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ChoiceProperties CHOICE PROPERTIES REAL ESTATE INVESTMENT TRUST REPORTS RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30 , 2021 Toronto , Ontario July 21 , 2021 / CNW / - Choice Properties Real Estate Investment Trust ( " Choice Properties " or the " Trust " ) ( TSX : CHP.UN ) today announced its consolidated financial results for the three and six months ended June 30 , 2021. The 2021 Second Quarter Report to Unitholders is available in the Investors section of the Trust's website at www.choicereit.ca , and has been filed on SEDAR at www.sedar.com . " We are pleased to report another strong quarter , with stable financial and operating results for Q2 . Our high - quality portfolio continues to produce solid earnings and high levels of rent collections , despite an operating environment that was impacted by regional lockdowns across Canada , " said Rael Diamond , President and Chief Executive Officer of the Trust . " In addition to our solid results , we continued to advance our development initiatives and drive meaningful net asset value appreciation through our existing portfolio and improve our balance sheet . In the quarter we recognized a 3.6 % increase in our net asset value per unit driven primarily by gains in our industrial portfolio , transferred 149,000 square feet of new GLA to income producing assets , and lowered our leverage ratio through the early repayment of $ 200 million of debentures . " Summary of GAAP Basis Financial Results ( $ thousands except where otherwise indicated ) ( unaudited ) Change $ ( 214,506 ) Three Months June 30 , June 30 , Change June 30 , Six Months June 30 , Net income ( loss ) $ Net income ( loss ) per unit diluted 84,621 0.117 $ ( 95,813 ) $ 180,434 $ ( 0.137 ) 0.254 22,423 0.031 $ 236,929 0.338 ( 0.307 ) Rental revenue 323,936 314,885 9,051 650,475 639,796 Fair value gain ( loss ) on Exchangeable Units ( 1 ) ( 288,924 ) 70,193 ( 359,117 ) ( 506,607 ) 456,255 10,679 ( 962,862 ) Fair value gains ( losses ) excluding Exchangeable Units ( 2 ) 265,973 ( 216,603 ) 482,576 325,193 ( 352,268 ) 677,461 Cash flows from operating activities 122,655 205,289 ( 82,634 ) 271,287 309,436 ( 38,149 ) Weighted average Units outstanding - diluted 1 . 2 . 723,265,565 700,600,087 22,665,478 723,120,099 700,604,088 22,516,011 Exchangeable Units are recorded at their fair value based on the market trading price of the Trust Units , which results in a negative impact to the financial results when the Trust Unit price rises and a positive impact when the Trust Unit price declines . Fair value gains ( losses ) excluding Exchangeable Units includes adjustments to fair value of investment properties and unit - based compensation . Quarterly Results Choice Properties recorded net income of $ 84.6 million for the second quarter of 2021 as compared to a net loss of $ 95.8 million in the second quarter of 2020. The quarterly increase compared to prior year was mainly due to a $ 511.7 million increase in the fair value of investment properties , including those held within equity accounted joint ventures , a decline in bad debt expense , and an increase in rental revenue mainly due to the net contribution from acquisitions and development transfers completed in the past 12 months . These increases were partially offset by a $ 359.1 million unfavourable change in the adjustment to fair value of the Trust's Exchangeable Units . For the quarter , bad debt expense was $ 1.5 million on a GAAP basis ( $ 1.8 million on a proportionate share basis ) compared to bad debt expense of $ 14.1 million on a GAAP basis ( $ 14.6 million on a proportionate share basis ) in the second quarter of 2020 . The results in the second quarter of 2020 were impacted by a non - recurring $ 7.8 million allowance for expected credit losses on a specific mortgage receivable and $ 6.8 million in early redemption premiums paid in June 2020 for two senior unsecured debentures that would have matured in 2021 . Year - to - Date Results Choice Properties reported net income for the six months ended June 30 , 2021 of $ 22.4 million compared to net income of $ 236.9 million for the six months ended June 30 , 2020. The year - to - date decrease compared to the prior year was mainly due to a $ 962.9 million unfavourable change in the adjustment to fair value of the Exchangeable Units , partially offset by a $ 720.8 million favourable change in the fair value of investment properties , including those held within equity accounted joint ventures , a decline in bad debt expense and an increase in rental revenue mainly due to the net contribution from acquisitions and development transfers completed in the past 12 months . The year - to - date bad debt expense was $ 3.2 million on a GAAP basis ( $ 3.7 million on a proportionate share basis ) compared to bad debt expense of $ 15.0 million on a GAAP basis ( $ 15.5 million on a proportionate share basis ) for the six months ended June 30 , 2020 . 1