Q: Comments on the recent earnings and outlook?
5i Research Answer:
Funds flow per unit were 51c, missing estimates of 52c. Revenue of $150.6M missed estimates of $154.3M. EBITDA of $94.5M beat estimates by 7%. Funds flow fell 12%. EBITDA fell 2%. NAV per unit was $39.99, down 11%. Occupancy and leases remain stable, however, according to the company. Occupancy was 85.9%. Rents rose 5%. Debt ratio has improved, to 42.9%. For the outlook, the company expects 2% growth in net operating income in 2025, and 4% growth in cash flow per unit. Payout ratio rose to 88.5% from 77.5%. With an 11.8% yield and priced 7X cash flow, the valuation likely reflects the weakness here, but certainly it was a 'miss'.