News: Melcor REIT announces second quarter 2023 results
Press Release -- Melcor REIT (TSX: MR.UN) announced on Friday its results for the second quarter ended June 30, 2023. Revenue was stable at $18.12 million in the quarter and $37.11 million year-to-date. Second quarter same-asset NOI was up 4% to $11.02 million and was up 1% year-to-date at $21.92 million. In-place occupancy currently sits at 87% with committed occupancy at 89%.
Andrew Melton, CEO of Melcor REIT commented: "I'm pleased to report another quarter of stable results for the REIT. We continue to be encouraged with progress we are making on new and renewed leasing, and have achieved a 92% retention rate to date in 2023. We believe our leasing efforts will show benefits in the quarters to come.
The REIT is experiencing many of the same current challenges of the real estate industry including escalating financing costs, increasing inflation in operating and leasing costs, occupancy and leasing challenges in office space, and increasing capitalization rates impacting valuations and financing.
During the quarter we listed our Saskatchewan properties for sale as part of a strategic decision to focus on our Alberta markets. The sale of these properties would serve to reduce the REIT's operating loan providing additional liquidity for future opportunities. We remain committed on achieving value for our unitholders and believe these assets can be sold at a price that is reflective of current market conditions."
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About Melcor REIT
Melcor REIT is an unincorporated, open-ended real estate investment trust. Melcor REIT owns, acquires, manages and leases quality retail, office and industrial income-generating properties in western Canada. Its portfolio is currently made up of interests in 38 properties representing approximately 3.1 million square feet of gross leasable area located across Alberta and in Regina, Saskatchewan and Kelowna, British Columbia. For more information, please visit www.melcorREIT.ca.