’t. Here are the small dining room decorating mistakes we’d recommend avoiding, and what you should do instead.
1. Opting for a tablecloth over a runner
(Image credit: Future PLC / Dominic Blackmore)
‘The use of a tablecloth can be very useful if you want a softer look, or if you just want to cover up a badly scarred tabletop. However, be aware that a tablecloth adds visual bulk to the table and can make the room feel more hemmed-in,’ warns Simon Temprell, interior design manager, Neptune (opens in new tab).
If you’re decorating the table in a small dining room Simon instead recommends trying a table runner. ‘Table runners can offer you a compromise and will give you the opportunity to introduce some colour and texture.’
2. Not considering a circular table
(Image credit: Future PLC)
Circular tables tend to get bad press, but one big advantage is no more bumping into the corners of a square or rectangular design – always a win! They are generally more of a one-sized option but can look fabulous when teamed with chairs that have a curvy element, it all helps the eye to flow, which in the case of a small dining room space is paramount.
Another benefit is they have a smaller footprint than square or rectangular tables of a similar size so can trick the eye into thinking that the space is larger than it is as you can see more floor space. Some designs available utilise a central leg instead of four, solving any legroom issues.
They’re also more sociable as they’re easier to walk around, and everyone can see each other, enabling the conversation to flow more smoothly.
3. Playing it safe with a plain scheme
(Image credit: Future PLC)
A common small dining room decorating mistake to avoid can be defaulting to a plain scheme over one that’s vibrant and full of colour. We tend to think that kind of interior design only works in a spacious room but it can work successfully in smaller space.
Using patterned dining room wallpaper ideas and fabrics will create a scheme that’s bold, and it will help to distract the eye from the size of the dining room and brighten up a dark corner.
Start with a couple of colours that work well together like blue and green and consider a monochromatic element too. Pop in an accent like red or yellow, but do add balance with a plain floor or white table.
4. Scrimping on the storage
(Image credit: Shelved)
When space is tight in a small dining room it’s easy to believe that there’s no room for the usual storage furniture like a sideboard for example. Our brains tell us that it will take up too much room and look cluttered but if you pick wisely and opt for a slimline unit you’ll reap the benefits.
‘The dining room often has many functions, from hosting to casual dining and in some cases homeworking, therefore it’s important to ensure you have enough space to keep everything safely stored away. Not allowing for enough storage in the dining room can sometimes make a small space feel even smaller,’ says Jonathan Clark, creative director, Shelved (opens in new tab).
‘Shelving units are great for displaying your favourite glassware, serving dishes and accessories but cupboards have their uses too, providing the perfect place for the less aesthetic yet practical items often found in the dining room.’
5. Choosing a table that doesn’t fold
(Image credit: Future PLC)
When space is at a premium there is no smart solution that a table that has leaves that fold up and down as you need. Folding tables have been around for decades, and when we think of folding tables we generally think of heavy antique tables with the extra leaf in the middle, but you can get simpler designs (Wayfair has a lovely selection (opens in new tab)) where the leaves fold up rather than having to take pieces out.
These nifty designs enable you to keep the dining table small and neat for breakfast and then open up for evening meals and entertaining. Stools that fit underneath will keep them tidy and out of the way until needed too.
6. Going small with your lighting
(Image credit: BHS )
Good dining room lighting ideas will transform a small dining into a cosy and inviting space. Just because you are working with a small space doesn’t mean you need to go small, however, do choose the dimensions carefully.
‘When hosting family and friends around the table, good lighting is a must! Create a focal point by hanging a decorative pendant light above the dining table – for a statement try a show-stopping chandelier. There is an increasing desire for lighting that looks as good switched off as it does on and this has led to more searches for bubble motif lighting, a trend set to grow as homeowners search for more playful and uplifting interior accents.
‘For smaller rooms, you also may want to choose a lampshade that is narrower, whereas in larger rooms you want a wider lampshade to fill the space better,’ says Julian Page, head of design, BHS (opens in new tab).
7. Trying to fit a large table into a small space
(Image credit: Neptune)
We’ve all done it – tried to get a favourite armchair or table into a room where it doesn’t fit because we love it so. But bulky furniture takes up space, physically and visually so it’s important to choose pieces that are the right size for the space.
‘Square tables are very handy for pushing into corners when not in use, but if you would like to sit chairs around your table every day then remember that you need a minimum of 150cms clearance to push back your chair to get in and out. Consider using a bench on one side of the table to save space,’ says Simon Temprell, interior design manager, Neptune (opens in new tab).
8. Not choosing a common theme
(Image credit: Homebarn)
Choosing furniture that matches – like a rustic theme for example, will give a sense of cohesion to a small dining room and ‘unifies’ a look. It has its place and can create a calming feel.
‘Adding a statement table into the dining room will also ensure that the size of the room is not nearly as defining as the table in the middle,’ says Sarah and Sally Wilkie, founders, Homebarn (opens in new tab). ‘Reclaimed wood is a strong favourite, thanks to its rustic appeal and environmentally friendly nature.’
9. Only using chairs
(Image credit: Future PLC)
When designing a small dining room it would be a big mistake to feel you are confined to the traditional dining room set up of a table and chairs. Bench seating can be a much smart solution to make the most of a small space.
Bench seating is underrated and so useful for small dining rooms – it means you can seat more people and use chairs on the opposite side. One top tip is to ask your joiner to create a long bench seat with a hinge so you can use it for storage too. You can also build your own bench seat yourself with space for storage baskets underneath.
For added decoration pop up a long but narrow open shelf for displaying small artwork and ornaments.
10. Contrasting colours in a narrow space
(Image credit: Fired Earth)
Small can mean a lot of different things in a dining room, if small to you is narrow then you will want to steer clear of too many contrasting colours.
‘Try and avoid too many contrasts in colour or if narrow almost verges on tunnel, paint the end wall a couple of shades darker than the other 3,’ recommends Patrick O’Donnell, brand ambassador, Farrow & Ball (opens in new tab).
‘This will help the former advance and ‘square’ up the space. You could also consider decorating with paper- something graphic will be visually distracting and even better if the design motif has a horizontal bias, this will help the illusion of width.’
How can I make a small dining room look good?
With a bit of clever planning and considering the size of your basics – table and chairs or bench combination, a small dining room can be both stylish and practical, but do incorporate storage into your design scheme.
‘Modular storage units and sideboards are perfectly suited to small dining rooms; by placing these along one wall and maximising all the available vertical space you can create a solution that not only looks good but functions well too.
By keeping storage units to one wall only, you are freeing up additional wall space for artwork, family photos or a decorative mirror – floor-to-ceiling units will also allow you to save valuable floor space by using vertical space instead,’ says Jonathan Clark, creative director, Shelved (opens in new tab).
How do you deal with a narrow dining room?
Narrow rooms can be tricky, but still have great potential as a dining space and can elevate the room from a walk-through space to one that’s functional and easy to spend time in.
‘Instead of buying a round table for a narrow dining room, a longer table would be much more beneficial. A long table will ensure that there is plenty of space to sit around as well as move around without awkwardly shimmying behind furniture to get to the other side of the room,’ say Sarah and Sally Wilkie, founders, Homebarn (opens in new tab).
‘For long narrow rooms, feature shelving can really help to zone the space, acting as a room divider to create an intimate dining setting. Not only does this offer a place to display photo frames, plants, and other prized possessions, but it will create a clear separation between spaces, helping to break up the room whilst also remaining functional,’ adds Jonathan.
“We’re a very large apartment owner here in Austin. It was just devastatingly sad to see our our tenants that we care so much about not have power for days and days, in some instances for over a week,” said Rastegar.
For real estate agents selling houses, property tours and move-in dates had to be delayed, and cleanup or damage to houses and apartment complexes are still being taken care of. Rastegar said with all the booming construction going on in Austin, the ice storm made it hard for construction workers to do their job.
“Throughout the city we have all this other booming construction going on that makes it so hard for the workers to do their job, in some instances impossible. A lot of them were out of pay during that time because it wasn’t built into the budgets for a lot of construction sites to further pay these construction workers. So it put a burden on the home, on the landowners that were developing. That just trickled downwards,” said Rastegar.
Rastegar said it’s the responsibility of the local government to make sure that Austinites are safe and have basic human needs and that this last ice storm and the outages were unacceptable.
“This is a big issue, not to mention the damage that a lot of the houses that these Realtors are looking to sell had in addition to the damage to commercial properties that the landlords had to had to endure,” said Rategar.
Rategar said moving forward he would like to see improvements to infrastructure within the city and renovations to the power grid.
“Austin is not really a city; it’s a town on steroids. And so the growth has really been, you know, has been exponential, which has really outgrown some of those issues. And we have done a good job of keeping up with it, maintaining it. But it’s really been Band-Aids on issues, and now it’s time to do full-on surgery,” said Rategar.
The real estate investment expert said he feels like government finally got the message this time and it’s going to go into overdrive to correct the issue.
The camaraderie he saw during the ice storm in Austin he said was remarkable.
“I was really proud of the community in Austin, to see how much they really care about their fellow neighbor. So the silver-lining within this tragedy was an unbelievable amount of hard value and inclusion and caring, all the way from our homeless, all the way to the neighbors directly next door. So that was really amazing to see that, and I don’t think many cities in the United States have that blessing and have that gift. So the heart of Austin is truly strong,” said Rategar.
Shopping centre leasing activity remains strong, with industry-leading occupancy levels of 98{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} in Q4 2022, representing a 40 basis point increase as compared to the same period 2021
Same Properties NOI(1) for the quarter increased by $5.1 million or 4.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as compared to Q4 2021, and for the full year increased by $16.5 million or 3.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as compared to 2021
Net rental income and other for the quarter increased by $2.2 million or 1.7{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as compared to Q4 2021, and for the full year increased by $16.8 million or 3.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as compared to 2021
Mixed-use Development
In excess of three million square feet of construction activity is currently underway, principally high rise residential on existing shopping centre sites in Toronto, Montreal, and Ottawa
Construction of the Transit City 4 & 5 condominium towers is in the final stages of completion with closings scheduled to commence in March 2023. All 1,026 units have been pre-sold and construction costs are on budget
Construction of the Millway, a 458-unit purpose-built rental apartment building, is also in the final stages of completion, with initial tenants taking occupancy and rent commencement later this month
Financial
FFO(1) with adjustments excluding the impact of the TRS for the quarter increased by $1.0 million or 1.1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as compared to Q4 2021, and for the full year increased by $9.6 million or 2.7{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as compared to 2021
Payout Ratio to ACFO(1) with adjustments excluding the impact of the TRS and other for the year ended December 31, 2022 improved by 3.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} to 92.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as compared to 2021 and for the quarter improved by 5.7{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} to 94.1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as compared to Q4 2021
Payout Ratio to cash flows provided by operating activities for the year ended December 31, 2022 increased by 3.1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} to 88.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as compared to 2021 and for the quarter increased by 1.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} to 61.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as compared to Q4 2021
As a result of fair value adjustments to property valuations and condo and townhouse closings that occurred in 2021, net income and comprehensive income for the quarter decreased by $551.8 million or 84.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as compared to Q4 2021, and for the year decreased by $351.7 million or 35.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as compared to 2021
TORONTO, Feb. 08, 2023 (GLOBE NEWSWIRE) — 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 and year ended December 31, 2022.
“Walmart is a very strong anchor tenant in good times, and an even stronger one in tough times. Hence, customer traffic to our Walmart-anchored shopping centre portfolio continues to gain momentum which, in turn, is generating steadily increasing levels of leasing activity that began earlier in 2022.” said Mitchell Goldhar, Executive Chairman and CEO of SmartCentres.
“We anticipate this trend will continue into 2023 and that it will have a positive impact on both our occupancy and earnings levels. We are pleased with the noticeable increase in leasing activity in the fourth quarter and the associated improvement in cash collections.”
“We are particularly proud of our progress on the eleven mixed-used development initiatives that are currently under construction. These projects have expected completion dates in 2023 and 2024, upon which they are expected to begin contributing FFO(1). The development initiatives span multiple asset classes, including condos, rental apartments, seniors’ apartments, townhouses, self-storage, industrial, and retirement residences. As at December 31, 2022, the total cumulative amount of capital deployed on these projects was $755.2 million ($304.1 million at the Trust’s share), with approximately $487.8 million remaining until completion ($234.9 million at the Trust’s share),” noted Mr. Goldhar.
“Among these developments are significant projects at our flagship Vaughan Metropolitan Centre. These include two 45-storey and 50-storey condominium towers at Transit City nearing completion after 36 months. These units are sold out and the final stages of construction are rapidly nearing the finish line, on time and on budget. Closings are expected to commence in March 2023. In addition, The Millway, a 458-unit, 36-storey rental apartment tower, is also proceeding on time and on budget with initial occupancy and rent commencement expected to begin later this month. The first phase of our Artwalk condominium project is also sold out and construction is expected to commence in the second half of 2023.”
“We are also pleased to note that, as promised, we published our inaugural ESG report during the fourth quarter of 2022. Our business remains strong and well-positioned for growth in the coming years. Nevertheless, with changing economic conditions, we plan on applying prudent discipline when assessing development and other initiatives. Our focus remains on the long term, including the development of mixed-use projects on our strategically located real estate, which we are confident will extract deeply embedded value for many years to come,” added Mr. Goldhar.
(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.
Key Business Development, Financial and Operational Highlights for the Year Ended December 31, 2022
Mixed-Use Development and New Growth at SmartVMC
Park Place condo pre-development is underway on the 53.0 acre SmartVMC West lands strategically acquired in December 2021. Pre-sales for this development have commenced. The Trust’s acquisition in December 2021 of a two-thirds interest in the SmartVMC West lands more than doubled the Trust’s holdings in the 105 acre SmartVMC city centre development.
Construction nears completion on the 100{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} pre-sold Transit City 4 (45 storeys) and 5 (50 storeys) condo towers, representing 1,026 residential units. Concrete, formwork and building envelope have been completed for both towers, with interior finishes ongoing. First closings are expected to commence in March 2023.
Construction of the purpose-built rental project, The Millway (36 storeys), nears completion at SmartVMC. Formwork, concrete and building envelope have been completed, with interior finishes underway. Initial occupancy is expected to commence in February 2023.
ArtWalk condominium sales of 320 released units in Phase 1 are sold out with construction expected to begin in the second half of 2023.
Other Business Development
Occupancy in the completed first phase of the two-phase, purpose-built residential rental project in Laval, Quebec, ended the year with 98{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of the 171 units leased. Pre-leasing has commenced on the next phase and construction continues, with a target completion date of Q2 2023.
Initial occupancy in the two purpose-built residential rental towers (238 units) in Mascouche, Quebec began in July 2022, with the final floor opened in November. More than 147 units have been leased and current lease-up activity is in line with initial expectations.
All of the five developed and operating self-storage facilities (Toronto (Leaside), Vaughan NW, Brampton, Oshawa South and Scarborough East) have been very well-received by their local communities, with current occupancy levels ahead of expectations. A sixth facility, Aurora, opened in December 2022.
Three self-storage facilities in Whitby, Markham and Brampton (Kingspoint) are currently under construction, with Brampton (Kingspoint) expected to be completed in early 2023. Additional self-storage facilities have been approved by the Board of Trustees and the Trust is in the process of obtaining municipal approvals in Stoney Creek and two locations in Toronto (Gilbert Ave. and Jane St.). In addition, the municipal approval process is underway in New Westminster and Burnaby, British Columbia.
Construction continues on a new retirement residence and a seniors’ apartment project, totalling 402 units, at the Trust’s Laurentian Place in Ottawa, with completion expected in Q1 2024.
By way of a Minister’s Zoning Order, the Trust has permissions that would allow for the redevelopment of the 73-acre Cambridge retail property (which is subject to a leasehold interest with Penguin) including various forms of residential, retail, office, institutional and commercial uses providing for the creation of a vibrant urban community with the potential for over 12 million square feet of development.
The Trust, together with its partner, Penguin, has also commenced preliminary siteworks for the 215,000 square foot retail project on Laird Drive in Toronto, that is expected to feature a flagship 190,000 square foot Canadian Tire store together with 25,000 square feet of additional retail space. Canadian Tire is expected to take possession in 2024.
Financial
Net income and comprehensive income(1) was $636.0 million in 2022 compared to $987.7 million in 2021, representing a decrease of $351.7 million. This decrease was primarily attributed to: i) $476.8 million decrease in fair value adjustment on revaluation of investment properties; and ii) $20.2 million decrease in net profit on condo and townhome unit closings; and was partially offset by i) $125.5 million increase in fair value adjustments on financial instruments; and ii) $20.6 million increase in net rental income and other mainly due to higher base rent in 2022.
Net income and comprehensive income per Unit(1) in 2022 decreased by $2.14 or 37.7{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} to $3.54 as compared to the same period in 2021, primarily due to the reasons as noted above.
As at December 31, 2022, the Trust increased its unsecured/secured debt ratio(2)(3) to 74{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}/26{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} (December 31, 2021 – 71{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}/29{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}).
The Trust continues to add to its unencumbered pool of high-quality assets. As at December 31, 2022, this unencumbered portfolio consisted of investment properties was valued at $8.4 billion (December 31, 2021 – $6.6 billion).
The Trust’s fixed rate/variable rate debt ratio(2)(3) was 82{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}/18{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} as at December 31, 2022 (December 31, 2021 – 89{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}/11{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}).
FFO per Unit with adjustments excluding the impact of ECL, TRS, condominium and townhome closings, and SmartVMC West acquisition(2) was $2.14 (year ended December 31, 2021 – $2.09).
During the quarter, 693,900 additional notional TRS Units were added at a weighted average price of $26.37 per Unit.
For the year ended December 31, 2022, there was a surplus of cash flows provided by operating activities(1) over distributions declared of $41.2 million (year ended December 31, 2021 – surplus of $52.9 million).
The Payout Ratio relating to cash flows provided by operating activities for the year ended December 31, 2022 was 88.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, as compared to 85.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} for the year ended December 31, 2021.
For the year ended December 31, 2022, there was a surplus of ACFO(2) over distributions declared of $10.5 million (year ended December 31, 2021 – surplus of $34.3 million).
The Payout Ratio to ACFO(2) for the year ended December 31, 2022 was 96.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, as compared to 90.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} for the year ended December 31, 2021. Excluding the impact of TRS, condominium and townhome closings, and SmartVMC West acquisition, the Payout Ratio to ACFO(2) for the year ended December 31, 2022 was 92.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, as compared to 96.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} for the year ended December 31, 2021.
Operational
Rentals from investment properties and other(1) was $804.6 million, as compared to $780.8 million in 2021, representing an increase of $23.8 million or 3.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, primarily due to: (i) the acquisition of an additional interest in investment properties in Q1 2022; (ii) higher rental income from Premium Outlets locations in both Toronto and Montreal; and (iii) additional self-storage facility and parking rental revenue.
Same Properties NOI inclusive of ECL(2) increased by $16.5 million or 3.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} in 2022 as compared to 2021. Same Properties NOI excluding ECL(2) increased by $9.5 million or 1.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} in 2022 as compared to the prior year.
In-place occupancy rate and occupancy rate with committed deals were 97.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and 98.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, respectively, as at December 31, 2022 (December 31, 2021 – 97.4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and 97.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, respectively).
Subsequent Event
The Trust together with an entity, PCVP, which is classified as investment in associates, entered into an agreement to dispose approximately 6.4 acres of land located in Vaughan, Ontario (VMC) to an unrelated party, which closed in February 2023, for gross proceeds of $95.6 million that was satisfied with cash. The Trust’s share of such proceeds was $58.4 million, comprised of $42.3 million relating to the Trust’s two-thirds share of the 4.3 acres of land on western part of SmartVMC which were previously consolidated in the Trust’s consolidated financial statements and presented as assets held for sale at December 31, 2022, and $16.1 million relating to the Trust’s 50{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} share of 2.1 acres of land on eastern part of SmartVMC which were previously recorded in equity accounted investments. Proceeds from the sale were primarily used by the Trust to reduce indebtedness.
(1) Represents a GAAP measure. (2) 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. (3) Net of cash-on-hand of $33.4 million as at December 31, 2022 for the purposes of calculating the applicable ratios.
Selected Consolidated Operational, Mixed-Use Development and Financial Information
Key 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)
December 31, 2022
December 31, 2021
December 31, 2020
Portfolio Information
Number of retail properties
155
155
156
Number of office properties
4
4
4
Number of self-storage properties
6
6
4
Number of residential properties
1
1
1
Number of properties under development
19
17
14
Total number of properties with an ownership interest
185
183
179
Leasing and Operational Information(1)
Gross leasable retail and office area (in thousands of sq. ft.)
34,750
34,119
34,056
Occupied retail and office area (in thousands of sq. ft.)
33,925
33,219
33,039
Vacant retail and office area (in thousands of sq. ft.)
Trust’s share of future development area (in thousands of sq. ft.)
41,200
40,600
32,500
Trust’s share of estimated costs of future projects currently under construction, or for which construction is expected to commence within the next five years (in millions of dollars)
10,000
9,800
7,900
Total number of residential rental projects
110
104
96
Total number of seniors’ housing projects
25
27
40
Total number of self-storage projects
33
36
50
Total number of office buildings / industrial projects
8
8
7
Total number of hotel projects
3
3
4
Total number of condominium developments
88
95
72
Total number of townhome developments
7
10
15
Total number of estimated future projects currently in development planning stage
274
283
284
Financial Information
Total assets – GAAP(2)
11,702,153
11,293,248
10,724,492
Total assets – non-GAAP(3)(4)
12,083,941
11,494,377
10,874,900
Investment properties – GAAP(2)
10,250,392
9,847,078
8,850,390
Investment properties – non-GAAP(3)(4)
11,223,796
10,684,529
9,400,584
Total unencumbered assets(3)
8,415,900
6,640,600
5,835,600
Debt – GAAP(2)
4,983,265
4,854,527
5,210,123
Debt – non-GAAP(3)(4)
5,260,053
4,983,078
5,261,360
Debt to Aggregate Assets ({d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9})(3)(4)(5)
43.6
42.9
44.6
Debt to Gross Book Value ({d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9})(3)(4)(5)
Weighted average interest rate ({d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9})(3)(4)
3.86
3.11
3.28
Weighted average term of debt (in years)
4.0
4.8
5.0
Interest coverage ratio(3)(4)(5)
3.1X
3.4X
3.2X
Equity (book value)(2)
6,163,101
5,841,315
5,166,975
Weighted average number of units outstanding – diluted
179,657,455
173,748,819
172,971,603
(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 assets held for sale and the Trust’s proportionate share of equity accounted investments. (5) As at December 31, 2022, cash-on-hand of $33.4 million was excluded for the purposes of calculating the applicable ratios (December 31, 2021 – $80.0 million, December 31, 2020 – $754.4 million).
Year-to-Date Comparison to Prior Year
The following table presents key financial, per Unit, and payout ratio information for the year ended December 31, 2022 and December 31, 2021:
(in thousands of dollars, except per Unit information)
2022
2021
Variance
(A)
(B)
(A–B)
Financial Information
Rentals from investment properties and other(1)
804,598
780,796
23,802
Net base rent(1)
508,023
494,992
13,031
Total recoveries(1)
265,281
253,032
12,249
Miscellaneous revenue(1)
15,393
17,891
(2,498)
Service and other revenues(1)
14,652
14,843
(191)
Earnings from other(1)
1,249
38
1,211
Net income and comprehensive income(1)
635,965
987,676
(351,711)
Net income and comprehensive income excluding fair value adjustments(2)(3)
342,261
342,609
(348)
Cash flows provided by operating activities(1)
370,762
371,624
(862)
Net rental income and other(1)
502,604
485,840
16,764
NOI from condominium and townhome closings and other adjustments(2)
FFO sourced from condominium and townhome closings
(680)
(18,747)
18,067
FFO sourced from SmartVMC West acquisition
(984)
—
(984)
FFO with adjustments excluding impact of ECL, TRS, condominium and townhome closings, and SmartVMC West acquisition(2)(3)(4)
372,225
362,613
9,612
FFO with adjustments and Transactional FFO(2)(3)(4)
379,890
385,219
(5,329)
ACFO(2)(3)(4)(5)
340,075
353,055
(12,980)
Other adjustments
656
3,226
(2,570)
ACFO with adjustments(2)(3)(4)
340,731
356,281
(15,550)
Adjusted for:
Loss (gain) on derivative – TRS
4,918
(5,642)
10,560
ACFO sourced from condominium and townhome closings
(305)
(20,471)
20,166
ACFO sourced from SmartVMC West acquisition
(984)
—
(984)
ACFO with adjustments excluding impact of TRS, condominium and townhome closings, and SmartVMC West acquisition(2)(3)(4)
344,360
330,168
14,192
Distributions declared
329,531
318,753
10,778
Surplus of cash flows provided by operating activities over distributions declared(2)
41,231
52,871
(11,640)
Surplus of ACFO over distributions declared(2)
10,544
34,302
(23,758)
Surplus of ACFO with adjustments excluding impact of TRS, condominium and townhome closings, and SmartVMC West acquisition over distributions declared(2)
14,829
11,415
3,414
Units outstanding(6)
178,133,853
178,091,581
42,272
Weighted average – basic
178,121,149
172,447,334
5,673,815
Weighted average – diluted(7)
179,657,455
173,748,819
5,908,636
Per Unit Information (Basic/Diluted)
Net income and comprehensive income(1)
$3.57/$3.54
$5.73/$5.68
$-2.16/$-2.14
Net income and comprehensive income excluding fair value adjustments(2)(3)
$1.92/$1.91
$1.99/$1.97
$-0.07/$-0.06
FFO(2)(3)(4)(5)
$2.09/$2.07
$2.20/$2.19
$-0.11/$-0.12
Other non-recurring adjustments
$0.00/$0.00
$0.02/$0.02
$-0.02/$-0.02
FFO with adjustments(2)(3)(4)
$2.09/$2.07
$2.22/$2.21
$-0.13/$-0.14
FFO with adjustments excluding impact of ECL, TRS, condominium and townhome closings, and SmartVMC West acquisition(2)(3)(4)
$2.16/$2.14
$2.10/$2.09
$0.06/$0.05
FFO with adjustments and Transactional FFO(2)(3)(4)
$2.13/$2.11
$2.23/$2.22
$-0.10/$-0.11
Distributions declared
$1.850
$1.850
$—
Payout Ratio Information
Payout Ratio to cash flows provided by operating activities
(1) Represents a GAAP measure. (2) 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. (3) Includes the Trust’s proportionate share of equity accounted investments. (4) See “Other Measures of Performance” for a reconciliation of these measures to the nearest consolidated financial statement measure. (5) The calculation of the Trust’s FFO and ACFO and related payout ratios, including comparative amounts, are financial metrics that were determined based on the REALpac White Paper on FFO issued in January 2022 and REALpac White Paper on ACFO issued in February 2019, respectively. Comparison with other reporting issuers may not be appropriate. The payout ratio to FFO and the payout ratio to ACFO are calculated as declared distributions divided by FFO and ACFO, respectively (6) Total Units outstanding include Trust Units and LP Units, including Units classified as liabilities. LP Units classified as equity in the consolidated financial statements are presented as non-controlling interests. (7) The diluted weighted average includes the vested portion of the deferred units issued pursuant to the deferred unit plan.
Operational Highlights For the three months ended December 31, 2022, net income and comprehensive income (as noted in the table above) decreased by $551.8 million as compared to the same period in 2021. This decrease was primarily attributed to the following:
$568.7 million decrease in fair value adjustments on revaluation of investment properties, including adjustments relating to assets held for sale, primarily due to increase in fair value of certain properties under development in Q4 2021 as a result of changes in the market and the progress made on planning entitlements (see details in the “Investment Property” section in the Trust’s MD&A); and
$7.2 million increase in interest expense (see further details in the “Interest Income and Interest Expense” subsection in the Trust’s MD&A);
Partially offset by the following:
$10.9 million increase in fair value adjustment on financial instruments primarily due to fluctuations in the Trust’s Unit price;
$4.1 million increase in interest income mainly due to higher interest rates;
$3.9 million increase in NOI (see further details in the “Net Operating Income” subsection in the Trust’s MD&A);
$2.8 million decrease in acquisition-related costs related to the SmartVMC West acquisition in 2021; and
$1.4 million decrease in general and administrative expenses (net) (see further details in the “General and Administrative Expense” section in the Trust’s MD&A).
For the year ended December 31, 2022, net income and comprehensive income (as noted in the table above) decreased by $351.7 million as compared to the same period in 2021. This decrease was primarily attributed to the following:
$476.8 million decrease in fair value adjustments on revaluation of investment properties primarily due to increase in fair value of certain properties under development in Q4 2021 as a result of changes in the market and the progress made on planning entitlements (see details in the “Investment Property” section in the Trust’s MD&A);
$6.5 million increase in interest expense (see further details in the “Interest Income and Interest Expense” section in the Trust’s MD&A); and
$2.8 million increase in supplemental costs and in general and administrative expenses (net) (see further details in the “General and Administrative Expense” section in the Trust’s MD&A);
Partially offset by the following:
$125.5 million increase in fair value adjustment on financial instruments primarily due to fluctuations in the Trust’s Unit price and increase in fair value adjustments pertaining to interest rate swap agreements due to fluctuation in the interest rate (see further details in the “Debt” subsection in the Trust’s MD&A);
$6.1 million increase in interest income mainly due to higher interest rates; and
$2.5 million decrease in acquisition-related costs related to the SmartVMC West acquisition in 2021.
Development and Intensification Summary The following table summarizes the 274 identified mixed-use, recurring rental income and development income initiatives, which are included in the Trust’s large development pipeline:
Description
Under Construction
Construction expected to commence within next 2 years
Active (Construction expected to commence within next 3–5 years)
Future (Construction expected to commence after 5 years)
Total
Number of projects in which the Trust has an ownership interest
Residential Rental
3
22
24
61
110
Seniors’ Housing
1
3
7
14
25
Self-storage
3
7
8
15
33
Office Buildings / Industrial
1
—
1
6
8
Hotels
—
—
—
3
3
Subtotal – Recurring rental income initiatives
8
32
40
99
179
Condominium developments
2
15
25
46
88
Townhome developments
1
1
2
3
7
Subtotal –Development income initiatives
3
16
27
49
95
Total
11
48
67
148
274
Trust’s share of project area (in thousands of sq. ft.)
Recurring rental income initiatives
1,000
4,450
4,300
12,500
22,250
Development income initiatives
400
3,650
4,700
10,200
18,950
Total Trust’s share of project area (in thousands of sq. ft.)
1,400
8,100
9,000
22,700
41,200
Trust’s share of such estimated costs (in millions of dollars)
550
4,450
5,000
– (1)
10,000
(1) The Trust has not fully determined the costs attributable to future projects expected to commence after five years and as such they are not included in this table.
The following table provides additional details on the Trust’s 11 development initiatives that are currently under construction (in order of estimated initial occupancy/closing date):
Projects under construction (Location/Project Name)
Total Capital Spend To Date at 100{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} (3)
755.2
Estimated Cost to Complete at 100{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
487.8
Total Expected Capital Spend by Completion at 100{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} (3)
1,243.0
Total Capital Spend To Date at Trust’s share (3)
304.1
Estimated Cost to Complete at Trust’s share
234.9
Total Expected Capital Spend by Completion at Trust’s share (3)
539.0
(1) Figure represents capital spend of both retirement residence and senior apartments projects. (2) GFA represents Gross Floor Area. (3) Total capital spent to date and total expected capital spend by completion include land value.
Reconciliations of Non-GAAP Measures
The following tables reconcile the non-GAAP measures to the most comparable GAAP measures for the three months and year ended December 31, 2022 and the comparable periods in 2021. Such measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures disclosed by other issuers.
Proportionately Consolidated Balance Sheets (including the Trust’s interests in equity accounted investments)
The following table presents the proportionately consolidated balance sheets, which includes a reconciliation of the Trust’s proportionate share of equity accounted investments:
(in thousands of dollars)
Year Ended December 31, 2022
Year Ended December 31, 2021
GAAP Basis
Proportionate Share Reconciliation (1)
Total Proportionate Share(2)
GAAP Basis
Proportionate Share Reconciliation (1)
Total Proportionate Share(2)
Assets
Non-current assets
Investment properties
10,208,071
957,354
11,165,425
9,847,078
837,451
10,684,529
Equity accounted investments
680,999
(680,999
)
—
654,442
(654,442
)
—
Mortgages, loans and notes receivable
238,099
(76,994
)
161,105
345,089
(69,576
)
275,513
Other financial assets
171,807
—
171,807
97,148
—
97,148
Other assets
83,230
8,977
92,207
80,940
7,465
88,405
Intangible assets
43,807
—
43,807
45,139
—
45,139
11,426,013
208,338
11,634,351
11,069,836
120,898
11,190,734
Current assets
Assets held for sale
42,321
16,050
58,371
—
—
—
Residential development inventory
40,373
113,207
153,580
27,399
67,828
95,227
Current portion of mortgages, loans and notes receivable
86,593
—
86,593
71,947
—
71,947
Amounts receivable and other
57,124
(7,033
)
50,091
49,542
(8,637
)
40,905
Prepaid expenses, deposits and deferred financing costs
14,474
15,807
30,281
12,289
13,118
25,407
Cash and cash equivalents
35,255
35,419
70,674
62,235
7,922
70,157
276,140
173,450
449,590
223,412
80,231
303,643
Total assets
11,702,153
381,788
12,083,941
11,293,248
201,129
11,494,377
Liabilities
Non-current liabilities
Debt
4,523,987
212,928
4,736,915
4,176,121
93,465
4,269,586
Other financial liabilities
277,400
—
277,400
326,085
—
326,085
Other payables
17,265
—
17,265
18,243
—
18,243
4,818,652
212,928
5,031,580
4,520,449
93,465
4,613,914
Current liabilities
Current portion of debt
459,278
63,860
523,138
678,406
35,086
713,492
Accounts payable and current portion of other payables
261,122
105,000
366,122
253,078
72,578
325,656
720,400
168,860
889,260
931,484
107,664
1,039,148
Total liabilities
5,539,052
381,788
5,920,840
5,451,933
201,129
5,653,062
Equity
Trust Unit equity
5,126,197
—
5,126,197
4,877,961
—
4,877,961
Non-controlling interests
1,036,904
—
1,036,904
963,354
—
963,354
6,163,101
—
6,163,101
5,841,315
—
5,841,315
Total liabilities and equity
11,702,153
381,788
12,083,941
11,293,248
201,129
11,494,377
(1) Represents the Trust’s proportionate share of assets and liabilities in equity accounted investments. (2) 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.
Proportionately Consolidated Statements of Income and Comprehensive Income (including the Trust’s Interests in Equity Accounted Investments) The following tables present the proportionately consolidated statements of income and comprehensive income, which include a reconciliation of the Trust’s proportionate share of equity accounted investments:
Quarterly Comparison to Prior Year
Three Months Ended
Three Months Ended
(in thousands of dollars)
December 31, 2022
December 31, 2021
GAAP Basis
Proportionate Share Reconciliation
Total Proportionate Share(1)
GAAP Basis
Proportionate Share Reconciliation
Total Proportionate Share(1)
Variance of Total Proportionate Share(1)
Net rental income and other
Rentals from investment properties and other
206,223
8,441
214,664
192,850
5,974
198,824
15,840
Property operating costs and other
(77,062)
(3,779)
(80,841)
(65,896)
(3,144)
(69,040)
(11,801)
129,161
4,662
133,823
126,954
2,830
129,784
4,039
Condo and townhome closings revenue and other(2)
—
—
—
—
—
—
—
Condo and townhome cost of sales and other
(10)
(181)
(191)
—
(67)
(67)
(124)
(10)
(181)
(191)
—
(67)
(67)
(124)
NOI
129,151
4,481
133,632
126,954
2,763
129,717
3,915
Other income and expenses
General and administrative expense, net
(7,790)
—
(7,790)
(8,703)
(534)
(9,237)
1,447
Earnings from equity accounted investments
(113)
113
—
160,049
(160,049)
—
—
Fair value adjustment on revaluation of investment properties
13,377
(1,418)
11,959
420,418
160,289
580,707
(568,748)
Gain (loss) on sale of investment properties
531
—
531
(64)
—
(64)
595
Interest expense
(40,342)
(3,846)
(44,188)
(35,654)
(1,355)
(37,009)
(7,179)
Interest income
5,496
1,408
6,904
2,745
11
2,756
4,148
Supplemental costs
—
(738)
(738)
—
(1,125)
(1,125)
387
Fair value adjustment on financial instruments
—
—
—
(10,873)
—
(10,873)
10,873
Acquisition-related costs
—
—
—
(2,791)
—
(2,791)
2,791
Net income and comprehensive income
100,310
—
100,310
652,081
—
652,081
(551,771)
(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)
Year Ended December 31, 2022
Year Ended December 31, 2021
GAAP Basis
Proportionate Share Reconciliation
Total Proportionate Share(1)
GAAP Basis
Proportionate Share Reconciliation
Total Proportionate Share(1)
Variance of Total Proportionate Share(1)
Net rental income and other
Rentals from investment properties and other
804,598
28,643
833,241
780,796
21,530
802,326
30,915
Property operating costs and other
(301,559)
(13,467)
(315,026)
(294,956)
(9,719)
(304,675)
(10,351)
503,039
15,176
518,215
485,840
11,811
497,651
20,564
Condo and townhome closings revenue and other(2)
—
4,524
4,524
—
76,837
76,837
(72,313)
Condo and townhome cost of sales and other
(435)
(3,784)
(4,219)
—
(56,366)
(56,366)
52,147
(435)
740
305
—
20,471
20,471
(20,166)
NOI
502,604
15,916
518,520
485,840
32,282
518,122
398
Other income and expenses
General and administrative expense, net
(33,269)
(107)
(33,376)
(31,922)
(610)
(32,532)
(844)
Earnings from equity accounted investments
4,199
(4,199)
—
211,420
(211,420)
—
—
Fair value adjustment on revaluation of investment properties
201,834
624
202,458
491,528
187,728
679,256
(476,798)
Gain (loss) on sale of investment properties
315
(241)
74
27
—
27
47
Interest expense
(148,702)
(7,798)
(156,500)
(144,540)
(5,437)
(149,977)
(6,523)
Interest income
18,036
453
18,489
12,341
75
12,416
6,073
Supplemental costs
—
(4,648)
(4,648)
—
(2,618)
(2,618)
(2,030)
Fair value adjustment on financial instruments
91,246
—
91,246
(34,227)
—
(34,227)
125,473
Acquisition-related costs
(298)
—
(298)
(2,791)
—
(2,791)
2,493
Net income and comprehensive income
635,965
—
635,965
987,676
—
987,676
(351,711)
(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.
FFO, FFO with adjustments, and FFO with adjustments and Transactional FFO
The following tables reconciles net income and comprehensive income to FFO, FFO with adjustments, and FFO with adjustments and Transactional FFO:
Quarterly Comparison to Prior Year
Three Months Ended
Three Months Ended
(in thousands of dollars, except per Unit amounts)
Indirect interest with respect to the development portion(4)
1,935
1,926
9
0.5
Fair value adjustment on revaluation of investment properties
1,418
(160,289
)
161,707
N/R(7)
Adjustment for supplemental costs
738
1,125
(387
)
(34.4
)
FFO(5)
102,471
97,452
5,019
5.2
Other non-recurring adjustments(6)
(1,910
)
660
(2,570
)
N/R(7)
FFO with adjustments(5)
100,561
98,112
2,449
2.5
Transactional FFO – gain on sale of land to co-owners
7,662
336
7,326
N/R(7)
FFO with adjustments and Transactional FFO(5)
108,223
98,448
9,775
9.9
(1) Fair value adjustment on revaluation of investment properties is described in “Investment Properties” in the Trust’s MD&A. (2) Fair value adjustment on financial instruments comprises the following financial instruments: units classified as liabilities, Earnout options, deferred unit plan (“DUP”), equity incentive plan (“EIP”), long term incentive plan (“LTIP”), TRS, interest rate swap agreement(s), and loans receivable and Earnout options recorded in the same period in 2021. The significant assumptions made in determining the fair value and fair value adjustments for these financial instruments are more thoroughly described in the Trust’s consolidated financial statements for the year ended December 31, 2022. For details, please see discussion in “Results of Operations” in the Trust’s MD&A. (3) Salaries and related costs attributed to leasing activities of $1.5 million were incurred in the three months ended December 31, 2022 (three months ended December 31, 2021 – $1.1 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. (4) Indirect interest is not capitalized to properties under development and residential development inventory of equity accounted investments under IFRS but is a permitted adjustment under REALpac’s definition of FFO. The amount is based on the total cost incurred with respect to the development portion of equity accounted investments multiplied by the Trust’s weighted average cost of debt. (5) 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. (6) Represents adjustments relating to $1.9 million of reversal of costs associated with COVID-19 vaccination centres (three months ended December 31, 2021 – $0.7 million of costs associated with COVID-19 vaccination centres). (7) N/R – Not representative.
Year-to-Date Comparison to Prior Year
(in thousands of dollars, except per Unit amounts)
Astonishingly sufficient, Dave and Jenny Marrs have never ever remodeled an aged barn into a barndominium on their HGTV display, “Fixer to Fabulous“—until now.
In the episode “Century Outdated Barn, Family members Household,” Dave and Jenny satisfy Mike and Kelly Burton, who moved to Arkansas from California a couple years ago. They have a lovely major home, but they also want to convert the 100-year-old barn on their residence into an entertaining house that will hopefully entice their good friends and relatives to stop by much more frequently.
Hundred-year-outdated barn
(HGTV)
Armed with an enough $280,000 spending budget, Dave and Jenny get to work—and acquire this barn, and the whole barndominium pattern, to a complete new level. Look at what they do, which offers a good deal of inspiration on how to make our personal spaces far more inviting, whether or not you dwell in a barndominium or any previous property.
Help save the siding
Renovated barn with new siding
(HGTV)
The barn has 100-calendar year-previous oak siding, which is likely to have to be replaced by new siding that will last an additional 100 several years. But Dave states they’ll use the unique siding elsewhere.
“To maintain the glance of the primary siding, the exterior is receiving a wooden grain, board-and-batten cement siding which is heading to prolong the daily life of the barn for a different 100-furthermore yrs,” says Dave.
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In the meantime, the “old barn wood from outside the house has been salvaged, and we’re trying to reuse as much as feasible,” states Jenny. “We’ll be using it in the residing home and the kitchen.”
They’ll also use it for table tops, as well as beam wraps. That aged siding pops up everywhere!
Consider a aspect ceiling
Barn wood ceiling in the kitchen area
(HGTV)
You’ve heard of function partitions in bedrooms and living rooms, which have a unique texture or design so that they stand out from all the other partitions in the home. Very well, why not try out a aspect ceiling?
“I want to have the salvaged barn wooden that we’re going to set on the walls of the living place and put it on the ceiling of the kitchen area to make the place more heat,” Jenny says.
The moment it is installed, Jenny is aware she designed the appropriate alternative.
“It seems so very good,” she states. “It’s just warm and cozy and I totally appreciate it!”
Slide down from the 2nd ground.
(HGTV)
Considering that this is not Mike and Kelly’s main house, they want to have some enjoyment with it, and give Dave and Jenny carte blanche to get some excess risks.
Jenny thinks a slide down the aspect of the stairs would be just the issue.
“I want this to be a location wherever their attendees can occur in and say, ‘Oh, my gosh, this is so awesome and different,’” she tells Dave. “This is a special venture, so let us just embrace that.”
“So you’re considering just a little slide on the aspect that would be from 18 to 20 inches?” asks Dave.
“Yeah, just for a small kid’s booty,” replies Jenny. “I suggest, I would want to go down it, much too, so an grownup booty.”
Climb the walls
Rock climbing hall
(HGTV)
“Hallways are monotonous,” suggests Jenny. “Just maybe a place to hold a image, that’s terrific, but now this hallway—next amount!”
She programs to make the hallway into a climbing station, with footings going up one particular wall and down the other and monkey bars placed along the ceiling to swing from a single wall to the other.
When Mike and Kelly’s two young boys see the new hallway, they immediately commence scrambling up the partitions.
This ain’t your grandma’s display porch
Contemporary screened-in porch
(HGTV)
“Screened-in patios are genuinely common listed here in Arkansas, for the reason that we have a whole lot of bugs in the summertime,” points out Jenny. “It just allows the place to be useable for additional of the calendar year.”
Nonetheless if visions of all those aged aluminum buildings tacked onto your grandma’s dwelling start dancing as a result of your head, rest confident this one’s unique. It has very clear, corrugated ceiling panels to permit in loads of sunshine.
“It appears to be like like a massive skylight,” states Jenny. “This employed to be a rickety aged lean-to that was really terrifying, so this is a whole adjust. They are going to love this!”
Is Dave and Jenny’s new barndominium a hit?
As Kelly and Mike tour their recently renovated barn, the Marrses can tell that they’ve knocked it out of the park.
“I adore the character that’s still here,” suggests Mike. “I’m jealous of our children, since they get to have this rising up. Is that bad?”
In fact, the Burtons like it so substantially, they mull more than going into the barn forever and letting their spouse and children and close friends have the major household!
“They’re just envisioning the room total of family members and pals,” Jenny concludes, “and being aware of that it’s heading to be a house where they make great recollections and have a large amount of entertaining.”
