Artis Real Estate Investment Trust (ARESF) Q1 2025 Earnings Call Highlights: Strategic Moves …

• Aggregate Sale Price: $70.5 million from the sale of two industrial and two retail properties in Canada.

• Debt to Gross Book Value: 39.2% at March 31, down from 40.2% at December 31.

• Net Asset Value per Unit: $13.76 at March 31, compared to $13.75 at December 31.

• Occupancy Rate: 89.1% at March 31, slightly down from 89.2% at December 31.

• Leasing Activity: New 80,000 sq ft lease in Minnesota and a 99,000 sq ft seven-year renewal in Arizona.

• Renewal Increase: 4% weighted average increase on 123,000 sq ft of renewals.

• Same Property NOI Increase: 4.5% in mixed dollars.

• Credit Facilities: $520 million in new three-year senior secured credit facilities, with $39 million drawn on the revolving credit facility and $170 million on the non-revolving credit facility as of March 31.

• Mortgage Debt Maturities: $275 million maturing in 2025, with plans to extend, repay, or renew portions.

• NCIB Purchases: 1,825,666 common units at $7.58 per unit, 31,000 Series E, and 14,400 Series I preferred units at $20.75 per unit.

Release Date: May 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Artis Real Estate Investment Trust (ARESF) successfully reduced its debt to gross book value ratio from 40.2% to 39.2% by the end of Q1 2025.

• The company executed significant leasing activities, including an 80,000 square foot lease in Minnesota and a 99,000 square foot renewal in Arizona.

• Artis Real Estate Investment Trust (ARESF) reported a 4.5% increase in same property net operating income (NOI) for the quarter.

• The company has been actively buying back units at a significant discount to net asset value (NAV), enhancing unit holder value.

• Artis Real Estate Investment Trust (ARESF) has secured new credit facilities totaling $520 million, providing financial flexibility for future operations.

• The company’s payout ratios were higher than desired, with income and AFFO metrics expected to remain lumpy.

• Occupancy rates slightly decreased to 89.1% from 89.2% at the end of the previous quarter.

• Artis Real Estate Investment Trust (ARESF) faces $275 million in mortgage debt maturing in 2025, requiring strategic management.

• The company anticipates continued asset dispositions, which may impact short-term income and leverage ratios.

• Despite strategic efforts, Artis Real Estate Investment Trust (ARESF) continues to trade at a significant discount to its IFRS fair value.

Q: With the lumpy income strategy, are you confident that Artis can cover the dividend with full-year AFFO, maybe not this year, but going forward? A: (Samir Manji, CEO) We believe that over the medium to longer term, the successful execution of our strategy will result in generating sufficient AFFO to cover the full-year distribution. While there may be instances where the payout ratio exceeds 100%, we remain confident in our strategy’s ability to cover the distribution in the long term.