A
rtis Real Estate Investment Trust (ARESF) has made significant strides in reducing its debt burden, decreasing total debt to gross book value from 50.9% to 40.2% by the end of 2024. The company's disposition strategy was successful, with properties sold for an aggregate sale price of $972.9 million in 2024. New senior secured credit facilities totaling $520 million were established, providing enhanced financial flexibility.

    The company has also renewed its Normal Course Issuer Bid (NCIB) program, allowing it to purchase units at a discount to net asset value and enhance unit holder value. Artis is optimistic about future opportunities for above-average risk-adjusted returns and growth in net asset value per unit.

    However, the investment in Cominar has been negatively impacted by interest rates and structural challenges. The company's strategy anticipates lumpy income, which may lead to variability in financial performance. A significant portion of annual funds from operations (FFO) is at risk due to uncertain income from the Cominar investment.

    The value of the Cominar equity investment has been written off, and no income was booked on the preferred units in the latest quarter. The company expects this situation to resolve shortly, potentially before Q2 2025, with proceeds used to reduce debt and interest costs.