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ChoiceProperties CHOICE PROPERTIES REAL ESTATE INVESTMENT TRUST REPORTS RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30 , 2021 Toronto , Ontario November 3 , 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 nine months ended September 30 , 2021. The 2021 Third 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 with the strong financial and operating results we delivered this quarter . Our necessity - based portfolio has been resilient over the course of the pandemic , and we expect it will continue to drive stable results going forward , " said Rael Diamond , President and Chief Executive Officer of the Trust . " We also continued to advance our long - term pipeline of mixed- use developments in the quarter . We submitted zoning applications for two additional projects , and to date we have over 10 million square feet of potential density submitted for zoning approval . With the strength of our balance sheet , we are positioned well to execute on this pipeline of compelling development opportunities . " Summary of GAAP Basis Financial Results Three Months ( $ thousands except where otherwise indicated ) ( unaudited ) September 30 , 2021 Net income ( loss ) $ 163,672 $ Net income ( loss ) per unit diluted 0.226 September 30 , 2020 97,186 0.137 September Change 30 , 2021 Nine Months September 30 , 2020 66,486 $ 186,095 $ 334,115 $ Change ( 148,020 ) 0.089 0.257 0.472 ( 0.215 ) Rental revenue 316,083 308,956 7,127 966,558 948,752 17,806 Fair value gain ( loss ) on Exchangeable Units ( 1 ) 15,831 ( 15,599 ) 31,430 ( 490,776 ) 440,656 ( 931,432 ) Fair value gains ( losses ) excluding Exchangeable Units ( 2 ) 35,103 29,512 5,591 360,296 ( 322,756 ) 683,052 Cash flows from operating activities 153,939 79,837 74,102 425,226 389,273 35,953 Weighted average Units outstanding - diluted 723,346,150 711,582,778 11,763,372 723,038,843 707,537,645 15,501,198 1 . 2 . 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 $ 163.7 million for the third quarter of 2021 as compared to $ 97.2 million in the third quarter of 2020. The quarterly increase compared to the prior year was mainly due to a $ 31.4 million favourable change in the adjustment to the fair value of the Trust's Exchangeable Units and a $ 33.1 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 . For the three months ended September 30 , 2021 , bad debt expense was $ 0.4 million on a GAAP basis ( $ 1.0 million on a proportionate share basis ) compared to $ 4.0 million on a GAAP basis ( $ 4.7 million on a proportionate share basis ) for the three months ended September 30 , 2020 . Year - to - Date Results Choice Properties reported net income for the nine months ended September 30 , 2021 of $ 186.1 million compared to $ 334.1 million for the nine months ended September 30 , 2020. The decrease compared to the prior year was mainly due to a $ 931.4 million unfavourable change in the adjustment to the fair value of the Trust's Exchangeable Units , partially offset by a $ 753.8 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 . For the nine months ended September 30 , 2021 , the year - to - date bad debt expense was $ 3.6 million on a GAAP basis ( $ 4.7 million on a proportionate share basis ) compared to $ 19.0 million on a GAAP basis ( $ 20.2 million on a proportionate share basis ) for the nine months ended September 30 , 2020 . The results for the nine months ended September 30 , 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 . 1