Page 1

Automotive Properties REIT Reports Financial Results for Third Quarter of 2021 TORONTO , Nov. 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 ( " Q3 2021 " ) and nine - month ( " YTD 2021 " ) periods ended September 30 , 2021 . " The third quarter was another strong one for the REIT , highlighted by solid increases in revenue , NOI and AFFO per unit , " said Milton Lamb , CEO of Automotive Properties REIT . " Our strong financial performance is supported by the resiliency of the automotive dealership industry , which is experiencing year - over - year growth in sales this year . We are collecting 100 % of contractual base rent under our leases every month , in addition to contractual rent that is due under the Deferral Agreements . We expect the pace of industry consolidation to accelerate in the months ahead as the economy continues to recover , and we are well positioned to capitalize on accretive opportunities to expand our property portfolio . " Q3 2021 Highlights • The REIT collected 100 % of its Q3 2021 contractual base rent due under its leases and rent deferral agreements with its tenants ( the " Deferral Agreements " ) . • The REIT generated AFFO per Unit ( as defined below ) of $ 0.221 ( diluted ) and paid total cash distributions of $ 0.201 per Unit in Q3 2021 , representing an AFFO payout ratio of approximately 91.0 % . For the comparable three - month period ended September 30 , 2020 ( " Q3 2020 " ) , the REIT generated AFFO per Unit of $ 0.215 ( diluted ) and paid cash distributions of $ 0.201 per Unit , representing an AFFO payout ratio of approximately 93.5 % . The AFFO payout ratio was lower in Q3 2021 primarily due to contractual rent increases , in addition to the temporary dilutive effect of the REIT's December 2019 equity offering . • The REIT had a Debt to Gross Book Value ( " Debt to GBV " ) ratio of 40.1 % as at September 30 , 2021 , and a strong liquidity position with $ 74.2 million of undrawn credit facilities , $ 5.0 million of cash on hand , and seven unencumbered properties with an aggregate value of approximately $ 103.2 million . • The capitalization rate applicable to the REIT's entire portfolio was 6.4 % as at September 30 , 2021 , a reduction of approximately 10 basis points from 6.5 % as at June 30 , 2021 , and a reduction of approximately 30 basis points from 6.7 % as at December 31 , 2020. The reduction of the capitalization rate in Q3 2021 is a result of the REIT decreasing the discount rate for its properties in the Greater Vancouver Area and Alberta by 25 basis points , and decreasing discount rates for specific properties in certain markets . The reductions were primarily due to industry - wide single tenant retail and industrial capitalization rate reductions . In addition , the REIT continued its amortization of two land lease properties . 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 ) FFO AFFO Distributions per Unit ( 3 ) FFO per Unit - basic ( 4 ) Three months ended September 30 , 2021 $ 19,462 $ 18,627 16,688 16,168 15,992 15,243 15,410 30,824 11,626 11,008 $ 0.201 2020 Change 0.237 15,120 4,395 11,124 10,338 $ 0.201 0.234 2021 Nine months ended September 30 , 2020 4.5 % $ 58,438 3.2 % 50,306 4.9 % 48,257 0.003 1.9 % 44,698 44,031 601.3 % 75,013 ( 3,214 ) 4.5 % 35,039 32,552 30,165 $ 0.603 6.5 % 33,067 $ 0.603 $ 56,033 47,548 44,914 0.719 0.683 Change 4.3 % 5.8 % 7.4 % 1.5 % ΝΑ 7.6 % 9.6 % 0.036