TSX:CRR.UN - Post by User
Post by
savyinvestor333on Aug 05, 2021 7:59am
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Post# 33653538
From TD
From TDFirst Look: Q2/21 Largely in Line; Rent Collections Reach 99% Sam Damiani, CFA Jaz Cumberbatch, CFA (Associate) Event Q2/21 results. Conference call is at 12:00 p.m. (416-764-8688 or 1-888-390-0546).
Impact: SLIGHTLY POSITIVE
Reported FFO/unit was $0.274, slightly below our estimate and consensus at $0.28. The variance vs. our estimate was largely due to higher G&A expenses (resulting from unit-based compensation). AFFO/unit (our calculation) was overall in line. Rent collections further improved to 99% in Q2 from 98% q/q and remained at that level through July.
The office and retail-related industrial portfolios experienced 100% collections, while 99% of rent was collected from Crombie's retail tenants. Same-asset cash NOI was +7.2% y/y and was flat normalizing for COVID-19 impacts. Economic (in-place) occupancy was +10bps q/q to 95.6%, largely due to a +190bps increase in the office portfolio. Overall committed occupancy declined 10bps q/q and was +60bps y/y to 96.2%. During the quarter, Crombie renewed 234,000sf at +3.4% over expiring rents, that compares with 3.0% q/q and 3.6% y/y.
Acquisitions: On July 6, Crombie acquired a 24,000sf retail property for $4.7mm ($196/sf). Additionally on July 9, Crombie acquired a 28,000sf retail property for $15.0mm ($536/sf). Development Update: During Q2, Crombie officially added the "Voil par IGA" Ocado customer fulfillment centre ("CFC") near Calgary, Alberta to the nearterm development pipeline (300,000sf), following the purchase of the 25-acre site ($11.9mm) in June. Construction commenced in July. Crombie's near-term development pipeline now totals six projects aggregating ~2.0mm sf with a cost to complete of ~$500mm-$600mm (total cost: $700mm-$800mm).
Crombie's medium to long-term pipeline include a further 24 projects. We look forward to a more detailed development/leasing update on today's conference call. Balance Sheet Update: Crombie's average IFRS cap rate declined 18bps q/q and 26bps y/y to 5.68%. Debt/GBV (fair value basis) declined 290bps to 46.0% (45.8% net of cash), while Debt/EBITDA also decreased to 9.1x from 9.8x q/q - all reflecting fair value gains and the $100mm equity issuance in May. Total liquidity was $368mm and the unencumbered asset pool was marginally higher (+4%) to $1.5bln.
Defensive Portfolio Profile: Crombie's portfolio has 82% of rents derived from grocery and pharmacy-anchored properties (inclusive of retail-related industrial) and 69% from tenants deemed as essential services.