AUTOMOTIVE PPTYS REAL EST INVT TR (TSX:APR) released first-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below.
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View the webcast at https://app.webinar.net/zwaWP8nKDdj
Summary
APR.UN reported a strong first quarter, with property rental revenue up 21.7%, cash NOI up 19%, and AFFO per unit diluted increasing to 26.2 cents, reflecting the positive impact of recent acquisitions.
The company completed two property acquisitions during the quarter, including a Hyundai dealership in Quebec City and a Rivian facility in California, with plans for further growth supported by strategic acquisitions.
APR.UN has a debt to GBV ratio of 46.3%, with 77% of its debt fixed at an average interest rate of 4.48%, providing financial flexibility for future acquisitions.
The company has expanded its presence in the U.S. market, now owning properties in Ohio, Florida, and California, and continues to target high-quality tenants and prime metropolitan locations for growth.
Management expressed confidence in the company’s ability to build momentum and achieve its objectives, including driving AFFO per unit and enhancing unitholder value.
Full Transcript
OPERATOR
Good morning ladies and gentlemen and welcome to Automotive Property REITs 2026 First Quarter Results Conference Call and Webcast. At this time all lines are in a listen only mode. Following Management’s remarks, we will conduct a question and answer session. Please be aware that certain information discussed today may be forward looking in nature. Such forward looking information reflects the REIT’s current views with respect to future events. Any such information is subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those projected in the forward looking information. For more information on the risks, uncertainties and assumptions relating to forward looking information, please refer to the REIT’s latest MDA and Annual Information form which are available on SEDAR plus. Management may also refer to certain non IFRS financial measures. Although the REIT believes these measures provide useful supplemental information about financial performance, they are not recognized measures and do not have standardized meanings under IFRS. Please refer to the REIT’s latest MDA for additional information regarding non IFRS financial measures. This call is being recorded on May 14, 2026. I would now like to turn the conference over to Milton Lamb, President and CEO. Please go ahead Mr. Lamb.
Milton Lamb (President and CEO)
That’s great. Thank you John and good morning everyone. Thank you for joining us today. With me is Andrew Kalra, our Chief Financial Officer. Our strong first quarter performance reflects the positive impact of the 13 property acquisitions we completed in 2025 for an aggregate purchase price of approximately $200 million and the partial contributions of the two additional property acquisitions completed during the quarter. Compared to Q1 of last year, our property rental revenue has increased by 21.7%, cash NOI was up 19% and AFFO per unit diluted increased to 26.2 cents from 24.7 cents. This represents a record quarterly AFFO per unit amount for apr, demonstrating the positive impact over acquisitions and the embedded growth from contractual fixed or CPI adjusted annual rent increases in our net lease structure. This is further reflected in a reduced AFFO payout ratio of 78.6% in the quarter even after our 2025 distribution increase. The 2 acquisitions we completed during the quarter A full service Hyundai dealership located in Quebec City in a Rivian tenanted sales, delivery and service facility in Vista, San Diego County, California subsequent to quarter end. On April 7th we completed our second property acquisition in Southern California consisting of two Penske Automotive dealership properties in Santa Ana in Orange County. The dealerships are situated on parcels of land totaling approximately six acres within the Santa Ana Auto Mall, one of the area’s premier dealership corridors. The dealerships include Audi south coast, a 32,000 square foot full service Audi dealership and South Coast Volkswagen, a 29,000 square foot full service VW dealership, both operated by Penske Automotive Group. We expect our acquisitions from last year sorry, and to date in 2026 to to drive continued growth in our AFFO per unit going forward. At this point, I’d now like to turn it over to Andrew Kalra to review our financial results in greater detail.
Andrew Kalra (Chief Financial Officer)
Andrew thanks Milton and good morning everyone. Our property rental revenue for the quarter increased to $29.1 million from 23.9 million in Q1 a year ago, reflecting growth from the properties acquired during and subsequent to Q1 last year and contractual annual rent increases. Total cash NOI and same property cash NOI for the quarter totaled 23.8 million and $20.4 million respectively, representing increases of 19 and 2.1% compared to Q1 last year. Interest expense and other financing charges for the quarter were $7.3 million, an increase of 1.3 million from Q1 last year, reflecting additional debt incurred to fund our acquisitions. Our G&A expenses were $1.6 million for the quarter, an increase of $0.1 million from Q1 last year and in line with our expectations. Net income and other comprehensive income was $25.3 million compared to 7.6 million in Q1 last year. The increase was primarily due to higher NOI changes in non cash fair value adjustments for four investment properties and interest rate swaps, partially offset by higher interest costs and the change in non cash fair value adjustments
Andrew Kalra (Chief Financial Officer)
for Class B units and unit based compensation. FFO and AFFO increased by 20.4 and 19.1% respectively, compared to Q1 last year, reflecting higher rental revenue from the acquisitions and contractual rent increases. On a …
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