From GlobeNewswire: 2025-03-06 17:48:00

Melcor Real Estate Investment Trust announced its results for the fourth quarter and year ended December 31, 2024. The REIT faced challenges in 2024, including lower occupancy rates in both retail and office properties. Financial performance metrics, such as FFO and ACFO, were significantly impacted. The REIT suspended cash distributions in February 2024.

Revenue for the fourth quarter was down 2.1% to $18.12 million, with NOI also down 3.8% to $11.10 million. FFO was down 50% to $2.83 million, and ACFO was down 76% to $0.88 million. For the year, revenue was down 2.1% to $72.34 million, with NOI down 1.7% to $45.84 million.

Melcor REIT finalized the sale of three properties in 2024, including an office property in Kelowna, BC, for net proceeds of $7.48 million. Subsequent to year-end, the REIT closed on the sale of a retail property in Grande Prairie, AB, for gross proceeds of $48.00 million.

The REIT and Melcor entered into voting support agreements with certain groups in connection with Melcor’s proposed acquisition of Melcor REIT. Each group collectively owns or controls approximately 4,057,515 trust units.

Melcor REIT’s financial highlights for the year included a decrease in NOI, FFO, and ACFO. Fair value adjustments on investment properties and Class B units also impacted financial performance. G&A expenses increased significantly in 2024.

The REIT’s strategic review process led to an arrangement agreement with Melcor for the acquisition of its unowned equity interest. The agreement includes consideration of $5.50 per unit. The transaction is subject to various closing conditions and is expected to be completed in the second quarter of 2025.

As of December 31, 2024, the REIT had access to $38.57 million of its $50.00 million credit facility. The REIT redeemed all outstanding convertible debentures on December 12, 2024, using funds drawn from a backstop loan with Melcor.

Melcor REIT’s forward-looking statements are based on certain assumptions and are subject to risks and uncertainties. The REIT does not undertake to update any forward-looking information. Additional information about assumptions and risks is available in the REIT’s filings with securities regulators.



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