Cominar Real Estate Investment Trust disclosed a net loss of C$391.7 million for the year ended Dec. 31, 2017, compared to net income of C$241.7 million for fiscal year 2016.
The diversified REIT attributed the loss in net income to the C$221.4 million disposition of income properties completed in 2016 and 2017, and to nonrecurring proceeds of C$10.7 million in 2016.
Recurring funds from operations for the fourth quarter stood at C$63.9 million, a decrease of 8.0% from C$69.4 million in the 2016 fourth quarter, while recurring adjusted FFO decreased 12.8% year over year to C$51.6 million, from C$59.2 million.
For fiscal year 2017, the REIT reported per-unit recurring FFO of C$1.38 and per-unit recurring AFFO of C$1.17.
The S&P Capital IQ consensus estimate for 2017 FFO per unit was C$1.39.
The REIT also decreased its monthly distribution to 6 Canadian cents per unit from 9.5 cents per unit, beginning with the March distribution which is payable in April. According to an earnings release, the dividend cut will provide the REIT with increased financial flexibility.
Subsequent to 2017 year-end, Cominar drew a C$75.0 million bridge loan repayable on the closing of the C$1.1 billion sale of investment properties, a 10-year C$42.5 million mortgage with an interest rate of 4.484% per annum, and a five-year C$45.0 million mortgage with an interest rate of 4.00% per year. Proceeds from the loans were used to repay a portion of the REIT's unsecured revolving credit facility.
