Financial Results for the Fourth Quarter and the Year Ended December 31, 2020

 Inovalis Real Estate Investment Trust Announces 

For the portfolio that incorporates just structures possessed totally by the REIT ("IP Portfolio"), net rental pay for the three months finished December 31, 2020 ("Q4 2020"), adapted to IFRIC 21 – Levies ("IFRIC 21"), was CAD$7,110,000 (EUR4,580,000), contrasted with CAD$5,517,000 (EUR3,780,000) changed net rental pay for the three months finished December 31, 2019 ("Q4 2019"). The increment is chiefly because of: the net effect of CAD$600,000 identified with the Arcueil securing and offer of the Vanves property; the 2-month Net Operating Income ("NOI") commitment of CAD$389,000 from the Bad Homburg resource following its procurement toward the finish of October 2020, the repayment of CAD$275,000 acquired from Jeuneurs' single occupant, just as the positive unfamiliar trade effect of CAD$302,000.

In Q4 2020, for the portfolio that remembers the REIT's proportionate offer for joint endeavors ("Total Portfolio"), net rental pay adapted to IFRIC 21 was CAD$9,105,000 (EUR5,859,000), contrasted with CAD$8,113,000 (EUR5,560,000) for Q4 2019, primarily owing to the positive unfamiliar trade effect of CAD$534,000, just as the reimbursement of CAD$275,000 on the Jeuneurs property.

Coronavirus Related Business Update

The REIT didn't encounter a huge change in quarterly lease assortment for Q4 2020 because of COVID-19. The executives persistently screens economic situations, adjusting its activities to the actions taken by European governments and wellbeing authorities to secure general wellbeing.

The executives is certain about the strength of its portfolio, as demonstrated by the strong Q4 2020 outcomes. Nonetheless, the executives keeps on checking the likely effect of descending tension on rental income which may happen in the present moment in 2021 as resulting rushes of the COVID-19 pandemic happen, requiring halfway lockdown measures and ensuing monetary disturbance.

Lease assortment

Lease for the French resources is invoiced and gathered on a quarterly premise and 94% of lease has been gotten for Q4 2020. This is for the most part in accordance with the circumstance and level of pre-COVID-19 lease assortment levels with a couple of minor special cases.

For the REIT's German properties, rents are gathered consistently and almost 100% of lease was gotten in Q4 2020.

 

The board is effectively observing rent installment deferral solicitations to keep up reliable lease assortment while supporting occupant needs.

Renting Operations

Around 7,900 sq. ft. of gradual space was rented during Q4. Endeavors keep on renting abandoned space (127,024 sq. ft., 9.7% of absolute weighted regions) in the portfolio. The board will specifically finish capital consumption enhancements for empty zones to draw in occupants and amplify lease. Renting dealings for various new occupants have been pushed back to Q2 2021 until there is more noteworthy lucidity about ordinary business activities.

Assets from Operations ("FFO"), Adjusted Funds from Operations ("AFFO")

The REIT follows the proposals of the Real Property Association of Canada ("REALPAC") (February 2019 white paper) with specific exemptions. Allude to the Non-GAAP Financial Measures segment of the administration's conversation and investigation for the years finished December 31, 2020 and 2019 (the "2020 Annual MD&A") for a more itemized conversation on FFO and AFFO.

In Q4 2020, the REIT announced Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO") were CAD$0.17 and CAD$0.15 per unit individually, versus CAD$0.22 and CAD$0.26 for a similar period a year ago. Powerful with the beginning of the pandemic in March 2020, the REIT moderated money and stopped its speculation plans until the financial effect of the COVID-19 pandemic on the REIT's business turned out to be more evident. This happened on the grounds that the REIT conceded contributing $55 million that had been reserved for acquisitions of pay creating resources in the 2020 financial plan.

The REIT's Canadian subsidizes held in Euros had an undiscovered unfamiliar trade gain of CAD$1.01 million (which addresses a likeness around CAD$0.03 per unit of FFO) over the a year of 2020. REALPAC direction proposes that this addition be remembered for the FFO figuring, in any case, it has been prohibited because of the unpredictability of the Canadian dollar against the Euro.

Financing Activity

As at December 31, 2020, the weighted normal loan fee across the portfolio obligation was 2.03% and the obligation proportion was 42.3% (35% net of money), easily inside the REIT's ordered limit of 60%.

For a similar period, the REIT had CAD$80.4 million of money on its solidified monetary record, including CAD$26.3 million continues from the full reimbursement of the Rueil development credit head to the REIT and the CAD$12.4 million between time money circulation on Rueil benefit coming about because of the offer of the structure. This break money dissemination, comparing to the circulated benefit on the deal, is dependent upon annual duty payable of CAD$3.6 million (CAD$4.1 million for the complete benefit).

Looking forward, the executives is thinking about other renegotiating freedoms to exploit verifiably low loan fees in Europe. The REIT ought to have the option to fund resources on a less expensive premise than that offered by conventional financing in Canada.

In France, banks and monetary lessors have been supported by the French Government's actions to facilitate the obligation administration states of their customers from the beginning of the pandemic. The REIT has profited by punishment free deferrals for head and premium owing on Sablière, Courbevoie, Metropolitain, Baldi, and Delizy and Arcueil properties addressing a CAD$6.15 million positive effect on the REIT's 2020 money age