Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

Alternate Symbol(s): ARESF | T.AX.PR.I | T.AX.UN

Real Estate REIT - Diversified

Artis Real Estate Investment Trust is an unincorporated closed-end REIT based in Canada. Artis REIT's portfolio comprises properties located in Central and Western Canada and select markets throughout the United States, including regions such as Alberta, British Columbia, Manitoba, Ontario, Saskatchewan, Arizona, Minnesota, Colorado, New York, and Wisconsin. The properties are divided into three categories: office, retail, and industrial. The industrial properties account for most of the portfolio, followed by the office properties and the retail properties.

TSX:AX.PR.E - Post by User

Artis Real Estate Investment Pref Shs Series E > Please vote!

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Comment by Frankie10on Mar 02, 2024 8:29pm

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Post# 35911617

RE:RE:Please vote!

I would be happy to explain. There are many moving parts so I will answer simply and directly. Vacancy was flat, and SPNOI increased slightly, however this was offset by our Series D senior unsecured debt maturing on September 18, 2023. The series D had an interest rate of 3.8% - very low - and given the maturity was at the end of Q3, the negative impact of paying this cheap debt using much more expensive debt (credit facilities) was fully felt in Q4 - negatively impacting AFFO, FFO and cashflow.

Lastly, as you remark - there are $400M+ of asset dispositions that have not closed yet. The sales are only accretive (positive) for the REIT after the sale is closed and the debt is repaid. (Positive impact is the interest saved less the NOI foregone).

I had the same question myself in my analysis. Having looked into it, I figured I save you the time.

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