Stapled Unit Plan 1.4 (0.7) 0.5 3.5
Fair value remeasurement
of the Directors Deferred
Stapled Unit Plan 1.8 (0.5) 0.6 0.4
Corporate restructuring
costs(1) 0.7 -- 1.8 --
Non-controlling interests
relating to the above 0.1 0.9 -- 1.2
----------------------------- ----- ----- ----- -----
FFO [A] $ 85.2 $ 79.1 $251.2 $236.3
Add (deduct):
Maintenance or improvement
capital expenditures
incurred (3.7) (4.5) (10.1) (6.8)
Leasing costs (1.5) (0.8) (2.0) (3.1)
Tenant allowances -- (1.4) (1.6) (2.4)
Tenant incentive
amortization -- 1.1 0.1 3.3
Straight-line rent
amortization (3.4) (4.0) (9.2) (13.6)
Non-controlling interests
relating to the above -- 0.1 -- 0.4
----------------------------- ----- ----- ----- -----
AFFO [B] $ 76.6 $ 69.6 $228.4 $214.1
------------------- -------- ----- ----- ----- -----
Basic FFO per
stapled unit [A]/[C] $ 1.36 $ 1.24 $ 3.99 $ 3.71
Diluted FFO per
stapled unit [A]/[D] $ 1.35 $ 1.24 $ 3.97 $ 3.70
Basic AFFO per
stapled unit [B]/[C] $ 1.22 $ 1.09 $ 3.63 $ 3.36
Diluted AFFO per
stapled unit [B]/[D] $ 1.22 $ 1.09 $ 3.61 $ 3.35
Basic weighted
average number of
stapled units [C] 62.7 63.7 63.0 63.7
Diluted weighted
average number of
stapled units [D] 63.0 63.9 63.3 63.9
------------------- -------- ----- ----- ----- -----
(1) Effective January 1, 2024, Granite amended its definition of Funds From
Operations (FFO) to exclude corporate restructuring costs associated
with the uncoupling of the Trust's stapled unit structure (refer to
"NON-IFRS PERFORMANCE MEASURES" in the MD&A). See also "SIGNIFICANT
MATTERS - STAPLED UNIT STRUCTURE" in the MD&A. Granite views these
restructuring costs as non-recurring, as they are solely related to
this specific transaction and do not reflect normal operating
activities.
(3) The FFO and AFFO payout ratios are calculated as monthly distributions, which exclude special distributions, declared to unitholders divided by FFO and AFFO (non-IFRS performance measures), respectively, in a period. FFO payout ratio and AFFO payout ratio may exclude revenue or expenses incurred during a period that can be a source of variance between periods. The FFO payout ratio and AFFO payout ratio are supplemental measures widely used by investors in evaluating the sustainability of the Trust's monthly distributions to stapled unitholders.
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- ----------------------
(in millions,
except as
noted) 2024 2023 2024 2023
-------------- -------- ---- ---- ----- -----
Monthly
distributions
declared to
unitholders [A] $51.8 $51.0 $156.0 $153.0
FFO [B] 85.2 79.1 251.2 236.3
AFFO [C] 76.6 69.6 228.4 214.1
FFO payout
ratio [A]/[B] 61% 64% 62% 65%
AFFO payout
ratio [A]/[C] 68% 73% 68% 71%
-------------- -------- ---- ---- ----- -----
(4) Same property NOI -- cash basis refers to the NOI -- cash basis (NOI excluding lease termination and close-out fees, and the non-cash impact from straight-line rent and tenant incentive amortization) for those properties owned by Granite throughout the entire current and prior year periods under comparison. Same property NOI -- cash basis excludes properties that were acquired, disposed of, classified as development properties or assets held for sale during the periods under comparison. Granite believes that same property NOI -- cash basis is a useful supplementary measure in understanding period-over-period organic changes in NOI -- cash basis from the same stock of properties owned.
Three Months Ended Nine Months Ended
Sq ft(1) September 30, Sq ft(1) September 30,
---------------------------------- ----------------------------------
(in $ % (in $ %
millions) 2024 2023 change change millions) 2024 2023 change change
-------------- --------- ----- ----- ------ -------- --------- ----- ----- ------ --------
Revenue $141.9 $131.5 10.4 $421.1 $391.4 29.7
Less: Property
operating
costs 22.3 22.3 -- 70.3 66.2 4.1
-------------- --------- ----- ----- ----- -------- --------- ----- ----- ----- --------
NOI $119.6 $109.2 10.4 9.5% $350.8 $325.2 25.6 7.9%
Add (deduct):
Lease
termination
and close-out
fees -- -- -- (0.5) -- (0.5)
Straight-line
rent
amortization (3.4) (4.0) 0.6 (9.2) (13.6) 4.4
Tenant
incentive
amortization -- 1.1 (1.1) 0.1 3.3 (3.2)
-------------- --------- ----- ----- ----- -------- --------- ----- ----- ----- --------
NOI - cash
basis 63.3 $116.2 $106.3 9.9 9.3% 63.3 $341.2 $314.9 26.3 8.4%
Less NOI -
cash basis
for:
Acquisitions -- -- -- -- 1.0 0.8 0.3 0.5
Developments 0.5 (1.4) -- (1.4) 2.8 (11.4) (0.9) (10.5)
Dispositions
and assets
held for
sale -- -- -- -- -- -- (0.2) 0.2
-------------- --------- ----- ----- ----- -------- --------- ----- ----- ----- --------
Same property
NOI - cash
basis 62.9 $114.8 $106.3 8.5 8.0% 59.8 $330.6 $314.1 16.5 5.3%
-------------- --------- ----- ----- ----- ---- --------- ----- ----- ----- ----
Constant
currency same
property NOI
- cash
basis(2) 62.9 $114.8 $108.1 6.7 6.2% 59.8 $330.6 $317.4 13.2 4.2%
-------------- --------- ----- ----- ----- ---- --------- ----- ----- ----- ----
(1) The square footage relating to the NOI -- cash basis represents GLA of
63.3 million square feet as at September 30, 2024. The square footage
relating to the same property NOI -- cash basis represents the
aforementioned GLA excluding the impact from the acquisitions,
dispositions, assets held for sale and developments during the relevant
period.
(2) Constant currency same property NOI - cash basis is calculated by
converting the comparative same property NOI - cash basis at current
period average foreign exchange rates.
(5) Total debt is calculated as the sum of all current and non-current debt, the net mark to market fair value of derivatives and lease obligations as per the consolidated financial statements. Net debt subtracts cash and cash equivalents from total debt. Granite believes that it is useful to include the derivatives and lease obligations for the purposes of monitoring the Trust's debt levels.
(6) The net leverage ratio is calculated as net debt (a non-IFRS performance measure defined above) divided by the fair value of investment properties (excluding assets held for sale). The net leverage ratio is a non-IFRS ratio used in evaluating the Trust's degree of financial leverage, borrowing capacity and the relative strength of its balance sheet.
As at September 30, 2024 and December 31, 2023 2024 2023 ------------------------------------ -------- ------- ------- Unsecured debt, net $3,088.9 $3,066.0 Derivatives, net (43.1) (100.8) Lease obligations 34.7 33.2 ---------------------------------------------- ------- ------- Total debt $3,080.5 $2,998.4 Less: cash and cash equivalents 133.5 116.1 ---------------------------------------------- ------- ------- Net debt [A] $2,947.0 $2,882.3 ------------------------------------ -------- ------- ------- Investment properties [B] $9,094.5 $8,808.1 ------------------------------------ -------- ------- ------- Net leverage ratio [A]/[B] 32% 33% ------------------------------------ -------- ------- -------
(7) Overall capitalization rate is calculated as stabilized net operating income (property revenue less property expenses) divided by the fair value of the income-producing property.
(8) Annualized revenue for each period presented is calculated as the contractual base rent for the month subsequent to the quarterly reporting period multiplied by 12 months. Annualized revenue excludes revenue from properties classified as assets held for sale.
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