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In Q3, PET met analysts’ earnings expectations while posting below forecasted revenues. EPS came in at $0.39, down from $0.43 in the same quarter a year prior. Revenue was up +7.7% year-over-year to $262.3M but below analysts’ estimates of $267.8M. Net income was $18M. PET is valued at 15.1x earnings. PET opened eight new stores in Q3 to end the quarter with a total of 766 stores. Same-store sales growth was positive +4.2%, driven by increased average spend per transaction. EBITDA in Q3 was $51.6M displaying a positive quarterly increase. Q3 was mixed for PET with EPS achieving consensus expectation, but as noted evenue being below expectation. The stock has had a tough year, but consensus calls for about 10% growth in 2024.
KMP.un's reported Q3 net income of $68.3M representing a significant $64.7M year-over-year jump. Growth in net income is primarily driven by $38.5M fair value gains on investment properties in Q3. Funds from operations (FFO) came in at $0.33, a +3.2% increase year-over-year from $0.31. KMP generated a net operating income of $60.5M, a +6.6% increase from $56.8M in Q2 2022. KMP saw a +5.6% increase in revenue for the same property portfolio year-over-year in Q3. The rolling 12-month adjusted FFO payout ratio shrank by 1% year-over-year to 72% in Q3. KMP displayed a strong Q3 with management expectation for dispositions to be on track along with more closings in Q4. KMP is up 4% this year, doing better than many REITs, and we continue to see it as attractive.