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Automotive Properties REIT Reports Financial Results for Third Quarter of 2024

13.11.2024 by admin

TORONTO, Nov. 13, 2024 /CNW/ – Automotive Properties Real Estate Investment Trust APR (“Automotive Properties REIT” or the “REIT”) today announced its financial results for the three-month (“Q3 2024”) and nine-month (“YTD 2024”) periods ended September 30, 2024.

“We generated continued growth in rental revenue, Cash NOI and AFFO per Unit in the quarter, supported by the fixed and CPI-linked annual rent increases built into our leases,” said Milton Lamb, CEO of Automotive Properties REIT. “Subsequent to quarter end, we entered into agreements to acquire three properties, including our first automotive property in the United States and two heavy construction equipment dealerships properties in the Greater Montreal Area. The purchase prices for the acquisitions will be funded primarily from draws on our revolving credit facilities, which were repaid in full with the proceeds from our sale of the Kennedy Lands in Markham, a transaction that unlocked significant value from this property.”

Q3 2024 Highlights

The REIT generated AFFO per Unit[1] of $0.233 (diluted) and paid total cash distributions of $0.201 per Unit (as defined below) in Q3 2024, representing an AFFO payout ratio¹ of approximately 86.3%. For the comparable three-month period ended September 30, 2023 (“Q3 2023”), the REIT generated AFFO per Unit of $0.230 (diluted) and paid cash distributions of $0.201 per Unit, representing an AFFO payout ratio of approximately 87.4%.
On July 26, 2024, the REIT entered into an agreement (the “Sale Agreement”) to sell its automotive dealership properties located at 8210 and 8220 Kennedy Road and 7 and 13/15 Main Street in Markham, Ontario (collectively, the “Kennedy Lands”) to a member of the Dilawri Group for initial gross proceeds of $54.0 million (the “Sale Transaction”). The Sale Transaction was completed on October 1, 2024 and the net proceeds were used primarily to repay indebtedness under the REIT’s revolving credit facilities in full.
The REIT had a Debt to Gross Book Value (“Debt to GBV”)[2] ratio of 43.7% as at September 30, 2024, and $55.1 million of undrawn capacity under its revolving credit facilities, $0.2 million of cash on hand, and two unencumbered properties with an aggregate value of approximately $72.3 million. The REIT’s Debt to GBV ratio declined to 41.8% as at October 1, 2024 due to the debt repayment noted above. As at the date of this news release, the REIT has approximately $90.0 million of undrawn capacity under its revolving credit facilities and cash on hand of $18.0 million.

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¹ AFFO per Unit and AFFO payout ratio are non-IFRS measures and non-IFRS ratios, respectively. See “Non-IFRS Financial Measures” at the end of this news release.

² Debt to GBV is a supplementary financial measure. See “Non-IFRS Financial Measures” at the end of this news release.

Subsequent Events

On October 15, 2024, the REIT funded the dealership facility expansion at its McNaught Cadillac Buick GMC dealership property located in Winnipeg, Manitoba (the “McNaught Expansion”). The McNaught Expansion added a new Cadillac building having 13,681 square feet of gross leasable area (“GLA”) at a cost of approximately $7.1 million, resulting in an annual rent increase. The REIT funded the McNaught Expansion with cash on hand.
On October 31, 2024, the REIT announced that it entered into two separate agreements to acquire a total of three properties (the “Property Acquisitions”). The first agreement is to acquire a Rivian-tenanted automotive property in Tampa, Florida for a purchase price of approximately US$13.5 million (approximately C$18,800). The second agreement is to acquire two heavy construction equipment dealership properties in the Greater Montreal Area for a purchase price of approximately $25.4 million. The addition of these three properties are expected to be accretive to the REIT’s AFFO per Unit. The REIT expects to fund the Property Acquisitions with cash on hand and draws on its revolving credit facilities and are expected to close in Q1 2025 and Q4 2024, respectively.

Financial Results Summary

	Three months ended September 30,			Nine months ended September 30,
($000s, except per Unit amounts)	2024	2023	Change	2024	2023	Change

Rental revenue ⁽¹⁾	$23,533	$23,378	0.7 %	$70,461	$69,193	1.8 %
NOI ⁽²⁾	19,897	19,671	1.1 %	59,564	58,672	1.5 %
Cash NOI ⁽²⁾	19,680	19,213	2.4 %	58,724	57,026	3.0 %
Same Property Cash NOI ^{(1) (2)}	19,643	19,214	2.2 %	56,247	54,922	2.4 %
Net Income⁽³⁾	1,766	28,332	-93.8 %	59,955	66,190	-9.4 %
FFO ⁽²⁾	11,920	11,967	-0.4 %	36,004	36,071	-0.2 %
AFFO ⁽²⁾	11,690	11,499	1.7 %	35,127	34,398	2.1 %
Distributions per Unit	$0.201	$0.201	–	$0.603	$0.603	–

FFO per Unit – basic ^{(2) (4)}	0.243	0.244	-0.001	0.734	0.735	-0.001
FFO per Unit – diluted ⁽²⁾⁽⁵⁾	0.237	0.239	-0.002	0.717	0.721	-0.004

AFFO per Unit – basic ^{(2) (4)}	0.238	0.234	0.004	0.716	0.701	0.015
AFFO per Unit – diluted ⁽²⁾⁽⁵⁾	0.233	0.230	0.003	0.699	0.688	0.011

Ratios (%)
FFO payout ratio ⁽²⁾	84.8 %	84.1 %	0.7 %	84.1 %	83.6 %	0.5 %
AFFO payout ratio ⁽²⁾	86.3 %	87.4 %	-1.1 %	86.3 %	87.6 %	-1.3 %
Debt to GBV ⁽⁶⁾	43.7 %	44.5 %	-0.8 %	43.7 %	44.5 %	-0.8 %

⁽¹⁾	Rental revenue is based on rents from leases entered into with tenants, all of which are triple-net leases and include recoverable realty taxes and straight-line adjustments. Same Property Cash NOI is based on rental revenue for the same asset base having consistent gross leasable area in both periods.
⁽²⁾	NOI, Cash NOI, Same Property Cash NOI, FFO, AFFO, FFO per Unit, AFFO per Unit, FFO payout ratio and AFFO payout ratio are non-IFRS measures or non-IFRS ratios, as applicable. See “Non-IFRS Financial Measures” at the end of this news release. References to “Same Property” correspond to properties that the REIT owned in Q3 2023, thus removing the impact of acquisitions.
⁽³⁾	Net income for Q3 2024 includes changes in fair value adjustments of $2.8 million for Class B Limited Partnership Units of Automotive Properties Limited Partnership (“Class B LP Units”), Deferred Units (“DUs”), Income Deferred Units (“IDUs”), Performance Deferred Units (“PDUs”) and Restricted Deferred Units (“RDUs”), $12.5 million for interest rate swaps and $5.1 million for investment properties and investment properties held for sale. Please refer to the unaudited, condensed consolidated interim financial statements of the REIT and notes thereto.
⁽⁴⁾	FFO per Unit and AFFO per Unit – basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding trust units of the REIT (“REIT Units” and together with the Class B LP Units, “Units”) and Class B LP Units. The total weighted average number of Units outstanding – basic for Q3 2024 was 49,072,488.
⁽⁵⁾	FFO per Unit and AFFO per Unit – diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding Units, DUs, IDUs, PDUs and RDUs granted to independent trustees and management of the REIT. The total weighted average number of Units outstanding (including Class B LP Units, DUs, IDUs, PDUs and RDUs) on a fully diluted basis for Q3 2024 was 50,286,264.
⁽⁶⁾	Debt to GBV is a supplementary financial measure. See “Non-IFRS Financial Measures” at the end of this news release.

Rental revenue in Q3 2024 increased by 0.7% to $23.5 million, compared to $23.4 million in Q3 2023. The increase in rental revenue reflects growth from the property acquired during Q2 2023 and contractual annual rent increases.

The REIT generated total Cash NOI of $19.7 million in Q3 2024, representing an increase of 2.4% compared to Q3 2023. The increase was primarily attributable to the property acquired during Q2 2023 and contractual rent increases. Same Property Cash NOI was $19.6 million in Q3 2024, representing an increase of 2.2% compared to Q3 2023. The increase was primarily attributable to contractual rent increases.

The REIT recorded net income of $1.8 million in Q3 2024, compared to $28.3 million in Q3 2023. The decrease was primarily due to changes in non-cash fair value adjustments for interest rate swaps and Class B LP Units, DUs, IDUs, PDUs and RDUs (collectively “Unit-based compensation”), partially offset by changes in fair value adjustments for investment properties and investment properties held for sale (including the $23.8 million fair value gain as a result of entering into the Sale Agreement). The impact of the movement in the traded value of the REIT Units resulted in a decrease in fair value adjustment for Class B LP Units and Unit-based compensation of $2.8 million in Q3 2024, compared to an increase of $10.6 million in Q3 2023.

FFO in Q3 2024 decreased by 0.4% to $11.9 million, or $0.237 per Unit (diluted), compared to $12.0 million, or $0.239 per Unit (diluted), in Q3 2023. The slight decrease in FFO was primarily attributable to higher interest expense and a reduction in straight-line rent adjustment, partially offset by higher rental revenue. Straight-line rent adjustment decreased by $0.2 million due to the addition of leases to the investment property portfolio containing CPI-linked rent adjustments.

AFFO in Q3 2024 increased 1.7% to $11.7 million, or $0.233 per Unit (diluted), compared to $11.5 million, or $0.230 per Unit (diluted), in Q3 2023. The increase in AFFO reflected the impact of the property acquired during Q2 2023 and contractual rent increases, partially offset by higher interest costs. Straight-line rent adjustment is excluded from the calculation of AFFO.

Adjusted Cash Flow from Operations (“ACFO”)³ for Q3 2024 was $11.7 million, an increase of 1.5% compared to $11.5 million in Q3 2023. The increase was primarily attributable to the difference in timing of non-cash working capital payments.

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³ ACFO is a non-IFRS measure. See “Non-IFRS Financial Measures” at the end of this news release.

Cash Distributions

The REIT is currently paying monthly cash distributions of $0.067 per Unit, representing $0.804 per Unit on an annualized basis. For Q3 2024, the REIT declared and paid total distributions of $9.87 million, or $0.201 per Unit, representing an AFFO payout ratio of 86.3%. The AFFO payout ratio was lower in Q3 2024 compared to the 87.4% AFFO payout ratio in Q3 2023, primarily due to the positive impact of the property acquired and contractual rent increases, partially offset by higher interest expense.

Liquidity and Capital Resources

As at September 30, 2024, the REIT had a Debt to GBV ratio of 43.7%, $55.1 million of undrawn capacity under its revolving credit facilities, $0.2 million of cash on hand, and two unencumbered properties with an aggregate value of approximately $72.3 million (including the Kennedy Lands, which had an IFRS fair value of $54.0 million as at September 30, 2024). The completion of the Sale Transaction occurred on October 1, 2024, with the net proceeds from the sale used primarily to repay indebtedness under the REIT’s revolving credit facilities in full, which lowered the REIT’s Debt to GBV ratio to 41.8% as at October 1, 2024. As at the date of this news release, the REIT has approximately $90.0 million of undrawn capacity under its revolving credit facilities, cash on hand of $18.0 million, and one unencumbered property valued at approximately $18.3 million.

As at September 30, 2024, 94% of the REIT’s debt was fixed with a weighted average interest rate of 4.31%, a weighted average interest rate swap term and mortgages remaining of 4.1 years, and a weighted average term to maturity of debt of 2.6 years.

Units Outstanding

As at September 30, 2024, there were 49,090,142 REIT Units and nil Class B LP Units outstanding.

Outlook

The REIT is subject to risks associated with inflation, interest rates and availability of capital. Fluctuations in the interest rate environment, inflation and credit environment impacts rental growth and capitalization rates overall in the real estate industry which, in turn, could provide attractive buying opportunities for the REIT.

The REIT used a portion of the net proceeds from the Sale Transaction to pay down in full its indebtedness under its revolving credit facilities, which lowered the REIT’s Debt to GBV ratio to 41.8% as at October 1, 2024 (43.7% as at September 30, 2024), providing the REIT with additional acquisition capacity. The REIT expects to use a portion of the net proceeds from the Sale Transaction and draws on its revolving credit facilities to fund the respective purchase prices of the Property Acquisitions. Assuming closing occurs, the Property Acquisitions will enhance the tenant and geographic diversification within the REIT’s portfolio and are expected to be accretive to the REIT’s AFFO per Unit.

The Canadian automotive and original equipment manufacturer (“OEM”) dealership and service industry is highly fragmented, and the REIT expects continued consolidation over the mid to long term due to increased industry sophistication and growing capital requirements for owner operators, which encourages them to pursue increased economies of scale. The REIT plans to continue to grow its portfolio of properties leased to OEMs, OEM dealers and other automotive related uses.

Financial Statements

The REIT’s unaudited consolidated financial statements and related Management’s Discussion & Analysis (“MD&A”) for Q3 2024 are available on the REIT’s website at www.automotivepropertiesreit.ca and on SEDAR+ at www.sedarplus.ca.

Conference Call

Management of the REIT will host a conference call for analysts and investors on Thursday, November 14, 2024 at 9:00 a.m. (ET). To join the conference call without operator assistance, participants can register and enter their phone number at https://emportal.ink/3XTRbuC to receive an instant automated call back. Alternatively, they can dial (416) 945-7677 or (888) 699-1199 to reach a live operator who will join them into the call. A live and archived webcast of the call will be accessible via the REIT’s website www.automotivepropertiesreit.ca.

To access a replay of the conference call, dial (289) 819-1450 or (888) 660-6345, passcode: 92690 #. The replay will be available until November 21, 2024.

About Automotive Properties REIT

Automotive Properties REIT is an internally managed, unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive properties, including retail dealership and original equipment manufacturer properties, located in Canada and the United States. The REIT’s portfolio currently consists of 76 income-producing commercial properties, representing approximately 2.8 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive dealership real estate properties. For more information, please visit: www.automotivepropertiesreit.ca.

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT’s current expectations regarding future events and in some cases can be identified by such terms as “will” and “expected”. Forward-looking information includes the REIT’s expectations with respect to inflation and interest rates, including the impact of each of the foregoing on the REIT and its tenants, the completion of the Property Acquisitions, the timing and the anticipated financial benefits there from and additional acquisition capacity. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risks & Uncertainties, Critical Judgments & Estimates” in the REIT’s MD&A for the year ended December 31, 2023 and in the REIT’s MD&A for the interim period ended September 30, 2024, and under “Risk Factors” in the REIT’s annual information form dated March 7, 2024, which are available on SEDAR+ (www.sedarplus.ca) and the REIT’s website (www.automotivepropertiesreit.ca). The forward-looking information relating to the Property Acquisitions is subject to the further risk that the customary closing conditions may not be satisfied or waived such that one or more of the Property Acquisitions do not close on current terms or at all. The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.

Non-IFRS Financial Measures

This news release contains certain financial measures and ratios which are not defined under International Financial Reporting Standards (“IFRS”) and may not be comparable to similar measures presented by other real estate investment trusts or enterprises. FFO, AFFO, FFO payout ratio, AFFO payout ratio, NOI, Cash NOI, Same Property Cash NOI and ACFO are key measures of performance used by the REIT’s management and real estate businesses. Debt to GBV, a supplementary financial measures, are measures of financial position defined by agreements to which the REIT is a party. These measures, as well as any associated “per Unit” amounts, are not defined by IFRS and do not have standardized meanings prescribed by IFRS, and therefore should not be construed as alternatives to net income or cash flow from operating activities calculated in accordance with IFRS. The REIT believes that AFFO is an important measure of economic earnings performance and is indicative of the REIT’s ability to pay distributions from earnings, while FFO, NOI, Cash NOI and Same Property Cash NOI are important measures of operating performance of real estate businesses and properties. The IFRS measurement most directly comparable to FFO, AFFO, NOI, Cash NOI and Same Property Cash NOI is net income. ACFO is a supplementary measure used by management to improve the understanding of the operating cash flow of the REIT. The IFRS measurement most directly comparable to ACFO is cash flow from operating activities. For reconciliations of NOI, FFO, AFFO and Cash NOI to net income and comprehensive income, and ACFO to cash flow from operating activities, please see the tables below. For further information regarding these non-IFRS measures and supplementary financial measures, please refer to Section 1 “General Information and Cautionary Statements – Non-IFRS Financial Measures” and Section 6 “Non-IFRS Financial Measures” in the REIT’s Q3 2024 MD&A which is incorporated by reference herein and is available on the REIT’s website at www.automotivepropertiesreit.ca and on SEDAR+ at www.sedarplus.ca.

Reconciliation of NOI, Cash NOI, FFO and AFFO to Net Income and Comprehensive Income

	Three Months Ended September 30,			Nine Months Ended September 30,
($000s, except per Unit amounts)	2024	2023	Variance	2024	2023	Variance
Calculation of NOI
Property revenue	$23,533	$23,378	$155	70,461	$69,193	$1,268
Property costs	(3,636)	(3,707)	71	(10,897)	(10,521)	(376)
NOI (including straight–line adjustments)	$19,897	$19,671	$226	59,564	58,672	$892
Adjustments:
Land lease payments	(86)	(86)	–	(259)	(259)	–
Straight–line adjustment	(131)	(372)	241	(582)	(1,387)	806
Cash NOI	$19,680	$19,213	$467	58,724	$57,026	$1,698
Reconciliation of net income to FFO and AFFO
Net income and comprehensive income	$1,766	$28,332	$(26,566)	59,955	$66,190	$(6,235)
Adjustments:
Change in fair value — Interest rate swaps	12,485	(8,335)	20,820	9,763	(13,233)	22,996
Distributions on Class B LP Units	–	1,874	(1,874)	3,125	5,624	(2,499)
Change in fair value – Class B LP Units and Unit-based compensation	2,821	(10,641)	13,462	(7,514)	(25,728)	18,214
Change in fair value — investment properties and investment properties held for sale⁽¹⁾	(5,074)	779	(5,853)	(29,105)	3,345	(32,450)
ROU asset net balance of depreciation/interest and lease payments	(78)	(42)	(36)	(220)	(127)	(93)
FFO	$11,920	$11,967	$(47)	$36,004	$36,071	$(67)
Adjustments:
Straight–line adjustment	(131)	(372)	241	(582)	(1,387)	805
Capital expenditure reserve	(98)	(96)	(2)	(295)	(286)	(9)
AFFO	$11,690	$11,499	$192	$35,127	$34,398	$729
Number of Units outstanding (including Class B LP Units)	49,090,142	49,054,833	35,309	49,090,142	49,054,833	35,309
Weighted average Units Outstanding — basic	49,072,488	49,054,833	17,655	49,060,783	49,054,833	5,950
Weighted average Units Outstanding — diluted	50,286,264	50,052,016	234,248	50,232,596	50,036,392	196,204
FFO per Unit – basic⁽²⁾	$0.243	$0.244	$(0.001)	$0.734	$0.735	$(0.001)
FFO per Unit – diluted⁽³⁾	$0.237	$0.239	$(0.002)	$0.717	$0.721	$(0.004)
AFFO per Unit – basic⁽²⁾	$0.238	$0.234	$0.004	$0.716	$0.701	$0.015
AFFO per Unit – diluted⁽³⁾	$0.233	$0.230	$0.003	$0.699	$0.688	$0.011
Distributions per Unit	$0.201	$0.201	-	$0.603	$0.603	–
FFO payout ratio	84.8 %	84.1 %	0.7 %	84.1 %	83.6 %	0.5 %
AFFO payout ratio	86.3 %	87.4 %	(1.1 %)	86.3 %	87.6 %	(1.3 %)


(1)	The Change in fair value — investment properties in respect of the three and nine months ended September 30, 2024 is inclusive of the $23,760 fair value gain as a result of entering into the Sale Agreement, thereby classifying the Kennedy Lands as investment properties held for sale. The Sale Transaction was completed on October 1, 2024.
(2)	FFO and AFFO per Unit — basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted-average number of outstanding REIT Units and Class B LP Units.
(3)	FFO and AFFO per Unit — diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted-average number of outstanding REIT Units, Class B LP Units and Unit-based compensation granted to independent trustees and management of the REIT.

Same Property Cash Net Operating Income

	Three Months Ended September 30,			Nine Months Ended September 30,
	2024	2023	Variance	2024	2023	Variance
Same property base rental revenue	$19,742	$19,300	$442	$56,532	$55,180	$1,352
Land lease payments	(99)	(86)	(13)	(285)	(259)	(26)
Same Property Cash NOI	$19,643	$19,214	$429	$56,247	$54,922	1,325

Reconciliation of Cash Flow from Operating Activities to ACFO

	Three Months Ended September 30,			Nine Months Ended September 30,
($000s)	2024	2023	Variance	2024	2023		Variance
Cash flow from operating activities	$18,590	$20,704	$(2,114)	$57,029		$54,207	$2,822
Change in non-cash working capital	(242)	(2,709)	2,467	(1,065)		787	(1,852)
Interest paid	(6,290)	(6,030)	(260)	(18,604)		(17,496)	(1,108)
Amortization of financing fees	(235)	(246)	11	(636)		(729)	93
Amortization of other assets	(36)	(72)	36	(108)		(172)	64
Net interest expense and other financing charges in excess of interest paid	28	(6)	34	84		(19)	103
Capital expenditure reserve	(99)	(96)	(3)	(295)		(286)	(9)
ACFO	$11,717	$11,545	$172	$36,406		$36,292	$114
ACFO payout ratio	84.2 %	85.4 %	(1.2 %)	81.3 %		81.5 %	(0.2 %)

SOURCE Automotive Properties Real Estate Investment Trust

View original content: http://www.newswire.ca/en/releases/archive/November2024/13/c6672.html

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Automotive Properties REIT Reports Financial Results for Third Quarter of 2024

13.11.2024 by admin

Q3 2024 Highlights

The REIT generated AFFO per Unit[1] of $0.233 (diluted) and paid total cash distributions of $0.201 per Unit (as defined below) in Q3 2024, representing an AFFO payout ratio¹ of approximately 86.3%. For the comparable three-month period ended September 30, 2023 (“Q3 2023”), the REIT generated AFFO per Unit of $0.230 (diluted) and paid cash distributions of $0.201 per Unit, representing an AFFO payout ratio of approximately 87.4%.
On July 26, 2024, the REIT entered into an agreement (the “Sale Agreement”) to sell its automotive dealership properties located at 8210 and 8220 Kennedy Road and 7 and 13/15 Main Street in Markham, Ontario (collectively, the “Kennedy Lands”) to a member of the Dilawri Group for initial gross proceeds of $54.0 million (the “Sale Transaction”). The Sale Transaction was completed on October 1, 2024 and the net proceeds were used primarily to repay indebtedness under the REIT’s revolving credit facilities in full.
The REIT had a Debt to Gross Book Value (“Debt to GBV”)[2] ratio of 43.7% as at September 30, 2024, and $55.1 million of undrawn capacity under its revolving credit facilities, $0.2 million of cash on hand, and two unencumbered properties with an aggregate value of approximately $72.3 million. The REIT’s Debt to GBV ratio declined to 41.8% as at October 1, 2024 due to the debt repayment noted above. As at the date of this news release, the REIT has approximately $90.0 million of undrawn capacity under its revolving credit facilities and cash on hand of $18.0 million.

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¹ AFFO per Unit and AFFO payout ratio are non-IFRS measures and non-IFRS ratios, respectively. See “Non-IFRS Financial Measures” at the end of this news release.

² Debt to GBV is a supplementary financial measure. See “Non-IFRS Financial Measures” at the end of this news release.

Subsequent Events

On October 15, 2024, the REIT funded the dealership facility expansion at its McNaught Cadillac Buick GMC dealership property located in Winnipeg, Manitoba (the “McNaught Expansion”). The McNaught Expansion added a new Cadillac building having 13,681 square feet of gross leasable area (“GLA”) at a cost of approximately $7.1 million, resulting in an annual rent increase. The REIT funded the McNaught Expansion with cash on hand.
On October 31, 2024, the REIT announced that it entered into two separate agreements to acquire a total of three properties (the “Property Acquisitions”). The first agreement is to acquire a Rivian-tenanted automotive property in Tampa, Florida for a purchase price of approximately US$13.5 million (approximately C$18,800). The second agreement is to acquire two heavy construction equipment dealership properties in the Greater Montreal Area for a purchase price of approximately $25.4 million. The addition of these three properties are expected to be accretive to the REIT’s AFFO per Unit. The REIT expects to fund the Property Acquisitions with cash on hand and draws on its revolving credit facilities and are expected to close in Q1 2025 and Q4 2024, respectively.

Financial Results Summary

	Three months ended September 30,			Nine months ended September 30,
($000s, except per Unit amounts)	2024	2023	Change	2024	2023	Change

Rental revenue ⁽¹⁾	$23,533	$23,378	0.7 %	$70,461	$69,193	1.8 %
NOI ⁽²⁾	19,897	19,671	1.1 %	59,564	58,672	1.5 %
Cash NOI ⁽²⁾	19,680	19,213	2.4 %	58,724	57,026	3.0 %
Same Property Cash NOI ^{(1) (2)}	19,643	19,214	2.2 %	56,247	54,922	2.4 %
Net Income⁽³⁾	1,766	28,332	-93.8 %	59,955	66,190	-9.4 %
FFO ⁽²⁾	11,920	11,967	-0.4 %	36,004	36,071	-0.2 %
AFFO ⁽²⁾	11,690	11,499	1.7 %	35,127	34,398	2.1 %
Distributions per Unit	$0.201	$0.201	–	$0.603	$0.603	–

FFO per Unit – basic ^{(2) (4)}	0.243	0.244	-0.001	0.734	0.735	-0.001
FFO per Unit – diluted ⁽²⁾⁽⁵⁾	0.237	0.239	-0.002	0.717	0.721	-0.004

AFFO per Unit – basic ^{(2) (4)}	0.238	0.234	0.004	0.716	0.701	0.015
AFFO per Unit – diluted ⁽²⁾⁽⁵⁾	0.233	0.230	0.003	0.699	0.688	0.011

Ratios (%)
FFO payout ratio ⁽²⁾	84.8 %	84.1 %	0.7 %	84.1 %	83.6 %	0.5 %
AFFO payout ratio ⁽²⁾	86.3 %	87.4 %	-1.1 %	86.3 %	87.6 %	-1.3 %
Debt to GBV ⁽⁶⁾	43.7 %	44.5 %	-0.8 %	43.7 %	44.5 %	-0.8 %

⁽¹⁾	Rental revenue is based on rents from leases entered into with tenants, all of which are triple-net leases and include recoverable realty taxes and straight-line adjustments. Same Property Cash NOI is based on rental revenue for the same asset base having consistent gross leasable area in both periods.
⁽²⁾	NOI, Cash NOI, Same Property Cash NOI, FFO, AFFO, FFO per Unit, AFFO per Unit, FFO payout ratio and AFFO payout ratio are non-IFRS measures or non-IFRS ratios, as applicable. See “Non-IFRS Financial Measures” at the end of this news release. References to “Same Property” correspond to properties that the REIT owned in Q3 2023, thus removing the impact of acquisitions.
⁽³⁾	Net income for Q3 2024 includes changes in fair value adjustments of $2.8 million for Class B Limited Partnership Units of Automotive Properties Limited Partnership (“Class B LP Units”), Deferred Units (“DUs”), Income Deferred Units (“IDUs”), Performance Deferred Units (“PDUs”) and Restricted Deferred Units (“RDUs”), $12.5 million for interest rate swaps and $5.1 million for investment properties and investment properties held for sale. Please refer to the unaudited, condensed consolidated interim financial statements of the REIT and notes thereto.
⁽⁴⁾	FFO per Unit and AFFO per Unit – basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding trust units of the REIT (“REIT Units” and together with the Class B LP Units, “Units”) and Class B LP Units. The total weighted average number of Units outstanding – basic for Q3 2024 was 49,072,488.
⁽⁵⁾	FFO per Unit and AFFO per Unit – diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding Units, DUs, IDUs, PDUs and RDUs granted to independent trustees and management of the REIT. The total weighted average number of Units outstanding (including Class B LP Units, DUs, IDUs, PDUs and RDUs) on a fully diluted basis for Q3 2024 was 50,286,264.
⁽⁶⁾	Debt to GBV is a supplementary financial measure. See “Non-IFRS Financial Measures” at the end of this news release.

__________________________________

³ ACFO is a non-IFRS measure. See “Non-IFRS Financial Measures” at the end of this news release.

Cash Distributions

Liquidity and Capital Resources

Units Outstanding

As at September 30, 2024, there were 49,090,142 REIT Units and nil Class B LP Units outstanding.

Outlook

Financial Statements

Conference Call

To access a replay of the conference call, dial (289) 819-1450 or (888) 660-6345, passcode: 92690 #. The replay will be available until November 21, 2024.

About Automotive Properties REIT

Forward-Looking Information

Non-IFRS Financial Measures

Reconciliation of NOI, Cash NOI, FFO and AFFO to Net Income and Comprehensive Income

	Three Months Ended September 30,			Nine Months Ended September 30,
($000s, except per Unit amounts)	2024	2023	Variance	2024	2023	Variance
Calculation of NOI
Property revenue	$23,533	$23,378	$155	70,461	$69,193	$1,268
Property costs	(3,636)	(3,707)	71	(10,897)	(10,521)	(376)
NOI (including straight–line adjustments)	$19,897	$19,671	$226	59,564	58,672	$892
Adjustments:
Land lease payments	(86)	(86)	–	(259)	(259)	–
Straight–line adjustment	(131)	(372)	241	(582)	(1,387)	806
Cash NOI	$19,680	$19,213	$467	58,724	$57,026	$1,698
Reconciliation of net income to FFO and AFFO
Net income and comprehensive income	$1,766	$28,332	$(26,566)	59,955	$66,190	$(6,235)
Adjustments:
Change in fair value — Interest rate swaps	12,485	(8,335)	20,820	9,763	(13,233)	22,996
Distributions on Class B LP Units	–	1,874	(1,874)	3,125	5,624	(2,499)
Change in fair value – Class B LP Units and Unit-based compensation	2,821	(10,641)	13,462	(7,514)	(25,728)	18,214
Change in fair value — investment properties and investment properties held for sale⁽¹⁾	(5,074)	779	(5,853)	(29,105)	3,345	(32,450)
ROU asset net balance of depreciation/interest and lease payments	(78)	(42)	(36)	(220)	(127)	(93)
FFO	$11,920	$11,967	$(47)	$36,004	$36,071	$(67)
Adjustments:
Straight–line adjustment	(131)	(372)	241	(582)	(1,387)	805
Capital expenditure reserve	(98)	(96)	(2)	(295)	(286)	(9)
AFFO	$11,690	$11,499	$192	$35,127	$34,398	$729
Number of Units outstanding (including Class B LP Units)	49,090,142	49,054,833	35,309	49,090,142	49,054,833	35,309
Weighted average Units Outstanding — basic	49,072,488	49,054,833	17,655	49,060,783	49,054,833	5,950
Weighted average Units Outstanding — diluted	50,286,264	50,052,016	234,248	50,232,596	50,036,392	196,204
FFO per Unit – basic⁽²⁾	$0.243	$0.244	$(0.001)	$0.734	$0.735	$(0.001)
FFO per Unit – diluted⁽³⁾	$0.237	$0.239	$(0.002)	$0.717	$0.721	$(0.004)
AFFO per Unit – basic⁽²⁾	$0.238	$0.234	$0.004	$0.716	$0.701	$0.015
AFFO per Unit – diluted⁽³⁾	$0.233	$0.230	$0.003	$0.699	$0.688	$0.011
Distributions per Unit	$0.201	$0.201	-	$0.603	$0.603	–
FFO payout ratio	84.8 %	84.1 %	0.7 %	84.1 %	83.6 %	0.5 %
AFFO payout ratio	86.3 %	87.4 %	(1.1 %)	86.3 %	87.6 %	(1.3 %)


(1)	The Change in fair value — investment properties in respect of the three and nine months ended September 30, 2024 is inclusive of the $23,760 fair value gain as a result of entering into the Sale Agreement, thereby classifying the Kennedy Lands as investment properties held for sale. The Sale Transaction was completed on October 1, 2024.
(2)	FFO and AFFO per Unit — basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted-average number of outstanding REIT Units and Class B LP Units.
(3)	FFO and AFFO per Unit — diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted-average number of outstanding REIT Units, Class B LP Units and Unit-based compensation granted to independent trustees and management of the REIT.

Same Property Cash Net Operating Income

	Three Months Ended September 30,			Nine Months Ended September 30,
	2024	2023	Variance	2024	2023	Variance
Same property base rental revenue	$19,742	$19,300	$442	$56,532	$55,180	$1,352
Land lease payments	(99)	(86)	(13)	(285)	(259)	(26)
Same Property Cash NOI	$19,643	$19,214	$429	$56,247	$54,922	1,325

Reconciliation of Cash Flow from Operating Activities to ACFO

	Three Months Ended September 30,			Nine Months Ended September 30,
($000s)	2024	2023	Variance	2024	2023		Variance
Cash flow from operating activities	$18,590	$20,704	$(2,114)	$57,029		$54,207	$2,822
Change in non-cash working capital	(242)	(2,709)	2,467	(1,065)		787	(1,852)
Interest paid	(6,290)	(6,030)	(260)	(18,604)		(17,496)	(1,108)
Amortization of financing fees	(235)	(246)	11	(636)		(729)	93
Amortization of other assets	(36)	(72)	36	(108)		(172)	64
Net interest expense and other financing charges in excess of interest paid	28	(6)	34	84		(19)	103
Capital expenditure reserve	(99)	(96)	(3)	(295)		(286)	(9)
ACFO	$11,717	$11,545	$172	$36,406		$36,292	$114
ACFO payout ratio	84.2 %	85.4 %	(1.2 %)	81.3 %		81.5 %	(0.2 %)

SOURCE Automotive Properties Real Estate Investment Trust

View original content: http://www.newswire.ca/en/releases/archive/November2024/13/c6672.html

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Lastest news News Tech

EVP Of T-Mobile US Sold $2.56M In Stock

13.11.2024 by admin

On November 12, a recent SEC filing unveiled that NESTOR CANO, EVP at T-Mobile US TMUS made an insider sell.

What Happened: CANO opted to sell 11,100 shares of T-Mobile US, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction’s total worth stands at $2,561,308.

As of Wednesday morning, T-Mobile US shares are down by 0.09%, currently priced at $238.79.

Get to Know T-Mobile US Better

Deutsche Telekom merged its T-Mobile USA unit with prepaid specialist MetroPCS in 2013, and that firm merged with Sprint in 2020, creating the second-largest wireless carrier in the US. T-Mobile now serves 77 million postpaid and 21 million prepaid phone customers, equal to around 30% of the US retail wireless market. The firm entered the fixed-wireless broadband market aggressively in 2021 and now serves more than 5 million residential and business customers. In addition, T-Mobile provides wholesale services to resellers.

Breaking Down T-Mobile US’s Financial Performance

Revenue Growth: T-Mobile US’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 4.73%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.

Navigating Financial Profits:

Gross Margin: The company excels with a remarkable gross margin of 65.14%, indicating superior cost efficiency and profitability compared to its industry peers.
Earnings per Share (EPS): T-Mobile US’s EPS reflects a decline, falling below the industry average with a current EPS of 2.62.

Debt Management: With a below-average debt-to-equity ratio of 1.81, T-Mobile US adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Analysis:

Price to Earnings (P/E) Ratio: T-Mobile US’s current Price to Earnings (P/E) ratio of 27.25 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.54 suggests overvaluation in the eyes of investors, considering sales performance.
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 12.78, the company’s market valuation exceeds industry averages.

Market Capitalization: Surpassing industry standards, the company’s market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Importance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

A Closer Look at Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of T-Mobile US’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

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Economics News

[Latest] Global Cold Chain Logistics Market Size/Share Worth USD 1,245.2 Billion by 2033 at a 14.5% CAGR: Custom Market Insights (Analysis, Outlook, Leaders, Report, Trends, Forecast, Segmentation, Growth, Growth Rate, Value)

13.11.2024 by admin

Austin, TX, USA, Nov. 13, 2024 (GLOBE NEWSWIRE) — Custom Market Insights has published a new research report titled “Cold Chain Logistics Market Size, Trends and Insights By Temperature Type (Chilled, Fruits & Vegetables, Dairy Products, Bakery & Confectionery, Processed Foods, Frozen, Seafood, Meat & Poultry, Ice Cream & Frozen Desserts, Pharmaceuticals), By Technology (Refrigerated Storage, Refrigerated Transport), By Application (Food & Beverages, Pharmaceuticals & Healthcare, Chemicals & Materials, Others), By Service (Storage, Transportation, Value-Added Services, Others), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2024–2033“ in its research database.

“According to the latest research study, the demand of global Cold Chain Logistics Market size & share was valued at approximately USD 321.5 Billion in 2023 and is expected to reach USD 368.1 Billion in 2024 and is expected to reach a value of around USD 1,245.2 Billion by 2033, at a compound annual growth rate (CAGR) of about 14.5% during the forecast period 2024 to 2033.”

Click Here to Access a Free Sample Report of the Global Cold Chain Logistics Market @ https://www.custommarketinsights.com/request-for-free-sample/?reportid=54105

Cold Chain Logistics Market: Growth Factors and Dynamics

Expanding Global Food Trade: The increasing demand for perishable food products, coupled with globalization and changing consumer preferences, is driving the growth of the cold chain logistics market. Growing international trade in fresh produce and seafood necessitates efficient cold chain infrastructure to maintain product quality and safety during transportation.

Rising Demand for Pharmaceuticals: The pharmaceutical industry’s growing emphasis on temperature-sensitive products, such as vaccines, biologics, and specialty drugs, is fueling the demand for cold chain logistics services. Strict regulatory requirements and the need to maintain product efficacy and safety during storage and distribution are driving pharmaceutical companies to invest in robust cold chain infrastructure.

E-commerce and Online Grocery Retailing: The proliferation of e-commerce platforms and online grocery retailing is driving the demand for cold chain logistics services. Consumers increasingly prefer to purchase fresh and frozen food items online, requiring reliable temperature-controlled transportation and storage solutions to ensure product quality and freshness upon delivery.

Technological Advancements: Technological innovations, such as IoT-enabled temperature monitoring devices, blockchain-based traceability solutions, and advanced refrigeration systems, are transforming the cold chain logistics industry. These technologies enhance visibility, transparency, and real-time tracking capabilities, enabling more efficient cold chain management and reducing the risk of product spoilage or loss.

Stringent Regulatory Requirements: Stringent regulations and quality standards imposed by regulatory authorities, particularly in the food and pharmaceutical sectors, are driving the adoption of cold chain logistics services. Compliance with regulations such as the Food Safety Modernization Act (FSMA) in the United States and Good Distribution Practice (GDP) guidelines in the pharmaceutical industry is essential for market participants to ensure product integrity and regulatory compliance.

Emerging Markets and Urbanization: Rapid urbanization and changing dietary preferences in emerging markets are creating significant opportunities for the cold chain logistics market. Rising disposable incomes, urbanization trends, and an increasing preference for convenience foods drive the demand for cold chain services to transport perishable goods from production hubs to urban centers efficiently.

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Cold Chain Logistics Market: Partnership and Acquisitions

In 2023, Americold Logistics, the largest publicly traded REIT specializing in temperature-controlled warehouses, made a strategic investment of $3.9 million for a 49% stake in RSA Cold Chain in Dubai. This investment strengthens Americold’s presence and capabilities in the Middle East cold chain market.

In 2022, UPS acquired a majority stake in Inovatec, a cold chain logistics company, expanding its reach with access to Inovatec’s network of refrigerated warehouses across Europe and Asia. This strategic move strengthens UPS’s capabilities in providing specialized cold chain solutions globally.

Report Scope

Feature of the Report	Details
Market Size in 2024	USD 368.1 Billion
Projected Market Size in 2033	USD 1,245.2 Billion
Market Size in 2023	USD 321.5 Billion
CAGR Growth Rate	14.5% CAGR
Base Year	2023
Forecast Period	2024-2033
Key Segment	By Temperature Type, Technology, Application, Service and Region
Report Coverage	Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope	North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options	Request tailored purchasing options to fulfil your requirements for research.

(A free sample of the Cold Chain Logistics report is available upon request; please contact us for more information.)

Our Free Sample Report Consists of the following:

Introduction, Overview, and in-depth industry analysis are all included in the 2024 updated report.
The COVID-19 Pandemic Outbreak Impact Analysis is included in the package.
About 220+ Pages Research Report (Including Recent Research)
Provide detailed chapter-by-chapter guidance on the Request.
Updated Regional Analysis with a Graphical Representation of Size, Share, and Trends for the Year 2024
Includes Tables and figures have been updated.
The most recent version of the report includes the Top Market Players, their Business Strategies, Sales Volume, and Revenue Analysis
Custom Market Insights (CMI) research methodology

(Please note that the sample of the Cold Chain Logistics report has been modified to include the COVID-19 impact study prior to delivery.)

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Cold Chain Logistics Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Cold Chain Logistics Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

Disruption in Supply Chains: The COVID-19 pandemic led to disruptions in global supply chains, affecting the transportation and distribution of temperature-sensitive goods. Lockdown measures, border restrictions, and workforce shortages hindered the movement of essential products, including food, pharmaceuticals, and medical supplies, through cold chain logistics networks.

Shift in Consumer Behavior: The pandemic-induced lockdowns and social distancing measures prompted a shift in consumer behavior towards online shopping and home delivery of groceries and pharmaceuticals. This surge in e-commerce demand for perishable goods necessitated adjustments in cold chain logistics operations to meet the increased volume and ensure product safety and quality during transportation and last-mile delivery.

Resilience Planning and Redundancy: Cold chain logistics providers are investing in resilience planning and redundancy measures to mitigate future disruptions. This includes diversifying supply chains, securing multiple transportation routes, and maintaining strategic stockpiles of critical supplies to ensure continuity of operations during emergencies.

Adoption of Digital Technologies: The accelerated adoption of digital technologies, such as IoT-enabled temperature monitoring devices, blockchain-based traceability solutions, and data analytics platforms, enhances visibility, transparency, and efficiency in cold chain logistics operations. By leveraging real-time data and analytics, companies can optimize routes, minimize wastage, and improve decision-making processes.

Strengthening Cold Chain Infrastructure: Investments in upgrading and expanding cold chain infrastructure, including refrigerated storage facilities, temperature-controlled vehicles, and cold chain packaging solutions, are essential for meeting the growing demand for cold chain logistics services. Enhanced infrastructure ensures the integrity and safety of temperature-sensitive products throughout the supply chain.

Collaboration and Partnerships: Collaboration among stakeholders in the cold chain logistics ecosystem, including logistics providers, food producers, pharmaceutical companies, and regulatory agencies, is crucial for building resilient and agile supply chains. Strategic partnerships enable knowledge sharing, resource pooling, and collective efforts to address common challenges and enhance industry standards.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Cold Chain Logistics Market, with some challenges and opportunities arising from the pandemic.

Request a Customized Copy of the Cold Chain Logistics Market Report @ https://www.custommarketinsights.com/report/cold-chain-logistics-market/

Key questions answered in this report:

What is the size of the Cold Chain Logistics market and what is its expected growth rate?
What are the primary driving factors that push the Cold Chain Logistics market forward?
What are the Cold Chain Logistics Industry’s top companies?
What are the different categories that the Cold Chain Logistics Market caters to?
What will be the fastest-growing segment or region?
In the value chain, what role do essential players play?
What is the procedure for getting a free copy of the Cold Chain Logistics market sample report and company profiles?

Key Offerings:

Market Share, Size & Forecast by Revenue | 2024−2033
Market Dynamics – Growth Drivers, Restraints, Investment Opportunities, and Leading Trends
Market Segmentation – A detailed analysis by Types of Services, by End-User Services, and by regions
Competitive Landscape – Top Key Vendors and Other Prominent Vendors

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Cold Chain Logistics Market – Regional Analysis

The Cold Chain Logistics Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

North America: In North America, a key trend in cold chain logistics is the increasing demand for fresh and organic foods, driven by consumer preferences for healthier options. Additionally, there’s a growing focus on last-mile delivery solutions, with companies investing in advanced refrigerated delivery vehicles and innovative packaging to ensure product freshness during transit.

Europe: In Europe, one prominent trend is the adoption of sustainable cold chain practices, including the use of energy-efficient refrigeration systems and eco-friendly packaging materials. Another trend is the expansion of cold chain infrastructure in response to the growing e-commerce market, with investments in automated warehouses and temperature-controlled distribution centers.

Asia-Pacific: In the Asia-Pacific region, a significant trend is the rapid growth of the pharmaceutical cold chain market, fueled by increasing healthcare spending and regulatory reforms. Another trend is the adoption of cold chain technologies to support the export of perishable goods, such as seafood and fresh produce, to international markets, driving investments in refrigerated transportation and storage facilities.

LAMEA (Latin America, Middle East, and Africa): In the LAMEA region, a notable trend is the development of cold chain networks to support the export of agricultural products, including fruits, vegetables, and flowers, to global markets. Additionally, there’s a growing focus on improving cold chain infrastructure in urban areas to meet the rising demand for temperature-sensitive goods, particularly in the pharmaceutical and food sectors.

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Browse the full “Cold Chain Logistics Market Size, Trends and Insights By Temperature Type (Chilled, Fruits & Vegetables, Dairy Products, Bakery & Confectionery, Processed Foods, Frozen, Seafood, Meat & Poultry, Ice Cream & Frozen Desserts, Pharmaceuticals), By Technology (Refrigerated Storage, Refrigerated Transport), By Application (Food & Beverages, Pharmaceuticals & Healthcare, Chemicals & Materials, Others), By Service (Storage, Transportation, Value-Added Services, Others), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2024–2033“ Report at https://www.custommarketinsights.com/report/cold-chain-logistics-market/

List of the prominent players in the Cold Chain Logistics Market:

Americold Logistics LLC
Lineage Logistics Holdings LLC
Swire Cold Storage Ltd.
Nichirei Corporation
Preferred Freezer Services LLC
Burris Logistics
AGRO Merchants Group
Kloosterboer Group B.V.
VersaCold Logistics Services
Interstate Cold Storage Inc.
Cloverleaf Cold Storage Co.
Henningsen Cold Storage Co.
United States Cold Storage Inc.
NewCold Advanced Cold Logistics
Trenton Cold Storage Inc.
Others

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The Cold Chain Logistics Market is segmented as follows:

By Temperature Type

Chilled
- Fruits & Vegetables
- Dairy Products
- Bakery & Confectionery
- Processed Foods
Frozen
- Seafood
- Meat & Poultry
- Ice Cream & Frozen Desserts
- Pharmaceuticals

By Technology

Refrigerated Storage
Refrigerated Transport

By Application

Food & Beverages
Pharmaceuticals & Healthcare
Chemicals & Materials
Others

By Service

Storage
Transportation
Value-Added Services
Others

Click Here to Get a Free Sample Report of the Global Cold Chain Logistics Market @ https://www.custommarketinsights.com/report/cold-chain-logistics-market/

Regional Coverage:

North America

U.S.
Canada
Mexico
Rest of North America

Europe

Germany
France
U.K.
Russia
Italy
Spain
Netherlands
Rest of Europe

Asia Pacific

China
Japan
India
New Zealand
Australia
South Korea
Taiwan
Rest of Asia Pacific

The Middle East & Africa

Saudi Arabia
UAE
Egypt
Kuwait
South Africa
Rest of the Middle East & Africa

Latin America

This Cold Chain Logistics Market Research/Analysis Report Contains Answers to the following Questions.

Which Trends Are Causing These Developments?
Who Are the Global Key Players in This Cold Chain Logistics Market? What are Their Company Profile, Product Information, and Contact Information?
What Was the Global Market Status of the Cold Chain Logistics Market? What Was the Capacity, Production Value, Cost and PROFIT of the Cold Chain Logistics Market?
What Is the Current Market Status of the Cold Chain Logistics Industry? What’s Market Competition in This Industry, Both Company and Country Wise? What’s Market Analysis of Cold Chain Logistics Market by Considering Applications and Types?
What Are Projections of the Global Cold Chain Logistics Industry Considering Capacity, Production and Production Value? What Will Be the Estimation of Cost and Profit? What Will Be Market Share, Supply and Consumption? What about imports and exports?
What Is Cold Chain Logistics Market Chain Analysis by Upstream Raw Materials and Downstream Industry?
What Is the Economic Impact On Cold Chain Logistics Industry? What are Global Macroeconomic Environment Analysis Results? What Are Global Macroeconomic Environment Development Trends?
What Are Market Dynamics of Cold Chain Logistics Market? What Are Challenges and Opportunities?
What Should Be Entry Strategies, Countermeasures to Economic Impact, and Marketing Channels for Cold Chain Logistics Industry?

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Reasons to Purchase Cold Chain Logistics Market Report

Cold Chain Logistics Market Report provides qualitative and quantitative analysis of the market based on segmentation involving economic and non-economic factors.
Cold Chain Logistics Market report outlines market value (USD) data for each segment and sub-segment.
This report indicates the region and segment expected to witness the fastest growth and dominate the market.
Cold Chain Logistics Market Analysis by geography highlights the consumption of the product/service in the region and indicates the factors affecting the market within each region.
The competitive landscape incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled.
Extensive company profiles comprising company overview, company insights, product benchmarking, and SWOT analysis for the major market players.
The Industry’s current and future market outlook concerning recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging and developed regions.
Cold Chain Logistics Market Includes in-depth market analysis from various perspectives through Porter’s five forces analysis and provides insight into the market through Value Chain.

Reasons for the Research Report

The study provides a thorough overview of the global Cold Chain Logistics market. Compare your performance to that of the market as a whole.

Aim to maintain competitiveness while innovations from established key players fuel market growth.

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Drivers, restrictions, and opportunities are among the qualitative elements covered in the worldwide Cold Chain Logistics market analysis.

The competitive environment of current and potential participants in the Cold Chain Logistics market is covered in the report, as well as those companies’ strategic product development ambitions.

According to the component, application, and industry vertical, this study analyzes the market qualitatively and quantitatively. Additionally, the report offers comparable data for the important regions.

For each segment mentioned above, actual market sizes and forecasts have been given.

Who should buy this report?

Participants and stakeholders worldwide Cold Chain Logistics market should find this report useful. The research will be useful to all market participants in the Cold Chain Logistics industry.
Managers in the Cold Chain Logistics sector are interested in publishing up-to-date and projected data about the worldwide Cold Chain Logistics market.
Governmental agencies, regulatory bodies, decision-makers, and organizations want to invest in Cold Chain Logistics products’ market trends.
Market insights are sought for by analysts, researchers, educators, strategy managers, and government organizations to develop plans.

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Finance News

Asian Equities Climb as US CPI Supports Fed Easing: Markets Wrap

13.11.2024 by admin

(Bloomberg) — Asian shares drifted higher Thursday after US inflation data supported the case for another Federal Reserve rate cut next month.

STAMPEDE DRILLING INC. ANNOUNCES 2024 THIRD QUARTER RESULTS

13.11.2024 by admin

CALGARY, AB, Nov. 13, 2024 /CNW/ – Drilling Inc. (“Stampede” or the “Corporation”) SDI announces today its consolidated financial and operational results for the three and nine month periods ended September 30, 2024.

The following press release should be read in conjunction with the December 31, 2023 audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) applicable to the preparation of interim financial statements, under International Accounting Standard 34, Interim Financial Reporting (together, “IFRS Accounting Standards”), and the annual information form (“AIF”) for the year ended December 31, 2023, as well as the condensed unaudited consolidated interim financial statements and notes for the three and nine month periods ended September 30, 2024 and 2023. Additional information regarding Stampede, including the AIF, is available on SEDAR+ at www.sedarplus.ca.

All amounts or dollar figures are denominated in thousands of Canadian dollars except for per share amounts, number of drilling rigs, and operating days, or unless otherwise noted.

Estimates and forward-looking information are based on assumptions of future events and actual results may vary from these estimates. See “Forward-Looking Information” in this press release for additional details.

THIRD QUARTER 2024 OPERATIONAL HIGHLIGHTS

Revenue of $24,262 – a decrease of $1,258 (5%) from $25,520 in the corresponding 2023 period. The decrease was primarily due to the decreased number of operating days.
Gross Margin⁽¹⁾of 31% – a decrease of 2% from 33% in the corresponding 2023 period. The decrease was primarily due to the reduction in operating days and revenue, resulting in an increase in repair and maintenance costs per day.
Net Income of $1,787 – a decrease of $1,772 (50%) from $3,559 in the corresponding 2023 period. The decrease was primarily related to the decreased revenue as a result of lower operating days and higher depreciation expense compared to the corresponding period of 2023.
Adjusted EBITDA⁽¹⁾ of $4,905 – a decrease of $1,296 (21%) from $6,201 in the corresponding 2023 period. The decrease was primarily due to customer drilling program deferrals and weather delays during the quarter resulting in a reduction in operating days, and operating margin.
Free Cash Flow⁽¹⁾ of $3,394 – an increase of $8,226 (170%) from ($4,832), primarily related to the decrease of funds used in financing activities compared to the corresponding 2023 period.
Repurchase of 3,145 common shares – In the third quarter of 2024 the Corporation repurchased and cancelled 3,145 common shares under its normal course issuer bid (the “NCIB”) at a weighted average price per common share of $0.22, for total consideration of $668. The total amount of common shares repurchased and cancelled during the third quarter of 2024 represents 1.51% of the total issued and outstanding common shares of the Corporation.

OUTLOOK

As of the date of this press release, Stampede has 13 out of its 19 rigs operating. Stampede anticipates maintaining this positive momentum into the fourth quarter of 2024 and into the winter drilling season.

Ongoing geopolitical challenges affecting global energy supply and demand will likely continue to impact the volatility on commodity prices, which we anticipate continuing into 2025. However, increased tidewater access for Canadian producers from the startup of the Trans Mountain pipeline expansion during the year and LNG Canada planned for 2025 are anticipated to help alleviate some of these pressures.

The Corporation ended the third quarter of 2024 with a debt to EBITDA ratio of 1.09:1.00 as Stampede continues to demonstrate prudent debt management, maintaining financial risk at manageable levels.

With the NCIB program renewed on June 3, 2024, the Corporation can further return value to shareholders through share buybacks, dependent on market conditions and growth prospects. Notably, since January 1, 2024, the Corporation has repurchased 7,000 shares for cancellation through its NCIB, spending a total of $1,556 at an average share price of $0.22 per share.

The Corporation has repurchased approximately 12% of its total outstanding shares since the inception of its NCIB program which began in August 2023.

(1) – Refer to “Non-GAAP and Other Financial Measures” for further information.

FINANCIAL SUMMARY

	Three months ended, September 30			Nine months ended, September 30
(000’s CAD $ except per share amounts)	2024	2023	% Change	2024	2023	% Change
Revenue	24,262	25,520	(5 %)	61,679	65,015	(5 %)
Direct operating expenses	16,753	17,069	(2 %)	41,321	43,934	(6 %)
Gross margin⁽¹⁾	7,509	8,451	(11 %)	20,358	21,081	(3 %)
Net income	1,787	3,559	(50 %)	4,476	7,265	(38 %)
Basic and diluted income per share	0.01	0.02	(50 %)	0.02	0.03	(33 %)
Adjusted EBITDA⁽¹⁾	4,905	6,201	(21 %)	13,499	14,746	(8 %)
Funds from operating activities	4,777	6,203	(23 %)	13,291	14,697	(10 %)
Free cash flow⁽¹⁾	3,394	(4,832)	(170 %)	7,654	(2,648)	(389 %)
Weighted average common shares outstanding (000’s)	210,627	227,561	(7 %)	211,816	226,984	(7 %)
Weighted average diluted common shares outstanding (000’s)	210,810	228,931	(8 %)	212,086	229,753	(8 %)
Capital expenditures	3,125	2,681	17 %	12,937	9,637	34 %
Number of marketed rigs	19	19	0 %	19	19	0 %
Drilling rig utilization⁽²⁾	51 %	56 %	(5 %)	42 %	46 %	(4 %)
CAOEC industry average utilization⁽³⁾	49 %	33 %	16 %	43 %	34 %	9 %
(1) Refer to “Non-GAAP and Other Financial Measures” for further information. (2) Drilling rig utilization is calculated based on operating days (spud to rig release). (3) Source: The Canadian Association of Energy Contractors (“CAOEC”) monthly Contractor Summary. The CAOEC industry average is based on operating days divided by total available drilling days.

DESCRIPTION OF STAMPEDE’S BUSINESS

Stampede is an energy services company that provides premier contract drilling services in Western Canada. Stampede operates a fleet of 18 telescopic double drilling rigs and 1 high spec triple drilling rig suited for most formations within the Western Canadian Sedimentary Basin (“WCSB”). The Corporation’s head office is located in Calgary, Alberta with operations based out of Nisku, Alberta and Estevan, Saskatchewan. The Corporation’s common shares trade on the TSX Venture Exchange (the “TSXV”) under the symbol “SDI”.

RESULTS FROM OPERATIONS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2024

	Nine months ended, September 30
(000’s CAD $ )	2024	2023	% Change
Revenue	61,679	65,015	(5 %)
Direct operating expenses	41,321	43,934	(6 %)
Gross margin⁽¹⁾	20,358	21,081	(3 %)
Gross margin %⁽¹⁾	33 %	32 %	1 %
Net income	4,476	7,265	(38 %)
General and administrative expenses	8,183	7,574	8 %
Adjusted EBITDA⁽¹⁾	13,499	14,746	(8 %)
Drilling rig operating days⁽²⁾	2,197	2,404	(9 %)
Drilling rig revenue per day⁽³⁾	28.1	27.0	4 %
Drilling rig utilization⁽⁴⁾	42 %	46 %	(4 %)
CAOEC industry average utilization⁽⁵⁾	43 %	34 %	9 %

⁽¹⁾ Refer to “Non-GAAP and Other Financial Measures” for further information. ⁽²⁾ Defined as contract drilling days, between spud to rig release. ⁽³⁾ Drilling rig revenue per day is calculated by revenue divided by drilling rig operating days. ⁽⁴⁾ Drilling rig utilization is calculated based on operating days (spud to rig release). ⁽⁵⁾ Source: The Canadian Association of Energy Contractors (“CAOEC”) monthly Contractor Summary. The CAOEC industry average is based on Operating Days divided by total available drilling days.

Revenue of $61,679 – a decrease of $3,336 (5%) from $65,015 in the corresponding 2023 period. The decrease was primarily due to the decreased number of operating days.
Operating days of 2,197 – a decrease of 207 (9%) from 2,404 operating days in the corresponding 2023 period. Operating days decreased due to customer drilling program deferrals and weather delays in the nine months ended September 30, 2024, resulting in lower drilling rig utilization compared to the corresponding period of 2023.
Gross margin percentage of 33% – an increase of 1% from 32% in the corresponding 2023 period. The increase was primarily due to a 4% increase in revenue per day, partially offset by a 3% increase in operating expenses per day.
Net income of $4,476 – a decrease of $2,789 (38%) from $7,265 in the corresponding 2023 period. The decrease was primarily related to the decreased revenue as a result of lower operating days and higher depreciation expense compared to the corresponding period of 2023.
Adjusted EBITDA of $13,499 – a decrease of $1,247 (8%) from $14,746 in the corresponding 2023 period. The decrease was primarily related to the reduction in operating days.
General and administrative expenses of $8,183 – an increase of $609 (8%) from $7,574 in the corresponding 2023 period. The increase was primarily related to the increase in share-based compensation expense and increased salary expenses in 2024.

RESULTS FROM OPERATIONS FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2024

	Three months ended, September 30
(000’s CAD $)	2024	2023	% Change
Revenue	24,262	25,520	(5 %)
Direct operating expenses	16,753	17,069	(2 %)
Gross margin⁽¹⁾	7,509	8,451	(11 %)
Gross margin %⁽¹⁾	31 %	33 %	(2 %)
Net Income	1,787	3,559	(50 %)
General and administrative expenses	3,027	2,711	12 %
Adjusted EBITDA⁽¹⁾	4,905	6,201	(21 %)
Drilling rig operating days⁽²⁾	898	978	(8 %)
Drilling rig revenue per day⁽³⁾	27.0	26.1	4 %
Drilling rig utilization⁽⁴⁾	51 %	56 %	(5 %)
CAOEC industry average utilization⁽⁵⁾	49 %	33 %	16 %

⁽¹⁾ Refer to “Non-GAAP and Other Financial Measures” for further information. ⁽²⁾ Defined as contract drilling days, between spud to rig release. ⁽³⁾ Drilling rig revenue per day is calculated by revenue divided by drilling rig operating days. ⁽⁴⁾ Drilling rig utilization is calculated based on operating days (spud to rig release). ⁽⁵⁾ Source: The Canadian Association of Energy Contractors (“CAOEC”) monthly Contractor Summary. The CAOEC industry average is based on Operating Days divided by total available drilling days.

Revenue of $24,262 – a decrease of $1,258 (5%) from $25,520 in the corresponding 2023 period. The decrease was primarily due to the decreased number of operating days.
Operating days of 898 – a decrease of 80 (8%) from 978 operating days in the corresponding 2023 period. Operating days decreased due to customer drilling program deferrals and weather delays in the third quarter of 2024, resulting in lower drilling rig utilization compared to the corresponding period of 2023.
Gross margin percentage of 31% – a decrease of 2% from 33% in the corresponding 2023 period. The decrease was primarily due to the reduction in operating days and revenue, resulting in an increase in repair and maintenance costs per day.
Net income of $1,787 – a decrease of $1,772 (50%) from $3,559 in the corresponding 2023 period. The decrease was primarily related to the decreased revenue as a result of lower operating days and higher depreciation expense compared to the corresponding period of 2023.
Adjusted EBITDA of $4,905 – a decrease of $1,296 (21%) from $6,201 in the corresponding 2023 period. The decrease was primarily due to the reduction in operating days and operating margin.
General and administrative expenses of $3,027 – an increase of $316 (12%) from $2,711 in the corresponding 2023 period. The increase was primarily related to the increase in general administrative expense and salary expense in the third quarter of 2024.

NON-GAAP AND OTHER FINANCIAL MEASURES

This press release contains references to (i) adjusted EBITDA, (ii) gross margin (iii) gross margin percentage, and (iv) free cash flow. These financial measures are not measures that have any standardized meaning prescribed by IFRS Accounting Standards and are therefore referred to as non-generally accepted accounting principles (“non-GAAP”) measures. The non-GAAP measures used by the Corporation may not be comparable to similar measures used by other companies.

(i)

Adjusted EBITDA – is defined as “income from operations before interest income, interest expense, taxes, transaction costs, depreciation and amortization, share-based compensation expense, gains on asset disposals, impairment expenses, other income, foreign exchange, non-recurring restructuring charges, finance costs, accretion of debentures and other income/expenses, foreign exchange gain and any other items that the Corporation considers appropriate to adjust given the irregular nature and relevance to comparable operations.” Management believes that in addition to net income, adjusted EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Corporation’s principal business activities prior to consideration of how these activities are financed, how assets are depreciated, amortized and impaired, the impact of foreign exchange, or how the results are affected by the accounting standards associated with the Corporation’s stock-based compensation plan. Investors should be cautioned, however, that adjusted EBITDA should not be construed as an alternative to net income and comprehensive income determined in accordance with IFRS Accounting Standards as an indicator of the Corporation’s performance. The Corporation’s method of calculating adjusted EBITDA may differ from that of other organizations and, accordingly, its adjusted EBITDA may not be comparable to that of other companies.

	Three months ended, September 30			Nine months ended, September 30
(000’s CAD $)	2024	2023	% Change	2024	2023	% Change
Net income	1,787	3,559	(50 %)	4,476	7,265	(38 %)
Depreciation	2,242	1,821	23 %	6,481	5,179	25 %
Finance costs	511	569	(10 %)	1,534	1,471	4 %
Other income	(26)	(12)	117 %	(39)	(15)	160 %
Gain on asset disposal	(31)	(80)	(61 %)	(52)	(93)	(44 %)
Share-based payments	317	355	(11 %)	1,007	918	10 %
Transaction costs	102	–	nm	108	29	272 %
Foreign exchange loss (gain)	3	(11)	(127 %)	(16)	(8)	100 %
Adjusted EBITDA	4,905	6,201	(21 %)	13,499	14,746	(8 %)


(ii)	Gross margin – is defined as “Income from operations before depreciation of property and equipment”. Gross margin is a measure that provides shareholders and potential investors additional information regarding the Corporation’s cash generating and operating performance. Management utilizes this measure to assess the Corporation’s operating performance. Investors should be cautioned, however, that gross margin should not be construed as an alternative to net income (loss) determined in accordance with IFRS Accounting Standards as an indicator of the Corporation’s performance. The Corporation’s method of calculating gross margin may differ from that of other organizations and, accordingly, its gross margin may not be comparable to that of other companies.

(iii)	Gross margin percentage – is calculated as gross margin divided by revenue. The Corporation believes gross margin as a percentage of revenue is an important measure to determine how the Corporation is managing its revenues and corresponding cost of sales. The Corporation’s method of calculating gross margin percentage may differ from that of other organizations and, accordingly, its gross margin percentage may not be comparable to that of other companies.

	The following table reconciles the Corporation’s income from operations, being the most directly comparable financial measure disclosed in the Corporation’s interim financial statements, to gross margin and gross margin percentage:

	Three months ended, September 30			Nine months ended, September 30
(000’s CAD $)	2024	2023	% Change	2024	2023	% Change
Income from operations	5,373	6,736	(20 %)	14,194	16,223	(13 %)
Depreciation of property and equipment	2,136	1,715	25 %	6,164	4,858	27 %
Gross margin	7,509	8,451	(11 %)	20,358	21,081	(3 %)
Gross margin %	31 %	33 %	(2 %)	33 %	32 %	1 %


(iv)	Free cash flow – is calculated based on funds from operating activities less maintenance and sustaining capital, and interest and principal debt repayments. The Corporation uses this measure to assess the discretionary cash that management has to invest in growth capital, asset acquisitions, or return capital to shareholders. The Corporation’s method of calculating free cash flow may differ from that of other organizations and, accordingly, its free cash flow may not be comparable to that of other companies. The following table reconciles the Corporation’s funds from operating activities to free cash flow.

	Three months ended, September 30			Nine months ended, September 30
(000’s CAD $)	2024	2023	% Change	2024	2023	% Change
Funds from operating activities	4,777	6,203	(23 %)	13,291	14,697	(10 %)
Maintenance and sustaining capital	(458)	(1,446)	(68 %)	(2,329)	(4,954)	(53 %)
Interest paid on Demand Facility	(81)	(212)	(62 %)	(193)	(565)	(66 %)
BDC principal payments	–	–	nm	–	(1,500)	nm
Interest on BDC loan	–	–	nm	–	(91)	nm
Term Loan principal payments	(463)	(9,167)	(95 %)	(1,926)	(9,667)	(80 %)
Interest on Term Loan	(381)	(210)	81 %	(1,189)	(568)	109 %
Total free cash flow	3,394	(4,832)	(170 %)	7,654	(2,648)	(389 %)
nm – not meaningful

FORWARD-LOOKING INFORMATION

Certain statements contained in this press release constitute forward-looking statements or forward-looking information (collectively, “forward-looking information”). Forward-looking information relates to future events or the Corporation’s future performance. All information other than statements of historical fact is forward-looking information. The use of any of the words “anticipate”, “plan”, “contemplate”, “continue”, “estimate”, “expect”, “intend”, “propose”, “might”, “may”, “will”, “could”, “should”, “believe”, “predict”, and “forecast” are intended to identify forward-looking information.

This press release contains forward-looking information pertaining to, among other things: the Corporation’s performance; expectations associated with the Corporation’s outlook, including among other things, anticipated commodity pricing and the volatility thereof, expectations about industry activities, market conditions and corresponding rig utilization; future projects and the anticipated benefits thereof to the Corporation; factors impacting global energy supply; the Corporation’s ability to return value to shareholders through repurchases of common shares under the NCIB; and the expected effects of seasonality and weather on the Corporation’s operations and business.

Forward-looking information is based on certain assumptions that Stampede has made in respect thereof as at the date of this press release regarding, among other things: the Corporation’s ability to fully crew and contract its rigs; the success of the measures implemented by the Corporation to ensure the safe, efficient and reliable operations at each of its drilling sites; the creditworthiness of the Corporation’s customers and counterparties; the effectiveness of the Corporation’s financial risk management policies at ensuring all payables are paid within the pre-agreed credit terms; that the Corporation has adequate access to its credit facility to provide the necessary liquidity needed to manage fluctuations in the timing of receipt and/or disbursement of operating cash flows; expectations regarding Stampede’s share price; the impact of inflation, weather conditions, and expectations regarding the duration and overall impact of the continued conflicts in Ukraine and the Middle East; the ability of the Corporation to retain qualified staff; the ability of the Corporation to maintain key customers; the ability of the Corporation to obtain financing on acceptable terms; the belief that the Corporation’s principal sources of liquidity will be sufficient to service its debt and fund its operations and other strategic opportunities; the ability to protect and maintain the Corporation’s intellectual property; and the regulatory framework regarding taxes and environmental matters in the jurisdictions in which the Corporation operates.

Forward-looking information is presented in this press release for the purpose of assisting investors and others in understanding certain key elements of the Corporation’s financial results and business plan, as well as the objectives, strategic priorities and business outlook of the Corporation, and in obtaining a better understanding of the Corporation’s anticipated operating environment. Readers are cautioned that such forward-looking information may not be appropriate for other purposes.

While Stampede believes the expectations and material factors and assumptions reflected in the forward-looking information is reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. Forward-looking information is not a guarantee of future performance and actual results or events could differ materially from the expectations of the Corporation expressed in or implied by such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information is subject to a number of known and unknown risks and uncertainties including, but not limited to: the condition of the global economy, including trade, inflation, the ongoing conflict in Ukraine, the Middle East and other geopolitical risks; the condition of the crude oil and natural gas industry and related commodity prices; other commodity prices and the potential impact on the Corporation and the industry in which the Corporation operates, including levels of exploration and development activities; the impact of increasing competition; fluctuations in operating results; the ongoing significant volatility in world markets and the resulting impact on drilling and completions programs; foreign currency exchange rates; interest rates; labour and material shortages; cyber security risks; natural catastrophes; and certain other risks and uncertainties detailed under the heading “Risks and Uncertainties” in the Corporation’s annual MD&A and under the heading “Risk Factors” in the Corporation’s AIF, each dated March 14, 2024, for the year ended December 31, 2023, and from time to time in Stampede’s public disclosure documents available at www.sedarplus.ca.

This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause actual results to differ materially from those predicted, forecasted, or projected. Statements, including forward-looking information, are made as of the date of this press release and the Corporation does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. All forward-looking information contained in this press release is expressly qualified by this cautionary statement.

SOURCE Stampede Drilling Inc.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2024/13/c1298.html

Markets News

Buying In Stocks On Inflation Data, Musk And Ramaswamy Doge

13.11.2024 by admin

To gain an edge, this is what you need to know today.

Extreme Sentiment

Please click here for an enlarged chart of iShares 20+ Year Treasury Bond ETF TLT.

Note the following:

In The Arora Report analysis, bonds have the potential to spoil the stock market’s party. Prudent investors need to keep an eye on bonds.
The chart shows that yields are pulling back in the early trade after the release of the Consumer Price Index.
The chart shows that on Trump’s win, TLT approached the high band of the support zone.
The chart shows that the momo crowd ran TLT up back into the bottom resistance zone.
The chart shows that TLT failed to breakout above the bottom resistance zone and has now pulled back below the bottom band of the resistance zone.
The chart shows two spot on Arora calls:
- Contrary Arora call that bonds will fall when the Fed cut rates. This call was made at a time when everyone was buying bonds.
- Arora call on the impact of the election on bonds
Inflation data came inline with consensus. Here are the details:
- Headline CPI came at 0.2% vs. 0.2% consensus.
- Core CPI came at 0.3% vs. 0.3% consensus.
In The Arora Report analysis, prudent investors should pay attention to the fact that the 0.3% core inflation rate is 3.6% annualized. The Fed’s stated target is 2%.
The extreme positive sentiment is evident from the following this morning in the early trade:
- Bonds rose and yields fell on inflation data.
- Stock futures were lower prior to the data. Aggressive buying came into stocks after the data. Buying is aggressive in Trump linked stocks such as Tesla Inc TSLA.
- Bitcoin was pulling back before CPI was released. Aggressive buying came in after the release of the data.
- None of the foregoing would make sense based on the data alone, but Wall Street’s thinking is that the Fed will be under pressure from Trump to cut rates in December – the fact that the data does not support a rate cut does not matter because of the political pressure.
Momo gurus are already out with a new reason to buy stocks – inflation was hot but not worse than expected.
Trump has announced that Musk and Ramaswamy will head the Department of Government Efficiency (DOGE). On a lighter note, Doge is the crypto coin that was developed as a joke and subsequently championed by Musk. An indication of extreme sentiment is that the joke coin is now worth more than Ford Motor Co F. On a serious note, if Musk is truly able to cut $2T out of the federal budget, expect a recession and a 20% – 40% drop in the stock market. In The Arora Report analysis, the primary driving force behind this stock market rise is the excess money in the system.
Initial jobless claims and Producer Price Index will be released tomorrow at 8:30am ET and maybe market moving.

China

There is a sigh of relief in Chinese and Asian markets in that even though Trump is appointing China hawks, he has not appointed extreme China hawks so far.

Magnificent Seven Money Flows

In the early trade, money flows are positive in Amazon.com, Inc. AMZN, NVIDIA Corp NVDA, and TSLA.

In the early trade, money flows are neutral in Meta Platforms Inc META.

In the early trade, money flows are negative in Apple Inc AAPL, Alphabet Inc Class C GOOG and Microsoft Corp MSFT.

In the early trade, money flows are positive in SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust Series 1 QQQ.

Momo Crowd And Smart Money In Stocks

Investors can gain an edge by knowing money flows in SPY and QQQ. Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil. The most popular ETF for gold is SPDR Gold Trust GLD. The most popular ETF for silver is iShares Silver Trust SLV. The most popular ETF for oil is United States Oil ETF USO.

Bitcoin

Bitcoin BTC/USD is seeing aggressive buying.

Protection Band And What To Do Now

It is important for investors to look ahead and not in the rearview mirror. The proprietary protection band from The Arora Report is very popular. The protection band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors.

Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.

You can determine your protection bands by adding cash to hedges. The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive. If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.

A protection band of 0% would be very bullish and would indicate full investment with 0% in cash. A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.

It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash. When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks. High beta stocks are the ones that move more than the market.

Traditional 60/40 Portfolio

Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.

Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less. Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.

The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever Generate Wealth Newsletter.

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Finance News

Stock market today: Indexes edge higher after tame October inflation report

13.11.2024 by admin

NYSE traders — TIMOTHY A. CLARY/AFP via Getty Images

US stocks climbed higher as traders took in inflation figures from October that were in-line with estiamtes.
Consumer prices rose 2.6% on a yearly basis last month and 0.2% for the month.
Traders have upped their bets on another quarter-point rate cut from the Fed in December.

US stocks ticked higher on Wednesday as traders took in fresh inflation figures, which were in line with economists’ expectations. Major indexes edged up in early-morning trading, while bond yields slumped.

Consumer prices grew 0.2% in the month of October and 2.6% on a year-over-year basis. The increase was slightly hotter than last month’s 2.4% price growth, but in line with expectations, which kept investors hopeful that the Federal Reserve will cut interest rates at its December meeting.

Expectations for another 25 basis point rate cut in December solidified. Markets are pricing in a 82% chance the Fed will trim its target rate by another quarter-point, up from a 59% yesterday, according to the CME FedWatch tool.

“Given nervousness around the more inflationary aspects of Trump’s policy proposals, markets appeared primed for an upside inflation surprise today,” Seema Shah, the chief global strategist at Principal Asset Management, said in a note. “A December cut is still in the cards,” she added.

Still, the rise in the overall inflation rate makes the outlook for future Fed cuts uncertain, according to Skyler Weinand, the chief investment officer of Regan Capital.

“With Wednesday’s CPI in line with expectations, but still stubbornly above the Fed’s 2% goal, the Fed may have only one rate cut left in December before taking a pause from their easing path,” Weinand said in a note.

He continued: “The incredible move in the stock market postelection has effectively eased financial conditions for stock investors. This easing, combined with incoming fiscal stimulus, may warrant a pause on rate cuts by the Fed in the near future to allow the dust to settle and to process more incoming data.”

Assets that are part of the Trump Trade appeared to remain in-focus on Wednesday, with shares of Tesla rising as much as 3% while Dogecoin climbed 4% after Elon Musk was appointed to co-head Trump’s newly created Department of Government Efficiency, along with entrepreneur Vivek Ramaswamy.

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:

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