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Automotive Properties REIT Reports Financial Results for First Quarter of 2021 TORONTO , May 12 , 2021 / CNW / - Automotive Properties Real Estate Investment Trust ( TSX : APR . UN ) ( " Automotive Properties REIT " or the " REIT " ) today announced its financial results for the three - month period ended March 31 , 2021 ( " Q1 2021 " ) . " The automotive dealership industry in Canada has faced unprecedented challenges since the onset of the pandemic . Dealership operators , including our tenant group , responded rapidly and effectively to the pandemic with enhanced e - commerce solutions and streamlined operations . As a result , our property portfolio remains fully leased , we continue to receive 100 percent of rent payments and the overall capitalization rate applicable to our property portfolio has returned to its pre - pandemic level , " said Milton Lamb , CEO of Automotive Properties REIT . " As macroeconomic conditions and automotive sales and service levels continue to recover , we expect the pace of consolidation in the automotive dealership industry to rebound , which should present increased opportunities to continue advancing our acquisition program . With our low debt to GBV ratio and strong liquidity position , we are well positioned to capitalize . " Q1 2021 Highlights • The REIT collected 100 % of its Q1 2021 contractual base rent due under its leases and the payments due subject to the rent deferral agreements with its tenants ( the " Deferral Agreements " ) . • On March 1 , 2021 , the REIT acquired the real estate underlying the Lexus Laval automotive dealership located in Laval , Quebec from the Dilawri Group ( " Dilawri " ) for a purchase price of approximately $ 14.8 million . The REIT satisfied the purchase price by issuing 1,369,102 trust units of the REIT to Dilawri , raising Dilawri's effective interest in the REIT to approximately 28.1 % . • The REIT generated AFFO per unit of $ 0.227 ( diluted ) and paid total cash distributions of $ 0.201 per Unit ( defined below ) in Q1 2021 , representing an AFFO payout ratio of approximately 88.5 % . For the three - month period ended March 31 , 2020 ( " Q1 2020 " ) , the REIT generated AFFO per Unit of $ 0.208 ( diluted ) and paid cash distributions of $ 0.201 per Unit , representing an AFFO payout ratio of approximately 96.6 % . The lower AFFO payout ratio in Q1 2021 primarily reflects the impact of the properties acquired during and subsequent to Q1 2020 , contractual rent increases and a lease termination fee . • The REIT had a Debt to Gross Book Value ratio ( " Debt to GBV " ) of 41.7 % and a strong liquidity position with $ 56.9 million of undrawn credit facilities as at March 31 , 2021 . • The capitalization rate applicable to the REIT's entire portfolio was 6.6 % as at March 31 , 2021 , a reduction of approximately 10 basis points from 6.7 % as at December 31 , 2020 , primarily due to the resilience demonstrated by the REIT's tenants ' businesses , 100 % contractual rent collection and no tenant rent deferrals in the quarter . The capitalization rate is now equal to the rate used as at December 31 , 2019 , prior to the impact of the COVID - 19 pandemic . Financial Results Summary¹ ( $ 000s , except per Unit amounts ) Rental revenue ( 2 ) NOI Cash NOI Same Property Cash NOI ( excluding bad debt recovery ) Net Income ( Loss ) ( 3 ) FFO AFFO Distributions per Unit ( 2 ) Three months ended March 31 , 2021 $ 19,413 16,757 16,080 14,824 26,329 11,661 11,064 $ 0.201 2020 $ 18,606 15,794 14,916 14,640 15,748 10,766 9,972 $ 0.201 Change 4.3 % 6.1 % 7.8 % 1.3 % 67.2 % 8.3 % 11.0 %