Melcor REIT's The Village at Blackmud Creek. (Photo: Melcor REIT)Melcor REIT's The Village at Blackmud Creek. (Photo: Melcor REIT)

Melcor REIT’s rental revenue for its 3Q 2020 increased by 6% year-on-year, largely due to revenue from newly acquired properties.

The REIT’s net operating income decreased 8% over the period to CAD10.57 million (USD8 million) but increased by 1% to CAD34.27 million in the year to date.

Its ACFO was down 26% to CAD3.59 million or CAD0.12 per unit over 3Q 2019 and down 7% to CAD13.30 million or CAD0.46 per unit in the year-to-date.

"The fundamentals of our business have remained stable in the third quarter and throughout 2020 and we remain confident in our strategy”, said Darin Rayburn, President and CEO of Melcor REIT, in a statement on the results.

“We completed lease renewals representing 209,644 square feet for a healthy retention rate of 79.6% at quarter end”, he revealed in the 5 November statement.

“New leasing has been steady across the portfolio with 98,523 square feet in new deals commencing to date in 2020 and an additional 69,000 square feet committed for the future”, he added.

Melcor REIT’s occupancy for the quarter is slightly up at 88.4%.

The impacts of COVID-19 through 2Q 2020, and early 3Q are now more fully understood, said the REIT.

“COVID case numbers are currently spiking in Alberta. We are hopeful that this current rise can be curtailed by individuals taking responsibility for their own health and safety as well as those around them, rather than resorting to a second round of business closures”, said Rayburn.

“We continue to monitor the situation, make thoughtful decisions and take action to come through this together with our tenants”, he added.

Melcor REIT was last done on the TSX at CAD3.83.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.