TORONTO, Aug. 1, 2024  /CNW/ - CT Real Estate Investment Trust ("CT REIT" or "the REIT") (TSX:CRT) today reported its consolidated financial results for the second quarter ending June 30, 2024. "Our achievements this quarter continue to demonstrate CT REIT's ability to deliver strong and predictable results for our Unitholders. We continue to leverage our platform to execute on our strategy and surface new opportunities for growth," said Kevin Salsberg, President and Chief Executive Officer of CT REIT. "We also recently published our third annual Environmental, Social and Governance (ESG) report, and were pleased to have the opportunity to highlight our achievements from the past year, our ESG-related priorities and the progress that we continue to make along our ESG journey," added Salsberg. CT REIT's 2023 ESG report can be found at ctreit.com. New Investment Activity CT REIT announced one new investment which will require an estimated $45.2 million to complete. This investment is expected to earn a going-in yield of 6.00% and represents approximately 141,000 square feet of incremental gross leasable area ("GLA"). The table below summarizes the new investment and its anticipated completion date: Property Type GLA (sf.)   Timing Activity Nanaimo, BC   Third Party Acquisition   141,000 Q3 2024   Third party acquisition of a property containing Canadian Tire and Mark's stores   In the second quarter, CT REIT also sold a property in Chilliwack, British Columbia for $19.0 million. Update on Previously Announced Investment and Disposition Activity  CT REIT invested $7.6 million in a previously disclosed project that was completed in the second quarter of 2024, adding 27,000 square feet of incremental GLA to the portfolio as detailed in the table below.  Property Type GLA (sf.)   Timing Activity Granby, QC    Intensification   27,000 Q2 2024 Expansion of an existing Canadian Tire store Financial and Operational Summary Summary of Selected Information (in thousands of Canadian dollars, except unit, per unit and square   footage amounts) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 Change 2024 2023 Change Property revenue $         144,438 $         137,819 4.8 % $         288,659 $         275,325 4.8 % Net operating income 1 $         114,946 $         110,097 4.4 % $         228,427 $         217,514 5.0 % Net income $         103,285 $         109,357 (5.6) % $         204,430 $         179,868 13.7 % Net income per unit - basic 2 $             0.439 $             0.465 (5.6) % $             0.868 $             0.765 13.5 % Net income per unit - diluted 3 $             0.346 $             0.376 (8.0) % $             0.686 $             0.636 7.9 % Funds from operations 1 $           79,439 $           77,809 2.1 % $         157,628 $         153,137 2.9 % Funds from operations per unit - diluted 2,4,5 $             0.337 $             0.330 2.1 % $             0.668 $             0.651 2.6 % Adjusted funds from operations 1 $           74,253 $           71,658 3.6 % $         146,883 $         140,889 4.3 % Adjusted funds from operations per unit - diluted 2,4,5 $             0.315 $             0.304 3.6 % $             0.623 $             0.599 4.0 % Distributions per unit - paid 2 $             0.225 $             0.217 3.5 % $             0.449 $             0.434 3.5 % AFFO payout ratio 4 71.4 % 71.4 % — % 72.1 % 72.5 % (0.4) % Cash generated from operating activities $           96,374 $         103,209 (6.6) % $         208,293 $         208,065 0.1 % Weighted average number of units outstanding 2 Basic 235,424,848 235,116,351 0.1 % 235,531,039 234,977,624 0.2 % Diluted 3 344,749,865 333,452,168 3.4 % 344,835,287 333,309,156 3.5 % Diluted (non-GAAP) 5 235,823,443 235,435,011 0.2 % 235,908,865 235,291,999 0.3 % Indebtedness ratio 40.9 % 39.9 % 1.0 % Gross leasable area (square feet) 6 30,588,037 30,228,996 1.2 % Occupancy rate 6,7 99.4 % 99.0 % 0.4 % 1 This is a non-GAAP financial measure. See "Specified Financial Measures" below for more information. 2 Total units means Units and Class B LP Units outstanding. 3 Diluted units determined in accordance with IFRS includes restricted and deferred units issued under various plans and the effect of assuming that all of the Class C LP Units will be settled with Class B LP Units. Refer to section 7.0 of the MD&A. 4 This is a non-GAAP ratio. See "Specified Financial Measures" below for more information. 5 Diluted units used in calculating non-GAAP measures include restricted and deferred units issued under various plans and exclude the effect of assuming that all of the Class C LP Units will be settled with Class B LP Units. Refer to section 7.0 of the MD&A. 6 Refers to retail, mixed-use commercial and industrial properties and excludes Properties Under Development. 7 Occupancy and other leasing key performance measures have been prepared on a committed basis which includes the impact of existing lease agreements contracted on or before June 30, 2024 and June 30, 2023, and vacancies as at the end of those reporting periods. Financial Highlights Net Income – Net income was $103.3 million for the quarter, a decrease of $6.1 million or 5.6%, compared to the same period in the prior year, primarily due to a reduction in the fair value adjustment on investment properties and higher interest expense, partially offset by higher revenues from the portfolio of Properties. Net Operating Income (NOI)* – Total property revenue for the quarter was $144.4 million, which was $6.6 million or 4.8% higher compared to the same period in the prior year. In the second quarter, NOI was $114.9 million, which was $4.8 million or 4.4% higher compared to the same period in the prior year. This was primarily due to the intensification and development of income-producing properties completed in 2023 and 2024, which added $2.7 million, rent escalations from Canadian Tire leases, which contributed $1.8 million, and lease surrender revenue of $1.0 million, partially offset by lower recovery of capital expenditures and interest earned on the unrecovered balance, which reduced NOI by $0.6 million. Same store NOI was $110.0 million and same property NOI was $111.3 million for the quarter, which were $1.1 million or 1.0%, and $2.0 million or 1.9%, respectively, higher when compared to the prior year. Same store NOI increased primarily due to the increased revenue derived from contractual rent escalations, partially offset by lower recovery of capital expenditures and interest earned thereon. Same property NOI increased primarily due to the increase in same store NOI noted, as well as from the intensifications completed in 2023 and 2024. Funds from Operations (FFO)* – FFO for the quarter was $79.4 million, which was $1.6 million or 2.1% higher than the same period in 2023, primarily due to the impact of NOI variances ...