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Edited Transcript of CUF.UN.TO earnings conference call or presentation 5-Mar-20 4:00pm GMT

Q4 2019 Cominar REIT Earnings Call

QUEBEC Mar 26, 2020 (Thomson StreetEvents) -- Edited Transcript of Cominar REIT earnings conference call or presentation Thursday, March 5, 2020 at 4:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Bernard Poliquin

Cominar Real Estate Investment Trust - Executive VP of Office & Industrial and Chief Real Estate Operations Officer

* Heather C. Kirk

Cominar Real Estate Investment Trust - Executive VP & CFO

* Sylvain Cossette

Cominar Real Estate Investment Trust - President, CEO & Non-Independent Trustee

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Conference Call Participants

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* Bradley Sturges

Industrial Alliance Securities Inc., Research Division - Equity Research Analyst

* Jonathan Kelcher

TD Securities Equity Research - Analyst

* Michael Markidis

Desjardins Securities Inc., Research Division - Real Estate Analyst

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Presentation

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Operator [1]

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Good morning, ladies and gentlemen, and welcome to the Cominar fourth quarter results conference call. (Operator Instructions) Also note that this call is being recorded on Thursday, March 5, 2020. I now would like to turn the conference over to Mr. Sylvain Cossette. Please go ahead.

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Sylvain Cossette, Cominar Real Estate Investment Trust - President, CEO & Non-Independent Trustee [2]

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Thank you, Cindy. Good morning, and welcome to today's conference call where we will be discussing our financial results and highlights for the fourth quarter of 2019. The presentation for this call is posted in both English and French in the conference call section of our website. In line with our disclosure principles, access to this call is open to financial analysts, investors, the public and the media. The question period will be open to financial analysts.

Before I begin, I would like to draw everyone's attention to the notice concerning forward-looking statements on Page 2 of the presentation.

With me today is our CFO, Heather Kirk. Members of our executive management team, Marie-Andrée Boutin, Bernard Poliquin, Wally Commisso Jean Laramée and Michael Racine, are also here with us.

On Page 3, please let me run you through our Q4 and full year 2019 highlights. The transformation of our business continues to accelerate our NOI growth, make our business model more efficient, grow our portfolio value and strengthen our balance sheet. We have delivered strong organic growth with same-property NOI at 4% in Q4 2019, with positive contribution from each of our asset classes.

For the full year, same-property NOI was 3.2% and above our guidance. Our committed occupancy rate now exceeds 95%, a threshold that we have not met since 2008. Further to dispositions of $261 million in 2019 and to a $278 million fair value gain on our portfolio, we have significantly reduced our leverage to 51.4% by almost 4% relative to 55.3% at year-end 2018.

Over the past 12 months, we have transformed our senior management team by adding talent and new skills in order to promote a culture of excellence, improved capital allocation, drive operating performance and create value for our unitholders. This united management team is excited about embracing further opportunities in 2020. We intend to keep driving NOI growth and maintain our emphasis on surfacing untapped value, including by making the most of our intensification opportunities. Our CN Central Station property is our key focus, and we are in the process of conducting a rigorous and thorough strategic review of our alternatives aimed at surfacing untapped value.

On Page 4, further to our dispositions in 2019 and to the $278 million fair value adjustment, the split of our portfolio in terms of value has evolved year-over-year. While the office component remains stable at 39%, the retail component decreased to 34% from 38% and the industrial component increased to 27% from 23%.

From a geographical standpoint, Montréal now represents 66% of our portfolio value compared to 63% a year ago. Québec City decreased to 27% from 30% and Ottawa remained flat at 7%.

On Page 5, our committed occupancy rate improved to 95.1%, up 150 basis points year-over-year, up 70 basis points since Q3 2019 and 150 basis points above our historical average. Our in-place occupancy rate reached 91.7% at year-end 2019, up 250 basis points year-over-year and up 140 basis points since Q3 2019. Our in-place occupancy rate is now 130 basis points above our historical average.

On Page 6, I wish to highlight that the growth in the average net rent of renewed leases for our entire portfolio was 2.8% for 2019 compared to 0.6% in 2018.

Moving on to Page 7 in our office portfolio. Our office committed occupancy rate improved to 92.9%, up 140 basis points year-over-year and up 80 basis points since Q3 2019. The committed occupancy rate in Montréal stood at 90.5% and is above -- it is above 90% for the first time since Q1 2015. Part of the 5.5% SPNOI growth in Q4 2019 was 9.9% growth for our Québec City portfolio and 5.3% growth for our Montréal portfolio. Significant leasing transactions during Q4 included a 25,000 square feet new lease at CN Central Station with a crown corporation and the renewal of a 52,000 square feet lease at Complexe Jules-Dallaire in Québec City with a public agency. In 2019, we recorded a 4.1% growth in the average net rent of renewed leases.

Moving on to Page 8 in our retail portfolio. Our committed occupancy rate improved to 94.1%, up 30 basis points year-over-year and up 10 basis points since Q3 2019. Our in-place occupancy improved to 87.3%, up 180 basis points year-over-year and up 190 basis points since Q3 2019. Please note that approximately half of this increase results from the effect of the conversion of former Sears areas into common areas.

As highlighted by Marie-Andrée Boutin during our Investor Day last October, we are rebalancing our tenant mix by reducing our exposure to apparel and fashion and increasing our exposure to food and beverage, entertainment and services. In 2019, we leased 211,000 square feet to tenants in these sectors translating into a 2.2% increase of this sector -- the contribution of this sector to our retail tenancy mix.

On Page 9, with respect to our 7 Sears locations, which totaled 672,000 square feet, we signed leases for 313,000 square feet or 47% of the total area. We are in advanced discussions on 113,000 square feet or 17% of the total area. Combined, signed space and space in advanced discussions now total 64% of the total available space, a decrease from 70% as of last quarter. This decrease is attributable to the fact that we have decided to add office tenancies in Mail Champlain, where we have solid demand from office tenants due to the mall's location adjacent to the future Panama REM station. To sum it up, 64% of our Sears space is or is about to be leased and is expected to generate approximately 50% higher rental income than when leased to Sears.

As shown on Page 10, our all store sales increased by 2.2% in 2019 with growth in 11 of our 19 malls. Same-store sales on a per square foot basis experienced a slight decrease of 0.3% year-over-year. Our strongest same-store sales performers were Alexis Nihon with a 6.3% increase, followed by Promenades Beauport with a 1.9% increase, Carrefour St-Georges with a 1.8% increase and Place Longueuil with a 1.3% increase.

Moving on to Page 11. Our industrial segment recorded the highest committed occupancy at 97.1%, up 210 basis points year-over-year and up 170 basis points since Q3 2019. In-place occupancy increased 250 basis points to 96.2%. Most importantly, the growth in average net rent of renewed leases reached 10.1% in Q4, a second quarter in a row above 10%, above 10.6% in Q3. Close to 50% of our industrial leases expire by the end of 2022, including 3.2 million square feet in 2020, setting a unique opportunity for significant incremental rental growth given the strength of the industrial sector.

On Page 12, during the quarter, we sold 14 properties for gross proceeds of $50 million at an average pricing -- sorry, at an aggregate pricing of $1.7 million below our most recent IFRS values at an average cap rate on NOI in place of 7.3%. Half of these properties and value were retail properties, 42% office properties and 8% industrial properties.

In 2019, we completed dispositions for $261 million at an average cap rate of 6.9%, excluding 3 properties sold on a land value basis. This was in line with our revised target for dispositions of $250 million for 2019.

Moving on to Page 13. At 800 Palladium Drive in Ottawa, Ford Canada's 96,000 square feet occupancy is expected to start in September 2020. We have also signed a lease for the remaining 4% of the property, and we are now fully leased well ahead of schedule. The project is budgeted to cost approximately $27 million, including land, with a targeted yield on cost of approximately 9% and a potential value creation of approximately $11 million. To date, our spend is approximately $14 million.

Moving on to Page 14 with regard to intensification opportunities. We believe that we have a potential of close to 10,000 residential units on 9 different sites, subject to upzoning in certain cases. For each of these sites, we are assessing our best options, including a development on our own, a development in partnership or a sale of air rights or at the land.

Heather will now discuss our financial results.

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [3]

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Thank you, Sylvain. On Page 15, operating revenues of $178.2 million for Q4 2019 decreased by 1.1% compared to Q4 2018. This decrease of $1.9 million resulted mainly from a $7.4 million decrease from properties sold in 2018 and 2019 and $5.5 million of growth in same-property operating revenues. For the full year, our operating revenues declined by 4% due to our dispositions, partially offset by the growth in same-property operating revenues.

Q4 NOI of $93.7 million increased by 0.2% year-over-year despite the dispositions we completed in 2019. This increase is explained by the fact that operating expenses decreased by 2.5%, while operating revenues decreased by only 1.1%. For the full year, NOI declined by 3.6%, slightly less than our operating revenues due to lower operating expenses.

Moving on to Page 16. For the fourth quarter, our same-property NOI increased by 4% to $91.5 million. We are pleased to have continued to accelerate our organic growth in Q4 2019, which is the fourth consecutive quarterly increase. Q4 growth in same-property NOI was driven by a strong 6.9% increase for the industrial and flex portfolio, supported by a 5.5% increase for the office portfolio and by a 0.4% increase for retail. The increase reflects an increase in same-property in-place occupancy of 220 basis points. In-place same-property occupancy increased for all property types, including 290 basis points for our industrial and flex portfolio, 240 basis points for the office portfolio and 110 for retail.

For the full year, our same-property NOI was up by 3.2%, supported by a strong 7.2% increase for the industrial portfolio, a 4% increase for the office portfolio and a slight 0.5% decrease for the retail portfolio.

Moving on to Page 17. Same-property NOI for both Q4 and the full year reflects same-property revenues growing at a faster rate than same-property expenses and highlights the positive impact of our 2019 cost rationalization initiatives. For Q4, same-property revenues grew at 3.3% versus same-property expenses at 2.4% to deliver 4% growth in NOI. And for the year, same-property revenues grew at 2.7% relative to 2.2% increase in same-property expenses for a total same-property NOI of 3.2%.

Moving on to Page 18. We are pleased that our operating performance has exceeded our forecast and expect our same-property NOI to increase by 2% to 3% in 2020. We are confident that implementation of our strategic initiatives position us to continue to accelerate our organic growth and deliver strong results.

Moving on to Pages 19 and 20. FFO for Q4 2019 was $49.2 million, a decrease of 3.4% compared to the same period in 2018. Excluding infrequent items, core FFO reached $54.4 million in Q4 2019, a 4.1% increase year-over-year. AFFO for the first quarter was $35.6 million, a decrease of 8.7% year-over-year. Excluding the same infrequent items, core AFFO reached $40.9 million, an increase of 1.9% year-over-year.

For the full 2019 year, FFO reached $195.1 million, a 5.5% decrease compared to last year. Excluding infrequent items, core FFO was $206.2 million, a decrease of only 2.2% compared to 2018. For the full year, AFFO reached $140.9 million, a 12% decrease compared to last year. And excluding infrequent items, core AFFO was $152.1 million, translating into a decrease of 7.7% compared to 2018.

If we look at numbers on a per unit basis, core FFO for the quarter was $0.30, $0.01 higher than in Q4 2018. Core AFFO for the quarter was $0.22, in line with Q4 2018 despite an increase in CapEx reserve. As a result, the payout ratio remains stable at 81.8%. Core FFO for 2019 decreased by $0.03 year-over-year from $1.16 to $1.13. AFFO adjusted for 2019 was $0.83 compared to $0.90 in 2018, and the payout ratio was 93.5% in 2019, up from 89.8% in 2018.

Moving on to Page 21. We drew $180 million on our secured credit facility in December 2019 of total capacity of up to $300 million. This 4-year financing is secured by invested properties at an average LTV of 65% and is repayable at any time without penalty.

Also in Q4, we up-financed Alexis Nihon by $107 million, including the transfer of $44 million of mortgages on 4 properties with the same lender. This strategic transaction enabled us to extend the term from 3.7 to 10 years to reduce our interest rate from 4.77% to 3.99%, improving our FFO per unit by $0.01 and to unencumber 4 properties valued at $90 million, which improved our unencumbered asset ratio by 0.06x.

Post year-end, we also refinanced $110 million of mortgages with low LTV and high interest rates. Taken together, we repaid a total of $328 million of mortgages at an average LTV of 34% and an average interest rate of 4.91%. And we refinanced them with $388 million of mortgages at an average loan-to-value of 60% at an average interest rate of 3.78%. The transactions have allowed us to unencumber 34 properties, of which 24 were unencumbered post quarter. These transactions evidence our continuous efforts to improve our balance sheet and credit metrics.

On Page 22, our debt ratio was 51.4% at year-end, down from 55.3% at the end of 2018 and the lowest rate from Q3 2013, putting us well in line to reach our 50% target ahead of schedule. We are now targeting a debt ratio that is below 50%. Our debt-to-EBITDA was 10.6x at the end of the third -- at 10.6x at the end of the quarter. Our net debt-to-EBITDA ratio was 10.1x when taking into account the impact of cash, an improvement from 10.3x as at year-end 2018.

Our interest coverage was 2.36x, and our unencumbered asset pool stood at $2.1 billion, representing 1.82x our unsecured indebtedness, a significant increase from 1.53x at year-end 2018. This reflects increased asset values as well as the strategic approach to our financing plan. At year-end, our liquidity position was $553 million, of which $153 million was cash and the balance was undrawn amount on our credit facility.

Moving to Page 23. We have $81 million of mortgages and $400 million of unsecured debentures maturing in 2020, which we expect to refinance -- which we can easily refinance with our liquidity. We have a staggered maturity profile with an average 14.4% of our debt stack maturing annually in the next 5 years. Also financing maturity in the next couple of years have interest rates that are significantly higher than what we would expect to finance in the current market.

Moving on to Slide 24. Investments in 2019 in income properties, including capital expenditures, leasing costs and leasehold improvements, totaled $134 million, down 39.3% from $220.7 million for 2018. Including investments and development activities, capital expenditures for 2019 totaled $158.7 million, down 32.8% from $236.1 million in 2018.

And finally, moving to Slide 25. Net asset value per unit rose from $15.47 to $17.30, an 11.8% increase year-over-year. The strong increase was supported by our $279 million fair value gain on our investment properties.

Moving on to Page 26. This gain was largely driven by a 25% increase of our industrial portfolio value, which was a reflection of both growth in NOI and cap rate compression. We also recorded a $50 million gain in our office portfolio and a $132 million loss in our retail portfolio related primarily to cap rate adjustments on a selection of assets. The increase provides strong validation of the strategic initiatives we have put in place in 2019 and is a testament to the work of all of Cominar's employees in ensuring we reach our goals to create value and deliver performance for investors.

I will now pass it back to Sylvain.

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Sylvain Cossette, Cominar Real Estate Investment Trust - President, CEO & Non-Independent Trustee [4]

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Thank you, Heather. On behalf of the management team, I would like to take this opportunity to thank all of our employees as well as our trustees for their contribution over the last quarter and over the year. 2019 was an excellent year at Cominar, and we look forward to 2020.

I will now turn the mic over to the operator for the question period.

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Questions and Answers

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Operator [1]

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(Operator Instructions) And your first question will be from Brad Sturges at IA Securities.

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Bradley Sturges, Industrial Alliance Securities Inc., Research Division - Equity Research Analyst [2]

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So starting with the same-property NOI growth guidance, 2% to 3%. Can you give us the expectations by property segment and what that could look like?

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [3]

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I think the growth will be primarily driven from industrial and office. We expect those 2 categories to have similar growth and flat in retail.

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Bradley Sturges, Industrial Alliance Securities Inc., Research Division - Equity Research Analyst [4]

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Okay. And then in terms of occupancy expectations, you've had a pretty good increase in the average physical occupancy rate. Within that growth assumption, are you assuming a similar occupancy rate from here?

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [5]

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Yes. So in terms of paying occupancy, we're forecasting about a 30 basis point uptick due to often retail rising, but you have to recall also that we had a shift in strategy in 2019 with respect to industrial, and so we're much more focused on driving rents. So you'll probably see occupancy in that portfolio actually go in the opposite direction.

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Bradley Sturges, Industrial Alliance Securities Inc., Research Division - Equity Research Analyst [6]

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In terms of the industrial portfolio, the -- obviously, there's a pretty good gain to lease opportunity there. Has that -- since the Investor Day in October, has that opportunity in your forecast changed at all from the numbers that were provided then?

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [7]

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In terms of what we think the mark-to-market would be? I think as we roll forward, every month, the market is getting stronger. So it's what we presented or better.

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Bradley Sturges, Industrial Alliance Securities Inc., Research Division - Equity Research Analyst [8]

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Okay. And with the growth guidance as well as -- what's the assumption in terms of cost savings on the operating expense line?

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [9]

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We have done $10 million of the $15 million that we expected to do. I think that it's a little bit hard to give a specific number because we continue to have new people like Bernard, who joined the team recently. And I think as we roll forward into 2020, we'll be able to give more color on that.

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Bradley Sturges, Industrial Alliance Securities Inc., Research Division - Equity Research Analyst [10]

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Okay. And then maybe just lastly on the fair market value gain. Can you comment whether or not that would have included the change with Gare Centrale valuation?

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [11]

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Very little change at Gare Centrale. So that aspect if -- it's up modestly in our IFRS value versus what we had it on the books for, but it still includes no value for the density.

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Bradley Sturges, Industrial Alliance Securities Inc., Research Division - Equity Research Analyst [12]

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I guess until the strategic review is completed, I guess, that's kind of status quo in terms of valuation for now.

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Sylvain Cossette, Cominar Real Estate Investment Trust - President, CEO & Non-Independent Trustee [13]

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Correct.

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Operator [14]

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Next question will be from Jonathan Kelcher at TD Securities.

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Jonathan Kelcher, TD Securities Equity Research - Analyst [15]

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Just sticking with Gare Centrale there. When would you expect your review on that to be complete? Is that the first half of this year?

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Sylvain Cossette, Cominar Real Estate Investment Trust - President, CEO & Non-Independent Trustee [16]

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We are -- as we mentioned, Jonathan, we're conducting a very rigorous review of all our alternatives. We're pretty well advanced on that. So we are trying to move forward as quickly as we can with that opportunity and find the best means to surface the untapped value. So I think all I can say at this stage is stay tuned. But we're advanced. And as we mentioned on a prior call, we've been working with BMO and RBC on the initiative.

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Jonathan Kelcher, TD Securities Equity Research - Analyst [17]

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Okay. And then just on the refinancing at Alexis Nihon, what sort of spread did you get on that?

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [18]

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Goodness. I'm trying to remember. Do you have that off the top of your head? 190 bps.

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Jonathan Kelcher, TD Securities Equity Research - Analyst [19]

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190. And what -- was it with the same lender, sort of a blend-and-extend type of thing or...

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [20]

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Yes, yes. What we did is we got a significant fair value gain at Alexis Nihon, and we have them as a lender on a couple of retail assets. So we took those mortgages and put them on Alexis Nihon and increased the total value of the loan over and above the total loan amount that we had on the collective assets.

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Jonathan Kelcher, TD Securities Equity Research - Analyst [21]

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Okay. And then lastly just on the Palladium that comes on September -- I guess September this year. When is that -- you'll start recording NOI then?

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Sylvain Cossette, Cominar Real Estate Investment Trust - President, CEO & Non-Independent Trustee [22]

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Bernard, probably September or early October, we'll be in that area?

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Bernard Poliquin, Cominar Real Estate Investment Trust - Executive VP of Office & Industrial and Chief Real Estate Operations Officer [23]

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Correct.

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Sylvain Cossette, Cominar Real Estate Investment Trust - President, CEO & Non-Independent Trustee [24]

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It's just going through their fitting. We delivered...

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Jonathan Kelcher, TD Securities Equity Research - Analyst [25]

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Okay. So before it has the building, they start paying in September?

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Sylvain Cossette, Cominar Real Estate Investment Trust - President, CEO & Non-Independent Trustee [26]

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Around September, October.

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Operator [27]

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(Operator Instructions) And your next question will be from Mike Markidis at Desjardins.

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Michael Markidis, Desjardins Securities Inc., Research Division - Real Estate Analyst [28]

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I just noticed in your fair value disclosure that last year, you would have done 15% of the assets via DCF. And this year, it changed to 63%. And I would have thought if anything, your portfolio is more stabilized today than it would have been a year ago. So I was wondering if you could give us a little bit more color as to why that change would -- what would have driven that change.

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [29]

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Yes. Like last year, we only did, I think it was 15 assets under DCF. It's less -- it's not only about the assets are stabilized versus not stabilized. You'll also notice that over half of the portfolio was appraised externally. So that -- typically, DCF is a more rigorous approach than just doing -- capping the forward NOI. So that's the explanation. It's not really -- it wasn't driven by our views on whether assets were stabilized or not.

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Michael Markidis, Desjardins Securities Inc., Research Division - Real Estate Analyst [30]

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Okay. And then just dovetailing that into Gare Centrale and the comment that there wasn't much written up in terms of value on that asset. The density value is obviously one thing that is one of the drivers of incremental value, but you guys have also talked about redeveloping the retail and securing additional revenue streams. So I'm just curious if any of that is baked into your value at all.

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Sylvain Cossette, Cominar Real Estate Investment Trust - President, CEO & Non-Independent Trustee [31]

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Not at all. Not at all. Well, we carry in our value is the property as is.

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Michael Markidis, Desjardins Securities Inc., Research Division - Real Estate Analyst [32]

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Okay. With respect to your refinancing plan, Heather, do you have a sense of what the quantum of refinancing of low-LTV, high-coupon mortgages could be this year?

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [33]

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What's going into Q1? I do have a number for you, but I will have to get back to you in a second because I got to flip to that page. So if you have any other question, we can move on to that.

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Michael Markidis, Desjardins Securities Inc., Research Division - Real Estate Analyst [34]

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Yes. And I'm actually -- to be honest, I'm not looking for the charge. What I'm just trying to get a sense of is are you going to be -- you've obviously got a maturity schedule. I'm trying to get a sense of how many early refis we could see and what progress you could make in terms of pushing out your weighted average term.

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [35]

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We're kind of done. We did one portfolio plus the Alexis Nihon mortgage that we did in Q4, and that's pretty much it. So I mean -- and it's a cost-versus-benefit trade-off. So the notion was that it was obvious with the Alexis Nihon that there was a significant benefit there. We got a few cents from the combined 2 transactions. But as you -- especially in the current bond environment, as you get -- look at longer term, it becomes more cost prohibitive to do it.

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Michael Markidis, Desjardins Securities Inc., Research Division - Real Estate Analyst [36]

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Sure.

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Sylvain Cossette, Cominar Real Estate Investment Trust - President, CEO & Non-Independent Trustee [37]

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Also Mike, in 2021, we look at our mortgage maturities. We have -- an important segment of that is the CN Station. So given the process, we're remaining flexible for that.

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Michael Markidis, Desjardins Securities Inc., Research Division - Real Estate Analyst [38]

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Okay. Just 2 more quick ones for me here. Your decision to switch some of the old Sears space to office at Mail Champlain, was that a one-off? Or is it something that you might contemplate at some of the other assets?

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [39]

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No. We are contemplating it in 2 other assets. Office rents for a second floor of the Sears assets are more attractive than what we can obtain in retail. And we're also creating a very captive market for the mall in terms of using restaurant services and shopping.

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Michael Markidis, Desjardins Securities Inc., Research Division - Real Estate Analyst [40]

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Got it. So the economics of those leases are better than what you would have otherwise underwritten previously?

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [41]

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Correct.

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Michael Markidis, Desjardins Securities Inc., Research Division - Real Estate Analyst [42]

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Great. Okay. And last one for me. If I just go back to your Investor Day presentation and the target of 15% FFO per unit growth over 2 to 3 years, one of the levers that you had identified was unit repurchases, and I don't think that's something we've seen thus far. I was just wondering if you could give us an update on your thought process behind that.

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Heather C. Kirk, Cominar Real Estate Investment Trust - Executive VP & CFO [43]

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It will be a function of available cash and our disposition activity. So I think, like we said at the Investor Day, it's definitely something that's on our radar screen. The question mark is timing.

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Operator [44]

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(Operator Instructions) And at this time, Mr. Cossette, we have no other questions.

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Sylvain Cossette, Cominar Real Estate Investment Trust - President, CEO & Non-Independent Trustee [45]

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Thank you very much, Cindy, and thank you to everyone who took the time to listen to our call today. And we look forward to talking to you for our Q1 results. Have a nice day.

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Operator [46]

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Thank you. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines.