Melcor REIT (TSX: MR.UN) today announced results for the third quarter ended September 30, 2023. The third quarter Management Discussion & Analysis and Condensed Interim Financial Statements are available on our website (www.MelcorREIT.ca) under Financial Reports, or on SEDAR+ (www.sedarplus.ca).
Andrew Melton, CEO of Melcor REIT commented: “We are pleased to report stable third quarter results despite challenging market conditions. Our property management group remains dedicated to our existing tenants and providing best-in-class service and our leasing teams efforts have helped to increase in-place occupancy to 89% and committed occupancy to 91%. Efforts to improve occupancy are expected to yield benefits in the quarters to come as tenants occupy space and start paying rent and operating costs.
We continue to navigate challenges such as escalating financing costs, continued inflation impacting operating and leasing costs, and challenges within our office space portfolio. We remain focused on retaining current tenants and leasing up vacant space to help combat these rising costs. We expect to see continuing pressure on operating cash flow resulting from reductions in office lease rates, higher tenant incentives, increasing operating costs and continuing higher financing costs.
Earlier in the year, we listed our Saskatchewan properties for sale as part of a strategic decision to focus on our Alberta markets and create additional liquidity for future opportunities and to focus on remaining assets and financial resilience. We have seen interest on these asset listings, and sales efforts continue.”
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.
Contact Information:
Investor Relations
ir@melcorREIT.ca
