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Automotive Properties REIT Reports Financial Results for Second Quarter of 2021 TORONTO , Aug. 11 , 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 ( " Q2 2021 " ) and six - month ( " YTD 2021 " ) periods ended June 30 , 2021 . " While automotive dealerships , including our tenant group , continued to operate under COVID - 19 related business restrictions during the quarter , automotive retail sales continue to rebound with significant year - over - year growth to date in 2021 , reflecting the resiliency of the automotive dealership industry . Our portfolio remains fully leased and we have 100 % contractual base rent collection under our leases , plus contractual base rent that is due under the Deferral Agreements , " said Milton Lamb , CEO of Automotive Properties REIT . " We expect the pace of industry consolidation to accelerate supported by the strong recovery in sales . We remain well positioned to capitalize on acquisition opportunities to drive growth in AFFO per unit . " Q2 2021 Highlights • The REIT collected 100 % of its Q2 2021 contractual base rent due under its leases and rent deferral agreements with its tenants ( the " Deferral Agreements " ) . As at June 30 , 2021 , the remaining tenant deferral rent receivable was approximately $ 0.5 million . • The REIT generated AFFO per Unit ( as defined below ) of $ 0.221 ( diluted ) and paid total cash distributions of $ 0.201 per Unit in Q2 2021 , representing an AFFO payout ratio of approximately 91.0 % . For the three - month period ended June 30 , 2020 ( " Q2 2020 " ) , the REIT generated AFFO per Unit of $ 0.205 ( diluted ) and paid cash distributions of $ 0.201 per Unit , representing an AFFO payout ratio of approximately 98.0 % . The AFFO payout ratio was lower in Q2 2021 and YTD 2021 primarily due to the reversal of the bad debt related to the tenant receivables and contractual rent increases . The higher AFFO payout ratio in Q2 2020 and YTD 2020 also reflect the temporary dilutive effective of the December 2019 equity offering . • The REIT had a Debt to Gross Book Value ( " Debt to GBV " ) ratio of 41.3 % and a strong liquidity position with $ 75.0 million of undrawn credit facilities as at June 30 , 2021 and seven unencumbered properties with an aggregate value of approximately $ 101.4 million . • The capitalization rate applicable to the REIT's entire portfolio was 6.5 % as at June 30 , 2021 , a reduction of approximately 10 basis points from 6.6 % as at March 31 , 2021 and a reduction of approximately 20 basis points from 6.7 % as at December 31 , 2020. The reduction of the capitalization rate in Q2 2021 is a result of the REIT decreasing the discount rate for its properties in the greater Toronto and Montreal areas by approximately 20 basis points during the quarter , primarily due to industry - wide single tenant retail and industrial capitalization rate reductions . Financial Results Summary¹ ( $ 000s , except per Unit amounts ) Rental revenue ( 2 ) NOI Cash NOI Same Property Cash NOI ( excluding bad debt ( expense ) / reversal ) ( 2 ) Net Income ( Loss ) ( 3 ) FFO AFFO Distributions per Unit FFO per Unit - basic ( 4 ) FFO per Unit - diluted ( 5 ) Three months ended June 30 , 2021 2020 $ 19,562 $ 18,800 16,860 15,586 16,025 14,755 15,337 15,177 17,858 ( 23,356 ) 11,750 10,662 10,994 9,856 $ 0.201 $ 0.201 0.240 0.236 0.224 0.222 Change Six months ended June 30 , 2021 2020 4.1 % $ 38,975 $ 37,406 8.2 % 33,617 31,380 8.6 % 32,106 29,671 1.1 % 29,729 29,348 ( 7,609 ) 21,428 19,827 $ 0.402 NA 44,187 10.2 % 23,412 11.5 % 22,059 $ 0.402 0.016 0.014 0.482 0.477 0.450 0.446 Change 4.2 % 7.1 % 8.2 % 1.3 % ΝΑ 9.3 % 11.3 % 0.032 0.031