S
martCentres Real Estate Investment Trust (CWYUF) reported a 98.5% occupancy rate as of Q3 2024, driven by strong tenant demand and portfolio strength. The company executed deals on vacant space and new retail construction, with same-property NOI excluding anchors increasing 8.2%. Cash collections remained over 99%, indicating high-quality income and tenant stability.

    Net Operating Income (NOI) rose $5 million or 3.4% from the previous year's quarter, while Funds From Operations (FFO) per fully diluted unit decreased to $0.71 compared to $0.55 in the same period last year. The distribution rate was $1.85 per unit, with a payout ratio of 75.2% for the three months ended September 30, 2024.

    The company's debt-to-adjusted EBITDA ratio stood at 9.8x, and unencumbered assets increased to $9.4 billion in Q3. Liquidity was approximately $863 million as of September 30, 2024, with a weighted average interest rate of 4.09%. Eight development projects were underway, totaling $482 million in capital costs and estimated completion costs of $275 million.

    The company faces challenges in selling residential land at desired prices due to current market conditions and uncertainty regarding the timing of when market conditions will align to ramp up development projects.