Morguard Real Estate Investment Trust has announced its 2024 Fourth Quarter and Annual Results indicating revenue and net operating income for its enclosed regional retail centres had increased on an annual basis.
In a news release on Wednesday, the REIT said net operating income for the year for enclosed regional centres was up by 3.1% to $44.9 million while it fell by 5.1% to $22 million for community strip centres.
Morguard said revenue for enclosed regional centres rose by 2.7% from the previous year to $105.3 million while it fell by 4.5% to $35.6 million for community strip centres.
“The increase in enclosed regional centres net operating income for the year ended December 31, 2024, is due to increases in basic rent of $3.1 million, increases in percentage rent of $0.4 million, and decreased vacancy costs of $0.9 million. These increases were partially offset by a one-time prior year property tax refund recorded in 2023 on an enclosed regional centre in the amount of $2.8 million, primarily for vacant space and space previously occupied by bankrupt or otherwise failed tenants,” it said.
“The decrease in community strip centres net operating income for the year ended December 31, 2024, is due to the sale of Heritage Towne Centre during the second quarter of 2024.
“The increase in industrial net operating income for the year ended December 31, 2024, is due to increased basic rent at one of the Trust’s industrial properties, as well as increased occupancy.
“Revenue from real estate properties includes contracted rent from tenants along with recoveries of property expenses (including property taxes).”
The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 45 retail, office and industrial income producing properties in Canada with a book value of $2.2 billion and approximately 8.1 million square feet of leasable space.
