Canada NewsWire
TORONTO, Nov. 13, 2023
Plan includes Redirecting Monthly Distributions to Maximize Buyback under the NCIB and Unit Consolidation
/NOT FOR DISTRIBUTION IN THE U.S. OR OVER U.S. NEWSWIRES/
"This news release constitutes a "designated news release" for the purposes of the REIT's prospectus supplement dated April 21, 2022 to its short form base shelf prospectus dated February 17, 2022."
TORONTO, Nov. 13, 2023 /CNW/ - True North Commercial Real Estate Investment Trust (TSX: TNT.UN) (the "REIT") today announced its financial results for the three and nine months ended September 30, 2023. The REIT also announced the next steps in its strategy to increase unitholder ("Unitholder") value which includes: (i) effective with the November 2023 distribution payable on December 15, 2023 to unitholders of the REIT ("Unitholders") of record on November 30, 2023, the redirection and reallocation of substantially all distribution amounts to purchase trust units of the REIT ("Units") under the REIT's normal course issuer bid ("NCIB") or through other acquisition programs, for approximately six months or earlier if appropriate; and (ii) a consolidation (the "Consolidation") of the Units, the special voting units of the REIT (the "SV Units" together with the Units, the "Voting Units") and the class B limited partnership units ("Class B LP Units") of True North Commercial Limited Partnership on the basis of 5.75:1.
"The next logical step in the REIT's strategy involves the reallocation of substantially all distributions to purchase the maximum number of Units available under the NCIB which will be immediately accretive to Unitholders, with the intention to revisit the reallocation in approximately six months, or earlier if appropriate, to reinstate a sustainable distribution to Unitholders. At the end of the quarter, the REIT's IFRS NAV per Unit was approximately $4.97 resulting in the current Unit price trading at a significant discount to intrinsic value and supporting the buyback of Units under the NCIB as a very attractive use of the REIT's capital. The REIT remains focused on delivering long-term value for our unitholders by allocating available capital to generate the highest potential return, while pro-actively managing risk", stated Daniel Drimmer, the REIT's Chief Executive Officer. "We are also pleased with the continued strong leasing momentum resulting in a weighted average lease term of 7.7 years on new lease deals and renewals completed in the third quarter, while continuing to build strong relationships with the REIT's tenants to maintain high occupancy levels".
Third Quarter 2023 Highlights
YTD Highlights
Subsequent Events
The REIT's presentation currency is the Canadian dollar. Unless otherwise stated, dollar amounts expressed in this press release are in thousands of dollars.
Key Performance Indicators
Three months ended | Nine months ended | |||
September 30 | September 30 | |||
2023 | 2022 | 2023 | 2022 | |
Number of properties | 44 | 47 | ||
Portfolio GLA | 4,791,500 sf | 4,975,200 sf | ||
Occupancy (1) | 93 % | 95 % | ||
Remaining weighted average lease term (1) | 4.4 years | 4.4 years | ||
Revenue from government and credit rated tenants | 78 % | 80 % | ||
Revenue | $ 32,789 | $ 36,677 | $ 99,337 | $ 108,124 |
NOI (2) | 18,082 | 21,976 | 55,202 | 65,855 |
Net income and comprehensive income | (42,472) | 8,046 | (34,684) | 16,241 |
Same Property NOI (2) | 20,142 | 22,974 | 60,145 | 69,289 |
FFO (2) | $ 10,351 | $ 14,436 | $ 31,770 | $ 43,635 |
FFO per Unit - basic (2) | 0.11 | 0.15 | 0.34 | 0.47 |
FFO per Unit - diluted (2) | 0.11 | 0.15 | 0.34 | 0.47 |
AFFO (2) | $ 10,101 | $ 14,290 | $ 31,148 | $ 43,248 |
AFFO per Unit - basic (2) | 0.11 | 0.15 | 0.33 | 0.47 |
AFFO per Unit - diluted (2) | 0.11 | 0.15 | 0.33 | 0.47 |
AFFO payout ratio - diluted (2) | 69 % | 97 % | 83 % | 95 % |
Distributions declared | $ 7,012 | $ 13,900 | $ 25,731 | $ 41,300 |
(1) Excludes investment properties held for sale. |
Operating Results
Excluding termination income and investment properties held for sale, revenue and NOI decreased 1% and 4%, respectively, in Q3-2023 while revenue remained flat and NOI decreased 5% YTD-2023.
Revenue and NOI decreased 11% and 18%, respectively, in Q3-2023 and YTD-2023 when compared to the same periods in 2022. The decrease in revenue and NOI was largely a result of the decrease in termination income and lower revenue from a tenant in the REIT's greater Toronto area portfolio that downsized a portion of their space effective Q4-2022, combined with a 101,200 square foot lease expiry in Q1-2023 at the Laurier Property and 115,000 square foot lease expiry in Q2-2023 at 3650 Victoria Park Avenue, Toronto, Ontario (the "Victoria Park Property"), together with the dispositions in Q1-2023 and Q3-2023 (the "Primary Variance Drivers"). This decrease was partially offset by termination income received from the tenant at the Carlingview Property and NOI from an acquisition completed in Q3-2022.
Q3-2023 FFO and AFFO decreased $4,085 (YTD 2023 - $11,865), and $4,189 (YTD 2023 - $12,100), respectively compared to the same period in 2022. FFO and AFFO were negatively impacted by the Primary Variance Drivers, combined with higher financing costs as a result of higher interest rates on mortgage refinancing and higher interest expense on the Credit Facility. FFO and AFFO benefited from NOI on the acquisition completed in Q3-2022 and termination income.
Q3-2023 FFO and AFFO basic and diluted per Unit decreased $0.04 to $0.11. YTD-2023 FFO and AFFO basic and diluted per Unit decreased $0.13 and $0.14 to $0.34 and $0.33, respectively. Excluding termination fees, Q3-2023 FFO and AFFO basic and diluted per Unit were lower by $0.02 and $0.03, and YTD-2023 FFO and AFFO basic and diluted per Unit were lower by $0.07 and $0.08 compared to 2022.
Same Property NOI(1)
As at September 30 | |||||||||
Occupancy (2) | 2023 | 2022 | NOI | Q3 2023 | Q3 2022 | Variance | Variance % | ||
Alberta | 94.8 % | 95.7 % | Alberta | $ 3,514 | $ 3,541 | $ (27) | (0.8) % | ||
British Columbia | 100.0 % | 98.7 % | British Columbia | 1,284 | 1,256 | 28 | 2.2 % | ||
New Brunswick | 85.8 % | 83.8 % | New Brunswick | 1,297 | 1,015 | 282 | 27.8 % | ||
Nova Scotia | 89.5 % | 96.9 % | Nova Scotia | 1,776 | 1,752 | 24 | 1.4 % | ||
Ontario | 94.2 % | 96.5 % | Ontario | 12,503 | 14,778 | (2,275) | (15.4) % | ||
Total | 93.2 % | 95.2 % | $ 20,374 | $ 22,342 | $ (1,968) (1,968) | (8.8) % |
Q3-2023 Same Property NOI decreased 1.6% (YTD-2023 - 3.6%) excluding termination fees and investment properties held for sale. Excluding investment properties held for sale only, Q3-2023 Same Property NOI decreased 8.8% (YTD-2023 - 11.8%) as a result of the significant termination fee income recorded in the prior year periods.
British Columbia Same Property NOI increased due to contractual rent increases. New Brunswick Same Property NOI increased as a result of a new lease that commenced in June 2023 coupled with 141,000 square feet of government renewals across three properties at higher rental rates. Same Property NOI in Nova Scotia increased due to new lease commencements and contractual rent step ups, partly offset by certain tenants that downsized on renewal.
Ontario Same Property NOI decreased mainly due to termination fees received in Q3-2022 relating to a tenant in the REIT's GTA portfolio that downsized a portion of their space effective December 2022, of which 60% has been contractually re-leased with rents commencing in the latter half of 2023. The decrease in NOI generated from investment properties held for sale was due to the lead tenant vacating the property on expiry.
Debt and Liquidity
September 30, 2023 | December 31, 2022 | |
Indebtedness to GBV ratio (1) | 61.4 % | 59.3 % |
Interest coverage ratio (1) | 2.43 x | 3.00 x |
Indebtedness (1) - weighted average fixed interest rate | 4.03 % | 3.54 % |
Indebtedness (1) - weighted average term to maturity | 2.99 years | 3.27 years |
At the end of Q3-2023, the REIT had access to Available Funds of approximately $48,283, and a weighted average term to maturity of 2.99 years in its mortgage portfolio with a weighted average fixed interest rate of 4.03%. During the quarter, the REIT refinanced $36,452 of mortgages with a weighted average fixed interest rate of 6.05% for five and seven year terms. YTD-2023, the REIT refinanced $67,573 of mortgages with a weighted average fixed interest rate of 5.65% (excluding one with a variable interest rate at prime plus 1.5%) and a weighted average term to maturity of 4.5 years, providing the REIT with additional liquidity of approximately $5,700.
Subsequent to September 30, 2023, the REIT refinanced a $3,834 mortgage with a fixed interest rate of 6.62% for a three year term.
(1) This is a non-IFRS financial measure. Refer to the Non-IFRS financial measures section below. |
Distribution Reallocation
After careful consideration, the Board has determined that the most effective use of available capital is to reallocate substantially all distributions paid to Unitholders ("Distribution Amounts") for the month commencing November 1, 2023 and ending April 30, 2024 to purchase the maximum number of Units available under the NCIB or through other acquisition programs, with the intention of revisiting the reallocation in approximately six months to reinstate a sustainable distribution to Unitholders. The Board believes that reallocating the Distribution Amounts to the NCIB, given the dislocation between the Unit price and the intrinsic value of the business will be immediately accretive to Unitholders and is the most compelling near term opportunity to increase Unitholder value and per unit growth. At September 30, 2023, the REIT's NAV per Unit was $4.97 resulting in the REIT's Unit price trading at a significant discount to intrinsic value
Unit Consolidation
The REIT announced that it intends to affect a Consolidation of its Voting Units and Class B LP Units on the basis of 5.75:1 Voting Units and Class B LP Units (together, the "Consolidated Units"). The Consolidation will become effective on or about November 22, 2023 and is primarily intended to increase the REIT's per Unit trading price. As a result of the Consolidation, every 5.75 Voting Units and Class B LP Units will be converted automatically into one issued and outstanding Consolidated Unit. Unitholders holding Consolidated Units through a brokerage account will have their Consolidated Units automatically adjusted to reflect the Consolidation.
The Consolidation will affect all Unitholders uniformly and will not alter any Unitholder's percentage interest in the REIT's equity, except to the extent that the Consolidation would result in a Unitholder owning fractional Consolidated Units. Any fractional Consolidated Units of a Unitholder resulting from the Consolidation will be rounded down to the nearest whole number of Consolidated Units. The Consolidation will reduce the number of the REIT's Units total issued and outstanding from 92,020,251 Units to approximately 16,003,521 Units and 2,420,164 Class B LP Units and SV Units to approximately 420,891 Class B LP Units and SV Units respectively. Proportional adjustments will be made to the number of the REIT's Units issuable upon exercise or conversion of the Class B LP Units.
Holders of Consolidated Units held in book-entry form or through a bank, broker or other nominee will have their positions automatically adjusted to reflect the Consolidation, subject to a broker's particular processes, and do not need to take any action in connection with the Consolidation. Unitholders of record will be receiving information from TSX Trust Company, the REIT's transfer agent, regarding their Consolidated Unit ownership post-Consolidation. Unitholders who hold Consolidated Units in brokerage accounts should direct any questions concerning the Consolidation to their brokers; all other Unitholders may direct questions to the transfer agent, TSX Trust Company, who can be reached at telephone number 1-866-600-5869 and facsimile number (416) 361-0470.
The Units will commence trading on the Toronto Stock Exchange on a post-Consolidation basis effective at market opening on or about November 24, 2023 The trading symbol for the Units will remain "TNT.UN." The new CUSIP number for the Units following the Consolidation will be 89784Y407.
About the REIT
The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT currently owns and operates a portfolio of 44 commercial properties consisting of approximately 4.8 million square feet in urban and select strategic secondary markets across Canada focusing on long term leases with government and credit rated tenants.
The REIT is focused on growing its portfolio principally through acquisitions across Canada and such other jurisdictions where opportunities exist. Additional information concerning the REIT is available at www.sedarplus.ca or the REIT's website at www.truenorthreit.com.
Non-IFRS measures
Certain terms used in this press release such as FFO, AFFO, FFO and AFFO payout ratios, NOI, Same Property NOI, indebtedness ("Indebtedness"), gross book value ("GBV"), Indebtedness to GBV ratio, net earnings before interest, tax, depreciation and amortization and fair value gain (loss) on financial instruments and investment properties ("Adjusted EBITDA"), interest coverage ratio, net asset value ("NAV") per Unit, Total Equity and Available Funds are not measures defined by International Financial Reporting Standards ("IFRS") as prescribed by the International Accounting Standards Board, do not have standardized meanings prescribed by IFRS and should not be compared to or construed as alternatives to profit/loss, cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. FFO, AFFO, FFO and AFFO payout ratios, NOI, Same Property NOI, Indebtedness, GBV, Indebtedness to GBV ratio, Adjusted EBITDA, interest coverage ratio, adjusted cash provided by operating activities, NAV per Unit, Total Equity and Available Funds as computed by the REIT may not be comparable to similar measures presented by other issuers. The REIT uses these measures to better assess the REIT's underlying performance and provides these additional measures so that investors may do the same. Details on non-IFRS measures are set out in the REIT's Management's Discussion and Analysis for the three and nine months ended September 30, 2023 ("MD&A") and the Annual Information Form ("AIF") are available on the REIT's profile at www.sedarplus.ca.
Reconciliation of Non-IFRS financial measures
The following tables reconcile the non-IFRS financial measures to the comparable IFRS measures for the three and nine months ended September 30, 2023 and 2022. These non-IFRS financial measures do not have any standardized meanings prescribed by IFRS and may not be comparable to similar measures presented by other issuers.
NOI
The following table calculates the REIT's net operating income, a non-IFRS financial measure:
Three months ended September 30 | Nine months ended September 30 | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Revenue | $ | 32,789 | $ | 36,677 | $ | 99,337 | $ | 108,124 |
Expenses: | ||||||||
Property operating costs | (9,699) | (9,526) | (28,800) | (27,048) | ||||
Realty taxes | (5,008) | (5,175) | (15,335) | (15,221) | ||||
NOI | $ | 18,082 | $ | 21,976 | $ | 55,202 | $ | 65,855 |
Same Property NOI
Same Property NOI is measured as the net operating income for the properties owned and operated by the REIT for the current and comparative period. The following table reconciles the REIT's Same Property NOI to NOI:
Three months ended September 30 | Nine months ended September 30 | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Number of properties | 43 | 43 | 43 | 43 | |||
Revenue | $ | 31,319 | $ | 34,839 | 93,990 | $ | 103,698 |
Expenses: | |||||||
Property operating | (9,203) | (9,153) | (27,350) | (26,190) | |||
Realty taxes | (4,795) | (4,858) | (14,356) | (14,473) | |||
$ | 17,321 | $ | 20,828 | 52,284 | $ | 63,035 | |
Add: | |||||||
Amortization of leasing costs and tenant inducements | 2,429 | 1,569 | 6,726 | 4,729 | |||
Straight-line rent | 392 | 577 | 1,135 | 1,525 | |||
Same Property NOI | $ | 20,142 | $ | 22,974 | 60,145 | $ | 69,289 |
Less: Investment properties held for sale | (232) | 632 | 812 | 1,987 | |||
Same Property NOI excluding investment properties held for sale | 20,374 | 22,342 | 59,333 | 67,302 | |||
Reconciliation to condensed consolidated interim financial statements: | |||||||
Acquisitions and dispositions | (90) | 1,799 | 1,894 | 4,862 | |||
Amortization of leasing costs and tenant inducements | (2,428) | (1,584) | (6,735) | (4,772) | |||
Straight-line rent | 226 | (581) | 710 | (1,537) | |||
NOI | $ | 18,082 | $ | 21,976 | 55,202 | $ | 65,855 |
FFO and AFFO
The following table reconciles the REIT's FFO and AFFO to net income and comprehensive income, for the three and nine months ended September 30, 2023 and 2022:
Three months ended | Nine months ended | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Net income and comprehensive income | $ | (42,472) | $ | 8,046 | $ | (34,684) | $ | 38,437 |
Add (deduct): | ||||||||
Fair value adjustment of Unit-based compensation | (54) | (105) | (486) | (587) | ||||
Fair value adjustment of investment properties | 50,087 | 6,842 | 68,391 | 10,122 | ||||
Fair value adjustment of Class B LP Units | (584) | (1,629) | (9,179) | (5,045) | ||||
Transaction costs on sale of investment property | 1,131 | — | 1,375 | — | ||||
Distributions on Class B LP Units | 181 | 400 | 679 | 1,298 | ||||
Unrealized gain on change in fair value of derivative instruments | (366) | (702) | (1,061) | (5,362) | ||||
Amortization of leasing costs and tenant inducements | 2,428 | 1,584 | 6,735 | 4,772 | ||||
FFO | $ | 10,351 | $ | 14,436 | $ | 31,770 | $ | 43,635 |
Add (deduct): | ||||||||
Unit-based compensation expense | 114 | 93 | 446 | 541 | ||||
Amortization of financing costs | 329 | 405 | 1,071 | 1,133 | ||||
Rent Supplement | 743 | — | 2,228 | — | ||||
Amortization of mortgage discounts | (8) | (11) | (25) | (36) | ||||
Instalment note receipts | 13 | 15 | 41 | 47 | ||||
Straight-line rent | (226) | 581 | (710) | 1,537 | ||||
Capital reserve | (1,215) | (1,229) | (3,673) | (3,609) | ||||
AFFO | $ | 10,101 | $ | 14,290 | $ | 31,148 | $ | 43,248 |
FFO per Unit: | ||||||||
Basic | $ | 0.11 | $ | 0.15 | $ | 0.34 | $ | 0.47 |
Diluted | $ | 0.11 | $ | 0.15 | $ | 0.34 | $ | 0.47 |
AFFO per Unit: | ||||||||
Basic | $ | 0.11 | $ | 0.15 | $ | 0.33 | $ | 0.47 |
Diluted | $ | 0.11 | $ | 0.15 | $ | 0.33 | $ | 0.47 |
AFFO payout ratio: | ||||||||
Basic | 69 % | 97 % | 83 % | 95 % | ||||
Diluted | 69 % | 97 % | 83 % | 95 % | ||||
Distributions declared | $ | 7,012 | $ | 13,900 | $ | 25,731 | $ | 41,300 |
Weighted average Units outstanding (000s): | ||||||||
Basic | 94,469 | 93,408 | 94,525 | 92,604 | ||||
Add: | ||||||||
Unit options and Incentive Units | 34 | 26 | 28 | 95 | ||||
Diluted | 94,503 | 93,434 | 94,553 | 92,699 |
Indebtedness to GBV Ratio
The table below calculates the REIT's Indebtedness to GBV ratio as at September 30, 2023 and December 31, 2022. The Indebtedness to GBV ratio is calculated by dividing the indebtedness by GBV:
September 30, | December 31, | |||
Total assets | $ | 1,336,568 | $ | 1,450,315 |
Deferred financing costs | 6,777 | 7,070 | ||
GBV (1) | $ | 1,343,345 | $ | 1,457,385 |
Mortgages payable | 804,120 | 846,689 | ||
Credit Facility | 18,100 | 14,400 | ||
Unamortized financing costs and mark to market mortgage adjustments | 3,044 | 3,745 | ||
Indebtedness (1) | $ | 825,264 | $ | 864,834 |
Indebtedness to GBV (1) | 61.4 % | 59.3 % |
Adjusted EBITDA
The table below reconciles the REIT's adjusted EBITDA to net income and comprehensive income for twelve month period ended September 30, 2023 and 2022:
Nine months ended | |||||
2023 | 2022 | ||||
Net income and comprehensive income | $ | (56,589) | $ | 57,353 | |
Add (deduct): | |||||
Interest expense | 32,055 | 27,978 | |||
Fair value adjustment of Unit-based compensation | (479) | (479) | |||
Transaction costs on sale of investment property | 1,375 | — | |||
Fair value adjustment of investment properties | 100,194 | 2,761 | |||
Fair value adjustment of Class B LP Units | (8,724) | (4,531) | |||
Distributions on Class B LP Units | 1,054 | 1,747 | |||
Unrealized loss on change in fair value of derivative instruments | (1,143) | (6,331) | |||
Amortization of leasing costs, tenant inducements, mortgage premium and financing costs | 10,175 | 7,910 | |||
Adjusted EBITDA (1) | $ | 77,918 | $ | 86,408 |
Interest Coverage Ratio
The table below calculates the REIT's interest coverage ratio for the twelve month period ended September 30, 2023 and 2022. The interest coverage ratio is calculated by dividing Adjusted EBITDA by interest expense.
Nine months ended September 30 | ||||
2023 | 2022 | |||
Adjusted EBITDA | $ | 77,918 | $ | 86,408 |
Interest expense | 32,055 | 27,978 | ||
Interest coverage ratio | 2.43 x | 3.09 x |
Available Funds
The table below calculates the REIT's Available Funds as at September 30, 2023 and December 31, 2022:
September 30, | December 31, | |||
Cash | $ | 6,383 | $ | 9,501 |
Undrawn Credit Facility | 41,900 | 53,600 | ||
Available Funds | $ | 48,283 | $ | 63,101 |
NAV per Unit
The table below calculates the REIT's NAV per Unit as at September 30, 2023 and December 31, 2022:
September 30, | December 31, | |||
Units | Amount | Units | Amount | |
Unitholders' Equity | 92,007,751 | $ 463,787 | 91,813,073 | $ 522,138 |
Add: Class B LP Units | 2,432,664 | 5,207 | 2,526,414 | 14,628 |
Total Equity (including Class B LP Units) | 94,440,415 | $ 468,994 | 94,339,487 | $ 536,766 |
NAV per Unit | $4.97 | $5.69 |
Forward-looking Statements
Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking statements are provided for the purposes of assisting the reader in understanding the REIT's financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information may relate to future results, performance, achievements, events, prospects or opportunities for the REIT or the real estate industry and may include statements regarding the financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes, distributions, plans, the benefits of reallocating the Distribution Amounts to the NCIB, or through other acquisition programs, the impact of the Consolidation and the objectives of or involving the REIT,. In some cases, forward-looking information can be identified by such terms as "may", "might", "will", "could", "should", "would", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "goal", "project", "predict", "forecast", "potential", "continue", "likely", or the negative thereof or other similar expressions suggesting future outcomes or events.
Forward-looking statements involve known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: risks and uncertainties related to the Units; risks related to the REIT and its business; fluctuating interest rates and general economic conditions, including increased levels of inflation; credit, market, operational and liquidity risks generally; occupancy levels and defaults, including the failure to fulfill contractual obligations by tenants; lease renewals and rental increases; the ability to re-lease and find new tenants for vacant space; the timing and ability of the REIT to acquire or sell certain properties; the ongoing effects of COVID-19 and work-from-home flexibility initiatives on the business, operations and financial condition of the REIT and its tenants, as well as on consumer behavior and the economy in general, including the ability to enforce leases, perform capital expenditure work, increase rents, raise capital through the issuance of Units or other securities of the REIT; the benefits of reallocating the Distribution Amounts to the NCIB, or through other acquisition programs, the impact of the Consolidation; and obtain mortgage financing on the REIT's properties (the "properties"). The foregoing is not an exhaustive list of factors that may affect the REIT's forward-looking statements. Other risks and uncertainties not presently known to the REIT could also cause actual results or events to differ materially from those expressed in its forward-looking statements. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements as there can be no assurance actual results will be consistent with such forward-looking statements.
Information contained in forward-looking statements is based upon certain material assumptions applied in drawing a conclusion or making a forecast or projection, including management's perception of historical trends, current conditions and expected future developments, as well as other considerations believed to be appropriate in the circumstances. There can be no assurance regarding: (a) the ongoing effects of COVID-19 and work-from-home initiatives on the REIT's business, operations and performance, including the performance of its Units; (b) the REIT's ability to mitigate any impacts related to fluctuating interest rates, inflation and the after effects of COVID-19 including the shift to hybrid working; (c) the factors, risks and uncertainties expressed above in regards to the post COVID-19 environment on the commercial real estate industry and property occupancy levels; (d) credit, market, operational, and liquidity risks generally; (e) the availability of investment opportunities for growth in Canada and the timing and ability of the REIT to acquire or sell certain properties; (f) repurchasing Units under the NCIB; (g) Starlight Group Property Holdings Inc., or any of its affiliates ("Starlight"), continuing as asset manager of the REIT in accordance with its current asset management agreement; (h) the benefits of reallocating the Distribution Amounts to the NCIB, or through other acquisition programs; (i) the impact of the Consolidation; and (j) other risks inherent to the REIT's business and/or factors beyond its control which could have a material adverse effect on the REIT.
The forward-looking statements made relate only to events or information as of the date on which the statements are made in this MD&A. Except as specifically required by applicable Canadian law, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
SOURCE True North Commercial Real Estate Investment Trust
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