CT Real Estate Investment Trust is reporting another strong financial performance in 2024 despite “heightened uncertainty and sustained headwinds in the macroeconomic landscape.
In reporting its consolidated financial results for the fourth quarter and year ended December 31, 2024, Kevin Salsberg, President and Chief Executive Officer of CT REIT: said: “As we look to the future, we will continue to deliver on our robust development pipeline and know that the strength of our balance sheet provides us with great flexibility to continue to capitalize on new opportunities and surface value for our unitholders.”
CT REIT is an unincorporated, closed-end real estate investment trust formed to own income-producing commercial properties located primarily in Canada. Its portfolio is comprised of over 375 properties totalling more than 31 million square feet of GLA, consisting primarily of net lease single-tenant retail properties across Canada. Canadian Tire Corporation, Limited, is CT REIT’s most significant tenant.
New Investment Activity
CT REIT announced three new investments which will require an estimated $59 million to complete. The investments are, in aggregate, expected to earn a going-in yield of 8.11% and represent approximately 284,000 square feet of incremental gross leasable area, said the company in a news release.
The table below summarizes the new investments and their anticipated completion dates:
| Property | Type | GLA (sf.) | Timing | Activity |
| Kelowna, BC | Land Lease / Development | 186,000 | Q1 2025 / Q4 2025 | Land lease from a third party and development of a new Canadian Tire store |
| Winnipeg (Regent), MB | Intensification | 33,000 | Q2 2026 | Expansion of a Canadian Tire store |
| Lloydminster, AB | Redevelopment | 65,000 | Q4 2026 | Redevelopment of a vacant property |
In the fourth quarter, CT REIT also sold a portion of a property in Orillia, Ontario for $4 million.
Update on Previously Announced Investments
CT REIT invested $103 million in previously disclosed projects that were completed in the fourth quarter of 2024, adding 322,000 square feet of incremental GLA to the portfolio as detailed in the table below.
| Property | Type | GLA (sf.) | Timing | Activity |
| Winnipeg (Regent), MB | Vend-in | 101,000 | Q4 2024 | Vend-in of a Canadian Tire store |
| Mont Tremblant, QC | Vend-in | 128,000 | Q4 2024 | Vend-in of a property containing Canadian Tire, Mark’s and Dollarama stores |
| Kirkland, QC | Intensification | 66,000 | Q4 2024 | Expansion of a Canadian Tire store |
| Martensville, SK | Intensification | 27,000 | Q4 2024 | Expansion of a Canadian Tire store |
Update on Full-Year 2024 Investment and Development Activity
In 2024, CT REIT said it invested approximately $176 million in completed projects and ongoing developments and grew the portfolio by approximately 400,000 square feet of GLA. As of December 31, 2024, CT REIT had 881,000 square feet of GLA under development, of which approximately 88.4% is subject to committed lease agreements. These developments represent an investment of approximately $328 million upon completion, of which $107 million has been spent to date.
The REIT said net income was $135.3 million for the quarter, an increase of $97.1 million, compared to the same period in the prior year, primarily due to increases in the fair value adjustment on investment properties and higher revenues from the Property portfolio, partially offset by higher interest expense.
Total property revenue for the quarter was $145.4 million, which was $5.5 million or 3.9% higher compared to the same period in the prior year. In the fourth quarter, NOI was $115.6 million, which was $4.0 million or 3.6% higher compared to the same period in the prior year. This was primarily due to the acquisition, 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 $1.4 million and an increase in property operating recoveries, which added $0.4 million, it said.
The report said Canadian Tire is CT REIT’s most significant tenant. As at December 31, 2024, CTC represented 92.8% of total GLA and 91.7% of annualized base minimum rent.
