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Highlights

  • SRU's rental income from investment properties rose 10.0% YoY to CAD 918.3 million in FY24
  • Net rental income increased by 6.6% YoY, reaching CAD 547.5 million, driven by revenue growth
  • In FY24, Cash flows from operating activities grew by 13.1% YoY

SmartCentres Real Estate Investment Trust (TSX: RU.UN) specializes in commercial and residential properties. The fully integrated Canadian REIT owns approximately 174 strategically situated properties in communities nationwide.

FY24 Financial Update

In the financial year 2024 (FY24), SRU reported a 10.0% YoY increase in rental income from investment properties, reaching CAD 918.3 million, up from CAD 834.5 million in FY23. This growth was primarily driven by lease-up activities for retail and mixed-use properties, as well as a rise in residential closing revenue.

Additionally, the company’s net rental income and other revenues grew by 6.6% YoY, reaching CAD 547.5 million. This increase was attributed to higher revenue generation alongside effective cost control measures.

However, SRU’s net income and comprehensive income showed a YoY decline of 42.8% to CAD 292.0 million from CAD 510.1 million in FY23. This decrease was largely due to fair value adjustments on investment properties, which resulted in losses of CAD 69.6 million.

On a more positive note, the company saw a 13.1% YoY increase in cash flows provided by operating activities. This improvement was attributed to strong leasing activities and higher occupancy rates, contributing to healthier cash flow from operations.

Recent Business Update

On 12 February 2025, the company reported a 6% YoY rise in same properties' NOI excluding Anchors  along with increase in demand for its retail centres for the three months ended 31 December 2024. While including anchors, the period saw a 3.8% YoY increase.

Company Outlook

The Trust is dedicated to ensuring long-term stability by fostering growth in cash flows and enhancing net asset value. It expects continued stability and strong occupancy in its retail portfolio, along with gradual growth from its mixed-use developments.

Top 10 Shareholders

The top 10 shareholders of SRU collectively account for approximately 22.34% of the total shareholding. The largest stakes are held by Goldhar (Mitchell) and BlackRock Institutional Trust Company, N.A., with holdings of around 10.80% and 3.71%, respectively.

Stock Information

The stock price of SRU has appreciated by around 6.05% and 4.84% in the past month and past six months, respectively. The stock's 52-week range spans from CAD 21.50 to CAD 27.50. As of 20 Feb 2025, the stock last traded at CAD 25.74.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 19, 2025. The reference data in this report has been partly sourced from EODHD/Others.