Melcor REIT has announced a distribution per unit (DPU) of 17 Canadian cents for the three months ended 30 June 2017, which is similar to what was paid out in the corresponding period of the previous financial year.
The REIT’s revenue for the quarter slid by about 1% year-on-year to CAD16.56 million while its net operating income fell by about 2% to CAD10.57 million.
Adjusted funds from operations (AFFO) for the quarter grew by about 1% year-on-year to CAD5.22 million.
“Our portfolio continues to perform steadily - no small feat given the economic and political uncertainty that we have faced over the past few years, particularly in Alberta”, said Andrew Melton, President & CEO of Melcor REIT, in a statement on the quarter’s results.
“The stability and diversity of our portfolio with respect to both tenant profile and asset class position the REIT well for managing through economic cycles”, he noted, adding that the REIT is focused on asset enhancement and conservatively managing debt.
The REIT’s occupancy across all asset classes and operating regions was 92.7% as at June 30, 2017.
“We took advantage of favourable lending conditions and early re-financed CAD13.95 million in mortgages at an average interest rate of 3.65% both during and subsequent to the quarter.
However the REIT warned that it is continuing to experience negative market pressure on Edmonton downtown office space as approximately 1.8 million square feet in new inventory comes online.
Edmonton downtown office spaces makes up 12% of the REIT's gross leasable area.
Units of Melcor REIT are currently listed on the Toronto Stock Exchange at CAD8.53.[else]