Small-box retail properties owner Scott’s REIT reported its financial results for the second quarter ended June 30, 2009.
Second Quarter 2009 Financial Highlights
- Revenue increased 17.8 per cent to $5.1 million
- Net operating income increased 13.8 per cent to $4.3 million
- Distributable income per Unit grew by 24.6 per cent
- Payout ratio improved to 77.6 per cent from 96.4 per cent
“Scott’s REIT is doing very well despite the difficult recession, which speaks to the quality of our tenant portfolio and reflects the success of our strategy of focusing on high-quality national tenants as we continue to bring value to our unitholders,” said John Bitove, chairman and CEO of Scott’s REIT.
“The REIT’s solid performance this quarter reflects the accretive acquisitions that we have made over the past two years as well as rent escalations realized in the fourth quarter of 2008, which resulted in a 9.0 per cent increase in total adjusted funds from operations (“AFFO”), as well as a 15.2 per cent quarter-to-quarter increase in AFFO per unit over the same period last year,” said Bitove. “The REIT also implemented a unit buyback program to provide a greater return to unitholders over the long term. Pursuant to a normal course issuer bid, the REIT purchased for cancellation more than 435,000 Class A Units, which also attributed to our continued strong results.”
Scott’s REIT reported revenue of $5.1 million for the three-month period ended June 30, 2009, an increase of 17.8 per cent over the second quarter of 2008. Operating expenses for the second quarter of 2009 were $0.8 million, an increase of $0.2 million over the second quarter of 2008. The REIT’s net operating income for the second quarter of 2009 was $4.3 million, an increase of 13.8 per cent over the prior year quarter. During the second quarter of 2009, the REIT generated distributable income of $2 million, an increase of 24.6 per cent over the second quarter of 2008.