TORONTO, Aug. 14, 2024 /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 2024") and six-month ("YTD 2024") periods ended June 30, 2024. "We generated continued growth in rental revenue, Cash NOI and AFFO per Unit in the second quarter, supported by the fixed and CPI-linked annual rent increases built into our leases," said Milton Lamb, CEO of Automotive Properties REIT. "Subsequent to quarter end, we entered into an agreement to unlock substantial value through the strategic disposition of one of our dealership properties. We expect that this transaction and the expected use of the proceeds from the sale, along with the recent expansion and extension of one of our credit facilities, will provide us with enhanced financial flexibility moving forward." Q2 2024 Highlights                                The REIT generated AFFO per Unit1 of $0.233 (diluted) and paid total cash distributions of $0.201 per Unit (as defined below) in Q2 2024, representing an AFFO payout ratio1 of approximately 86.3%. For the comparable three-month period ended June 30, 2023 ("Q2 2023"), the REIT generated AFFO per Unit of $0.230 (diluted) and paid cash distributions of $0.201 per Unit, representing an AFFO payout ratio of approximately 87.4%. The REIT had a Debt to Gross Book Value ("Debt to GBV")2 ratio of 43.6% as at June 30, 2024, and $54.4 million of undrawn capacity under its revolving credit facilities, $0.2 million of cash on hand, and four unencumbered properties with an aggregate value of approximately $86.0 million (including the Kennedy Lands (as defined below) which are investment properties held for sale and had an IFRS fair value of $54.0 million as at June 30, 2024). The REIT's valuation of its investment properties increased in Q2 2024 compared to the prior quarter, resulting in a fair value gain of $23.9 million. The increase reflected increased NOI3, current market conditions and the Sale Transaction (as defined below). The capitalization rate applicable to the REIT's entire portfolio increased to 6.68% as at June 30, 2024, compared to 6.59% as at December 31, 2023 and 6.52% as at June 30, 2023. Subsequent Events                               On July 26, 2024, the REIT entered into an agreement (the "Sale Agreement") to sell its automotive dealership property located at 8210 and 8220 Kennedy Road and 7 and 13/15 Main Street in Markham, Ontario (collectively, the "Kennedy Lands") to a member of the Dilawri Group for an initial sale price of $54.0 million (the "Sale Transaction"). On August 1, 2024, the REIT extended the maturity date of the $78.5 million, non-revolving balance of Credit Facility 2 from January 2025 to January 2028. In addition, the capacity under the revolving portion of Credit Facility 2 was increased from $15.0 million to $20.0 million. ____________________________ 1 AFFO per Unit and AFFO payout ratio are non-IFRS measures and non-IFRS ratios, respectively. See "Non-IFRS Financial Measures" at the end of this news release. 2 Debt to GBV is a supplementary financial measure. See "Non-IFRS Financial Measures" at the end of this news release. 3 NOI is a non-IFRS measure. See "Non-IFRS Financial Measures" at the end of this news release. Financial Results Summary ($000s, except per Unit amounts) Three months ended June 30,  Six months endedJune 30,  2024 2023 Change 2024 2023 Change Rental revenue (1) $23,515 $22,939 2.5 % $46,928 $45,815 2.4 % NOI (2) 19,824 19,544 1.4 % 39,667 39,001 1.7 % Cash NOI (2) 19,535 18,933 3.2 % 39,044 37,814 3.3 % Same Property Cash NOI (1) (2) 19,219 18,752 2.5 % 36,594 35,708 2.5 % Net Income (3) 37,288 20,891 78.5 % 58,189 37,858 53.7 % FFO (2) 12,015 12,075 -0.5 % 24,084 24,104 -0.1 % AFFO (2) 11,714 11,490 1.9 % 23,437 22,899 2.3 % Distributions per Unit $0.201 $0.201 - $0.402 $0.402 - FFO per Unit - basic (2) (4) 0.245 0.246 -0.001 0.491 0.491 - FFO per Unit - diluted (2) (5) 0.239 0.241 -0.002 0.480 0.482 -0.002 AFFO per Unit - basic (2) (4) 0.239 0.234 0.005 0.478 0.467 0.011 AFFO per Unit - diluted (2) (5)    0.233 0.230 0.003 0.467 0.458 0.009 Ratios (%) FFO payout ratio (2) 84.1 % 83.4 % 0.7 % 83.8 % 83.6 % 0.2 % AFFO payout ratio (2) 86.3 % 87.4 % -1.1 % 86.1 % 87.8 % -1.7 % Debt to GBV (6) 43.6 % 45.1 % -1.5 % 43.6 % 45.1 % -1.5 % (1) Rental revenue is based on rents from leases entered into with tenants, all of which are triple-net leases and include recoverable realty taxes and straight-line adjustments. Same Property Cash NOI is based on rental revenue for the same asset base having consistent gross leasable area in both periods. (2) NOI, Cash NOI, Same Property Cash NOI, FFO, AFFO, FFO per Unit, AFFO per Unit, FFO payout ratio and AFFO payout ratio are non-IFRS measures or non-IFRS ratios, as applicable. See "Non-IFRS Financial Measures" at the end of this news release. References to "Same Property" correspond to properties that the REIT owned in Q2 2023, thus removing the impact of acquisitions. (3) Net income for Q2 2024 includes changes in fair value adjustments of $5.3 million for Class B Limited Partnership Units of Automotive Properties Limited Partnership ("Class B LP Units"), Deferred Units ("DUs"), Income Deferred Units ("IDUs"), Performance Deferred Units ("PDUs") and Restricted Deferred Units ("RDUs"), $2.8 million for interest rate swaps and $23.9 million for investment properties and investment properties held for sale. Please refer to the unaudited, condensed consolidated interim financial statements of the REIT and notes thereto. (4) FFO per Unit and AFFO per Unit – basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding trust units of the REIT ("REIT Units" and together with the Class B LP Units, "Units") and Class B LP Units. The total weighted average number of Units outstanding – basic for Q2 2024 was 49,054,833. (5) FFO per Unit and AFFO per Unit – diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding Units, DUs, IDUs, PDUs and RDUs granted to independent trustees and management of the REIT. The total weighted average number of Units outstanding (including Class B LP Units, DUs, IDUs, PDUs and RDUs) on a fully diluted basis for Q2 2024 was 50,268,740. (6) Debt to GBV is a supplementary financial measure. See "Non-IFRS Financial Measures" at the end of this news release. Rental revenue in Q2 2024 increased by 2.5% ...