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martCentres Real Estate Investment Trust (CWYUF) has reached new heights, with a five-year high occupancy rate of 98.7% and robust rental growth of 8.8% excluding anchors and 6.6% overall. Cash collections exceeded 99%, underscoring the quality of income and tenant strength. The company's strong performance is driven by significant new leases, including a Walmart and Costco agreement, which will boost traffic and economic activity.
Key highlights include:
* A 9% increase in Net Operating Income (NOI) to $12.3 million
* FFO per fully diluted unit of $0.53, down from $0.59 last year due to a fair value adjustment
* A payout ratio to AFFO of 91.7% for the full year
* An adjusted debt-to-EBITDA ratio of 9.6 times, down from 9.8 times last quarter
* Unencumbered asset pool increased to $9.5 billion
The company's mixed-use development portfolio continues to expand, with 9.8 million square feet of permissions secured in 2024. However, the weighted average term to maturity of debt is relatively short at 3.1 years, posing refinancing risks. Despite strong performance, SmartCentres anticipates being at the lower end of its 3% to 5% same property NOI growth guidance for 2025 due to cautious market conditions.
