Canada's Inovalis REIT Q1 rental revenue falls on asset sales

Overview

• Canada office property REIT's Q1 rental revenue declined yr/yr due to asset sales

• Adjusted FFO and FFO per unit were nil, reflecting low occupancy and borrowing costs

Outlook

• Company expects to close sale of Arcueil property before end of year, pending permit issuance

• Inovalis REIT says leasing negotiations advancing at Gaia property for public hospital and medical center

• Company remains focused on balance sheet resilience amid compressed European real estate markets

Result Drivers

• ASSET SALES - Rental income and net rental income declined mainly due to the sale of the Trio property and other asset dispositions

• LOW OCCUPANCY - Nil FFO and AFFO per unit reflected low occupancy and borrowing costs

• STRATEGIC VACANCY - Vacancies maintained at Arcueil and Delizy properties to support planned dispositions

Company press release: ID:nBw89bJGCa

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the commercial reits peer group is "hold"

• Wall Street's median 12-month price target for Inovalis Real Estate Investment Trust is C$0.85, about 4.9% above its May 12 closing price of C$0.81

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