Solid first quarter, strong balance sheet, achieved stabilized occupancy at The Village at Bronte Harbour NEW GLASGOW, NS, May 8, 2024 /CNW/ - Crombie Real Estate Investment Trust ("Crombie") (TSX:CRR) today announced results for its first quarter ended March 31, 2024. Management will host a conference call to discuss the results at 12:00 p.m. (EDT), May 9, 2024. "Crombie's unwavering focus on operational excellence and financial strength, once again, guided us to deliver solid and consistent quarterly results," said Mark Holly, President and CEO. "In the first quarter, our residential asset, The Village at Bronte Harbour, reached occupancy stabilization and secured CMHC financing. We also advanced key priorities including the substantial completion of our 52,000 square foot retail-related industrial asset in Calgary, Alberta, co-owned with Empire. It is our dedication to pursuing strategic initiatives, paired with a strong financial condition, that position us well for sustained growth and value creation." FIRST QUARTER SUMMARY(In thousands of Canadian dollars, except per Unit amounts and square feet and as otherwise noted) Operational Highlights Committed occupancy 96.2% and economic occupancy 95.7%; a 50 basis point decrease and a 120 basis point increase, respectively, compared to the first quarter of 2023 Renewals of 249,000 square feet at rents 10.1% above expiring rental rates (an increase of 10.6% using the weighted average rent during the renewal term) The Village at Bronte Harbour reached occupancy stabilization in the first quarter of 2024, ending the quarter with committed occupancy of 93.3% Financial Highlights Completed offering of $200,000 Series L senior unsecured notes maturing March 29, 2030, bearing an interest rate of 5.14% per annum Closed on a 4.35% mortgage loan of $243,457, with our joint venture partner, for a residential property held within an equity-accounted investment maturing June 1, 2029   Three months ended March 31, 2024 2023      Variance % Property revenue (1) $            118,609 $            112,449 $                6,160 5.5 % Revenue from management and development services $                  749 $                     — $                   749 100.0 % Operating income attributable to Unitholders $              26,205 $              25,173 $                1,032 4.1 % FFO (2) per Unit - basic $                  0.30 $                  0.30 $                     — — % AFFO (2) per Unit - basic $                  0.26 $                  0.26 $                     — — % Same-asset property cash NOI (2) $              76,532 $              74,141 $                2,391 3.2 % Available Liquidity $            736,990 $            735,877 $                1,113 0.2 % Debt to gross fair value (2)(3) 42.9 % 41.9 % 1.0 % Debt to trailing 12 months adjusted EBITDA (2)(3) 7.97x 7.96x 0.01x 0.1 % (1) Property revenue for the three months ended March 31, 2023 has been increased by $4,898 as a result of a change in the presentation of recoverable property taxes for certain properties where a tenant pays the property taxes on Crombie's behalf. (2) Non-GAAP financial measures used by management to evaluate Crombie's business performance. See "Cautionary Statements and Non-GAAP Measures" below for a reconciliation of FFO, AFFO,  same-asset property cash NOI, debt to gross fair value, and debt to trailing 12 months adjusted EBITDA. (3) At Crombie's proportionate share including joint ventures. Information in this press release is a select summary of results. This press release should be read in conjunction with Crombie's Management's Discussion and Analysis for the quarter ended March 31, 2024 and Consolidated Financial Statements and Notes for the quarters ended March 31, 2024, and March 31, 2023. Full details on our results can be found at www.crombie.ca and www.sedarplus.ca. Operational Metrics March 31, 2024 March 31, 2023 Number of investment properties (1) 295 291 Gross leasable area (2) 18,709,000 18,550,000 Economic occupancy (3) 95.7 % 94.5 % Committed occupancy (4) 96.2 % 96.7 % Total properties (5) 304 303 Gross leasable area inclusive of joint ventures 19,239,000 19,080,000 (1) This includes properties owned at full and partial interests, excluding joint ventures. (2) Gross leasable area is adjusted to reflect Crombie's proportionate interest in partially owned properties, excluding joint ventures. (3) Represents space currently under lease contract and rent has commenced. (4) Represents current economic occupancy plus completed lease contracts for future occupancy of currently available space. (5) Inclusive of properties under development and properties owned in joint ventures. Committed occupancy of 96.2% included 94,000 square feet of space committed in the quarter. Approximately 67,000 square feet of committed space was in VECTOM and Major Markets, including 31,000 square feet in Burlington, Ontario and 27,000 square feet in Calgary, Alberta. The decrease in committed occupancy compared to March 31, 2023 is due to natural lease expiries and attrition including early lease terminations and tenants downsizing. New leases increased occupancy by 64,000 square feet at March 31, 2024, at an average first year rate of $23.04 per square foot. Renewal activity for the first quarter of 2024 consisted of 249,000 square feet with an increase of 10.1% over expiring rental rates. The primary driver of renewal growth in the quarter was 228,000 square feet of retail renewals with an increase of 11.6% over expiring rental rates. When comparing the expiring rental rates to the weighted average rental rate for the renewal term, Crombie achieved an increase of 10.6% for the three months ended March 31, 2024. Financial Metrics Three months ended March 31, 2024 2023 Variance % Net property income (1) $              73,641 $              68,648 $                4,993 7.3 % Operating income attributable to Unitholders $              26,205 $              25,173 $                1,032 4.1 % Same-asset property cash NOI (1) $              76,532 $              74,141 $                2,391 3.2 % Funds from operations ("FFO") (1) Basic $              54,868 $              52,835 $                2,033 3.8 % Per Unit - Basic $                  0.30 $                  0.30 $                     — — % Payout ratio (1) 73.6 % 75.3 % (1.7) % Adjusted funds from operations ("AFFO") (1) Basic $              46,947 $              45,909 $                1,038 2.3 % Per Unit - Basic $                  0.26 $                  0.26 $                     — — % Payout ratio (1) 86.1 % 86.6 % (0.5) % (1) Net property income, same-asset property cash NOI, FFO, FFO payout ratio, AFFO, and AFFO payout ratio are non-GAAP financial measures used by management to evaluate Crombie's business performance. See "Cautionary Statements and Non-GAAP Measures" below for a reconciliation of net property income, same-asset property cash NOI, FFO, FFO payout ratio, AFFO, and AFFO payout ratio. First Quarter 2024 Results Operating income attributable to Unitholders The increase in operating income in the quarter resulted mainly from growth in property revenue from recently completed developments, renewals, new leasing activity, lower interest expense on floating rate debt, revenue from management and development services, and increased capitalized interest. This was offset in part by higher interest expense on senior unsecured notes and a decrease in income from equity-accounted investments related to the sale of land within a joint venture in the first quarter of 2023. Same-asset property cash NOI The increase in same-asset property cash NOI for the quarter was primarily driven by increased property revenue from renewals and new leasing. FFO The increase in total FFO was driven primarily by higher property revenue from recently completed developments, renewals, and new leasing. Reduced interest expense on floating rate debt, revenue from management and development services, and higher capitalized interest further contributed to FFO growth. This was offset ...