TORONTO, Aug. 14, 2025 /CNW/ – Automotive Properties Real Estate Investment Trust (TSX:APR) (“Automotive Properties REIT” or the “REIT”) today announced its financial results for the three-month (“Q2 2025”) and six-month (“YTD 2025”) periods ended June 30, 2025. The REIT also announced today that it has entered into two agreements to acquire a total of seven automotive properties (collectively, the “Property Acquisitions”) and that its Board of Trustees approved a 2.2% increase to the REIT’s regular cash distributions.
“We generated continued growth in our rental revenue, Cash NOI, Same Property Cash NOI and AFFO per Unit in the quarter and our AFFO payout ratio1 declined to 80.7%,” said Milton Lamb, CEO of Automotive Properties REIT. “Supported by this strong financial performance, the Trustees and management of the REIT have determined that an increase to our unitholder distributions is appropriate at this time.”
“We continue to advance our strategy of acquiring properties in growing metropolitan markets and enhancing our tenant and geographic diversification. We look forward to further expanding our presence in the Greater Montreal Area with the acquisition of five automotive properties and one collision centre property and also adding our second Rivian-tenanted property in Florida to our portfolio,” added Mr. Lamb. “Upon closing, we expect these Property Acquisitions to be immediately accretive to our AFFO per Unit.1”
Q2 2025 Highlights
- The REIT generated AFFO per Unit1 of $0.249 (diluted) and paid regular cash distributions of $0.201 per Unit (as defined below) in Q2 2025, representing an AFFO payout ratio1 of approximately 80.7%. For the comparable three-month period ended June 30, 2024 (“Q2 2024”), the REIT generated AFFO per Unit of $0.233 (diluted) and paid regular cash distributions of $0.201 per Unit, representing an AFFO payout ratio of approximately 86.3%.
- The REIT had a Debt to Gross Book Value (“Debt to GBV”)2 ratio of 44.4% as at June 30, 2025, and had $68.5 million of undrawn capacity under its revolving credit facilities, $0.6 million of cash on hand, and five unencumbered properties with an aggregate value of approximately $85.8 million. As at the date of this news release, the REIT has approximately $69.4 million of undrawn capacity under its revolving credit facilities, cash on hand of $0.6 million, and five unencumbered properties with an aggregate value of approximately $85.6 million.
- On April 11, 2025, the REIT completed the acquisition of a Rivian-tenanted automotive property located in Tampa, Florida (the “Tampa Property”) for a purchase price of approximately US$13.1 million (approximately C$18.8 million). The REIT funded the purchase price for the acquisition of the Tampa Property with draws on its revolving credit facilities.
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1 Cash NOI, Same Property Cash NOI and AFFO per Unit are non-IFRS measures and AFFO payout ratio is a non-IFRS ratio. See “Non-IFRS Financial Measures” at the end of this news release. |
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2 Debt to GBV is a supplementary financial measure. See “Non-IFRS Financial Measures” at the end of this news release. |
Property Acquisitions
The Île-Perrot Properties
The REIT announced today that it has waived conditions for the purchase of a portfolio of five automotive properties and one collision centre property located in Île-Perrot, Québec, a suburb of Montreal (collectively, the “Île-Perrot Properties”) indemnified by Groupe AutoForce Inc. for an aggregate purchase price of approximately $70.5 million, subject to customary adjustments. The Île-Perrot Properties (GM Île-Perrot, Île-Perrot Toyota, Mazda 2-20, Hyundai Île-Perrot, Ford Île-Perrot and a body shop) comprise an aggregate of 177,932 square feet of gross leasable area situated on approximately 28.0 acres of land. The acquisition of the Île-Perrot Properties is expected to close in the third quarter of 2025, subject to customary closing conditions. The REIT expects to fund this acquisition through the issuance of $10.0 million of Class B Limited Partnership Units (“Class B LP Units”) by Automotive Properties Limited Partnership, the REIT’s operating subsidiary, at a price per Class B LP Unit equal to $12.00, with the balance to be funded by the REIT by increasing and drawing on its existing credit facilities.
The respective operators of each of the Île-Perrot Properties are under long-term net leases with the REIT. The leases are subject to annual adjustments linked to the consumer price index in Québec. The leases will be indemnified by Groupe AutoForce Inc., a private entity that owns and operates several automotive dealerships in the Greater Montreal Area.
Pursuant to the terms of the purchase agreement, in the event that the five day volume-weighted average trading price of the REIT Units on the Toronto Stock Exchange (the “VWAP”) is less than $12.00 per REIT Unit on the date that is two years following closing of the acquisition (the “Reference Date”), the REIT has agreed to make a cash payment to Groupe AutoForce Inc. in an amount equal to the difference between (i) $12.00 and (ii) the VWAP as of the Reference Date, subject to a maximum cash payment of $1.25 million.
The Orlando Property
The REIT also announced today that it has waived conditions for the purchase of the real estate underlying a 34,938 square-foot automotive property situated on 6.4 acres of land located at 4000 Shader Rd. in Orlando, Florida (the “Orlando Property”) for a purchase price of US$16.8 million (approximately C$23.0 million). The Orlando Property is comprised of a sales, delivery and service facility tenanted by Rivian LLC under a long-term, net lease that includes contractual fixed annual rent increases. The REIT expects the close the Orlando Property acquisition in the third quarter of 2025, subject to customary closing conditions. The REIT expects to fund the acquisition by increasing and drawing on its credit facilities.
Distribution Increase
The REIT also announced today that its Board of Trustees have approved a 2.2% increase to the REIT’s annual cash distribution, from $0.804 per Unit to $0.822 per Unit. The new monthly distribution will be $0.0685 per Unit, up from the current level of $0.0670 per Unit. The increase will be effective for the REIT’s August 2025 cash distribution, to be paid on or about September 15, 2025 to Unitholders of record on August 29, 2025. The increase to the distribution reflects management’s and the Trustees’ confidence in the REIT’s business.
Financial Results Summary
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Three months ended |
Six months ended |
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($000s, except per Unit amounts) |
2025 |
2024 |
Change |
2025 |
2024 |
Change |
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Rental revenue (1) |
$24,601 |
$23,515 |
4.6 % |
$48,503 |
$46,928 |
3.4 % |
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NOI (2) |
20,859 |
19,824 |
5.2 % |
41,070 |
39,667 |
3.5 % |
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Cash NOI (2) |
20,635 |
19,535 |
5.6 % |
40,653 |
39,044 |
4.1 % |
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Same Property Cash NOI (1) (2) |
19,536 |
19,086 |
2.4 % |
39,035 |
38,159 |
2.3 % |
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Net Income (3) |
11,240 |
37,288 |
-69.9 % |
18,881 |
58,189 |
-67.6 % |
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FFO (2) |
12,807 |
12,015 |
6.6 % |
25,428 |
24,084 |
5.6 % |
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AFFO (2) |
12,578 |
11,714 |
7.4 % |
25,005 |
23,437 |
6.7 % |
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Distributions per Unit |
0.201 |
0.201 |
– |
0.402 |
0.402 |
– |
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FFO per Unit – basic (2) (4) |
0.261 |
0.245 |
0.016 |
0.518 |
0.491 |
0.027 |
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FFO per Unit – diluted (2) (5) |
0.254 |
0.239 |
0.015 |
0.504 |
0.480 |
0.024 |
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AFFO per Unit – basic (2) (4) |
0.256 |
0.239 |
0.017 |
0.509 |
0.478 |
0.031 |
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AFFO per Unit – diluted (2) (5) |
0.249 |
0.233 |
0.016 |
0.496 |
0.467 |
0.029 |
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Ratios (%) |
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FFO payout ratio (2) |
79.1 % |
84.1 % |
5.0 % |
79.8 % |
83.8 % |
4.0 % |
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AFFO payout ratio (2) |
80.7 % |
86.3 % |
5.6 % |
81.0 % |
86.1 % |
5.1 % |
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Debt to GBV (6) |
44.4 % |
43.6 % |
-0.8 % |
44.4 % |
43.6 % |
-0.8 % |
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(1) |
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