PRO Real Estate Investment Trust (TSX:PRV. ...

GuruFocus News

Fri, May 16, 2025, 12:09 AM 4 min read

• Property Revenue: $25.7 cardinal for Q1, somewhat higher twelvemonth implicit year.

• Net Operating Income (NOI): $14.9 million, unchangeable compared to past year.

• Same Property NOI: $14.1 million, up 5% twelvemonth implicit year.

• Net Cash Flows from Operating Activities: $7.4 million, compared to $9.7 cardinal past year.

• Funds From Operations (FFO): $7.9 million, somewhat higher twelvemonth implicit year.

• Basic AFFO Payout Ratio: 93.8% successful Q1, compared to 91.6% past year.

• Total Debt: $495 million, a $1.4 cardinal simplification from past year.

• Total Debt to Total Assets: Improved to 49.3% from 50.0% astatine December 31, 2024.

• Weighted Average Capitalization Rate: Approximately 6.7% arsenic of March 31, 2025.

• Portfolio Occupancy: Stable astatine 97.7%, including committed space.

• Weighted Average In-Place Rent for Industrial Portfolio: $9.92 per quadrate foot, astir 5% summation twelvemonth implicit year.

• Distribution: Maintained astatine $3.75 per portion for Q1 2025.

• Warning! GuruFocus has detected 6 Warning Signs with TSX:PRV.UN.

Release Date: May 15, 2025

For the implicit transcript of the net call, delight notation to the afloat net telephone transcript.

• PRO Real Estate Investment Trust (TSX:PRV.UN) reported a unchangeable nett operating income contempt owning 8 less properties compared to the erstwhile year.

• The acquisition of six concern properties successful Winnipeg is expected to beryllium accretive to AFFO per portion and strengthens their beingness successful the region.

• Same spot NOI accrued by 5%, driven by beardown show successful the concern portfolio.

• The institution achieved robust leasing spreads, renewing 53.3% of 2025 GLA astatine an mean dispersed of 34.1%.

• Debt absorption improved, with full indebtedness to full assets reduced to 49.3% from 50.0% astatine the extremity of 2024.

• Net currency flows from operating activities decreased to $7.4 cardinal from $9.7 cardinal successful the aforesaid 4th past year.

• The basal AFFO payout ratio accrued to 93.8% from 91.6% past year, indicating higher costs comparative to income.

• There is simply a imaginable hazard with a azygous tenant not renewing a lease for a 176,000 quadrate ft spot successful Quebec, which could interaction Q4 results.

• The weighted mean involvement complaint connected maturing mortgages is comparatively low, posing a refinancing situation successful the existent higher involvement complaint environment.

• The acquisition strategy involves analyzable transactions, which whitethorn not ever align with banal terms expectations, posing a hazard of overpaying for assets.

Q: Gordy, regarding the strategical accidental with Parkit, however does PROREIT program to leverage this relationship? Does it impact acquiring much of their concern properties? A: Gordon Lawlor, President and CEO, explained that Parkit has a important portfolio of concern properties successful cardinal areas similar Winnipeg and Ottawa. The narration is seen arsenic an accidental to negociate stabilized assets and perchance collaborate connected aboriginal deals, but specifics are inactive being developed.