Toronto, Ontario–(Newsfile Corp. – March 10, 2025) – Northwest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (the ‘REIT’ or ‘Northwest’), a leading owner and operator of healthcare real estate infrastructure in North America, Brazil, Europe, and Australasia, announces results for the three months and year ended December 31, 2024.

  

‘The REIT’s strong fourth quarter and year end results, as demonstrated by a 9% and 12% increase in AFFO over prior quarter and prior year respectively, reflect the team’s hard work over the last 12 months. In 2024, we optimized our portfolio, simplified our operations, strengthened our balance sheet, and enhanced financial flexibility,’ said Craig Mitchell, CEO of Northwest. ‘With $1.4 billion in non-core asset sales, we successfully repaid $1.1 billion and refinanced an additional $1.0 billion of debt. We also secured major lease renewals at a retention rate over 80%, at or above expiring rental rates, and drove operational efficiencies, resulting in SPNOI growth and AFFO improvement throughout the year.

  

We enter 2025 with strong momentum, having recently achieved an investment-grade credit rating, significantly reducing our cost of capital and providing liquidity to repay the convertible debentures maturing on March 31st. Looking ahead, Northwest is well positioned to capitalize on the increasing demand for healthcare infrastructure worldwide and drive sustainable growth.’

  

Q4 2024 Highlights

  

Highlights for Q4 2024 and events subsequent to the quarter are set out below:

 

•  

  Revenue from investment properties was $102.7 million for Q4 2024, a decrease of 17.2% from Q4 2023 driven by the disposition of non-core assets during both 2023 and 2024, partially offset by strong same property revenue growth;

   

•  

  Same Property Net Operating Income (‘SPNOI’) was $73.5 million for Q4 2024, an increase of 4.9% from Q4 2023, reflecting a steady growth across all regions (see Exhibit 1);

   

•  

  General and administrative costs, excluding unit based compensation expenses, were $11.1 million for Q4 2024, a decrease of $2.0 million from Q4 2023, primarily as a result of a reduction in headcount from 307 at December 31, 2023 to 243 at December 31, 2024;

   

•  

  Net income for Q4 2024 was $2.9 million compared to net loss of $188.9 million in Q4 2023, primarily due to decrease in mortgage and loan interest expense, lower fair value losses on investment properties, and fair value losses on revaluation of financial instruments, partially offset by lower net operating income as a result of disposition activity;

   

•  

  Adjusted funds from operations (‘AFFO’) was $0.10 per unit in Q4 2024 as compared to $0.09 per unit in Q3 2024 and $0.09 per unit in Q4 2023 ($0.13 per unit including the impact of interest rate caps, which expired in the first quarter of 2024), resulting in an AFFO payout ratio in Q4 2024 of 92% compared to 100% in Q3 2024 and 102% in Q4 2023 (67% in Q4 2023 excluding impact of interest rate caps) (see Exhibit 2);

   

•  

  During Q4 2024, the REIT recorded fair value losses on investment properties of $29.9 million, compared to $157.6 million in Q4 2023. The fair value losses were mainly attributable to changes in valuation parameters, incorporating market evidence when available and rent reviews;

   

•  

  The REIT’s leverage, including convertible debentures, at the end of Q4 2024 was 50.0% as compared to 51.9% at December 31, 2023; and

   

•  

  Continued strong operating performance in Q4 2024 was underpinned by a long-term lease maturity profile with a weighted-average lease expiry (‘WALE’) of 13.6 years and a global portfolio occupancy rate of 96.4%.

   

 

Operations and Leasing

  

The REIT’s consolidated SPNOI for Q4 2024 increased by 4.9% over the comparable prior year period mainly due to inflationary adjustments on rents, rentalised capital spend and improved recoveries reflecting a steady growth in the REIT’s underlying lease rentals and additionally supported by a long-term weighted-average lease expiry (‘WALE’) of 13.6 years. SPNOI within the REIT’s geographic regions increased 4.4% in North America, 4.7% in Brazil, 3.4% in Europe, and 5.8% in Australasia (see Exhibit 1).

  

During the fourth quarter of 2024, the REIT completed 157,000 square feet of new and renewal leasing and achieved a renewal rate of 87% (year ended December 31, 2024 – 1,230,000 square feet at a renewal rate of 81%). In Q4 2024, the REIT also secured early lease renewals at two of its hospitals in Brazil totaling approximately 706,000 square feet, extending the lease terms for both properties to 23.7 years.

  

Disposition Activity and Assets Held for Sale

  

In 2024, the REIT disposed of investment properties for total proceeds of $1.4 billion at a weighted average cap rate of 6.5%. The property dispositions represented 17 properties in North America, 9 properties in Australasia, and 26 properties in Europe, 14 of which were related to the UK sale, with the proceeds used to pay directly attributable debt as well as balances outstanding on credit facilities.

  

During the three months and year ended December 31, 2024, the REIT sold or redeemed units of its investment in unlisted securities totaling $15.9 million and $65.8 million, respectively.

  

As at December 31, 2024, the REIT had five income producing properties and one development property totaling $59.3 million classified as assets held for sale. Subsequent to the year ended December 31, 2024, the REIT sold one income producing property and one development property in North America classified as assets held for sale at their fair value of $38.1 million as at December 31, 2024. The REIT expects to complete the remaining dispositions of assets held for sale within the next 12 months and will use the proceeds to repay debt and reduce leverage.

  

Capital Management Activity

  

The REIT is highly focused on strengthening the balance sheet and reducing debt and interest costs. During 2024, the REIT repaid $1.1 billion of debt outstanding, with a weighted average interest rate of 7.42%, using proceeds from asset sales. The REIT also refinanced a further $0.6 billion of 2025 maturities ahead of maturity to extend the REIT’s debt expiry profile from 2.3 years at December 31, 2023 to 3.1 years today, including the impact of subsequent events.

  

On February 5, 2025, the REIT received an investment-grade issuer credit rating of BBB(low) with a Stable Trend from Morningstar DBRS. On February 18, 2025, the REIT announced it had closed its inaugural senior unsecured debenture offering totaling $500.0 million. The offering included (i) $200.0 million of 5.02% Series A senior unsecured debentures due on February 18, 2028; and (ii) $300.0 million of 5.51% Series B senior unsecured debentures due on February 18, 2030. The REIT used the proceeds to repay the following:

 

•  

  Term debt of $194.6 million bearing interest at 6.43% with a term to maturity of 2 years, that was secured by North American investment properties with value of $372.9 million;

   

•  

  Mortgages of $18.0 million, with an interest rate of 7.70% and weighted average term to maturity of 1.2 years, that were secured by North American investment properties with value of $26.5 million;

   

•  

  $26.8 million of term debt that is secured by the REIT’s investment in Assura with an interest rate of 7.70%;

   

•  

  $15.0 million of Australasian secured financing at an interest rate of 7.32% secured by units in Vital Trust held by the REIT; and

   

•  

  $245.6 million of credit facilities, at a blended interest rate of 6.38%, of which $180.6 million is available to be redrawn and $65.0 million was permanently repaid.

   

 

Today, $268.9 million of 2025 maturities remain, consisting of $143.9 million of mortgages that are expected to be renewed in the normal course or repaid, and $125.0 million of convertible debentures. As at the date of this press release, the REIT has approximately $240 million of available liquidity between cash and the unused portion of its credit facilities that, a portion of which, is expected to be used to repay its $125.0 million Series G Convertible Debentures maturing on March 31, 2025.

  

Selected Operating and Financial Information:

 

(unaudited)		December 31, 2024			December 31, 2023
as at
Assets Under Management	$	8,281,609		$	9,901,036
Number of properties		172			219
Gross leasable area (sf)		15,886,309			17,736,521
Occupancy		96 %			97 %
Weighted Average Lease Expiry (Years)		13.6			13.3
Debt – Including Convertible Debentures	$	3,027,154		$	3,962,317
Debt to Gross Book Value – Including Convertible Debentures		50 %			52 %
Weighted average capitalization rate		6.2 %			5.9 %
Economic Weighted Average Interest Rate		5.5 %			6.3 %

 

 

(unaudited)		Three months ended December 31, 2024			Three months ended December 31, 2023			Year ended December 31, 2024			Year ended December 31, 2023
($000’s, except per unit amounts)
Net Operating Income	$	77,764		$	98,083		$	349,408		$	386,622
Net Income (Loss) attributable to unitholders	$	2,928		$	(188,900	)	$	(320,204	)	$	(480,736	)
Funds from Operations (‘FFO’) (1)	$	23,674		$	36,759		$	88,871		$	141,375
Adjusted Funds from Operations (‘AFFO’) (1)	$	24,281		$	32,835		$	95,649		$	137,755
FFO, excluding accelerated amortization of deferred financing charges, per unit – diluted (1), (2), (3)	$	0.10		$	0.15		$	0.40		$	0.57
AFFO per unit – diluted (1), (2)	$	0.10		$	0.13		$	0.39		$	0.56
Distributions per unit	$	0.09		$	0.09		$	0.36		$	0.65
AFFO Payout Ratio – diluted		92 %			68 %			93 %			110 %

 

(1) These are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Further, the REIT’s definitions of FFO and AFFO differ from those used by other similar real estate investment trusts, as well from the definitions recommended by REALpac. See ‘Non-IFRS Financial Measures’, Exhibit 1 and Exhibit 2.

  

(2) Included in FFO for the three months and year ended December 31, 2024 are nil and $6.7 million related to premiums paid in connection with interest rate cap derivatives (three months and year ended December 31, 2023 – $11.1 million and $37.4 million), the impact of which is nil and $0.03 per unit, respectively (three months and year ended December 31, 2023 – $0.05 per unit and $0.15 per unit, respectively).

  

(3) For the three months and year ended December 31, 2024, FFO per unit was $0.10 and $0.36 per unit, respectively. Included in FFO per unit for the year ended December 31, 2024 is accelerated amortization of deferred financing costs as a result of early repayment of the underlying debt, using proceeds from asset sales. Excluding the impact of $10.3 million of accelerated amortization of deferred financing costs during the year, FFO for the year ended December 31, 2024 is $0.40 per unit.

  

Corporate Presentation

  

Download the Company’s Updated Corporate Presentation:

  

https://www.nwhreit.com/investors/unitholders/presentations

  

Q4 2024 Results Conference Call

  

The REIT will be hosting its Q4 2024 conference call on Monday, March 10, 2025, at 2:00 p.m. ET. The dial-in numbers for the conference call are as follows:

  

North America (toll free): 1-844-763-8274

  

Overseas or local (Toronto): 1-647-484-8814

  

Link to audio webcast: https://www.gowebcasting.com/13957

  

A replay will be available until March 17, 2025, by accessing:

  

US/Canada (toll free): 1-855-669-9658

  

International: 1-412-317-0088

  

Replay Access Code: 1201895

  

Vital Healthcare Property Trust

  

On February 20, 2025, Vital also announced its financial results for the half year ended December 31, 2024.

  

Details on Vital’s financial results are available on Vital’s website at www.vitalhealthcareproperty.co.nz.

  

About Northwest

  

Northwest provides investors with access to a portfolio of high-quality international healthcare real estate infrastructure comprised as at March 10, 2025, of interests in a diversified portfolio of 171 income-producing properties and 15.8 million square feet of gross leasable area located throughout major markets in North America, Brazil, Europe, and Australasia. The REIT’s portfolio of medical outpatient buildings, clinics, and hospitals is characterized by long-term indexed leases and stable occupancies. Northwest leverages its global workforce in eight countries to serve as a long-term real estate partner to leading healthcare operators. For additional information please visit: www.nwhreit.com.

 

 

Non-IFRS Measures

  

Some financial measures used in this press release, such as SPNOI, FFO, FFO per Unit, AFFO, AFFO per Unit, AFFO Payout Ratio, and Proportionate Investment Properties are used by the real estate industry to measure and compare the operating performance of real estate companies, but they do not have any standardized meaning prescribed by IFRS.

  

These non-IFRS financial measures and non-IFRS ratios should not be construed as alternatives to financial measures calculated in accordance with IFRS. The REIT’s method of calculating these measures and ratios may differ from the methods of other real estate investment trusts or other issuers, and accordingly may not be comparable. Further, the REIT’s definitions of FFO and AFFO differ from the definitions recommended by REALpac. These non-IFRS measures are more fully defined and discussed in the exhibits to this news release and in the REIT’s Management’s Discussion and Analysis (‘MD&A’) for the three months and year ended December 31, 2024, in the ‘Performance Measurement’ and ‘Results from Operations’ sections. The MD&A is available on SEDAR+ at www.sedarplus.ca.

  

Forward-Looking Statements

  

This press release may contain forward-looking statements with respect to the REIT, its operations, strategy, financial performance and condition. These statements generally can be identified by words such as ‘may’, ‘will’, ‘expect’, ‘estimate’, ‘anticipate’, ‘intends’, ‘believe’, ‘normalized’, ‘contracted’, or ‘continue’ or the negative thereof or similar variations. Forward looking statements in this press release may include statements concerning the REIT’s position as a leading healthcare real estate asset manager globally, the REIT’s position to capitalize on the increasing demand for healthcare infrastructure worldwide and drive sustainable growth, planned asset sales and associated debt repayments made with sale proceeds, balance sheet optimization arrangements, the REIT’s commitment to simplifying its business, reducing costs, and further reducing its debt and the related anticipated impact on unitholder value, the REIT’s intention and ability to repay its convertible debentures maturing March 31, 2025, and the REIT’s expected progress on the refinancing or extension of its remaining 2025 debt maturities. The REIT’s actual results and performance discussed herein could differ materially from those expressed or implied by such statements. The forward-looking statements contained in this press release are based on numerous assumptions which may prove incorrect and which could cause actual results or events to differ materially from the forward-looking statements. Such assumptions include, but are not limited to (i) assumptions relating to completion of anticipated dispositions and deleveraging transactions; (ii) the REIT’s properties continuing to perform as they have recently, (iii) various general economic and market factors, including exchange rates remaining constant, local real estate conditions remaining strong, and interest rates remaining at current levels or decreasing; and (iv) the availability of equity and debt financing to the REIT and the REIT’s ability to refinance, or extend the maturity of, its existing debt. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transactions contemplated herein are completed. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations. and the factors described under ‘Risks and Uncertainties’ in the REIT’s Annual Information Form and the risks and uncertainties set out in the MD&A which are available on SEDAR+ at www.sedarplus.ca.

  

These cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release, and, except as expressly required by applicable law, the REIT assumes no obligation to update such statements.

 

NORTHWEST HEALTHCARE PROPERTIES REAL ESTATE INVESTMENT TRUST
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
(in thousands of Canadian dollars)
Unaudited		Three months ended December 31,						Year ended December 31,
For the years ended December 31,		2024			2023			2024			2023
Net Property Operating Income
Revenue from investment properties	$	102,702		$	123,986		$	462,403		$	507,996
Property operating costs		24,938			25,903			112,995			121,374
		77,764			98,083		$	349,408		$	386,622
Other Income (loss)
Interest and other		5,930			2,596			18,840			18,559
Management fees		3,817			4,216			15,150			15,355
Share of profit (loss) of equity accounted investments		1,359			685			(30,725	)		(19,232	)
		11,106			7,497		$	3,265		$	14,682
Expenses and other
Mortgage and loan interest expense		36,936			57,142			190,457			224,692
General and administrative expenses		13,155			12,332			58,174			57,567
Transaction costs		4,393			10,369			16,693			38,745
Foreign exchange (gain) loss		(21,510	)		9,993			(33,879	)		2,506
		32,974			89,836		$	231,445		$	323,510
Income before finance income (expense), net gain (loss) on financial instruments, net gain (loss) on dispositions, and fair value adjustments		55,896			15,744		$	121,228		$	77,794
Finance income (expense)
Amortization of financing costs		(1,813	)		(3,138	)		(22,630	)		(11,787	)
Class B exchangeable unit distributions		–			(154	)		63			(1,180	)
Fair value adjustment of Class B exchangeable units		–			(34	)		(205	)		7,524
Accretion of financial liabilities		(1,876	)		(2,556	)		(7,245	)		(9,158	)
Fair value adjustment of convertible debentures		(238	)		13,874			(36,109	)		40,666
Convertible debenture issuance costs		–			(2,682	)		(27	)		(7,283	)
Net gain (loss) on financial instruments		(14,873	)		(36,622	)		(25,014	)		(22,418	)
Fair value adjustment of investment properties		(29,924	)		(157,571	)		(368,791	)		(571,760	)
Net loss on disposals of investment properties		(3,274	)		(5,925	)		(34,670	)		(12,237	)
Fair value adjustment of unit-based compensation liabilities		4,167			(1,461	)		3,687			10,814
Income (loss) before taxes		8,065			(180,525	)	$	(369,713	)	$	(499,025	)
Current tax expense		8,108			4,457			21,143			26,972
Deferred tax expense (recovery)		(2,971	)		3,918			(70,652	)		(45,261	)
Income tax expense (recovery)		5,137			8,375		$	(49,509	)	$	(18,289	)
Net income (loss)	$	2,928		$	(188,900	)	$	(320,204	)	$	(480,736	)
Net income (loss) attributable to:
Unitholders	$	8,465		$	(136,835	)	$	(299,757	)	$	(347,690	)
Non-controlling interests		(5,537	)		(52,065	)		(20,447	)		(133,046	)
	$	2,928		$	(188,900	)	$	(320,204	)	$	(480,736	)

 

  

Exhibit 1 – Constant Currency Same Property NOI

  

Constant Currency Same Property NOI, sometimes also presented as ‘Same Property NOI’ or ‘SPNOI’, is a non-IFRS financial measure, defined as NOI for investment properties that were owned for a full reporting period in both the current and comparative year, subject to certain adjustments including: (i) straight-line rental revenue recognition; (ii) amortization of operating leases; (iii) lease termination fees; and (iv) non-recurring transactions that are not expected to recur (v) excluding properties held for redevelopment and (vi) excluding impact of foreign currency translation by converting the foreign currency denominated SPNOI from comparative period at current period average exchange rates. SPNOI is more fully defined and discussed in the REIT’s MD&A (see ‘Performance Measurement’).

 

SAME PROPERTY NOI
		Three months ended December 31,										Year ended December 31,
		2024			2023			Var %				2024			2023			Var %
Same property NOI (1)
North America	$	21,764		$	20,841			4.4%			$	76,481		$	72,373			5.7%
Brazil		13,220			12,627			4.7%				55,660			53,146			4.7%
Europe		8,146			7,875			3.4%				31,548			30,830			2.3%
Australasia		30,405			28,749			5.8%				118,400			113,162			4.6%
Same property NOI (1)	$	73,535		$	70,092			4.9%			$	282,089		$	269,511			4.7%
Impact of foreign currency translation		–			470							–			502
Straight-line rental revenue recognition		(712	)		1,004							(773	)		2,574
Amortization of operating leases		(32	)		(36	)						(137	)		(152	)
Lease termination fees		–			–							104			227
Other transactions		1,347			817							2,493			2,092
Dispositions		1,039			24,983							48,126			103,920
NOI	$	77,764		$	98,084			(20.7)%			$	349,408		$	386,622			(9.6)%

 

(1) Same property NOI is a non-IFRS measure, defined and discussed in the REIT’s MD&A.

  

Exhibit 2 – Funds From Operations and Adjusted Funds from Operations Reconciliation

  

FFO is a supplemental non-IFRS industry wide financial measure of a REIT’s operating performance. The REIT calculates FFO based on certain adjustments to net income (loss) (computed in accordance with IFRS) as detailed below. FFO is more fully defined and discussed in the MD&A (see ‘Performance Measurement‘ and ‘Funds From Operations‘).

  

For the three months and year ended December 31, 2024, FFO per unit was $0.10 and $0.36 per unit, respectively. Included in FFO per unit for the year ended December 31, 2024 is accelerated amortization of deferred financing costs as a result of early repayment of the underlying debt, using proceeds from asset sales. Excluding the impact of $10.3 million of accelerated amortization of deferred financing costs during the year, FFO for the year ended December 31, 2024 is $0.40 per unit.

 

FUNDS FROM OPERATIONS (‘FFO’)		Three months ended December 31,						Year ended December 31,
(unaudited)		2024			2023			2024			2023
Net income (loss) attributable to unitholders	$	8,465		$	(136,835	)	$	(299,757	)	$	(347,690	)
Add / (Deduct): (1)
Fair market value losses (gains) (2)		26,519			129,481			418,418			431,521
Finance cost – Exchangeable Unit distributions		–			154			(63	)		1,180
Revaluation of financial liabilities		1,876			2,556			7,245			9,158
Unrealized foreign exchange loss (gain)		(21,825	)		9,881			(33,258	)		3,521
Deferred taxes		1,414			10,197			(63,125	)		(32,190	)
Transaction costs		3,064			11,664			15,105			41,472
Net loss on disposal of investment properties		3,189			3,848			33,995			9,694
Convertible Debenture issuance costs		–			2,682			27			7,283
Internal leasing costs		300			462			1,263			1,932
Property taxes accounted for under IFRIC 21		47			–			–			847
Net adjustment for lease liabilities		4			(185	)		(435	)		(442	)
Employee termination benefits and related expenses		–			–			3,807			–
Other FFO adjustments		621			2,854			5,649			15,089
FFO	$	23,674		$	36,759			88,871			141,375
FFO per Unit – Basic	$	0.10		$	0.15		$	0.36		$	0.58
FFO per Unit – Diluted (3)	$	0.10		$	0.15		$	0.36		$	0.57
Adjusted weighted average units outstanding (4)
Basic		247,493,809			244,959,959			246,438,793			244,169,923
Diluted (3)		248,641,782			246,316,642			247,663,589			245,906,967

 

(1) FFO is not a measure recognized under IFRS and do not have standardized meanings prescribed by IFRS. See Performance Measurement in the REITs MD&A. The adjustments to determine FFO have been presented on a proportionate basis.

  

(2) Included in FFO for the three months and year ended December 31, 2024 are nil and $6.7 million related to premiums paid in connection with interest rate cap derivatives (three months and year ended December 31, 2023 – $11.1 million and $37.4 million), the impact of which is nil and $0.03 per unit, respectively (three months and year ended December 31, 2023 – $0.05 per unit and $0.15 per unit, respectively).

  

(3) Diluted units include the impact of vested deferred trust units and the convertible debentures, that would have a dilutive effect upon conversion.

  

(4) Under IFRS the REIT’s Class B LP Units are treated as a financial liability rather than equity. The REIT has chosen to present an adjusted basic and diluted per unit measure that includes the Class B Units in basic and diluted units outstanding/weighted average units outstanding. There were no Class B Units outstanding as at December 31, 2024 (December 31, 2023 – 1,710,000 Class B Units).

  

AFFO is a supplemental non-IFRS financial measure of a REIT’s operating performance and is intended to reflect a stabilized business environment. The REIT calculates AFFO as FFO, plus/minus certain adjustments as detailed below. AFFO is more fully defined and discussed in the MD&A (see ‘Performance Measurement‘ and ‘Adjusted Funds From Operations‘).

 

ADJUSTED FUNDS FROM OPERATIONS
		Three months ended December 31,						Year ended December 31,
(unaudited)		2024			2023			2024			2023
FFO (1)	$	23,674		$	36,759		$	88,871		$	141,375
Add / (Deduct):
Amortization of transactional deferred financing charges		271			1,489			15,405			6,708
Unit-based compensation expense		2,102			(696	)		4,463			6,684
Straight-line revenue		859			(1,402	)		(1,257	)		(3,659	)
Leasing costs and non-recoverable maintenance capital expenditures		(2,625	)		(3,315	)		(11,833	)		(13,353	)
AFFO (1)	$	24,281		$	32,835		$	95,649		$	137,755
AFFO per Unit – Basic	$	0.10		$	0.13		$	0.39		$	0.56
AFFO per Unit – diluted (2)	$	0.10		$	0.13		$	0.39		$	0.56
Distributions per Unit – Basic	$	0.09		$	0.09		$	0.36		$	0.65
Adjusted weighted average units outstanding: (3)
Basic		247,493,809			244,959,959			246,438,793			244,169,923
Diluted (2)		248,641,782			246,316,642			247,663,589			245,906,967

 

(1) FFO and AFFO are not measures recognized under IFRS and does not have standardized meanings prescribed by IFRS. See Performance Measurement in the REIT’s MD&A. The adjustments to determine FFO and AFFO have been presented on a proportionate basis.

  

(2) Diluted units include the impact of vested deferred trust units and the convertible debentures, that would have a dilutive effect upon conversion.

  

(3) Under IFRS the REIT’s Class B LP Units are treated as a financial liability rather than equity. The REIT has chosen to present an adjusted basic and diluted per unit measure that includes the Class B Units in basic and diluted units outstanding/weighted average units outstanding. There were no Class B Units outstanding as at December 31, 2024 (December 31, 2023 – 1,710,000 Class B Units).