Strategic disposition of four non-core assets at a gross sale price of $61.4 million and continuation of accretive trust unit repurchase strategy at an inferred distribution yield of 17.5%(2) under the normal course issuer bid 140,600 sq ft leased/renewed at a 2.6% increase over expiring base rents with a weighted average lease term of 5.8 years during Q1-2024 /NOT FOR DISTRIBUTION IN THE U.S. OR OVER U.S. NEWSWIRES/ TORONTO, May 7, 2024 /CNW/ - True North Commercial Real Estate Investment Trust (TSX:TNT) (the "REIT") today announced its financial results for the three months ended March 31, 2024.  "The first quarter of 2024 saw strong leasing activity by the REIT as well as a continued focus on our strategic initiative of strengthening the REIT's financial and liquidity position," stated Daniel Drimmer, the REIT's Chief Executive Officer. "The REIT successfully closed the sale of three non-core dispositions subsequent to quarter end and will continue to focus on the immediately accretive normal course issuer bid repurchase program whereby the trust units of the REIT can currently be repurchased at a significant discount to the REIT's net asset value per trust unit and at an inferred distribution yield of approximately 17.5%(2)." On November 24, 2023 the REIT executed a consolidation of its trust units ("Units"), special voting Units of the REIT and the class B Limited Partnership Units of the REIT ("Class B LP Units") on the basis of 5.75:1. All Unit and per Unit amounts noted within have been retroactively adjusted to reflect the Unit consolidation. The REIT's presentation currency is the Canadian dollar. Unless otherwise stated, dollar amounts expressed in this press release are in thousands of dollars. Q1 2024 Highlights Portfolio occupancy as at March 31, 2024 remained above average occupancy for the markets in which the REIT operates at approximately 90% with an average remaining lease term of 4.4 years excluding investment properties held for sale. The REIT contractually leased and renewed approximately 140,600 square feet with a weighted average lease term of 5.8 years and a 2.6% increase over expiring base rents. Revenue and net operating income ("NOI")(1) decreased 4% and 11%, respectively, both including and excluding investment properties held for sale, when compared to the first quarter of 2023 ("Q1 2023"). The decrease was driven by lease expiries in the second and fourth quarter of 2023 of 115,000 and 148,000 square feet, respectively, at properties in the REIT's Alberta and Greater Toronto Area ("GTA") portfolio where the tenant did not renew which was partially offset by a 6.7% increase in same property NOI(1) excluding assets held for sale (1.7% including assets held for sale) ("Same Property NOI"). Funds from operations ("FFO")(1) and adjusted funds from operations ("AFFO")(1) basic and diluted per Unit decreased $0.10 to $0.56 and $0.07 to $0.57 relative to Q1-2023 due to  the changes in NOI(1) described above and higher financing costs driven by a higher average balance outstanding on the REIT's credit facility ("Credit Facility"). $36.4 million of available funds ("Available Funds")(1) at the end of the first quarter of 2024. From the commencement of the normal course issuer bid in April 2024 (the "2024 NCIB") to the date of this filing, the REIT had repurchased and cancelled 92,013 Units for $0.85 million at a weighted average price of $9.24 per Unit under the 2024 NCIB which represented an inferred distribution yield of approximately 18.5%(3). (1) This is a non-IFRS financial measure, refer to "Non-IFRS Financial Measures". (2) Estimated using the $1.70775 per Unit distribution prior to reallocating funds used for distributions to the NCIB and the closing market price of the REIT on May 6, 2024. (3)  Estimated using the $1.70775 per Unit distribution prior to reallocating funds used for distributions to the NCIB and the weighted average price the REIT repurchased Units at under the NCIB. The REIT continued to reallocate funds previously used to fund distributions for the repurchase and cancellation of 624,860 Units for $5,763 under the normal course issuers bid (the "2023 NCIB") during the three months ended March 31, 2024 at a weighted average price of $9.56 per Unit representing an inferred distribution yield of 17.9%(1). From April 1, 2024 to the date of filing, the REIT repurchased and cancelled an additional 159,560 Units and 92,013 Units for $1.5 million and $0.85 million, respectively, under the 2023 NCIB and 2024 NCIB at a weighted average price of $9.13 and $9.24 per Unit representing an inferred distribution yield of 18.7%(1) and 18.5%(1). The REIT refinanced a $12,946 mortgage for a one year term and lower interest rate relative to the expiring rate, which represents approximately 16% of mortgages maturing in 2024 with the majority of the remaining 2024 debt maturities occurring towards the end of 2024 on loans with large Canadian financial institutions with whom the REIT and their asset manager have strong relationships. Subsequent Events Subsequent to March 31, 2024, the REIT completed the sale of 251 Arvin Avenue located in Hamilton, Ontario for a sale price of $2,700, 6865 Century Avenue located in Mississauga, Ontario for a sale price of $15,300 and 135 Hunter Street East located in Hamilton, Ontario for a sale price of $6,375. Subsequent to March 31, 2024, the REIT entered into an unconditional agreement of purchase and sale to dispose of 9200 Glenlyon Parkway, Burnaby, British Columbia for a sale price of $37,000 that is expected to close on or about June 27, 2024. Together with the dispositions above, the REIT will generate estimated net proceeds of approximately $19,000 which it intends to use to repay existing indebtedness on its credit facility. The REIT also will continue to repurchase units under its 2024 NCIB, enhancing unitholder value by allocating available capital to generate the highest potential return. On April 17, 2024, the REIT established the 2024 NCIB, as approved by the Toronto Stock Exchange ("TSX"). Under the 2024 NCIB, the REIT has the ability to purchase for cancellation up to a maximum of 1,334,889 of its Units, representing 10% of the REIT's public float of 13,348,894 Units through the facilities of the TSX or through a Canadian alternative trading system and in accordance with applicable regulatory requirements at a price per Unit equal to the market price at the time of acquisition. The 2024 NCIB became effective April 18, 2024 and will remain in place until the earlier of April 17, 2025 and the date on which the REIT has purchased the maximum number of Units permitted under the 2024 NCIB. Any Units acquired through the 2024 NCIB will be cancelled. The REIT intends to continue to purchase Units under the 2024 NCIB until the release of the Q2-2024 results in August of 2024 at which point the REIT will will evaluate the continuation of the 2024 NCIB or the reinstatement of a distribution as operating and capital market conditions improve. The REIT's presentation currency is the Canadian dollar. Unless otherwise stated, dollar amounts expressed in this press release are in thousands of dollars. (1) Estimated using the $1.70775 per Unit distribution prior to reallocating funds used for distributions to the NCIB and the weighted average price the REIT repurchased Units at under the NCIB. Key Performance Indicators                       Three months ended                         March 31 2024 2023 Number of properties 44 46 Portfolio GLA 4,792,600 sf 4,950,300 sf Occupancy (1) 90 % 91 % Remaining weighted average lease term (1) 4.4 years 4.3 years Revenue from government and credit rated tenants 77 % 80 % Revenue $            32,464 $      33,858 NOI (2) 16,586 18,638 Net income and comprehensive income 5,138 6,995 Same Property NOI (2) 19,993 19,700 FFO (2) $              8,841 $       10,743 FFO per Unit - basic (2) 0.56 0.65 FFO per Unit - diluted (2) 0.56 0.65 AFFO (2) $             9,060 $        10,581 AFFO per Unit - basic (2) 0.57 0.64 AFFO per Unit - diluted (2) 0.57 0.64 AFFO payout ratio - diluted (2) — % 111 % Distributions declared $                  — $        11,695 (1) Excludes investment properties held for sale.  (2) This is a non-IFRS financial measure, refer to "Non-IFRS Financial Measures". (3) Estimated using the $1.70775 per Unit distribution prior to reallocating funds used for distributions to the NCIB and the weighted average price the REIT repurchased Units at under the NCIB. Operating Results During Q1-2024, revenue and NOI decreased 4% and 11%, respectively both including and excluding investment properties held for sale relative to Q1-2023. The main contributor was the 148,000 square foot lease expiry in the fourth quarter of 2023 at a property in Alberta, a 115,000 square foot lease expiry in Q2-2023 at 3650 Victoria Park Avenue, Toronto, Ontario (the "Victoria Park Property"), lower occupancy from certain tenants in the REIT's Nova Scotia portfolio not renewing upon lease maturity in Q4-2023, combined with the disposition  activity in 2023 (the "Primary Variance Drivers"). The decrease was partially offset by higher Same Property NOI. Q1-2024 FFO and AFFO decreased $1,902 and $1,521, respectively compared to the same period in 2023.  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 refinancings and higher interest expense on the Credit Facility. FFO and AFFO benefited from contractual rent increases, termination income and positive leasing activity primarily in the GTA and  New Brunswick. Q1-2024 FFO and AFFO basic and diluted per Unit decreased $0.10 to $0.56 and $0.07 to $0.57, respectively, over the comparable period. Same Property NOI(1)            As at March 31 Occupancy (2) 2024 2023 NOI Q1 2024   Q1 2023   Variance   Variance % Alberta 70.3 % 94.4 % Alberta $      2,929 $       3,518 $       (589) (16.7) % British Columbia 100.0 % 97.8 % British Columbia 797 764 33 4.3 % New Brunswick 86.7 % 85.5 % New Brunswick 1,261 791