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Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements. Additional information about risks and uncertainties is contained in the filings of the REIT with securities regulators.
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Non-IFRS Measures
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This news release and accompanying financial statements are based on IFRS® Accounting Standards (“IFRS Accounting Standards”), as issued by the International Accounting Standards Board (“IASB”).
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We disclose a number of financial measures in this news release that are not measures used under IFRS Accounting Standards, including NOI, same-property NOI, FFO, FFO payout ratio, AFFO, AFFO payout ratio, adjusted EBITDA, fixed charges and the fixed charge coverage ratio, in addition to certain measures on a per unit basis.
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- NOI is defined as rental revenue less operating expenses, prior to straight-line rent, IFRIC 21, Levies (“IFRIC 21”) property tax adjustments and adjustments for equity investments. Same-property NOI includes those properties owned by the REIT for each of the current period and the relevant comparative period, excluding those properties under development.
- FFO is defined as net income adjusted for certain items including transaction/disposition costs, change in fair value of properties, change in fair value of financial instruments, deferred income taxes, unit income (expense), adjustments for equity investments and IFRIC 21 property tax adjustments.
- AFFO is defined as FFO adjusted for straight-line rental revenue and revenue sustaining capital, leasing costs and tenant improvements.
- FFO payout ratio and AFFO payout ratio are defined as distributions declared divided by FFO and AFFO, respectively.
- FFO per WA unit and AFFO per WA unit are defined as FFO and AFFO divided by the weighted average class U equivalent units outstanding, respectively.
- Adjusted EBITDA is defined as NOI less general and administrative expenses at the REIT’s proportionate interest.
- Fixed charges include principal payments and cash interest paid, net at the REIT”s proportionate interest.
- Fixed charge coverage ratio is defined as adjusted EBITDA divided by fixed charges at the REIT’s proportionate interest.
- Net asset value is defined as the aggregate of the carrying value of the REIT’s equity, deferred income taxes and exchangeable units of subsidiaries.
- Proportionate interest represents financial information adjusted to reflect the REIT’s equity accounted joint ventures and financial real estate assets and its share of net income (losses) from equity accounted joint ventures and financial real estate assets on a proportionately consolidated basis at the REIT’s ownership percentage of the related investment.
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We utilize these measures for a variety of reasons, including measuring performance, managing the business, capital allocation and the assessment of risk. Descriptions of why these non-IFRS measures are useful to investors and how management uses each measure are included in Management’s Discussion and Analysis. We believe that providing these performance measures on a supplemental basis to our IFRS Accounting Standards results is helpful to investors in assessing the overall performance of our businesses in a manner similar to management. These financial measures should not be considered as a substitute for similar financial measures calculated in accordance with IFRS Accounting Standards. We caution readers that these non-IFRS financial measures may differ from the calculations disclosed by other businesses, and as a result, may not be comparable to similar measures presented by others.
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SGR-FR
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Calculation and Reconciliation of Non-IFRS Measures
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The table below summarizes a calculation of non-IFRS measures based on financial information in accordance with IFRS Accounting Standards.
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Three months ended March 31, | ||||
(in thousands of U.S. dollars, except per unit amounts) | 2025 | 2024 | ||
Rental revenue | $ | 53,067 | $ | 51,915 |
Straight-line rent revenue | (201) | (114) | ||
Property operating expenses | (38,071) | (37,600) | ||
IFRIC 21 property tax adjustment | 20,867 | 21,145 | ||
Contribution from joint venture investments | 5,577 | 5,226 | ||
NOI 1 2 | $ | 41,239 | $ | 40,572 |
Cash flow from operations | $ | 19,559 | $ | 17,039 |
Changes in non-cash working capital items | (2,543) | 452 | ||
Finance charge and mark-to-market adjustments | (1,014) | (557) | ||
Interest, net and TIF note adjustments | 155 | 125 | ||
Adjustments for joint venture investments | 2,763 | 2,431 | ||
Non-controlling interest | (3,232) | (3,343) | ||
Capital expenditures | (1,169) | (736) | ||
Leasing costs | (633) | (808) | ||
Tenant improvements | (1,498) | (1,558) | ||
AFFO 1 2 | $ | 12,388 | $ | 13,045 |
Net income 2 | $ | 16,082 | $ | 13,612 |
Change in fair value of financial instruments | 1,214 | (2,186) | ||
Change in fair value of properties | (20,299) | (13,682) | ||
Deferred income tax expense | 3,035 | 1,591 | ||
Unit expense (income) | 452 | (612) | ||
Adjustments for joint venture investments | (1,605) | 385 | ||
Non-controlling interest | (3,989) | (4,055) | ||
IFRIC 21 property tax adjustment | 20,867 | 21,145 | ||
FFO 1 2 | $ | 15,757 | $ | 16,198 |
Straight-line rental revenue | (201) | (114) | ||
Capital expenditures | (1,169) | (736) | ||
Leasing costs | (633) | (808) | ||
Tenant improvements | (1,498) | (1,558) | ||
Adjustments for joint venture investments | (625) | (649) | ||
Non-controlling interest | 757 | 712 | ||
AFFO 1 2 | $ | 12,388 | $ | 13,045 |
(1) Refer to “Non-IFRS Measures” section above. | ||||
(2) Includes the REIT’s share of joint venture investments. | ||||
Three months ended March 31, | ||||
(in thousands of U.S. dollars, except per unit amounts) | 2025 | 2024 | ||
NOI 1 2 | $ | 41,239 | $ | 40,572 |
General and administrative expenses | (4,198) | (3,945) | ||
Cash interest, net | (14,226) | (13,460) | ||
Finance charge and mark-to-market adjustments | (1,014) | (557) | ||
Current income tax expense | (67) | (325) | ||
Adjustments for joint venture investments | (2,814) | (2,795) | ||
Non-controlling interest | (3,232) | (3,343) | ||
Capital expenditures | (1,169) | (736) | ||
Leasing costs | (633) | (808) | ||
Tenant improvements | (1,498) | (1,558) | ||
AFFO 1 2 | $ | 12,388 | $ | 13,045 |
(1) Refer to “Non-IFRS Measures” section above. | ||||
(2) Includes the REIT’s share of joint venture investments. | ||||
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Three months ended March 31, | ||||
(in thousands of U.S. dollars, except per unit amounts) | 2025 | 2024 | ||
Net income 1 | $ | 16,082 | $ | 13,612 |
Interest and finance costs | 15,240 | 14,017 | ||
Change in fair value of financial instruments | 1,214 | (2,186) | ||
Change in fair value of properties | (20,299) | (13,682) | ||
Deferred income tax expense | 3,035 | 1,591 | ||
Current income tax expense | 67 | 325 | ||
Unit expense (income) | 452 | (612) | ||
Adjustments for joint venture investments | 286 | 2,305 | ||
Straight-line rent revenue | (201) | (114) | ||
IFRIC 21 property tax adjustment | 20,867 | 21,145 | ||
Adjusted EBITDA 1 2 | $ | 36,743 | $ | 36,401 |
Adjusted EBITDA 1 2 | $ | 36,743 | $ | 36,401 |
Cash interest paid | (16,452) | (15,729) | ||
Principal payments | (2,854) | (2,849) | ||
Total fixed charges 1 | $ | (19,306) | $ | (18,578) |
Fixed charge coverage ratio 1 2 3 | 1.9x | 2.0x | ||
(1) Includes the REIT’s share of joint venture investments. | ||||
(2) Refer to “Non-IFRS Measures” section above. | ||||
(3) As of March 31, 2025, the REIT transitioned from disclosing interest coverage ratio to fixed charge coverage ratio. Refer to ‘Fixed Charge Coverage Ratio’ in Part III of Management’s Discussion and Analysis for further details. | ||||
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March 31, 2025 | December 31, 2024 | |||||||||||
(in thousands of U.S. dollars, except per unit amounts) | Statement of Financial Position | Joint Venture Investments | Proportionate Share | Statement of Financial Position | Joint Venture Investments | Proportionate Share | ||||||
ASSETS | ||||||||||||
Non-current assets | ||||||||||||
Properties | $ | 2,059,588 | $ | 312,600 | $ | 2,372,188 | $ | 2,054,511 | $ | 310,400 | $ | 2,364,911 |
Joint venture investments | 116,471 | (116,471) | — | 112,429 | (112,429) | — | ||||||
Interest rate swaps | 1,118 | — | 1,118 | 4,690 | — | 4,690 | ||||||
Other assets | 3,477 | — | 3,477 | 3,624 | — | 3,624 | ||||||
$ | 2,180,654 | $ | 196,129 | $ | 2,376,783 | $ | 2,175,254 | $ | 197,971 | $ | 2,373,225 | |
Current assets | ||||||||||||
Cash | 23,658 | 5,607 | 29,265 | 22,668 | 4,851 | 27,519 | ||||||
Accounts receivable | 21,609 | 1,177 | 22,786 | 23,417 | 1,723 | 25,140 | ||||||
Other assets | 3,802 | 4,943 | 8,745 | 4,327 | 4,629 | 8,956 | ||||||
Prepaids | 4,507 | 1,395 | 5,902 | 5,050 | 1,025 | 6,075 | ||||||
Interest rate swaps | 1,798 | 164 | 1,962 | 2,983 | 245 | 3,228 | ||||||
$ | 55,374 | $ | 13,286 | $ | 68,660 | $ | 58,445 | $ | 12,473 | $ | 70,918 | |
Total assets | $ | 2,236,028 | $ | 209,415 | $ | 2,445,443 | $ | 2,233,699 | $ | 210,444 | $ | 2,444,143 |
LIABILITIES | ||||||||||||
Non-current liabilities | ||||||||||||
Debt | $ | 1,123,853 | $ | 59,730 | $ | 1,183,583 | $ | 1,120,616 | $ | 59,914 | $ | 1,180,530 |
Deferred income taxes | 155,659 | — | 155,659 | 153,580 | 2 | 153,582 | ||||||
Other liabilities | 4,206 | 853 | 5,059 | 4,378 | 837 | 5,215 | ||||||
$ | 1,283,718 | $ | 60,583 | $ | 1,344,301 | $ | 1,278,574 | $ | 60,753 | $ | 1,339,327 | |
Current liabilities | ||||||||||||
Debt | 45,582 | 143,282 | 188,864 | 46,039 | 143,961 | 190,000 | ||||||
Accounts payable and accrued liabilities | 42,112 | 5,550 | 47,662 | 42,071 | 5,730 | 47,801 | ||||||
Exchangeable units of subsidiaries | 8,919 | — | 8,919 | 8,733 | — | 8,733 | ||||||
Distributions payable | 4,323 | — | 4,323 | 4,323 | — | 4,323 | ||||||
$ | 100,936 | $ | 148,832 | $ | 249,768 | $ | 101,166 | $ | 149,691 | $ | 250,857 | |
Total liabilities | $ | 1,384,654 | $ | 209,415 | $ | 1,594,069 | $ | 1,379,740 | $ | 210,444 | $ | 1,590,184 |
EQUITY | ||||||||||||
Unitholders’ equity | $ | 670,911 | $ | — | $ | 670,911 | $ | 673,474 | $ | — | $ | 673,474 |
Non-controlling interest | 180,463 | — | 180,463 | 180,485 | — | 180,485 | ||||||
Total equity | $ | 851,374 | $ | — | $ | 851,374 | $ | 853,959 | $ | — | $ | 853,959 |
Total liabilities and equity | $ | 2,236,028 | $ | 209,415 | $ | 2,445,443 | $ | 2,233,699 | $ | 210,444 | $ | 2,444,143 |
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