Q1 2025 SmartCentres Real Estate Investment Trust Earnings Call
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Speaker Change: Please standby for the smart centers REIT Q1, 'twenty 'twenty five conference call. The call will begin shortly as a reminder, you mix up to ask a question any time during the call by pressing star one to withdraw your question. Please press star two thank you.
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Speaker Change: The conference is now being recorded.
Speaker Change: Good day, ladies and gentlemen, welcome to the Smart centers reached Q1, 'twenty twenty-five conference call I would like to introduce Mr. Peter Slant.
Speaker Change: Go ahead.
Peter Slam: Good afternoon, and welcome to our first quarter 2025 results call I'm, Peter Slam Chief Financial Officer, I'm joined on today's call by Mitch Gould her smart centers executive chair and CEO and by Rudy Gobin, Our executive Vice President portfolio management and investments.
Peter Slam: We will begin today's call with some comments from Mitch Rudi will then provide some operational highlights and I will review our financial results. We will then be pleased to take your questions.
Peter Slam: Just before I turn the call over to Mitch I would like to refer you specifically to the cautionary language about forward looking information, which can be found at the front of our MD&A. This also applies to comment that any of the speakers make this afternoon Mitch.
Peter Slam: <unk> over to you.
Mitch Rudi: Thank you Peter.
Mitch Rudi: Good afternoon and welcome everyone.
Mitch Rudi: As you've seen from our results. It was a sequential quarter of strong performance with our team is focused on all aspects of our portfolio.
Mitch Rudi: As well as the needs of our tenants as those needs evolve.
Mitch Rudi: The smart sensors platform built on the high quality covenants of national retailers continues to generate high on site customer traffic volumes and huge.
Mitch Rudi: In store sales volumes.
Mitch Rudi: That bodes well for future quarters as we further solidify our dominance of this sector with the continued expansion of our value oriented retail offering.
Mitch Rudi: Already in doubt with carefully selected anchors in grocery and general merchandise pharmacy apparel banking quick service restaurants and more.
Mitch Rudi: The seeds of our positioning and the resilience.
Mitch Rudi: Were planted many years ago.
<unk> by our belief that providing value and convenience to all Canadians is good business.
Mitch Rudi: The first quarter performance reflects this in many different metrics.
Same property NOI growth of 4.1% all in or six 7% excluding anchors.
Mitch Rudi: Positive leasing spreads of six 3% all in or eight 4% excluding anchors.
Mitch Rudi: Here's 70% of the 2025 lease maturities already executed already extended.
Mitch Rudi: 98.4% occupancy for in place and executed deals cash.
Mitch Rudi: Cash collections above 99%.
Mitch Rudi: And then another milestone signing and taking your car commit see Walmart has their first presence in South Oak Hill, and our Soc Oakville Center location at third line and Rebecca with his scheduled ground Grant Grand opening this fall.
Mitch Rudi: And just two weeks after the quarter end Costco took possession of their premises at our 80 acre Winston Churchill and 401 center, formerly occupied by Rona.
Mitch Rudi: And have commenced.
Mitch Rudi: Fixed rate with a planned opening later this year.
Mitch Rudi: This center is now Acred by a large loblaw is Walmart and Costco.
One way or another Canadians appreciate good value and when it comes to value smart centers as the go to for retailers and shoppers alike.
Mitch Rudi: On the real estate development side, we are confidently moving forward with various projects several in the exciting construction phase.
Mitch Rudi: We also continue to enhance underlying value.
Mitch Rudi: With additional land use permissions across the platform.
Mitch Rudi: This means that during that period, we further secured things like mixed use permissions, adding to the 15 9 million square feet already zoned, possibly the largest inventory.
Mitch Rudi: The future growth of any Canadian real estate company.
Mitch Rudi: When the time comes this lucrative inventory will be more difficult to ignore.
Mitch Rudi: Active developments include.
Mitch Rudi: The third 340 unit Artois condo project.
Mitch Rudi: Which works its way to grade as previously reported 93% of the units are pre sold with substantial deposits.
Mitch Rudi: Also worth mentioning.
Mitch Rudi: Our recently completed 458 unit mill way apartments is now 96, 5% leased and performing ahead of budget.
Mitch Rudi: Construction of our bond northwest Townhomes with our partners are progressing well with four more closings taking place in the quarter, bringing the total to 90% of the pre sold units now closed.
Mitch Rudi: In addition, we have continued to move forward with construction of the 224000 square foot Canadian tire flagship in lease side, which will be completed.
Mitch Rudi: And fixed.
Mitch Rudi: Pictured for opening in the second quarter of 'twenty 'twenty six.
Mitch Rudi: And.
Mitch Rudi: Six smart stops are under construction with three opening in Q2 of this year once open that will bring the gross square footage of the 14 projects to near 1.9 million square feet at 100%.
Mitch Rudi: Simultaneously, we have engaged in discussions with potential buyers for mostly nonoperating projects valued at approximately $100 million.
Mitch Rudi: Which if satisfied could close before year end.
Mitch Rudi: While the business continues to grow organically and through new income producing developments, we carefully manage our debt and debt related metrics in that regard we have improved our financial flexibility and increased our unencumbered asset pool to $9.6 billion, which Peter will speak to in a more.
Mitch Rudi: <unk>.
Rudy: But before that let me turn it over to Rudy for some more operational highlights.
Mitch Rudi: Rudy.
Mitch Rudi: Okay.
Mitch Rudi: Thanks, Mitch and good afternoon, everyone.
Speaker Change: As Mitch mentioned, the first quarter was once again a standout in many areas.
Speaker Change: And related operating metrics tenant demand for space remains strong with 178000 square feet of vacancy leasing in the quarter delivering high quality income across all provinces with a cumulative 98, 4% occupancy at quarter end.
Speaker Change: Same property NOI continued its momentum with 4.1% growth overall, and six 7% excluding anchors compared to the same period in the prior year.
Speaker Change: With $5 3 million square feet of space maturing in 2020 five the REIT has already extended 68.4% of its leases by the end of the quarter with rental spreads of eight 4% excluding anchors six 3% all in.
Mitch Rudi: Cash collections continued to exceed 99% in the quarter and in a more exciting note as Mitch mentioned shortly after the quarter end Costco with a 20 year initial lease term took possession of the X Rona space at our 550000 square feet or 650000 square feet shopping center with law.
Speaker Change: Loss at Winston Churchill and 401.
Speaker Change: With opening schedule for this fall.
Speaker Change: Walmart also with a 20 year term took possession of the ex target space in our site or fill center during the quarter and as to plans for a fall opening.
Speaker Change: As we have mentioned recently the relaxation of grocery restrictions will not only continue to benefit large open format retail, but we believe we'll also accelerate the pace of tenant demand and customers to our center.
Speaker Change: Maintaining strong cash flow and high occupancy.
Speaker Change: Generally we have also been adding to the portfolio and upgrading you says with medical daycare Entertainment health and beauty fitness pet stores and more.
Speaker Change: Our premium outlets continue to excel in driving traffic with improving tenant sales leading to strong growth in EBITDA and value to the REIT.
Speaker Change: As mentioned before tenant sales has our premium outlets in Toronto at the in the top three highest performers of all of Canada and remains an outperformer in the Simon portfolio.
Speaker Change: You will have heard about the unfortunate H B C news and while we do not have any such banners in our portfolio. We did have one saks off fifth location at our Toronto location.
Speaker Change: Peering outlet for which we have received strong interest from multiple tenants.
Speaker Change: Given that the center was 100% leased.
Speaker Change: Based on our discussion with tenants, we expect replacement rents to be in the three to four times higher than the prior tenant.
Speaker Change: Overall.
Speaker Change: The REIT continue strengthening its cash flow and stability, while reducing risk.
Speaker Change: Through strong rental less higher covenant quality, and introducing new brands and more grocery.
Speaker Change: We expect this momentum to continue throughout the year.
Thank you and I'll now turn it over to Peter.
Peter: Thanks Rudy.
Speaker Change: The financial results for the first quarter once again reflect the strong performance in our core retail business for the three months ended March 31, 2025, net operating income increased by $7.4 million or five 5% from the same quarter last year, primarily due to lease up and renewal activities.
Speaker Change: <unk> per fully diluted unit was 56 cents in the quarter compared to 48 in the comparable quarter last year the.
Speaker Change: The increase was primarily due to higher NOI and changes in the fair value adjustment on our total return swap partially offset by higher net interest expense and a nonrecurring severance costs related to reduced staffing from some deferred development activities.
Speaker Change: For the three months ended March 31, 2025, <unk> with adjustments, which excludes the townhome profits transactional gains and losses and the total return swap was 54 cents per unit compared to 52 cents for the same period in 2024.
Speaker Change: <unk> with adjustments per unit was lower by approximately <unk> <unk> as a result of the one time severance charges that we incurred during the quarter.
Speaker Change: We again maintained our distributions during the quarter at an annualized rate of $1 85 per unit.
Speaker Change: Our payout ratio to <unk> is continuing to show improvement for the three months ended March 31, It was 83, 8% or 87, 6% for the trailing 12 months.
Speaker Change: Adjusted debt to adjusted EBITDA was $9 six times for the Rolling 12 months period, ending in Q1, which is unchanged from last quarter and an improvement from nine eight times for the same period last year, primarily due to continued growth in EBITDA.
Speaker Change: Our debt to aggregate assets ratio was 44, 1% at the end of the quarter, a 30 basis point increase compared to the same period last year.
Speaker Change: Compared to Q4, our unencumbered asset pool increased by over $100 million to $9 $6 billion as we used a portion of the proceeds from our series a b debenture offering to repay some maturing mortgage debt.
Speaker Change: Unsecured debt, including our share of equity accounting accounted investments was $4 $6 billion at Q1 slightly higher from the prior quarter and represents approximately 84% of our total debt of $5 5 billion.
Speaker Change: During the quarter. We also recorded a fair value loss on our investment properties portfolio of $81 million.
Speaker Change: This adjustment was mainly attributable to a delay of development activities for certain properties under development.
Speaker Change: From a liquidity perspective, we remain comfortable with our currently current liquidity position as at March 31, 2025, we have approximately $856 million of liquidity, which includes both cash on hand, and undrawn credit facilities, but excludes any accordion features.
Speaker Change: The weighted average term to maturity of our debt, including debt on equity accounted investments is 3.3 years, our weighted average interest rate is 393% virtually unchanged from the prior quarter.
Our debt ladder remains conservatively structured with the recent senior unsecured debenture offering extending our weighted average term to maturity.
Speaker Change: Approximately 90% of our debt is at fixed interest rates.
Speaker Change: Just before we open up the call to questions I wanted to touch briefly on our development projects that are underway.
Speaker Change: As in previous quarters, we have updated our MD&A disclosure focusing on those development projects that are currently under construction.
Speaker Change: As you will see on page 17, there were 10 projects under construction at the end of Q1 unchanged from last quarter.
Speaker Change: We expect three self storage facilities to open during the second quarter of 2025, two of them in Toronto and one in Davao and I believe one of them is already opened just opened last month in fact.
Speaker Change: The REIT share of the total capital cost of these 10 development projects is approximately $515 million with our share of the estimated cost to complete standing at $275 million.
Speaker Change: And with that we would be pleased to take your questions. Operator can we have the first question on the line. Please.
Speaker Change: Absolutely as a reminder, if you'd like to queue up to ask a question. Please dial star one on your phone's keypad.
Speaker Change: The first question is from Lorne Kalmar from a digital bank capital markets. Please go ahead Lori.
Speaker Change: Thank you and good afternoon everybody.
Speaker Change: I was wondering if you guys. Good afternoon, you you provided a little bit more color on the same property NOI changes by segmenting retail outlets multi res and self storage.
Speaker Change: I might've missed it but could you provide the actual same property NOI growth percentage by by each of those categories.
Speaker Change: Yes.
Speaker Change: Yeah, Lauren we don't disclose that breakdown, but of the 4.1% overall same property NOI growth.
Speaker Change: About three quarters of it comes from our retail portfolio, which includes the premium outlets and the other the other quarter comes from apartments and self storage.
Speaker Change: Okay fair enough.
Speaker Change: And then just on the occupancy decline I know everything's dominant coming along but I figured that stood out a little bit could you give us a little bit more color on what drove that quarter over quarter.
Speaker Change: You mean, the dropped to 98 four.
Speaker Change: Yes.
Speaker Change: So to get prices down a little bit yeah, it's minimal and it's just seasonal related.
Speaker Change: Okay fair enough.
Speaker Change: Yes.
Speaker Change: I did notice at toys R. US was pulled out of the top tenants does that have anything to do with it or what happened to know.
Speaker Change: No because those were pretty much leased.
Speaker Change: Almost immediately well too.
Speaker Change: Two of the three I think that we got backwardly straight away. So it didn't really it didn't really.
Speaker Change: Move the needle the toys thing okay.
Speaker Change: No. It was just a variety across you know vary widely distributed across.
Speaker Change: The portfolio related to this time of year.
Speaker Change: Okay.
Speaker Change: And then just last one for me the premium outlets has been a standout.
Speaker Change: Probably lapping some tough comps is there any concern about the impact of the broader macro uncertainty might have on the performance of those two assets.
Speaker Change: Well in terms of I mean, Toronto is just.
Speaker Change: Well, no wonder Wonder Chile debt.
Speaker Change: Any of us could have ever expected or predicted. So you know we we are actually I don't know if we mentioned this in this or not but we are looking at potentially expanding it just.
Speaker Change: So from the point of view of your question.
Speaker Change: And that's not that's not.
Speaker Change: Going to rise or fall over interest, it's going to rise or fall over getting you know just the approvals.
Speaker Change: <unk>.
Speaker Change: But I guess.
Speaker Change: If there is really a.
Speaker Change: Yeah.
Speaker Change: Recessionary type situations.
Speaker Change: Yeah, maybe but.
Speaker Change: A little bit but.
Our sector tends to generally.
Speaker Change: Attract more people they may spend a little less per trip, but more of the population.
Speaker Change: You know shops at our centers win.
Speaker Change: When there's budgetary K types of economic condition. So we usually get a little bit more actually upside as people move away from full full price retail were sort of the.
Speaker Change: Beneficiaries of that so hard to predict on that particular asset but in general we're.
Speaker Change: We're not we're.
Speaker Change: We're not concerned about.
Speaker Change: Some tough macro.
Speaker Change: Economic conditions.
Speaker Change: Okay. Thank you so much I'll turn it back.
Speaker Change: Alright. Thank you. The next question is from Sam Damiani from TD Securities. Please go ahead Sam.
Sam Damiani: Thanks, Good afternoon everybody.
Sam Damiani: Maybe just a follow on on the on this topic of the recession I think it was mentioned.
Sam Damiani: The portfolio is a bit different today than it was 15 years ago, but if you had to sort of look out into potential economic slowdown over the next year and compare it to what we saw in 2009, I mean, what would be what would be the main differences as it relates to smart centers.
Sam Damiani: Yeah.
Sam Damiani: She's.
Sam Damiani:
Speaker Change: I mean, our locations are more mature we're surrounded by.
Speaker Change: Much each one of our centers.
Speaker Change: I don't know what percentage of good question, what percentage of our centers, we owned and an existed in 2009, but I bet you a lot of them.
Speaker Change: Are much more mature, there's a lot larger populations around them and still growing.
So I mean I like our positioning.
Speaker Change: Like to our positioning than frankly, where our go to and when when people don't want to feel that there being anything but you know.
Speaker Change: You know getting.
Speaker Change: The most for their money.
Speaker Change: We will go to.
Speaker Change: When people want to win when people are you watching.
Speaker Change: On a on a tighter budget, so and now theres larger populations from majority of our centers I did like our positioning back then but I actually.
Speaker Change: What you're asking.
Speaker Change: I really like our positioning now if that were to.
Speaker Change: In fact occur.
Speaker Change: And just broadly as it relates to the shopping center industry generally in Canada.
Speaker Change: Or would you how would you sort of call. It on a relative basis from 15 years ago, how much more insulated as the business from impacts would you say.
Speaker Change: I think the industry is probably a little.
Speaker Change: Better positioned now in general I mean, obviously, you know you divide the world up into.
Speaker Change: Enclosed fashion for.
Speaker Change: Fashion discretionary purchases in closed malls.
Speaker Change: No.
Speaker Change: And.
Speaker Change: Value oriented in our case.
Speaker Change: Unemployed and then you've got some strip centers.
Speaker Change: Solely smaller food anchored centers.
Speaker Change: But so much retail has been redeveloped very you know population has grown quite a bit over the last 15 years.
Speaker Change: Not a lot of retail has been built so on a per capita basis I don't know if anyone has done the calculation, but recently, but I would say, there's probably quite a bit.
Speaker Change: Of less.
Speaker Change: Less.
Speaker Change: Retail per capita now than there would have been in 2009.
Speaker Change: I know there I think we were somewhere in the 15 square feet.
Speaker Change: For per capita back then around then I don't know, where we are now, but I would say.
Speaker Change: Probably I don't want to guess, but we're somewhere between there'll be 11.
Speaker Change: 12, and a half or something like that so I think the industry for all kinds of reasons.
Speaker Change: No matter what sector you're in.
Speaker Change: Okay is better now than they were in 2009 I. Just think there is just much less square footage per capita but but I don't know if I'd want to be in every one of the sectors. If we go into it tough.
Speaker Change: Economic period, but I do like our positioning.
Speaker Change: With the Wal Marts and the.
Speaker Change: You know the value oriented grocery and winners and you know those things are dollar ammers, which are the core of our portfolio I do like that a lot.
Speaker Change: I don't want to.
Speaker Change: Illuminate on any other possible.
Speaker Change: Sectors, but I do think everyone's better off the industry is better off now than it was in the overnight.
Speaker Change: Those are helpful points. Thank you and the other question I had is just on the HBC spaces.
Speaker Change: I'm thinking you'll be the traditional large department store spaces that inevitably will be hitting the market at least some of them. How do you think that will divert retailer attention away from pursuing new newly constructed stores are you seeing the Wal marts and the Canadian tires.
Speaker Change: Look to those opportunities and maybe hitting the pause button on some development opportunities.
Speaker Change: No no no I mean.
Speaker Change: I don't want to be so absolutely.
Speaker Change: I would just say no I think if those get a take.
Speaker Change: <unk> taken up.
Speaker Change: I think they are in most of them are a lot of them are in in markets that you know they are not in the majority of those retailers you named so they would just be.
Speaker Change: Entering.
Speaker Change: Virgin territory.
Speaker Change: And I don't I don't know that.
Speaker Change: How much of that is going to actually happen.
Speaker Change: This is not a case of you know target, leaving and putting a huge amount of vacancy on the market or something like that.
Speaker Change: This is very the majority a lot of those units are very much unique multi level urban.
Speaker Change: The ground parking if any.
Speaker Change: No.
Speaker Change: So.
Speaker Change: Don't see that Sam really being.
Speaker Change: An issue.
Speaker Change: In this particular.
Speaker Change: In this particular case.
Speaker Change: Thank you. Thank you very much I'll turn it back.
Speaker Change: Thank you.
Speaker Change: The next question is from <unk> from RBC capital markets. Please go ahead.
Speaker Change: Thanks, everyone.
Speaker Change: Hi, everyone.
Speaker Change: Coming back to the occupancy commentary given the strength that you have seen in demand are you envisioning occupancy trending back up over the next few quarters, maybe just narrowing the gap to the committed levels or do you see it kind of stabilizing at where it ended in Q1.
Speaker Change: Well, we don't know how much we don't have that far to go.
Speaker Change: Up but I'll.
Speaker Change: I'll, let rudy Jamie in a minute, but I.
Speaker Change: I think a big potential.
Speaker Change: Potential.
Speaker Change: Number will be.
Speaker Change: For us will be in the next year.
Speaker Change: So maybe maybe in a year and a half will be.
Speaker Change: Leasing up.
Speaker Change: You know.
Speaker Change: Leasing of some large vacancies some of which we've done and we've told you about.
Speaker Change: We're getting in taste on some of our.
Speaker Change: Properties for development.
Speaker Change: So they may end up maybe turning into retail at four.
Speaker Change: If were you.
Speaker Change: If we see the value in doing that so.
Speaker Change: It's not necessarily going to change occupancy, but it will certainly increase.
Speaker Change: NOI.
Speaker Change: Mhm and development because a lot of the interest is.
Speaker Change: We have a lot of interest in new builds.
Speaker Change: So we'll be adding square footage will move occupancy up.
Speaker Change: But you know.
Speaker Change: <unk>.
Speaker Change: 40, or 30, 40 to 120000 square feet at a time because that's what the majority of the new builds are going to be so you know over the next year or year and a half, we'll probably do quite a bit of that so yes that will move occupancy, but slowly obviously, because we're going to be adding square footage at the same time, but there'll be a 100% leased.
Speaker Change: So.
Speaker Change: You know I think I, you know we want to be careful because you know.
Speaker Change:
Speaker Change: You don't want to manage expectations, but we do have quite a few of things cooking and.
Speaker Change: We feel that the occupancy of this quarter and last quarter, they are not that far apart.
Speaker Change: Probably.
Speaker Change: Probably reflective.
Mitch Rudi: Where we're going to probably be over the next few quarters and more Rudi do you want to add anything.
Mitch Rudi: To add to that Mitch but.
Mitch Rudi: I was going to say, maybe a little bit of softness in the immediate future like we talked about the Saks off fifth, which obviously will will get leased up big but there will be a little gap in time, but if youre looking out to the end of the year I think it will be an uptick.
Mitch Rudi: And like Mike said, the amount of Newbuild from grocers and T. J X is in dollar Ammers and shoppers and so on is really also which by the way is mostly on land we already own. So that will end its intensification of land, we already own and building out some raw land in it with.
Mitch Rudi: In our shopping centers is only going to drive us to a dry tenants demand for whatever remaining vacant space. There is but you know again, there isn't a lot a long way to go given that we're at 98.4 committed but.
Mitch Rudi: But we do see an update by the end of the year yet.
Speaker Change: Great. That's helpful and then Mitch just coming back to your comments around the I think you said $100 million potential dispositions by year end can you expand on that.
Speaker Change: Each market. It sounds like these are lower yielding or know your alternative development density type sites, but.
Speaker Change: It sounds like Youre, a little bit more confident internationally transacting, so maybe what's that what's changed in your mind as well between negative.
Speaker Change: Over the last few months.
Speaker Change: I mean.
Speaker Change: There is yes, they're not producing right now these assets that are potentially being sold so I.
Speaker Change: I just think it's.
Speaker Change: A slight improvement.
In the marketplace a.
A little bit more confidence.
Speaker Change: By others to Dubai.
Speaker Change: Step up.
Speaker Change: So yes.
Speaker Change: Yes, I mean, I think that's what it is a reflection of.
Speaker Change: I do think it's a I do feel that.
Speaker Change: That is a trend.
Speaker Change: So obviously as we've talked before.
Speaker Change: We're interested.
On the right terms so those deals got done we like them during conditional periods. So you never know.
Speaker Change: Right now I mean any.
Speaker Change: Saying that could anything happening in the market and the news King Spook, the kind of people that are purchasing these I mean, they are solid but theres still you know.
Speaker Change: Everyone's got their antenna out pretty high so these could fall away but.
Speaker Change: You know we went too far because we don't think theyre going to fall away. So.
Speaker Change: We think theres, probably better than a 50 50 chance that these people will firm up and close on these transactions.
Speaker Change: I hope I'm right about the slight improvement to the market and we'll be able to do some more transactions I will say.
Speaker Change: Because you might be thinking I don't see a lineup for <unk>.
Speaker Change: High density stuff you land.
Speaker Change: At the moment, but maybe some maybe some mid density rental potentially at the right price.
Speaker Change:
Speaker Change: Maybe it may be by me.
Speaker Change: Maybe this year, we'll see a little bit of that.
Speaker Change: Okay.
Speaker Change: No thats good color last one for me just on art work can you just remind us the total.
Speaker Change: Expected proceeds on that on that project.
Speaker Change: Just maybe in terms of how you underwrite.
Speaker Change: You made some provisions there was some assumptions on some of those units maybe not closing or just.
Speaker Change: I have some update on that would be helpful.
Speaker Change: I'll answer the second half to stall for Peter to answer the first half.
Speaker Change: Yeah. So we are absolutely analyze.
Speaker Change: So what if some of the many different what if scenarios.
Speaker Change: If we don't if people do default.
Speaker Change: So with those with.
Speaker Change: That analysis and that information, we are confidently going forward.
Speaker Change: With the completion of the building because we feel that with the deposits that we could still sell <unk>.
Speaker Change: Resell any of the units.
Speaker Change: Attractive price and get out.
Speaker Change: And be hole.
Speaker Change: Or we can rent them.
Speaker Change: And I don't know, whether we mentioned this or not.
Speaker Change: This time I don't know I don't think we did but we we did shrink the building at one point it was a much bigger building.
Speaker Change: So we shrunk the.
Speaker Change: Like the repetitive we struck a bunch of repetitive floors to just match up basically the sales that we have.
Speaker Change: Most.
Speaker Change:
Speaker Change: And.
Speaker Change: And for good reason, we didn't do it.
And so it's not really that big a building in the end of the day and these people do a big deposits. We do anticipate most people will close but we're ready if they don't and we're okay.
Speaker Change: If they don't.
Speaker Change: Various points of view.
Speaker Change: Peter.
Speaker Change: A long enough for you too.
Speaker Change: Yes.
Speaker Change: And pardon me on the first part of your question as we've discussed it's 340 units at outwork.
Speaker Change: 93% pre sold and the average sales price was a little north of $1100 a foot.
Speaker Change: So that should give you some color around gross proceeds.
Speaker Change: 75.
Speaker Change: Okay.
Speaker Change: Okay, No that's great I'll turn it back thank you.
Speaker Change: I wanted you to know Pam you as well.
Speaker Change: We are building as extra extra parking there as well so.
Speaker Change: It's not some home runs so just don't do the.
Speaker Change: The math on that straight up because.
You know, it's a strategically located buildings. So we built a little extra parking there for the betterment of the overall project. So we can take away some of the surface parking.
Speaker Change: And make way for future phases, so just keep that in mind.
Speaker Change: There are no further questions in the queue.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Is that mean there are no further questions still.
Still.
Speaker Change: Correct no further questions at this time.
Speaker Change: Yeah.
Speaker Change: Okay, well just before we end the call I wanted to let you know that we will be hosting our AGM next week on Wednesday may 14th we hope to see many of you there. Please.
Speaker Change: Please feel free.
Speaker Change: To reach out to any of US if you have any further questions and have a great day. Thanks.
Speaker Change: Okay.
Speaker Change: Ladies and gentlemen, this concludes the smart centers REIT to Q1 2025 conference call. Thank you for your participation and have a nice day.