Q4 2024 Choice Properties Real Estate Investment Trust Earnings Call
Speaker Change: I'm joined here this morning by real Diamonds, President and Chief Executive Officer, Mary <unk>, Chief Financial Officer, and I'm, calling Chief operating officer.
Speaker Change: Now, let's start the call today by providing a brief recap of our 2020 22020 for performance and will then cover the highlights for the fourth quarter now I will discuss our operational results and development activity, followed by Mario and me, who will conclude the call with a review of our financial results and 2025 outlook before we open the lines for Q&A.
Speaker Change: Before we begin today's call I would like to remind you that by discussing our financial and operating performance and then responding to your questions. We may make forward looking statements, including statements regarding choice properties objectives strategies to achieve those objectives as well as statements with respect to management's beliefs plans estimates.
Speaker Change: Intention outlook and similar statements concerning anticipated future events result circumstances performance or exceptions that are not historical fact these statements are based on our current estimates and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from the conclusions in these forward looking statements.
Speaker Change: Additional information on the material risks that can impact our financial results and estimates and the assumptions that were made in applying in making these statements can be found in our recently filed Q4 2020 for financial statements and management discussion and analysis, which are available on our website and on SEDAR and with that I will turn the call.
Ram: Over to Ram.
Ram: Thank you Erin and good morning, everyone and welcome to our Q4 conference call. We are pleased to deliver another solid year of.
Ram: Operating and financial results, our business is strong and we have a proven strategy.
Ram: Our fourth quarter and full year 2020 full performance demonstrate the quality of a necessity based portfolio and the strength of our platform in 2024, we once again successfully met our full year earnings outlook, we maintained near full occupancy rates throughout the year and exceeded our same asset cash NOI.
Ram: While delivering on the high end of our <unk> growth target.
Ram: Also ended the year with conservative debt metrics and.
Ram: Ample liquidity.
Ram: Throughout the year, we maintained our market leading portfolio by completing approximately $425 million in real estate transactions, including around $260 million of acquisitions and $165 million of dispositions. We've made significant progress on our development pipeline by adding approximately $300 million of high quality.
Ram: Real estate to our portfolio.
Ram: This included $1 2 million square feet of space across 14 projects highlighted about 12 retailers densification projects.
Ram: <unk> industrial ground lease at Calvin business Park.
Ram: And our purpose built rental buildings unity at Mount Pleasant village in Brampton, Ontario.
Ram: Total investment of approximately 235 million was delivered at an average yield of 7%, resulting in significant NAV creation.
Ram: Supported by the strength of our 2020 full performance our board of Trustees has approved our third consecutive annual distribution increase effective March 2025.
Ram: This increase demonstrates our commitment to sharing our growth without unit holders.
Ram: Okay.
Ram: Turning to our fourth quarter results our momentum continued in the quarter, we delivered strong operational and financial results and advanced our development pipeline. In addition to operating performance. We completed 80 million in total real estate transactions, which included about $60 million of acquisitions and $20 million of disposition.
Ram: Our largest transactions in the quarter with acquisition of a grocery anchored retail center in Ottawa and the acquisition of a 50% interest in a novel Halifax industrial property.
Ram: The retail center is at 85000 square foot side and Goodbye fan boy.
Ram: Which is scheduled to move from dislocation choice purchased asset and has concurrently into a 15 year lease with loblaw to backfill the fall boy upon the lease expiry in 2027, this eliminates leasing in downtown risk, while delivering strong contractual NOI growth.
Ram: The industrial acquisition in the fall.
Ram: The industrial acquisition in the fourth and final asset in a 50 50, JV joint venture, we announced with <unk> last quarter choice will manage the portfolio.
Ram: The property is an approximately 215000 square thoughts.
Ram: With a 15 year lease for loblaw with annual contractual rent steps of 2%. These transactions demonstrate our team's ability to leverage our relationship with loblaw seizing market opportunities and highlights the significant advantages of choices right of first offer.
Ram: Those remaining real estate assets.
Speaker Change: Before I turn the call over to <unk> I wanted to touch on market fundamentals across our asset classes and the overall economic environment.
Speaker Change: Our grocery anchored necessity based retail portfolio continues to be the largest and most resilient in Canada, our assets performed exceptionally well throughout 2024, and our national footprint of neighborhood centers.
Speaker Change: Rental rate growth comparable to those a core urban areas. We continue to experience high leasing demand with many of our tenants remaining interested in expanding their footprint, particularly in grocery anchored centers.
Speaker Change: As an example.
Speaker Change: Oh, both just demand for retail space and the benefits of our strategic relationship with loblaw when various stages of planning and currently working with loblaw to build six new grocery stores across the country.
Speaker Change: Two intensification of existing sites.
Speaker Change: One of which is currently under active construction two new developments on land, we purchased in the fourth quarter and the remaining two I'm planning.
Speaker Change: In addition, we have non shoppers drug Mart in active development, but the significant number of additional thoughts in different stages of planning and we expect to continue to capture 25% to 30% of the growth of shoppers drug Mart expansion.
Speaker Change: In industrial we continue to benefit from Untap rental rate growth as our low in place rents adjust to market evidenced by strong overall leasing spread despite rental rate growth moderating in 2024. After several years of robust demand for high quality industrial assets remained high.
Speaker Change: Supply in key markets remains limited.
Speaker Change: Lastly, while our residential absence today represents a small portion of our portfolio. We have long term conviction in residential as an asset class, we continue to create opportunities and value by advancing our mixed use residential properties three titled mid process overall, our business is in exceptional shape looking at.
Speaker Change: Head to 2025, we acknowledged that the political threats continue to cause overall market volatility Nevertheless choices poor Tanya remains in an <unk>.
Speaker Change: We are both positioned our portfolio and platform built to withstand economic cycles, and our disciplined approach to capital allocation and balance sheet management distinguishes us from our peers and provides us the capacity to continue to pursue growth opportunities.
Speaker Change: This is Marius last conference call and I wanted to thank him for his leadership and vision, which have guided us over the last 10 years Mario.
Speaker Change: Grateful for your contributions and the legacy you leave behind.
Speaker Change: <unk> also showed a very smooth transition to air and gas.
Speaker Change: In very good hands with that I'll pass the call over to Paul to discuss our fourth quarter operational results and development activity now.
Paul: Thank you Ralph and good morning, everyone as Rob mentioned, our portfolio continues to deliver stable and consistent cash flow growth. We ended the fourth quarter with stable portfolio occupancy at 97, 6%.
Paul: During the quarter, we had approximately 794000 square feet of leases expire.
Paul: All of which we renewed 610000 square feet, achieving a 77% tenant retention.
These renewals were completed at an average rent spread of 21, 6%.
Paul: We also completed 79000 square feet of new leasing.
Paul: Faulting in negative absorption of 105000 square feet, which was largely driven by vacancies and or Ontario, retail portfolio and Atlantic industrial portfolio.
Paul: I will comment on our plans to backfill this space in a moment.
Turning to each of our asset classes.
Paul: In our retail portfolio occupancy remained stable at 97, 6% during the quarter 485000 square feet expired, we renewed 377000 square feet for tenant retention of 78%.
Paul: These renewals spreads our 16% above expiring rents with strong growth across all the retail categories. We.
Paul: We saw the strongest growth in the quarter from full service restaurants, sporting goods pharmacy and medical.
Paul: We also completed 65000 square feet, new retail each end of the quarter, our average rents over the lease term is.
Paul: Is 67% higher than our average in place rents for retail.
Paul: This largely offsets the 108000 square feet of expiring that did not renew in the quarter.
Paul: The space that did not renew 78% is already committed to <unk> in 2025 with rents, 53% higher than expiring rents at the prior tenant.
Paul: During the fourth quarter, we generated $2 $6 million of leaf surrendering revenue.
The majority of this with the continuation of our right sizing program with Loeb loss generating a total of $2 2 million.
Paul: Please turn into revenue.
Paul: These rightsize opportunities create value prop.
Properties as the spaces spiteful by complementary third party national tenants at higher rents.
Paul: Our industrial.
Paul: Portfolio occupancy.
Paul: 97, 9% was 20 bps lower than the last quarter.
Paul: We had 293000 square feet of Expiries or wood in our Alberta Atlantic portfolios, and we renewed 223000 square feet for 76% retention rate.
Paul: Lease renewals spreads remained strong for these regions, averaging 37% above expiring.
Paul: We also completed approximately 14000 square feet of new leasing.
Paul: A small occupancy decline the decline in the quarter was expected and was primarily due to 41000 square feet of vacancies and Atlantic and 29000 square feet in Alberta.
Paul: This was also a temporary as our team has already executed 59000 square feet of new leases related to this space with lease commencement in 2025.
Paul: We expect industrial occupancy to improve over 2025, ending the year slightly above 98, 5% based on strong tenant retention and vacant space being released.
Paul: We continue to have embedded rental growth in our industrial portfolio.
Paul: Average in place rents $9 76 at the end of the quarter.
Lastly, our mixed use and residential portfolio continues to perform well with occupancy at 94, 1%.
Paul: Turning to our developments Israel mentioned, we are very proud of the progress we've made in our development pipeline.
Paul: During the quarter, we delivered approximately 70000 square feet.
Paul: Quality commercial GLA to a retail intensification program and successfully delivered 921000 square feet of industrial ground leases to loblaw at our collagen business Park location cash rent commenced at the colored insights on January one.
Paul: In addition, we continue to advance our zoning and planning activities for future residential development.
Paul: An example of this is our project at Woodbine in down in Florida, where we obtained city council approvals during the quarter.
Paul: November the project received zoning approval for the redevelopment of a 35% 10 storey mixed use asset including.
Paul: 422000 square feet of purpose built rental along with a grocery store.
Paul: Pipeline approval for the proposal was submitted in September to December.
Paul: While the project economics in certain sites are improving others, particularly large master planned sites continue to challenge due to elevated costs lower land values and the current impact of oversupply in the GTA condo market.
Paul: During the fourth quarter, we made when we made the decision to pause our golden mile redevelopment project because of increased upfront side servicing costs.
Paul: To provide citic requirements for infrastructure and our partner's decision not to proceed with the purchase on the block on the site.
Paul: Our development and construction teams will continue to evaluate solutions to improve the project viability, while continuing to advance a broader near term project pipeline.
Paul: I'll pass the call over to Mario to discuss our financial performance.
Mario: Thank you Neil and good morning, everyone. We're very pleased with our financial performance in the fourth quarter as our business continues to deliver stable and consistent growth.
Mario: Our reported funds from operation for the third quarter was $188 2 million or <unk> 26 cents per unit.
Mario: This was a clean quarter with nonrecurring items limited to lease surrender income $2 6 million offset by $3 1 million a temporary increase in G&A was primarily related to our outsourcing project, which we noted last quarter. These.
Mario: These two items account for a net charge of <unk>.
Mario: $500000.
On a per unit dilutive basis, our reported for the fourth quarter of 2006 cents per unit reflects an increase of approximately 2% from the fourth quarter of 2023.
Mario: This increase was primarily due to higher same asset NOI and net <unk> contributions from completed developments, partially offset by higher interest cost.
Mario: Turning to our properties same asset cash NOI increased by $6 7 million or two 8% compared to the fourth quarter of 2023 as a result of strong leasing activity.
Mario: By asset class retail same method NOI increased by $4 2 million or two 3%. The increase was primarily driven by higher base rent from contractual rent steps renewables, new leasing and higher recovery income.
Mario: Industrial same asset cash NOI increased by approximately $2 6 million or six 4%.
This increase was primarily due to higher rent higher base rent from leasing activity, new leasing and higher capital recoveries.
Mario: Mixed use and residential same asset cash NOI. It was relatively flat to the same quarter last year.
Mario: Turning to our balance sheet all right for US now for the quarter was $14 seven per unit, an increase of $25 million or 2% over last quarter.
Mario: Our NAV growth was driven by a contribution of $48 million from operations and a net fair value gain of $14 million from our investment properties.
Mario: This was offset by a decline of $36 million on our investment in the units of Allied properties, where were quiet and dry for us to mark to market. This investment to its trading price at the end of each period.
Mario: Our fair value gain on some properties in the quarter was primarily driven by cash flow growth in the retail portfolio and a complete transfer of the industrial Loblaw ground lease at our choice Calvin business Park.
Mario: These gains were partially offset by a loss recorded to a change in the circumstances at our golden mile redevelopment site as mentioned by now.
Mario: Turning to our financing activities.
Mario: We continue to take a prudent approach to capital management to benefit from the stability provided by our industry leading balance sheet.
Mario: We once again ended the quarter in solid financial position with strong debt metrics and ample liquidity.
Mario: Our debt to EBITDA ratio was <unk> seven times.
Mario: We continue to maintain a fully undrawn $1 5 billion corporate facility and this is further supported by approximately $13 billion of unencumbered properties.
Mario: During the quarter, we completed two mortgage refinancings, and one new financing to fund our joint venture acquisition with Crescent point.
Mario: These mortgages were for total proceeds had a share of approximately $96 million.
Mario: Our interest at a weighted average rate of 472%.
Mario: And were completed at an average term of approximately 10 years.
Mario: The refinancing activity was completed on total maturing debt. The refinance activity was completed a total maturing debt of $67 million at a weighted average cost of 375% representing enough financing of $21 million.
Mario: Subsequent to the quarter end, we repaid our $350 million $3 546 series J senior unsecured debenture at maturity.
Mario: Issued our $300 million series C unsecured debenture.
Mario: The debenture was completed for a term of five years at an all in rate of $4, 293%.
Mario: Filling an underutilized spot on our balance on our balance to tenure debt ladder.
Mario: The issuance was completed with a credit spread of 102 basis points, making a choice the second lowest five year spread ever.
Mario: We also leveraged our secured lending relationships funding $136 million a share.
Mario: On the recently transferred level families at choice Calvin business Park.
Mario: The mortgages coterminous with Lop off 25 year ground lease and first interest at $4 eight 8%.
Mario: The loan was negotiated at pricing inside of love lots equivalent unsecured credit spread.
Mario: These two financings totaled $436 million and were completed at a weighted average rate of 448% and an average term of approximately 11 years, which once again highlights our ability to prudently manage and derisk our balance sheet in a cost effective manner.
Mario: So once again, we are pleased with another strong quarter and meeting our 2024 annual earnings outlook choice is well positioned we have confidence in our business to continue to deliver stability and growth to unit holders.
Mario: I would now like to turn the call over to Aaron to speak to our 2025 outlook. Thanks Mario.
Aaron: Looking ahead, we have a solid plan in place to continue to deliver on our operational and financial goals.
Speaker Change: Full year 2025, we expect to maintain stable occupancy was approximately 2% to 3% year over year growth in Cmos and cash NOI and.
Speaker Change: In addition, we expect to deliver annual <unk> growth unit delineated between $1 <unk> to $1.06.
Speaker Change: Collecting approximately 2% to 3% year over year growth.
Speaker Change: We plan to continue to advance our development pipeline with the majority of our spend is focused on the advancement of our industrial development and choice Calvin business Park, and our retail intensification program Lastly, we remain committed to maintaining the strength of our industry, leading balance sheet and expect debt to EBITDA to remain below seven five times with our <unk>.
Speaker Change: Unsecured debt issuance, we have addressed a significant portion of our 2025 maturity.
Speaker Change: And with that well now Mylan I would be glad to answer your questions.
Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad well pause for just a moment to compile the Q&A roster.
Speaker Change: And your first question comes from the line of Lorne Kalmar from Desert any capital markets. Your line is open.
Speaker Change: Thanks, Good morning, everyone.
Speaker Change: Yes, a bittersweet.
Speaker Change: Mario on the call at least.
Speaker Change: Just on the industrial side of things it sounds like it's a decently.
Speaker Change: Bullish outlook despite.
Speaker Change: Some of the broader headwinds within the portfolio do you guys have a rough idea.
Speaker Change: The number of tenants or from a revenue percentage that could potentially be impacted by the.
Speaker Change: Potential tariffs and then.
Speaker Change: Yes, so maybe I'll leave it Oh, yeah, and then any.
Speaker Change: And are you guys seeing any impact on leasing timelines as it relates in the industrial portfolio.
Speaker Change: Okay.
Speaker Change: Hey.
Speaker Change: Good morning.
Speaker Change: Look I think from a macro point of view on tariffs look it's very early days and everyone's monitoring.
The situation closely I will tell you. What we know is we have a very high quality portfolio. That's generic that can accommodate a wide variety of tenants.
Speaker Change: And then when we look at the leasing we have done for 2025, we have renewed.
85% of the tenants already rolling.
Speaker Change: And then if you think about the portfolio overall as a portfolio is truly demonstrated.
Speaker Change: Real resilience and we expected continue to do that.
Speaker Change: If you think about just retail for a second we seeing we've seen strong demand from retail tenants.
Speaker Change: And tariffs, obviously doesn't have an impact.
Speaker Change: On the fact that the.
Speaker Change: Limited supply in the majority of our tenants are true necessity based tenants.
Speaker Change: As I said, we will monitor the situation, but we don't expect.
Speaker Change: A significant impact at this point.
Speaker Change: Okay.
Speaker Change: Good to hear and then then just quickly maybe for Niall on the.
Speaker Change: Loblaw is developments to ground up developments can you give us an idea of what type of yields you would expect to get on those projects.
Niall: Hi, Lauren it's typically seven 5%.
Speaker Change: And would it be the same for the intensification, there would you be able to get higher on the intensification.
Speaker Change: It's around the same on the densification of that balance.
Speaker Change: Okay perfect. That's all from me I'll turn it back.
Brad Sturges: Your next question comes from the line of Brad Sturges from Raymond James Your line is open.
Brad Sturges: Hey, good morning.
Brad Sturges: Just wondering on just the casino on theme on industrial.
Brad Sturges: Just.
Brad Sturges: Considering the land bank you have.
Brad Sturges: Today in the cost base you have on it.
Brad Sturges: Married with maybe a little bit more of an uncertain macro picture like how do you think about new development industrial would.
Brad Sturges: Would you still consider specters.
Brad Sturges: Switching gears more of a build to suit or pre leased.
Brad Sturges: At this stage.
Speaker Change: Yeah look.
Speaker Change: As you said, we have a real competitive advantage just given the land cost base at the moment, we actually building as much as we can on the slides we current actually go quicker.
Speaker Change: Earliest we could actually start spec construction or new construction would be probably mid <unk>.
Speaker Change: Led to call it Q3 of 25.
Speaker Change: And then if you've seen our disclosure.
Speaker Change: We've seen quite a significant decrease in construction costs.
Speaker Change: That coupled with our land pricing.
Speaker Change: We have a real cost advantage over others.
Speaker Change: Which gives us the confidence to potentially go on spec pending major dislocation in the industrial market.
Speaker Change: As well, we've seen quite a few rfps come out, which we are responding to and as I said, we've got time to monitor the situation and move forward Accordingly.
Speaker Change: Okay.
Speaker Change: That makes sense.
Speaker Change: Yeah.
Speaker Change: More broadly speaking I guess, there was a little bit of transitional vacancy in the industrial portfolio as you alluded to last quarter like how do you think about.
Speaker Change: The vacancy rate in the next couple of quarters for industrial.
Brad Sturges: Hi, Brad.
Speaker Change: We see that vacancy rates.
Brad Sturges: Improving.
Brad Sturges: Because there has been a lot of absorption in the last quarter. The meetings, we've had with the brokers there was significant take up in the GTA in Q4, which is boding well for 2025.
Brad Sturges: Okay.
Brad Sturges: And in terms of what what's left to do from a expiry perspective. There is no major non renewals you are expecting at this point.
Brad Sturges: No.
Brad Sturges: Yes.
Brad Sturges: I will turn it back thank you.
Speaker Change: Your next question comes from the line of Sam Damiani from TD Securities. Your line is open.
Sam Damiani: Thanks, Good morning, everyone.
Sam Damiani: So first off just I guess for Niall your comment about Golden mile Deferring that was that what were the main reasons I think you mentioned oversupply in the GTA market.
Sam Damiani: Or are there other reasons that we're really with triggers there or was it really just the partner not willing to go ahead could you go ahead on this project with a different partner and other other.
Sam Damiani: Residential sites in the GTA that you would consider moving forward on in the near term.
Sam Damiani: I'll answer the last part of the question first yes, we are moving ahead with our sites in the GTA, what's particular to Golden mile is the infrastructure for golden mile, but within our land and the external servicing.
Sam Damiani: Is quite high and there is a landowners group that is working with the city to try and figure out how to do this more effectively and efficiently.
Sam Damiani: Also no DC credits for the infrastructure Thats created by the landowners group, so it's creating a bit of an abnormal situation just with this one particular masterplan.
Sam Damiani: Okay. That's interesting it sounds like something that should be fixed.
Sam Damiani: Maybe just moving over to those those development sites acquired in Calgary and Edmonton do you have the total retail GLA that youre expecting to build on those and what the.
Sam Damiani: Rents youre targeting and maybe I guess, you mentioned the development yields kind of in the mid Sevens.
Sam Damiani: Adam.
Sam Damiani: Seven trial.
Sam Damiani: The one in Edmonton, it's around 35000 feet and the one in Calgary.
Sam Damiani: Sure believes around 100000 feet.
Sam Damiani: <unk>.
Sam Damiani: The yields now commented on were general across everything we're doing with loblaw.
Sam Damiani: The new develop these new developments may be slightly lower than that but not significantly lower.
Sam Damiani: Okay.
Maybe just one last one for me.
Sam Damiani: The comment on the 16%.
Sam Damiani: Renewal spreads and leasing I think that's a bit of a different metric than you've disclosed historically because it includes the average rent over the new term.
Speaker Change: How would that metric compare to the last couple of years.
Speaker Change: I can answer that the calc on that and they will now have been talking about spend per fan. So 16% is what we've been discussing.
Speaker Change: Discussing on the calls over the past couple of quarters, which is adding to average and then in our docs. We've also provided ending tier one as well.
Speaker Change: And what we saw is burned in 2021 was relatively consistent to what we saw in 2003 as well and what we expect going forward in 'twenty five.
Speaker Change: I don't think we have the <unk>.
Speaker Change: Going back further on the comparable.
Speaker Change: I don't have it handy here.
Speaker Change: Okay, Great. That's helpful. Thank you and I'll turn it back.
Speaker Change: Your next question comes from the line of Mark Rothschild from Canaccord. Your line is open.
Mark Rothschild: Thanks, and good morning, everyone. So I understand that the golden mile development might be somewhat unique rail in your comments you spoke about long term conviction in residential.
Speaker Change: But you're not really undertaking anything significant now even though the balance sheet is in pretty good shape.
Mark Rothschild: Is this something that you would need to see.
Mark Rothschild: Is it cost coming down is it the condo market improving for you to work more aggressively in advancing some of the development projects you have because obviously, there's quite a bit.
Mark Rothschild: Our potential in the portfolio.
Mark Rothschild: Yes, I think.
Mark Rothschild: Mark I think what made Golden model unique is that we're relying on condo sales too.
Mark Rothschild: Two almost supplement our rental building of it. So we as al said, we are pivoting to call. It single tower rental only buildings and we're definitely seeing a softening in costs.
Triste rates stability, where interest rates coming down and Thats, what gives us the conviction that we believe over the next call. It 12 months.
Speaker Change: We can actually get our projects off the ground, maybe you can just give a bit more color, yes market add to that that we're having we're having a lot of success with the planning authorities as well moving through entitlements and making modifications.
Speaker Change: Theyre moving a lot faster than we expected. So we're hoping to get two projects in the near term.
Speaker Change: Moving action shovels in the ground with board approval.
Speaker Change: Pending board approval.
Speaker Change: Yeah.
Speaker Change: Okay, great. Thanks, that's all for me.
Speaker Change: Again, if you'd like to ask a question. Please press star one on your telephone keypad.
Speaker Change: Your next question comes from the line of Himanshu Gupta from Scotiabank. Your line is open.
Himanshu Gupta: Thank you and good morning.
Speaker Change: So Andy you seem assets NOI guidance of Google.
Himanshu Gupta: <unk>.
Speaker Change: How much are you assuming for the industrial asset class.
Himanshu Gupta: And then.
Himanshu Gupta: I think you mentioned occupancy industrial occupancy to be 95% by the year end.
Himanshu Gupta: I mean, what kind of rental spreads are you expecting on those six questions as well.
Himanshu Gupta: So can I ask you what do you think about that same asset retail should be relatively consistent in 2025, and now can provide more color, but industrial in 2024 had a lot of roll in the GTA, which significantly benefited us when you think about 2025 for industrial I assume asset is going to be lower just because of.
Speaker Change: The leases are rolling more out west in Atlanta, but I'll hand over to now to get a bit more color there.
Himanshu Gupta: We've only got three leases in Ontario this year.
The first 130000 square feet that youre going to see spreads that youre used to seeing in a quite typical one other very large renewal, which is a fixed rate renewal at the end of the year.
Himanshu Gupta: Okay.
Himanshu Gupta: Got it that's helpful.
Speaker Change: So neatly in Ontario, and I guess, I think a bulk of them is coming in Alberta.
Himanshu Gupta: But your disclosure 10 billion Edmonton.
Himanshu Gupta: Correct.
Himanshu Gupta: Okay, Okay fair enough and then.
Himanshu Gupta: Any comments on Amazon.
Himanshu Gupta: Cabezon kind of exiting the <unk> market and then how does that impact you idea well one property in Nevada.
Himanshu Gupta: Maybe any thoughts there.
That's correct with one property in about.
Himanshu Gupta: Thats leased until August 2000, 32032.
Himanshu Gupta: We haven't heard a formal response from Amazon yet so we're waiting to get that.
Himanshu Gupta: Okay.
Okay and then.
Himanshu Gupta: He's on D R.
Himanshu Gupta: No response I get it.
Speaker Change: Do you think this space will be <unk> to the sublease market or I'm in.
Himanshu Gupta: How is how long does it back and then either.
Himanshu Gupta: We are.
Himanshu Gupta: We're not quite sure yes.
Himanshu Gupta: Like there is a significant rent lift between the in place release rent in the market.
Speaker Change: I am sure Amazon is looking at <unk>.
Himanshu Gupta: And we sure enough. So the result site.
Himanshu Gupta: So as I mentioned I think we hope that they take it to market because we will share in that growth has now said that they've improved the space significantly that are using the space.
Himanshu Gupta: But we have at least with them.
Himanshu Gupta: Now I'll say, we're waiting on feedback from Amazon.
Himanshu Gupta: Got it and I'm, assuming your guidance basically assumes that you receive today and for the full year 2005. So.
Himanshu Gupta: Well provisioned.
Himanshu Gupta: Correct.
Himanshu Gupta: Okay. Okay. So that's it thank you and maybe just last question on the capital allocation.
Himanshu Gupta: Right.
Himanshu Gupta: Again, you know active capital recycling you had last year.
Himanshu Gupta: Given where the cost of that financing is unsecured debenture market is wide open here.
Himanshu Gupta: Do you see yourself to be a bit more opportunistic on the acquisition side.
Himanshu Gupta: We hope so.
Himanshu Gupta: A few things we're working on there hopefully come to fruition.
Himanshu Gupta: So we will have an update for you next quarter.
Speaker Change: Okay Fair enough. Thank you all and I told him back.
Speaker Change: Your next question comes from the line of Hummingbird from RBC capital markets. Your line is open.
Speaker Change: Thanks, maybe just sticking with the line of questioning around industrial have you seen any change at all in terms of maybe the opportunities coming out in the market from a from an investment standpoint acquisitions related.
Speaker Change: And any changes in pricing.
Speaker Change: Where yields are coming in.
Speaker Change: So.
Speaker Change: Some of the opportunities, we actually looking at the moment, our industrial and <unk>.
Speaker Change: She off market opportunities.
Speaker Change: I'd say there has been no real change in pricing.
Speaker Change: On industrial gas remains strong and it seems to still be.
Speaker Change: Deep pools of capital looking at it.
Speaker Change: And with these vendors.
Speaker Change: Is there any are they motivated or is it more just slipping out of maybe some funds or any color you can share.
Speaker Change: Yes. So one of the vendors is one is the loblaw deal that we have the right to purchase and the other one is.
Speaker Change: Both market opportunity that we have been working with the vendor for about nine months on.
Speaker Change: Alright would these be in the GTA.
Speaker Change: The one the level one is in the GTA. The other one is across Canada.
Speaker Change: Got it and then I guess.
Speaker Change: Sure.
Speaker Change: Oh, I'm, sorry, I just had a few locations.
Speaker Change: Okay.
Speaker Change: And then I guess.
Speaker Change: Just in response to the prior question.
Speaker Change: Investment standpoint, or the bulk of the opportunities then.
Speaker Change: Like how would you sort of characterize the investment size I guess in terms of what's under review from an acquisition perspective.
Speaker Change: I would say in total around $350 million.
Speaker Change: Yeah.
Got it okay. Thanks, very much I'll turn it back.
Speaker Change: And that concludes our question and answer session I will now turn the call back over to rail Diamond CEO for closing remarks.
Speaker Change: Thank you, Rob and thanks, everyone for joining us this morning, and thank you for your interest.
Speaker Change: <unk> investment in choice.
Speaker Change: This concludes today's conference call you may now disconnect.
Speaker Change: Please wait the conference will begin shortly.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change:
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yes.