Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Entity Registrant Name | GRANITE REAL ESTATE INVESTMENT TRUST |
Entity Central Index Key | 0001564538 |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Stapled Units Outstanding | 61,688,189 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Interactive Data Current | Yes |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Ordinary shares [member] | |
Document Information [Line Items] | |
Trading Symbol | GRP.U |
Security Exchange Name | NYSE |
Title of 12(b) Security | Common Stock |
Stapled Units [member] | |
Document Information [Line Items] | |
Trading Symbol | GRP.U |
Security Exchange Name | NYSE |
Title of 12(b) Security | Stapled Units |
Combined Balance Sheets
Combined Balance Sheets - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Non-current assets: | ||
Investment properties | $ 5,855,583 | $ 4,457,899 |
Construction funds in escrow | 8,402 | 16,767 |
Deferred tax assets | 4,730 | 4,057 |
Fixed assets, net | 3,290 | 2,119 |
Cross currency interest rate swap | 28,676 | |
Other assets | 948 | 1,273 |
Total non-current assets | 5,901,629 | 4,482,115 |
Current assets: | ||
Other receivable | 11,650 | |
Accounts receivable | 6,746 | 7,812 |
Income taxes receivable | 915 | 315 |
Prepaid expenses and other | 6,902 | 3,387 |
Cash and cash equivalents | 831,280 | 298,677 |
Total assets | 6,747,472 | 4,803,956 |
Non-current liabilities: | ||
Unsecured debt, net | 1,928,252 | 1,186,994 |
Cross currency interest rate swaps | 97,311 | 30,365 |
Long-term portion of lease obligations | 32,944 | 32,426 |
Deferred tax liabilities | 392,841 | 320,972 |
Total non-current liabilities | 2,451,348 | 1,570,757 |
Current liabilities: | ||
Unsecured debt, net | 249,870 | |
Cross currency interest rate swaps | 16,953 | |
Deferred revenue | 11,276 | 5,804 |
Accounts payable and accrued liabilities | 61,197 | 50,183 |
Distributions payable | 15,422 | 13,081 |
Short-term portion of lease obligations | 829 | 619 |
Income taxes payable | 18,373 | 15,402 |
Total liabilities | 2,825,268 | 1,655,846 |
Equity: | ||
Stapled unitholders' equity | 3,920,069 | 3,146,143 |
Non-controlling interests | 2,135 | 1,967 |
Total equity | 3,922,204 | 3,148,110 |
Total liabilities and equity | $ 6,747,472 | $ 4,803,956 |
Combined Statements of Net Inco
Combined Statements of Net Income - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Combined Statements of Net Income | ||
Rental revenue | $ 340,199 | $ 272,823 |
Lease termination and close-out fees | 855 | |
Revenue | 340,199 | 273,678 |
Property operating costs | 47,164 | 35,364 |
Net operating income | 293,035 | 238,314 |
General and administrative expenses | 32,203 | 31,419 |
Depreciation and amortization | 1,151 | 906 |
Interest income | (2,372) | (9,613) |
Interest expense and other financing costs | 35,839 | 29,941 |
Foreign exchange (gains) losses, net | (3,671) | 1,633 |
Fair value gains on investment properties, net | (273,437) | (245,442) |
Fair value losses (gains) on financial instruments, net | 3,402 | (1,192) |
Loss on sale of investment properties, net | 901 | 3,045 |
Other expense | 2,675 | |
Income before income taxes | 499,019 | 424,942 |
Income tax expense | 69,092 | 42,667 |
Net income | 429,927 | 382,275 |
Net income attributable to: | ||
Stapled unitholders | 429,804 | 382,079 |
Non-controlling interests | 123 | 196 |
Net income | $ 429,927 | $ 382,275 |
Combined Statements of Comprehe
Combined Statements of Comprehensive Income - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Combined Statements of Comprehensive Income | |||
Net income (loss) | $ 429,927 | $ 382,275 | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 24,839 | (173,341) | |
Unrealized (loss) gain on net investment hedges, includes income taxes of nil | [1] | (45,093) | 77,996 |
Total other comprehensive loss | (20,254) | (95,345) | |
Comprehensive income | 409,673 | 286,930 | |
Comprehensive income attributable to: | |||
Stapled unitholders | 409,514 | 286,817 | |
Non-controlling interests | 159 | 113 | |
Comprehensive income | $ 409,673 | $ 286,930 | |
[1] | Items that may be reclassified subsequently to net income if a foreign subsidiary is disposed of or hedges are terminated or no longer assessed as effective (note 2(h)). |
Combined Statements of Compre_2
Combined Statements of Comprehensive Income (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2020CAD ($) | |
Combined Statements of Comprehensive Income | |
Unrealized gain (loss) on net investment hedges, income taxes | $ 0 |
Combined Statements of Unithold
Combined Statements of Unitholders' Equity - CAD ($) shares in Thousands, $ in Thousands | Total | Stapled Units | Contributed surplus | Retained earnings | Accumulated other comprehensive income | Stapled Unitholders' Equity | Non-controlling interests |
Equity at beginning of period at Dec. 31, 2018 | $ 2,496,985 | $ 2,063,778 | $ 95,787 | $ 124,501 | $ 211,452 | $ 2,495,518 | $ 1,467 |
Balance at beginning of period (in units) at Dec. 31, 2018 | 45,685 | ||||||
Net income | 382,275 | 382,079 | 382,079 | 196 | |||
Other comprehensive (loss) income | (95,345) | (95,262) | (95,262) | (83) | |||
Stapled unit offering, net of issuance costs | 502,003 | $ 502,003 | 502,003 | ||||
Stapled unit offering, net of issuance costs (note 12(d)) | 8,349 | ||||||
Distributions (note 11) | (139,481) | (139,331) | (139,331) | (150) | |||
Contributions from non-controlling interests | 537 | 537 | |||||
Special distribution paid in units and immediately consolidated | $ 41,128 | (41,128) | |||||
Units issued under the stapled unit plan (note 12(b)) | 1,207 | $ 1,207 | 1,207 | ||||
Units issued under the stapled unit plan, Unit (note 12(b)) | 20 | ||||||
Units repurchased for cancellation | (71) | $ (66) | (5) | (71) | |||
Units repurchased for cancellation (in units) | (2) | ||||||
Equity at end of period at Dec. 31, 2019 | 3,148,110 | $ 2,608,050 | 54,654 | 367,249 | 116,190 | 3,146,143 | 1,967 |
Balance at end of period (in units) at Dec. 31, 2019 | 54,052 | ||||||
Net income | 429,927 | 429,804 | 429,804 | 123 | |||
Other comprehensive (loss) income | (20,254) | (20,290) | (20,290) | 36 | |||
Stapled unit offering, net of issuance costs | 552,857 | $ 552,857 | 552,857 | ||||
Stapled unit offering, net of issuance costs (note 12(d)) | 8,096 | ||||||
Distributions (note 11) | (165,574) | (165,404) | (165,404) | (170) | |||
Contributions from non-controlling interests | 179 | 179 | |||||
Units issued under the stapled unit plan (note 12(b)) | 1,977 | $ 1,977 | 1,977 | ||||
Units issued under the stapled unit plan, Unit (note 12(b)) | 31 | ||||||
Units repurchased for cancellation | (25,018) | $ (23,690) | (1,328) | (25,018) | |||
Units repurchased for cancellation (in units) | (491) | ||||||
Equity at end of period at Dec. 31, 2020 | $ 3,922,204 | $ 3,139,194 | $ 53,326 | $ 631,649 | $ 95,900 | $ 3,920,069 | $ 2,135 |
Balance at end of period (in units) at Dec. 31, 2020 | 61,688 |
Combined Statements of Cash Flo
Combined Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 429,927 | $ 382,275 |
Items not involving current cash flows | (199,581) | (196,583) |
Leasing commissions paid | (2,953) | (1,307) |
Tenant allowances paid | (2,019) | (513) |
Current income tax expense | 6,591 | 5,071 |
Income taxes paid | (5,679) | (3,009) |
Interest expense | 34,048 | 29,275 |
Interest paid | (32,654) | (28,833) |
Changes in working capital balances | 16,641 | (2,945) |
Cash provided by operating activities | 244,321 | 183,431 |
INVESTING ACTIVITIES | ||
Property acquisitions | (1,045,659) | (930,878) |
Working capital acquired on acquisitions | (7,006) | |
Proceeds from disposals, net | 42,508 | 85,536 |
Capital expenditures - Maintenance or improvements | (5,376) | (2,889) |
Capital expenditures - Developments or expansions | (49,598) | (27,407) |
Capital expenditures - Costs to complete acquired property | (8,622) | |
Construction funds released from (in) escrow | 8,622 | (17,125) |
Mortgage receivable proceeds | 16,845 | |
Fixed asset additions | (1,691) | (176) |
Cash used in investing activities | (1,066,822) | (876,094) |
FINANCING ACTIVITIES | ||
Monthly distributions paid | (163,064) | (136,897) |
Special distribution paid | 0 | (13,710) |
Proceeds from unsecured debentures, net of financing costs | 994,185 | |
Repayment of lease obligations | (638) | (598) |
Settlement of cross currency swap | (6,825) | |
Financing costs paid | (30) | (452) |
Distributions to non-controlling interests | (170) | (150) |
Contributions by non-controlling interests | 225 | |
Proceeds from stapled unit offerings, net of issuance costs | 552,932 | 502,003 |
Repurchase of stapled units | (25,018) | (71) |
Cash provided by financing activities | 1,358,197 | 343,525 |
Effect of exchange rate changes on cash and cash equivalents | (3,093) | (10,431) |
Net increase (decrease) in cash and cash equivalents during the year | 532,603 | (359,569) |
Cash and cash equivalents, beginning of year | 298,677 | 658,246 |
Cash and cash equivalents, end of year | $ 831,280 | $ 298,677 |
NATURE AND DESCRIPTION OF THE T
NATURE AND DESCRIPTION OF THE TRUST | 12 Months Ended |
Dec. 31, 2020 | |
NATURE AND DESCRIPTION OF THE TRUST | |
NATURE AND DESCRIPTION OF THE TRUST | 1. NATURE AND DESCRIPTION OF THE TRUST Effective January 3, 2013, Granite Real Estate Inc. (“Granite Co.”) completed its conversion from a corporate structure to a stapled unit real estate investment trust (“REIT”) structure. All of the common shares of Granite Co. were exchanged, on a one-for-one Business Corporations Act The stapled units trade on the Toronto Stock Exchange and on the New York Stock Exchange. The principal office of Granite REIT is 77 King Street West, Suite 4010, P.O. Box 159, Toronto-Dominion Centre, Toronto, Ontario, M5K 1H1, Canada. The registered office of Granite GP is Suite 2600, Three Bentall Centre, 595 Burrard Street, P.O. Box 49314, Vancouver, British Columbia, V7X 1L3, Canada. The Trust is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. These combined financial statements were approved by the Board of Trustees of Granite REIT and Board of Directors of Granite GP on March 3, 2021. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES The accounting policies described below were applied consistently to all periods presented in these combined financial statements. (a) Basis of Presentation and Statement of Compliance The combined financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). (b) Combined Financial Statements and Basis of Consolidation As a result of the REIT conversion described in note 1, the Trust does not have a single parent; however, each unit of Granite REIT and each share of Granite GP trade as a single stapled unit and accordingly, Granite REIT and Granite GP have identical ownership. Therefore, these financial statements have been prepared on a combined basis whereby the assets, liabilities and results of Granite GP and Granite REIT have been combined. The combined financial statements include the subsidiaries of Granite GP and Granite REIT. Subsidiaries are fully consolidated by Granite GP or Granite REIT from the date of acquisition, being the date on which control is obtained. The subsidiaries continue to be consolidated until the date that such control ceases. Control exists when Granite GP or Granite REIT have power, exposure or rights to variable returns and the ability to use their power over the entity to affect the amount of returns it generates. All intercompany balances, income and expenses and unrealized gains and losses resulting from intercompany transactions are eliminated. (c) Trust Units The stapled units are redeemable at the option of the holder and, therefore, are required to be accounted for as financial liabilities, except where certain exemption conditions are met, in which case redeemable instruments may be classified as equity. The attributes of the stapled units meet the exemption conditions set out in IAS 32, Financial Instruments: Presentation and are, therefore, presented as equity on the combined balance sheets. (d) Investment Properties The Trust accounts for its investment properties, which include income-producing properties, properties under development and land held for development, in accordance with IAS 40, Investment Property . For acquired investment properties that meet the definition of a business, the acquisition is accounted for as a business combination (note 2(e)); otherwise they are initially measured at cost including directly attributable expenses. Subsequent to acquisition, investment properties are carried at fair value, which is determined based on available market evidence at the balance sheet date including, among other things, rental revenue from current leases and reasonable and supportable assumptions that represent what knowledgeable, willing parties would assume about rental revenue from future leases less future cash outflows in respect of capital expenditures. Gains and losses arising from changes in fair value are recognized in net income in the period of change. Income-Producing Properties The carrying value of income-producing properties includes the impact of straight-line rental revenue (note 2(l)), tenant incentives and deferred leasing costs since these amounts are incorporated in the determination of the fair value of income-producing properties. When an income-producing property is disposed of, the gain or loss is determined as the difference between the disposal proceeds, net of selling costs, and the carrying amount of the property and is recognized in net income in the period of disposal. Properties Under Development The Trust’s development properties are classified as such until the property is substantially completed and available for occupancy. The initial cost of properties under development includes the acquisition cost of the land and direct development or expansion costs, including construction costs, borrowing costs and indirect costs wholly attributable to development. Borrowing costs are capitalized to projects under development or construction based on the average accumulated expenditures outstanding during the period multiplied by the Trust’s average borrowing rate on existing debt. Where borrowings are associated with specific developments, the amount capitalized is the gross borrowing cost incurred on such borrowings less any investment income arising on temporary investment of these borrowings. The capitalization of borrowing costs is suspended if there are prolonged periods that development activity is interrupted. The Trust capitalizes direct and indirect costs, including property taxes and insurance of the development property, if activities necessary to ready the development property for its intended use are in progress. Costs of internal personnel and other indirect costs that are wholly attributable to a project are capitalized as incurred. If considered reliably measurable, properties under development are carried at fair value. Properties under development are measured at cost if fair value is not reliably measurable. In determining the fair value of properties under development consideration is given to, among other things, remaining construction costs, development risk, the stage of project completion and the reliability of cash inflows after project completion. (e) Business Combinations The Trust accounts for property acquisitions as a business combination if the particular assets and set of activities acquired can be operated and managed as a business in their current state for the purpose of providing a return to the unitholders. In accordance with IFRS 3, Business Combinations , the acquired set of activities and assets in an acquisition must include an input and a substantive process to qualify as a business. IFRS 3 amendments, effective January 1, 2020, provide for an optional concentration test to permit a simplified assessment of whether an acquired set of activities and assets is not a business. The concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The Trust applies the acquisition method to account for business combinations. The consideration transferred for a business combination is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Trust. The total consideration includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired as well as liabilities and contingent liabilities assumed in a business combination are initially measured at fair value at the acquisition date. The Trust recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. Acquisition related costs are expensed as incurred. Any contingent consideration is recognized at fair value at the acquisition date. Subsequent changes to the fair value of contingent consideration that is recorded as an asset or liability is recognized in net income. Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the identifiable net assets acquired. If the consideration transferred is lower than the fair value of the net assets acquired, the difference is recognized in net income. (f) Assets Held for Sale Non-current assets (and disposal groups) are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. This condition is satisfied when the asset is available for immediate sale in its present condition, management is committed to the sale and the sale is highly probable to occur within one year. (g) Foreign Currency Translation The assets and liabilities of the Trust’s foreign operations are translated into Canadian dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case, for material transactions, the exchange rates at the dates of those transactions are used. Exchange differences arising are recognized in other comprehensive income and accumulated in equity. In preparing the financial statements of each entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the average rates of exchange prevailing in the period. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognized in net income in the period in which they arise except for: • The effective portion of exchange differences on transactions entered into in order to hedge certain foreign currency risks are recognized in other comprehensive income; • Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation) are recognized in other comprehensive income; and • Exchange differences on foreign currency borrowings related to capitalized interest for assets under construction are recognized in investment properties. (h) Financial Instruments and Hedging Financial Assets and Financial Liabilities The following summarizes the Trust’s classification and measurement basis of its financial assets and liabilities: Classification and Measurement Basis Financial assets Construction funds in escrow Amortized Cost Long-term receivables included in other assets Amortized Cost Cross currency interest rate swaps Fair Value Other receivable (proceeds receivable associated with a property disposal) Fair Value Accounts receivable Amortized Cost Foreign exchange derivative contracts Fair Value Cash and cash equivalents Amortized Cost Financial liabilities Unsecured debentures, net Amortized Cost Unsecured term loans, net Amortized Cost Cross currency interest rate swaps Fair Value Accounts payable and accrued liabilities Amortized Cost Foreign exchange derivative contracts Fair Value Distributions payable Amortized Cost The Trust recognizes an allowance for expected credit losses (“ECL”) for financial assets measured at amortized cost. The impact of the credit loss modeling process is summarized as follow: • The Trust did not record an ECL allowance against long-term receivables as historical experience of loss on these balances is insignificant and, based on the assessment of forward-looking information, no significant increases in losses are expected. The Trust will continue to assess the valuation of these instruments. • The Trust did not record an ECL allowance against accounts receivable and has determined that its internal processes of evaluating each receivable on a specific basis for collectability using historical experience and adjusted for forward-looking information, would appropriately allow the Trust to determine if there are significant increases in credit risk to then record a corresponding ECL allowance. For financial liabilities measured at amortized cost, the liability is amortized using the effective interest rate method. Under the effective interest rate method, any transaction fees, costs, discounts and premiums directly related to the financial liabilities are recognized in net income over the expected life of the obligation. In regards to modifications to financial liabilities, when a financial liability measured at amortized cost is modified or exchanged, and such modification or exchange does not result in derecognition, the adjustment to the amortized cost of the financial liability as a result of the modification or exchange is recognized in net income. Derivatives and Hedging Derivative instruments, such as the cross currency interest rate swaps and the foreign exchange forward contracts and collars, are recorded in the combined balance sheet at fair value, including those derivatives that are embedded in financial or non-financial contracts. Changes in the fair value of derivative instruments which are not designated as hedges for accounting purposes are recognized in the combined statements of net income. The Trust utilizes derivative financial instruments from time to time in the management of its foreign currency and interest rate exposures. The Trust’s policy is not to utilize derivative financial instruments for trading or speculative purposes. The Trust applies hedge accounting to certain derivative and non-derivative financial instruments designated as hedges of net investments in subsidiaries with a functional currency other than the Canadian dollar. Hedge accounting is discontinued prospectively when the hedge relationship is terminated or no longer qualifies as a hedge, or when the hedging item is sold or terminated. In a net investment hedging relationship, the effective portion of foreign exchange gains or losses on the hedging instruments is recognized in other comprehensive income and the ineffective portion is recognized in net income. The amounts recorded in accumulated other comprehensive income are recognized in net income when there is a disposition or partial disposition of the foreign subsidiary. (i) Cash and Cash Equivalents Cash and cash equivalents include cash and short-term investments with original maturities of three months or less. (j) Fixed Assets Fixed assets include computer hardware and software, furniture and fixtures and leasehold improvements, which are recorded at cost less accumulated depreciation. Depreciation expense is recorded on a straight-line basis over the estimated useful lives of the fixed assets, which typically range from 3 to 5 years for computer hardware and software and 5 to 7 years for other furniture and fixtures. Leasehold improvements are amortized over the term of the applicable lease. Fixed assets also include right-of-use assets identified in accordance with IFRS 16, Leases . Refer to note 2(k) for the measurement basis of right-of-use assets. (k) Leases The Trust recognizes a right-of-use asset and a lease obligation at the lease commencement date, in accordance with IFRS 16, Leases. The Trust accounts for its right-of-use assets that do not meet the definition of investment property as fixed assets. The right-of-use asset is initially measured at cost and, subsequently, at cost less any accumulated depreciation and impairment, and adjusted for certain remeasurements of the lease obligation. When a right-of-use asset meets the definition of investment property, it is initially measured at cost and subsequently measured at fair value (note 2(d)). The lease liability is initially measured at the present value of the lease payments at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, at the Trust’s incremental borrowing rate. Generally, the Trust uses its incremental borrowing rate as the discount rate. The lease obligation is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee or, as appropriate, a change in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. (l) Revenue Recognition Where Granite has retained substantially all the benefits and risks of ownership of its rental properties, leases with its tenants are accounted for as operating leases. Where substantially all the benefits and risks of ownership of the Trust’s rental properties have been transferred to its tenants, the Trust’s leases are accounted for as finance leases. All of the Trust’s current leases are operating leases. Revenue from investment properties include base rents earned from tenants under lease agreements, property tax and operating cost recoveries and other incidental income. Rents from tenants may contain rent escalation clauses or free rent periods which are recognized in revenue on a straight-line basis over the term of the lease. The difference between the revenue recognized and the contractual rent is included in investment properties as straight-line rents receivable. In addition, tenant incentives including cash allowances provided to tenants are recognized as a reduction in rental revenue on a straight-line basis over the term of the lease where it is determined that the tenant fixturing has no benefit to the property beyond the existing tenancy. Property tax and operating cost recoveries from tenants are recognized as revenue in the period in which applicable costs are incurred. (m) Unit-Based Compensation Plans Incentive Stock Option Plan Compensation expense for option grants is based on the fair value of the options at the grant date and is recognized over the period from the grant date to the date the award is vested. A liability is recognized for outstanding options based upon the fair value as the Trust is an open-ended trust making its units redeemable. During the period in which options are outstanding, the liability is adjusted for changes in the fair value with such adjustments being recognized as compensation expense in general and administrative expenses in the period in which they occur. The liability balance is reduced as options are exercised and recorded in equity as stapled units along with the proceeds received on exercise. Executive Deferred Stapled Unit Plan The executive deferred stapled unit plan is measured at fair value at the date of grant and amortized to compensation expense from the effective date of the grant to the final vesting date. Compensation expense is recognized on a proportionate basis consistent with the vesting features of each tranche of the grant. Compensation expense for executive deferred stapled units granted under the plan is recognized in general and administrative expenses with a corresponding liability recognized based upon the fair value of the Trust’s stapled units as the Trust is an open-ended trust making its units redeemable. During the period in which the executive deferred stapled units are outstanding, for grants with no performance criteria, the liability is adjusted for changes in the market value of the Trust’s stapled unit, and for grants with performance criteria the liability is measured at fair value using the Monte Carlo simulation model (note 12), with both such adjustments being recognized as compensation expense in general and administrative expenses in the period in which they occur. The liability balance is reduced as deferred stapled units are settled for stapled units and recorded in equity. Director/Trustee Deferred Share Unit Plan The compensation expense and a corresponding liability associated with the director/trustee deferred share unit plan is measured based on the market value of the underlying stapled units. During the period in which the awards are outstanding, the liability is adjusted for changes in the market value of the underlying stapled unit, with such positive or negative adjustments being recognized in general and administrative expenses in the period in which they occur. The liability balance is settled for cash when a director/trustee ceases to be a member of the Board. (n) Income Taxes Operations in Canada Granite qualifies as a mutual fund trust under the Income Tax Act (Canada) (the “Act”) and as such the Trust itself will not be subject to income taxes provided it continues to qualify as a REIT for purposes of the Act. A REIT is not taxable and not considered to be a Specified Investment Flow-through Trust provided it complies with certain tests and it distributes all of its taxable income in a taxation year to its unitholders. The Trust’s qualification as a REIT results in no current or deferred income tax being recognized in the combined financial statements for income taxes related to the Canadian investment properties. Operations in the United States The Trust’s investment property operations in the United States are conducted in a qualifying United States REIT (“US REIT”) for purposes of the Internal Revenue Code of 1986, as amended. As a qualifying US REIT, it is not taxable provided it complies with certain tests in addition to the requirement to distribute substantially all of its taxable income. As a qualifying US REIT, current income taxes on U.S. taxable income have not been recorded in the combined financial statements. However, the Trust has recorded deferred income taxes that may arise on the disposition of its investment properties as the Trust will likely be subject to entity level income tax in connection with such transactions pursuant to the Foreign Investment in Real Property Tax Act. Operations in Europe The Trust consolidates certain entities that continue to be subject to income tax. Income taxes for taxable entities in Europe, as well as other entities in Canada or the United States subject to tax, are recorded as follows: Current Income Tax The current income tax expense is determined on the basis of enacted or substantively enacted tax rates and laws at each balance sheet date. Deferred Income Tax Deferred income tax is recorded, using the liability method, on temporary differences arising between the tax basis of assets and liabilities and the amounts reported on the combined financial statements. Deferred income tax assets and liabilities are measured at tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. Deferred income tax assets are recognized to the extent that it is probable that deductions, tax credits or tax losses will be utilized. Each of the current and deferred tax assets and liabilities are offset when they are levied by the same taxation authority in either the same taxable entity or different taxable entities within the same reporting group that settle on a net basis. (o) Significant Accounting Judgments, Estimates and Assumptions The preparation of the combined financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts and disclosures made in the financial statements and accompanying notes. Management believes that the judgments, estimates and assumptions utilized in preparing the combined financial statements are reasonable and prudent; however, actual results could be materially different and require an adjustment to the reported results. Judgments The following are the critical judgments that have been made in applying the Trust’s accounting policies and that have the most significant effect on the amounts recognized in the combined financial statements: (i) Leases The Trust’s policy for revenue recognition is described in note 2(l). The Trust makes judgments in determining whether certain leases are operating or finance leases, in particular tenant leases with long contractual terms or leases where the property is a large square-footage and/or architecturally specialized. The Trust also makes judgments in determining the lease term for some lease contracts in which it is a lessee that include renewal or termination options. The assessment of whether the Trust is reasonably certain to exercise such options impacts the lease term which, in turn, significantly affects the amount of lease obligations and right-of-use assets recognized. (ii) Investment properties The Trust’s policy relating to investment properties is described in note 2(d). In applying this policy, judgment is used in determining whether certain costs incurred for tenant improvements are additions to the carrying amount of the property or represent incentives, identifying the point at which practical completion of properties under development occurs and determining borrowing costs to be capitalized to the carrying value of properties under development. Judgment is also applied in determining the use, extent and frequency of independent appraisals. (iii) Income taxes The Trust applies judgment in determining whether it will continue to qualify as a REIT for both Canadian and U.S. tax purposes for the foreseeable future. However, should it at some point no longer qualify, it would be subject to income tax and would be required to recognize current and deferred income taxes. Estimates and Assumptions The key assumptions concerning the future and other key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities include the following: (i) Valuation of investment properties The fair value of investment properties is determined by management using primarily the discounted cash flow method in which the income and expenses are projected over the anticipated term of the investment plus a terminal value discounted using an appropriate discount rate. The Trust obtains, from time to time, appraisals from independent qualified real estate valuation experts. However, the Trust does not measure its investment properties based on these appraisals but uses them as data points, together with other external market information accumulated by management, in arriving at its own conclusions on values. Management uses valuation assumptions such as discount rates, terminal capitalization rates and market rental rates applied in external appraisals or sourced from valuation experts; however, the Trust also uses its historical renewal experience with tenants, its direct knowledge of the specialized nature of certain of Granite’s portfolio and tenant profile and the actual condition of the properties in making business judgments about lease renewal probabilities, renewal rents and capital expenditures. The critical assumptions relating to the Trust’s estimates of fair values of investment properties include the receipt of contractual rents, contractual renewal terms, expected future market rental rates, discount rates that reflect current market uncertainties, capitalization rates and recent investment property prices. If there is any change in these assumptions or regional, national or international economic conditions, the fair value of investment properties may change materially. Refer to note 4 for further information on the estimates and assumptions made by management. (ii) Fair value of financial instruments Where the fair value of financial assets or liabilities recorded on the balance sheet or disclosed in the notes cannot be derived from active markets, they are determined using valuation techniques including the discounted cash flow method. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as credit risk and volatility. Changes in assumptions about these factors could materially affect the reported fair value of financial instruments. (iii) Income taxes The Trust operates in a number of countries and is subject to the income tax laws and related tax treaties in each of its operating jurisdictions. These laws and treaties can be subject to different interpretations by relevant taxation authorities. Significant judgment is required in the estimation of Granite’s income tax expense, the interpretation and application of the relevant tax laws and treaties and the provision for any exposure that may arise from tax positions that are under audit by relevant taxation authorities. The recognition and measurement of deferred tax assets or liabilities is dependent on management’s estimate of future taxable profits and income tax rates that are expected to be in effect in the period the asset is realized or the liability is settled. Any changes in management’s estimate can result in changes in deferred tax assets or liabilities as reported in the combined balance sheets and also the deferred income tax expense in the combined statements of net income. (p) Future Accounting Policy Changes As at December 31, 2020, there are no new accounting standards issued but not yet applicable to the combined financial statements except for the following: Agenda Decision — IFRS 16, Leases In December 2019, the IFRS Interpretations Committee issued a final agenda decision in regards to the determination of the lease term for cancellable or renewable leases under IFRS 16, Leases (the “Decision”) and whether the useful life of any non-removable leasehold improvements is limited to the lease term of the related lease. As of December 31, 2020, the Trust completed the impact assessment and determined that there is no material impact from the adoption of this interpretation on its combined financial statements. (q) COVID-19 Pandemic During the year ended December 31, 2020, the coronavirus disease (“COVID-19”) pandemic has resulted in governments across Granite’s operating markets enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Global equity and capital markets have also experienced significant volatility and weakness during this time. Governments across the globe have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. Granite is continuing to monitor the impact of the COVID-19 pandemic on its business, liquidity and results of operations. During the year ended December 31, 2020, there has not been any significant impact on Granite’s operations, assets or liabilities as a result of COVID-19. eceived 100% of 2020 rents due, and 100% and 99.9%, respectively, of January and February 2021 rents to date. Granite has not recognized any provisions for uncollected rent at this time as all outstanding rental income has been received. Granit e reviewed its future cash flow projections and the valuation of its properties considering the impacts of the COVID-19 COVID-19 Granite continues to review its future cash flow projections and the valuation of its investment properties in light of the COVID-19 pandemic. The carrying value of Granite’s investment properties reflects its best estimate for the highest and best use as at December 31, 2020 (note 4). The duration of the COVID-19 pandemic, and the potential for further waves of new infections in the markets where Granite operates that could lead to the reinstatement of emergency measures, cannot be predicted. As such, the length and full scope of the economic impact of COVID-19 and other consequential changes it will have on Granite’s business and operations in the long-term cannot be forecasted with certainty at this time. Certain aspects of Granite’s business and operations that could potentially be impacted include rental income, occupancy, capital expenditures, future demand for space and market rents, all of which ultimately impact the underlying valuation of investment properties. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2020 | |
ACQUISITIONS | |
ACQUISITIONS | 3. ACQUISITIONS During the years ended December 31, 2020 and 2019, property acquisitions consisted of the following: 2020 Acquisitions Property Location Date acquired Property Transaction Total Property under development: Aquamarijnweg 2 (1) Bleiswijk, Netherlands March 13, 2020 $ 35,632 $ 145 $ 35,777 Income-producing properties: Oude Graaf 15 Weert, Netherlands May 1, 2020 31,910 253 32,163 De Kroonstraat 1 (2) Tilburg, Netherlands July 1, 2020 71,716 710 72,426 Francis Baconstraat 4 Ede, Netherlands July 1, 2020 21,403 178 21,581 8995 Airport Road Brampton, ON September 1, 22,173 593 22,766 555 Beck Crescent Ajax, ON September 30, 15,350 407 15,757 8500 Tatum Road (3) Palmetto, GA November 12, 105,184 189 105,373 Industrieweg 15 Voorschoten, November 20, 24,577 1,708 26,285 Zuidelijke Havenweg 2 Hengelo, Netherlands December 4, 46,226 2,882 49,108 Beurtvaartweg 2-4, Sprengenweg 1-2 Nijmegen, December 1 8 39,067 2,531 41,598 12 Tradeport Road Hanover Township, December 22, 174,722 2,212 176,934 250 Tradeport Road Nanticoke, PA December 22, 79,776 1,074 80,850 Memphis portfolio (three properties): 4460 E. Holmes Road, 4995 Citation Drive and 8650 Commerce Drive Memphis, TN, June 18, 2020 111,590 497 112,087 Midwest portfolio (five properties): 6201 Green Pointe Drive South, 8779 Le Saint Drive, 8754 Trade Port Drive and 445 Airtech Parkway Groveport, OH, and Indianapolis, IN June 18, 2020 177,647 801 178,448 5415 Centerpoint Parkway Obetz, OH July 8, 2020 45,092 256 45,348 Mississauga portfolio (four properties): 5600, 5610, 5620 and 5630 Timberlea Boulevard Mississauga, ON September 28, 19,450 444 19,894 Development land: 5005 Parker Henderson Road Fort Worth, TX June 8, 2020 8,932 332 9,264 $ 1,030,447 $ 15,212 $ 1,045,659 (1) The development in Bleiswijk, Netherlands was completed in September 2020 and subsequently transferred to income-producing properties. The property purchase price includes a tenant allowance of $6.8 million ( € (2) Excludes construction costs and holdbacks of $12.4 million ( € (3) The Trust acquired the leasehold interest in this property which resulted in the recognition of a right-of-use asset, including transaction costs, of $105,373. The Trust will acquire freehold title to the property on December 1, 2029. 2019 Acquisitions Property Location Date acquired Property Transaction Total Income-producing properties: 201 Sunridge Boulevard Wilmer, TX March 1, 2019 $ 58,087 $ 141 $ 58,228 3501 North Lancaster Hutchins Road Lancaster, TX March 1, 2019 106,120 168 106,288 2020 & 2095 Logistics Drive (1) Mississauga, ON April 9, 2019 174,106 146 174,252 1901 Beggrow Street Columbus, OH May 23, 2019 71,607 289 71,896 Heirweg 3 Born, July 8, 2019 25,704 1,640 27,344 1222 Commerce Parkway Horn Lake, MS August 1, 2019 24,492 231 24,723 831 North Graham Road Greenwood, IN October 4, 2019 39,581 40 39,621 100 Clyde Alexander Lane (2) Pooler, GA October 18, 2019 62,657 614 63,271 1301 Chalk Hill Road (3) Dallas, TX November 19, 2019 269,764 247 270,011 330-366 Southaven, MS December 19, 2019 63,717 38 63,755 440-480 Southaven, MS December 19, 2019 51,643 33 51,676 Development land: 6701, 6702 Purple Sage Road Houston, TX July 1, 2019 33,361 510 33,871 $ 980,839 $ 4,097 $ 984,936 (1) Includes a right-of-use (2) The Trust acquired the leasehold interest in this property which resulted in the recognition of a right-of-use (3) Excludes cash held in escrow at December 31, 2019 to complete construction. During the year ended December 31, 2020, the transaction costs of $15.2 million (2019 — $4.1 million), which included land transfer taxes and legal and advisory costs were first capitalized to the cost of the respective properties and then subsequently expensed to net fair value gains on investment properties on the combined statements of net income as a result of measuring the properties at fair value. |
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENT PROPERTIES | |
INVESTMENT PROPERTIES | 4. INVESTMENT PROPERTIES As at December 31, 2020 2019 Income-producing properties $ 5,786,338 $ 4,377,623 Properties under development 31,488 51,310 Land held for development 37,757 28,966 $ 5,855,583 $ 4,457,899 Changes in investment properties are shown in the following table: Years Ended December 31, 2020 2019 Income- Properties Land held Income- Properties Land held Balance, beginnin g $ 4,377,623 $ 51,310 $ 28,966 $ 3,415,786 $ 17,009 $ 3,984 Maintenance or improvements 3,997 — — 3,272 — — Leasing commissions 3,449 — — 1,079 — — Tenant allowances 1,784 — — 515 — — Developments or expansions 12,582 39,083 458 3,641 27,250 — Acquisitions (note 3) 1,000,618 35,777 9,264 951,065 8,932 24,939 Costs to complete acquired property (note 6) 8,622 — — — — — Disposals (note 5) (31,276 ) — — — — — Transfer to income-producing properties 97,733 (97,733 ) — — — — Classified as assets held for sale — — — (61,120 ) — — Amortization of straight-line rent 8,842 — — 5,074 — — Amortization of tenant allowances (5,321 ) — — (5,122 ) — — Other changes (16 ) — — 189 — — Fair value gains (losses), net 273,914 (145 ) (332 ) 243,351 (135 ) 557 Foreign currency translation, net 33,787 3,196 (599 ) (180,107 ) (1,746 ) (514 ) Balance, end of year $ 5,786,338 $ 31,488 $ 37,757 $ 4,377,623 $ 51,310 $ 28,966 The Trust determines the fair value of an income-producing property based upon, among other things, rental income from current leases and assumptions about rental income from future leases reflecting market conditions and lease renewals at the applicable balance sheet dates, less future cash outflows in respect of such leases. Fair values are primarily determined by discounting the expected future cash flows, generally over a term of 10 years, plus a terminal value based on the application of a capitalization rate to estimated year 11 cash flows. The fair values of properties under development are measured using a discounted cash flow model, net of costs to complete, as of the balance sheet date. The Trust measures its investment properties using valuations prepared by management. The Trust does not measure its investment properties based on valuations prepared by external appraisers but uses such external appraisals as data points, together with other external market information accumulated by management, in arriving at its own conclusions on values. Management uses valuation assumptions such as discount rates, terminal capitalization rates and market rental rates applied in external appraisals or sourced fr o Refer to note 2(q) for a discussion of the impact of the COVID-19 Included in investment properties is $27.2 million (2019 — $18.9 million) of net straight-line rent receivable s Details about contractual obligations to purchase, construct and develop properties can be found in the commitments and contingencies note (note 21). Tenant minimum rental commitments payable to Granite on non-cancellable 2021 $ 329,686 2022 323,125 2023 289,622 2024 211,997 2025 189,542 2026 and thereafter 1,042,995 $ 2,386,967 Valuations are most se n As at December 31, 2020 2019 Weighted (1) Maximum Minimum Weighted (1) Maximum Minimum Canada Discount rate 5.71% 6.25% 5.25% 5.90% 8.75% 5.25% Terminal capitalization rate 5.22% 5.50% 4.75% 5.55% 8.00% 5.00% United States Discount rate 6.18% 9.25% 5.00% 6.41% 9.50% 5.00% Terminal capitalization rate 5.58% 8.50% 4.75% 6.23% 8.75% 5.25% Germany Discount rate 6.85% 9.00% 5.50% 6.83% 8.25% 5.70% Terminal capitalization rate 5.83% 8.25% 4.50% 6.31% 8.75% 5.00% Austria Discount rate 8.58% 10.50% 8.25% 7.96% 10.00% 7.00% Terminal capitalization rate 7.47% 9.75% 7.00% 7.34% 9.75% 6.75% Netherlands Discount rate 4.99% 6.25% 4.40% 5.24% 6.00% 4.70% Terminal capitalization rate 5.58% 7.40% 4.80% 6.14% 7.55% 5.60% Other Discount rate 7.32% 7.50% 7.00% 8.25% 10.00% 7.25% Terminal capitalization rate 6.97% 9.75% 6.00% 8.20% 9.75% 6.25% Total Discount rate 6.38% 10.50% 4.40% 6.60% 10.00% 4.70% Terminal capitalization rate 5.82% 9.75% 4.50% 6.32% 9.75% 5.00% (1) Weighted based on income-producing property fair value. The table below summarizes the sensitivity of the fair value of income-producing properties to changes in either the discount rate or terminal capitalization rate: Discount Rate Terminal Capitalization Rate Rate sensitivity Fair value Change in fair value Fair value Change in fair value +50 basis points $ 5,571,937 $ (214,401) $ 5,503,884 $ (282,454) +25 basis points 5,677,809 (108,529) 5,638,929 (147,409) Base rate 5,786,338 — 5,786,338 — -25 basis points 5,897,286 110,948 5,947,585 161,247 -50 basis points $ 6,011,034 $ 224,696 $ 6,125,131 $ 338,793 |
DISPOSITIONS
DISPOSITIONS | 12 Months Ended |
Dec. 31, 2020 | |
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners [abstract] | |
DISPOSITIONS | 5. DISPOSITIONS During the year ended December 31, 2020, Granite disposed of three properties located in Canada and Spain. The disposed properties consist of the following: Property Location Date disposed Sale price 201 Patillo Road Tecumseh, ON September 14, 2020 $ 17,000 2032 First Street Louth St. Catharines, ON September 14, 2020 6,500 11 Santiago Russinyol Street Barcelona, Spain October 23, 2020 7,776 $ 31,276 During the year ended December 31, 2019, Granite disposed of 13 properties located in Canada and the United States. The disposed properties consist of the following: Property Location Date disposed Sale price 3 Walker Drive Brampton, ON January 15, 2019 $ 13,380 Iowa pr o perti e s f o ur rope rt ies): 403 S 8th Street Montezuma, IA 1951 A Avenue Victor, IA 408 N Maplewood Avenue Williamsburg, IA 411 N Maplewood Avenue Williamsburg, IA February 25, 2019 22,323 375 Edward Street Richmond Hill, ON February 27, 2019 8,050 330 Finchdene Square Toronto, ON September 20, 2019 13,150 200 Industrial Parkway Aurora, ON November 4, 2019 10,010 Michigan pro p erties (five pr o perties): 1800 Hayes Street Grand Haven, MI 3501 John F Donnelly Drive Holland, MI 3601 John F Donnelly Drive Holland, MI 3575 128th Avenue North Holland, MI 6151 Bancroft Avenue Alto, MI December 4, 2019 38,852 $ 105,765 The gross proceeds of $22.3 million (US$16.9 million) for the four properties in Iowa included a vendor take-back mortgage of $16.8 million (US$12.7 million) which was repaid on June 18, 2019. During the year ended December , , Granite incurred $ million $ million) of broker commissions and legal and advisory costs associated with the disposal or planned disposal of the assets held for sale which are included in loss on sale of investment properties on the combined statements of net income. In connection with the disposal of a property in South Carolina in , on July , , Granite settled the associated obligation in cash. Upon receipt of the proceeds receivable (note , a resulting gain of $ million was realized which is included in the $ million loss on sale of investment properties on the combined statement of net income. For the year ended , the $ million loss on sale of investment properties also included a $ million gain relating to the adjustment in proceeds receivable associated with the property disposal in South Carolina. |
NON-CURRENT ASSETS
NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
NON-CURRENT ASSETS | |
Disclosure Of Noncurrent Assets Explanatory | 6. NON-CURRENT Construction Funds In Escrow On November 19, 2019, Granite acquired a developed property located at 1301 Chalk Hill Road, Dallas, Texas which had outstanding construction work. Consequently, $20.5 million (US$15.5 million) of the purchase price was placed in escrow to pay for the remaining construction costs. The funds are released from escrow as the construction is completed. As at December 31, 2020, $8.4 million (US$6.6 million) remained in escrow (2019 — $16.8 million (US$12.9 million)). As construction is completed, the construction costs are capitalized to the cost of the investment property. During the year ended December 31, 2020, $8.6 million (US$6.3 million) was released from escrow and capitalized to the property (note 4) (2019 — $3.7 million (US$2.6 million)). Other Assets As at December 31, 2020 2019 Deferred financing costs associated with the revolving credit facility $ 599 $ 885 Long-term receivables 349 388 $ 948 $ 1,273 |
CURRENT ASSETS
CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
CURRENT ASSETS | |
CURRENT ASSETS | 7. CURRENT ASSETS Other Receivable On July 22, 2020, the full amount of the proceeds receivable of $12.1 million (US$9.0 million) associated with the disposal of a property in South Carolina in September 2018 was received. The estimated sale price for the property in 2018 was determined using an income approach that assumed a forecast consumer price index inflation factor at the date of disposition. Accordingly, the proceeds receivable was subject to change and was dependent upon the actual consumer price index inflation factor as at December 31, 2019. As at December 31, 2019, the proceeds receivable was $11.7 million (US$9.0 million). |
UNSECURED DEBT AND CROSS CURREN
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings [abstract] | |
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS | 8. UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS (a) Unsecured Debentures and Term Loans, Net As at December 31, 2020 2019 Maturity Date Amortized (1) Principal Amortized (1) Principal 2021 Debentures July 5, 2021 $ 249,870 $ 250,000 $ 249,646 $ 250,000 2023 Debentures November 30, 2023 399,066 400,000 398,746 400,000 2027 Debentures June 4, 2027 497,179 500,000 — — 2030 Debentures December 18, 2030 497,060 500,000 — — 2024 Term Loan December 19, 2024 235,419 235,949 239,153 239,816 2026 Term Loan December 11, 2026 299,528 300,000 299,449 300,000 $ 2,178,122 $ 2,185,949 $ 1,186,994 $ 1,189,816 (1) The amounts outstanding are net of deferred financing costs and, in the case of the term loans, debt modification losses. The deferred financing costs and debt modification losses are amortized using the effective interest method and are recorded in interest expense. As at December 31, 2020 2019 Unsecured Debentures and Term Loans, Net Non-current $ 1,928,252 $ 1,186,994 Current 249,870 — $ 2,178,122 $ 1,186,994 2021 Debentures On July 3, 2014, Granite REIT Holdings Limited Partnership (“Granite LP”), a wholly-owned subsidiary of Granite, issued at par $250.0 million aggregate principal amount of 3.788% Series 2 senior debentures due July 5, 2021 (the “2021 Debentures”). Interest on the 2021 Debentures is payable semi-annually in arrears on January 5 and July 5 of each year. Deferred financing costs of $1.6 million were incurred and recorded as a reduction against the principal owing. The 2021 Debentures are redeemable, in whole or in part, at Granite’s option at any time and from time to time, at a price equal to accrued and unpaid interest plus the greater of (a) 100% of the principal amount of the 2021 Debentures to be redeemed; and (b) the Canada Yield Price. The Canada Yield Price means, in respect of a 2021 Debenture, a price equal to which, if the 2021 Debenture were to be issued at such price on the redemption date, would provide a yield thereon from the redemption date to its maturity date equal to 46.0 non-callable On January 4, 2021, the Trust redeemed in full the outstanding $250.0 million aggregate principal amount of the 2021 Debentures (note 22). In conjunction with the redemption, the 2021 Cross Currency Interest Rate Swap was terminated on January 4, 2021 (note 22). 2023 Debentures On December 20, 2016, Granite LP issued $400.0 million aggregate principal amount of 3.873% Series 3 senior debentures due November 30, 2023 (the “2023 Debentures”) at a nominal premium. Interest on the 2023 Debentures is payable semi-annually in arrears on May 30 and November 30 of each year. Deferred financing costs of $2.2 million were incurred and recorded as a reduction against the principal owing. The 2023 Debentures are redeemable, in whole or in part, at Granite’s option at any time and from time to time, at a price equal to accrued and unpaid interest plus the greater of (a) 100% of the principal amount of the 2023 Debentures to be redeemed; and (b) the Canada Yield Price. The Canada Yield Price means, in respect of a 2023 Debenture, a price equal to which, if the 2023 Debenture were to be issued at such price on the redemption date, would provide a yield thereon from the redemption date to its maturity date equal to 62.5 basis points above the yield that a non-callable 2027 Debentures On June 4, 2020, Granite LP issued at par $500.0 million aggregate principal amount of 3.062% Series 4 senior debentures due June 4, 2027 (the “2027 Debentures”). Interest on the 2027 Debentures is payable semi-annually in arrears on June 4 and December 4 of each year. Deferred financing costs of $3.0 million were incurred in connection with the issuance of the 2027 Debentures and are recorded as a reduction against the principal owing. The 2027 Debentures are redeemable, in whole or in part, at Granite’s option at any time and from time to time, at a price equal to accrued and unpaid interest plus the greater of (a) 100% of the principal amount of the 2027 Debentures to be redeemed; and (b) the Canada Yield Price. The Canada Yield Price means, in respect of a 2027 Debenture, a price equal to which, if the 2027 Debenture were to be issued at such price on the redemption date, would provide a yield thereon from the redemption date to its maturity date equal to 65.0 basis points above the yield that a non-callable 2030 Debentures On December 18, 2020, Granite LP issued at par $500.0 million aggregate principal amount of 2.378% Series 5 senior debentures due December 18, 2030 (the “2030 Debentures”). Interest on the 2030 Debentures is payable semi-annually in arrears on June 18 and December 18 of each year. Deferred financing costs of $3.0 million were incurred in connection with the issuance of the 2030 Debentures and are recorded as a reduction against the principal owing. As at December 31, 2020, deferred financing costs of $0.2 million remain to be paid. The 2030 Debentures are redeemable, in whole or in part, at Granite’s option at any time and from time to time, at a price equal to accrued and unpaid interest plus the greater of (a) 100% of the principal amount of the 2030 Debentures to be redeemed; and (b) the Canada Yield Price. The Canada Yield Price means, in respect of a 2030 Debenture, a price equal to which, if the 2030 Debenture were to be issued at such price on the redemption date, would provide a yield thereon from the redemption date to its maturity date equal to 39.5 basis points above the yield that a non-callable Government of Canada bond, trading at par, would carry if issued on the redemption date with a maturity date of December 18, 2030. Granite also has the option to redeem the 2030 Debentures at par plus any accrued and unpaid interest within three 2024 Term Loan On December 19, 2018, Granite LP entered into and fully drew down a US$185.0 million senior unsecured non-revolving re-borrowed. In conjunction with the extension, the previously existing cross currency interest rate swap associated with the term facility was terminated on September 24, 2019 and blended into a new cross currency interest rate swap (note 8(b)). 2026 Term Loan On December 12, 2018, Granite LP entered into and fully drew down a $300.0 million senior unsecured non-revolving re-borrowed. In conjunction with the extension, the previously existing cross currency interest rate swap associated with the term facility was settled on November 27, 2019 and a new cross currency interest rate swap was entered into (note 8(b)). The 2021 Debentures, 2023 Debentures, 2027 Debentures, 2030 Debentures, 2024 Term Loan and 2026 Term Loan rank pari passu with all of Granite LP’s other existing and future senior unsecured indebtedness and are guaranteed by Granite REIT and Granite GP. (b) Cross Currency Interest Rate Swaps As at December 31, 2020 2019 Financial asset at fair value 2027 Cross Currency Interest Rate Swap $ 28,676 $ — Financial liabilities at fair value 2021 Cross Currency Interest Rate Swap $ 16,953 $ 3,630 2023 Cross Currency Interest Rate Swap 36,540 24,298 2030 Cross Currency Interest Rate Swap 10,545 — 2024 Cross Currency Interest Rate Swap 25,370 1,202 2026 Cross Currency Interest Rate Swap 24,856 1,235 $ 114,264 $ 30,365 As at December 31, 2020 2019 Financial liabilities at fair value Non-current $ 97,311 $ 30,365 Current 16,953 — $ 114,264 $ 30,365 On July 3, 2014, the Trust entered into a cross currency interest rate swap (the “2021 Cross Currency Interest Rate Swap”) to exchange the 3.788% semi-annual interest payments from the 2021 Debentures for Euro denominated payments at a 2.68% fixed interest rate. In addition, under the terms of the swap, the Trust will pay principal proceeds of € On December 20, 2016, the Trust entered into a cross currency interest rate swap (the “2023 Cross Currency Interest Rate Swap”) to exchange the 3.873% semi-annual interest payments from the 2023 Debentures for Euro denominated payments at a 2.43% fixed interest rate. In addition, under the terms of the swap, the Trust will pay principal proceeds of € On September 24, 2019, in conjunction with a refinancing, the Trust entered into a new cross currency interest rate swap (the “2024 Cross Currency Interest Rate Swap”) to exchange the LIBOR plus margin monthly interest payments from the 2024 Term Loan for Euro denominated payments at a 0.522% fixed interest rate. In addition, under the terms of the 2024 Cross Currency Interest Rate Swap, Granite will pay principal proceeds of € On November 27, 2019, also in conjunction with a refinancing, the Trust entered into a new cross currency interest rate swap (the “2026 Cross Currency Interest Rate Swap”) to exchange the CDOR plus margin monthly interest payments from the 2026 Term Loan for Euro denominated payments at a 1.355% fixed interest rate. In addition, under the terms of the swap, the Trust will pay principal proceeds of € On June 4, 2020, the Trust entered into a cross currency interest rate swap (the “2027 Cross Currency Interest Rate Swap”) to exchange the $500.0 million proceeds and the 3.062% semi-annual interest payments from the 2027 Debentures for US$370.3 million and US dollar denominated interest payments at a 2.964% fixed interest rate. In addition, under the terms of the swap, the Trust will pay principal proceeds of US$370.3 million in exchange for which it will receive $500.0 million on June 4, 2027. On December 18, 2020, the Trust entered into a cross currency interest rate swap (the “2030 Cross Currency Interest Rate Swap”) to exchange the 2.378% semi-annual interest payments from the 2030 Debentures for Euro denominated interest payments at a 1.045% fixed interest rate. In addition, under the terms of the swap, the Trust will pay principal proceeds of € The cross currency interest rate swaps are designated as net investment hedges of the Trust’s investments in foreign operations. The effectiveness of the hedges is On December 18, 2020, the Trust de-designated the 2021 Cross Currency Interest Rate Swap as a result of the designation of the 2030 Cross Currency Interest Rate Swap. Since the Trust did not employ hedge accounting for the 2021 Cross Currency Interest Rate Swap from December 18, 2020 to December 31, 2020, a fair value loss of less than $0.1 million is recognized in fair value losses (gains) on financial instruments, net (note 13(e)) in the combined statement of net income. With the refinancing of the 2024 Term Loan in 2019, the Trust has assessed only the foreign exchange movements associated with the fair value change of the 2024 Cross Currency Interest Rate Swap to be effective. Accordingly, the change in fair value relating to foreign exchange movements on the 2024 Cross Currency Interest Rate Swap is recorded in other comprehensive income. For the year ended December 31, 2020, since there is no effective hedge for the interest and other movements associated with the fair value change of the 2024 Cross Currency Interest Rate Swap, a fair value loss of $5.9 million is recognized in fair value losses (gains) on financial instruments, net (note 13(e)) in the combined statement of net income. The Trust has elected to record the differences resulting from the lower interest rates associated with the cross currency interest rate swaps in the combined statements of net income. |
LEASE OBLIGATIONS
LEASE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Presentation of leases for lessee [abstract] | |
LEASE OBLIGATIONS | 9. LEASE OBLIGATIONS As at December 31, 2020, the Trust had leases for the use of office space, office and other equipment, and ground leases for the land upon which four income-producing properties in Europe and Canada are situated. The Trust recognized these leases as right-of-use right-of-use Future minimum lease payments relating to the right-of-use 2021 $ 829 2022 554 2023 269 2024 258 2025 269 2026 and thereafter 31,594 $ 33,773 During the year ended December 31, 2020, the Trust recognized $1.6 million (2019 — $1.3 million) of interest expense, related to lease obligations (note 13(d)). |
CURRENT LIABILITIES
CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
CURRENT LIABILITIES | |
CURRENT LIABILITIES | 10. CURRENT LIABILITIES Deferred Revenue Deferred revenue relates to prepaid and unearned revenue received from tenants and fluctuates with the timing of rental receipts. Bank Indebtedness On February 1, 2018, the Trust entered into an unsecured revolving credit facility in the amount of $500.0 million that is available by way of Canadian dollar, US dollar or Euro denominated loans or letters of credit and matures on February 1, 2023. The Trust has the option to extend the maturity date by one year to February 1, 2024 subject to the agreement of lenders in respect of a minimum of 66 2/3% of the aggregate amount committed under the facility. The credit facility provides the Trust with the ability to increase the amount of the commitment by an additional aggregate principal amount of up to $100.0 million with the consent of the participating lenders. As at December 31, 2020, the Trust had no amounts drawn (2019 — nil) from the credit facility and $1.0 million (2019 — $1.0 million) in letters of credit issued against the facility. Accounts Payable and Accrued Liabilities As at December 31, 2020 2019 Accounts payable $ 9,876 $ 6,840 Tenant security deposits 6,793 3,978 Employee unit-based compensation 7,118 5,586 Trustee/director unit-based compensation 5,219 3,301 Accrued salaries, incentives and benefits 5,783 5,416 Accrued interest payable 7,956 6,507 Accrued construction payable 6,285 5,933 Accrued professional fees 2,620 3,822 Accrued property operating costs 8,878 6,376 Accrual associated with a property disposal (note 7) — 1,944 Other accrued liabilities 669 480 $ 61,197 $ 50,183 In connection with the disposal of a property in South Carolina in September 2018, Granite retained an obligation to make certain repairs to the building. Accordingly, a liability was recorded at the time the property was disposed of, as determined using a third-party report. On July 22, 2020 in conjunction with the receipt of the proceeds receivable for this property disposal (note 7), Granite settled the obligation of $2.0 million in cash for $1.6 million. |
DISTRIBUTIONS TO STAPLED UNITHO
DISTRIBUTIONS TO STAPLED UNITHOLDERS | 12 Months Ended |
Dec. 31, 2020 | |
DISTRIBUTIONS TO STAPLED UNITHOLDERS | |
DISTRIBUTIONS TO STAPLED UNITHOLDERS | 11. DISTRIBUTIONS TO STAPLED UNITHOLDERS Total distributions declared to stapled unitholders in the year ended December 31, 2020 were $165.4 million (2019 — $139.3 million) or $2.91 per stapled unit (2019 — $2.81 per stapled unit). Distributions payable at December 31, 2020 of $15.4 million (25.0 cents per stapled unit), representing the December 2020 monthly distribution, were paid on January 15, 2021. Distributions payable at December 31, 2019 of $13.1 million were paid on January 15, 2020 and represented the December 2019 monthly distribution. Subsequent to December 31, 2020, the distributions declared in January 2021 in the amount of $15.4 million or 25.0 cents per stapled unit were paid on February 16, 2021 and the distributions declared in February 2021 of $15.4 million or 25.0 cents per stapled unit will be paid on March 15, 2021. Granite paid a special distribution on January 15, 2019 of $1.20 per stapled unit, which comprised of 30.0 cents per unit payable in cash of $13.7 million and 90.0 cents per unit payable by the issuance of stapled units. Immediately following the issuance of the stapled units, the stapled units were consolidated such that each unitholder held the same number of stapled units after the consolidation as each unitholder held prior to the special distribution. In January 2019, upon the issuance of the stapled units, the stapled units account increased and contributed surplus decreased by $41.1 million, respectively. |
STAPLED UNITHOLDERS' EQUITY
STAPLED UNITHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
STAPLED UNITHOLDERS' EQUITY | |
STAPLED UNITHOLDERS' EQUITY | 12. STAPLED UNITHOLDERS’ EQUITY (a) Stapled Units The stapled units consist of one unit of Granite REIT and one common share of Granite GP. Granite REIT is authorized to issue an unlimited number of units. Granite GP’s authorized share capital consists of an unlimited number of common shares without par value. Each stapled unit is entitled to distributions and/or dividends in the case of Granite GP as and when declared and, in the event of termination of Granite REIT and Granite GP, to the net assets of Granite REIT and Granite GP remaining after satisfaction of all liabilities. (b) Unit-Based Compensation Incentive Stock Option Plan The Incentive Stock Option Plan allows for the grant of stock options or stock appreciation rights to directors, officers, employees and consultants. As at December 31, 2020 and December 31, 2019, there were no options outstanding under this plan. Director/Trustee Deferred Share Unit Plan The Trust has two Non-Employee non-employee A reconciliation of the changes in the notional DSUs outstanding is presented below: 2020 2019 Number Weighted Average Number Weighted Average DSUs outstanding, January 1 50 $ 48.01 44 $ 46.01 Granted 17 67.04 17 55.59 Settled — — (11 ) 51.57 DSUs outstanding, December 31 67 $ 52.93 50 $ 48.01 Executive Deferred Stapled Unit Plan The Executive Stapled Unit Plan (the “Restricted Stapled Unit Plan”) of the Trust provides for the issuance of Restricted Share Units (“RSUs”) and Performance Share Units (“PSUs”) and is designed to provide equity-based compensation in the form of stapled units to executives and other employees (the “Participants”). The maximum number of stapled units which may be issued pursuant to the Restricted Stapled Unit Plan is 1.0 million. The Restricted Stapled Unit Plan entitles a Participant to receive a stapled unit or a cash payment equal to the market value of the stapled unit, which on any date is the volume weighted average trading price of a stapled unit on the Toronto Stock Exchange or New York Stock Exchange over the preceding five trading days. The form of redemption of the stapled units is determined by the Compensation, Governance and Nominating Committee and is not at the option of the Participant. Vesting conditions in respect of a grant are determined by the Compensation, Governance and Nominating Committee at the time the grant is made and may result in the vesting of more or less than 100% of the number of stapled units. The Restricted Stapled Unit Plan also provides for the accrual of distribution equivalent amounts based on distributions paid on the stapled units. Stapled units are, unless otherwise agreed or otherwise required by the Restricted Stapled Unit Plan, settled within 60 days following vesting. A reconciliation of the changes in notional stapled units outstanding under the Restricted Stapled Unit Plan is presented below: 2020 2019 Number Weighted Average Number Weighted Average RSUs and PSUs outstanding, January 1 145 $ 55.93 117 $ 50.34 New grants (1) 54 67.09 85 61.90 Forfeited (7 ) 73.64 (2 ) 64.16 Settled in cash (33 ) 55.70 (35 ) 52.91 Settled in stapled units (31 ) 55.70 (20 ) 52.91 RSUs and PSUs outstanding, December 31 (1) 128 $ 59.83 145 $ 55.93 (1) New grants include 22.1 RSUs and 26.5 PSUs granted during the year ended December 31, 2020 (2019 — 54.1 RSUs and 24.6 PSUs). Total restricted stapled units outstanding at December 31, 2020 include a total of 73.7 RSUs and 54.6 PSUs granted (2019 — 116.3 RSUs and 29.1 PSUs). The fair value of the outstanding RSUs was $4.6 million at December 31, 2020 and is based on the market price of the Trust’s stapled unit. The fair value is adjusted for changes in the market price of the Trust’s stapled unit and recorded as a liability in the employee unit-based compensation payables (note 10). The fair value of the outstanding PSUs was $2.5 million at December 31, 2020 and is recorded as a liability in the employee unit-based compensation payables (note 10). The fair value is calculated using the Monte-Carlo simulation model based on the assumptions below as well as a market adjustment factor based on the total unitholder return of the Trust’s stapled units relative to the S&P/TSX Capped REIT Index. Grant Date January 1, 2020, January 1, August 12, PSUs granted 54,863 Term to expiry 2.0 years Average volatility rate 42.5% Weighted average risk free interest rate 0.2% The Trust’s unit-based compensation expense recognized in general and administrative expenses was: Years ended December 31, 2020 2019 DSPs for trustees/directors (1) $ 1,918 $ 1,645 Restricted Stapled Unit Plan for executives and employees 6,198 5,839 Unit-based compensation expense $8,116 $7,484 Fair value remeasurement expense included in the above: ● $ 728 $ 568 ● 1,361 1,321 Total fair value remeasurement expense $ 2,089 $ 1,889 (1) In respect of fees mandated and elected to be taken as DSUs. (c) Normal Course Issuer Bid On May 19, 2020, Granite announced the acceptance by the Toronto Stock Exchange (“TSX”) of Granite’s Notice of Intention to Make a Normal Course Issuer Bid (“NCIB”). Pursuant to the NCIB, Granite proposes to purchase through the facilities of the TSX and any alternative trading system in Canada, from time to time and if considered advisable, up to an aggregate of 5,344,576 of Granite’s issued and outstanding stapled units. The NCIB commenced on May 21, 2020 and will conclude on the earlier of the date on which purchases under the bid have been completed and May 20, 2021. Pursuant to the policies of the TSX, daily purchases made by Granite through the TSX may not exceed 58,842 stapled units, subject to certain exceptions. Granite had entered into an automatic securities purchase plan with a broker in order to facilitate repurchases of the stapled units under the NCIB during specified blackout periods. Pursuant to a previous notice of intention to conduct a NCIB, Granite received approval from the TSX to purchase stapled units for the period May 21, 2019 to May 20, 2020. During the year ended December 31, 2020, Granite repurchased 490,952 stapled units (2019 —700 stapled units) at an average stapled unit cost of $50.95 for total consideration of $25.0 million (2019 — less than $0.1 million). The difference between the repurchase price and the average cost of the stapled units of $1.3 million (2019 — less than $0.1 million) was recorded to contributed surplus. (d) Stapled Unit Offerings On November 24, 2020, Granite completed an offering of 3,841,000 stapled units at a price of $75.00 per unit for gross proceeds of $288.1 million, including 501,000 stapled units issued pursuant to the exercise of the over-allotment option granted to the underwriters. Total costs related to the offering totaled $12.2 million and were recorded as a reduction to stapled unitholders’ equity. The net proceeds received by Granite after deducting the total costs related to the offering were $275.9 million. As at December 31, 2020, total costs related to the offering of $0.1 million remain to be paid. On June 2, 2020, Granite completed an offering of 4,255,000 stapled units at a price of $68.00 per unit for gross proceeds of $289.3 million, including 555,000 stapled units issued pursuant to the exercise of the over-allotment option granted to the underwriters. Total costs related to the offering totaled $12.4 million and were recorded as a reduction to stapled unitholders’ equity. The net proceeds received by Granite after deducting the total costs related to the offering were $276.9 million. On April 30, 2019, Granite completed an offering of 3,749,000 stapled units at a price of $61.50 per unit for gross proceeds of $230.6 million, including 489,000 stapled units issued pursuant to the exercise of the over-allotment option granted to the underwriters. Total costs related to the offering totaled $10.2 million and were recorded as a reduction to stapled unitholders’ equity. The net proceeds received by Granite after deducting the total costs related to the offering were $220.4 million. On October 31, 2019, Granite completed an offering of 4,600,000 stapled units at a price of $64.00 per unit for gross proceeds of $294.4 million, including 600,000 stapled units issued pursuant to the exercise of the over-allotment option granted to the underwriters. Total costs relating to the offering totaled $12.8 million and were recorded as a reduction to stapled unitholders’ equity. The net proceeds received by Granite after deducting the total costs related to the offering were $281.6 million. (e) Accumulated Other Comprehensive Income Accumulated other comprehensive income consists of the following: As at December 31, 2020 2019 Foreign currency translation gains on investments in subsidiaries, net of related hedging activities and non-controlling (1) $ 188,169 $ 159,499 Fair value losses on derivatives designated as net investment hedges (92,269 ) (43,309 ) $ 95,900 $ 116,190 (1) Includes foreign currency translation gains and losses from non-derivative |
RENTAL REVENUE, RECOVERIES, COS
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES | 12 Months Ended |
Dec. 31, 2020 | |
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES | |
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES | 13. RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES (a) Rental revenue consists of: Years ended December 31, 2020 2019 Base rent $ 291,714 $ 240,345 Straight-line rent amortization 8,842 5,074 Tenant incentive amortization (5,321 ) (5,122 ) Property tax recoveries 31,439 22,280 Property insurance recoveries 2,640 2,161 Operating cost recoveries 10,885 8,085 $ 340,199 $ 272,823 (b) Property operating costs consist of: Years ended December 31, 2020 2019 Non-recoverable Property taxes and utilities $ 973 $ 1,096 Legal 160 189 Consulting 41 90 Environmental and appraisals 334 511 Repairs and maintenance 698 804 Other 616 558 $ 2,822 $ 3,248 Recoverable from tenants: Property taxes and utilities $ 33,598 $ 23,784 Property insurance 2,946 2,391 Repairs and maintenance 3,916 2,733 Property management fees 2,793 2,001 Other 1,089 1,207 $ 44,342 $ 32,116 Property operating costs $ 47,164 $ 35,364 (c) General and administrative expenses consist of: Years ended December 31, 2020 2019 Salaries, incentives and benefits $ 15,109 $ 13,753 Audit, legal and consulting 3,423 4,268 Trustee/director fees including distributions, revaluations and expenses (1) 2,108 1,976 RSU and PSU compensation expense including distributions and revaluations (1) 6,198 5,839 Other public entity costs 1,986 2,096 Office rents including property taxes and common area maintenance costs 424 379 Capital tax 568 454 Information technology costs 1,045 980 Other 1,342 1,674 $ 32,203 $ 31,419 (1) For fair value remeasurement expense amounts see note 12( b During the year ended December 31, 2020, Granite incurred $0.2 million of general and administrative expenses relating to COVID-19 (d) Interest expense and other financing costs consist of: Years ended December 31, 2020 2019 Interest and amortized issuance costs and modification losses relating to debentures and term loans $ 32,632 $ 26,632 Amortization of deferred financing costs and other interest expense and charges 2,229 2,169 Interest expense related to lease obligations (note 9) 1,595 1,300 $ 36,456 $ 30,101 Less: Capitalized interest (617 ) (160 ) $ 35,839 $ 29,941 (e) Fair value losses (gains) on financial instruments, net, consist of: Years ended December 31, 2020 2019 Foreign exchange forward contracts, net (note 17(a)) $ 93 $ 8 Foreign exchange collar contracts, net (note 17(a)) (2,627 ) — Losses on term loan debt modifications (note 8(a)) — 752 Cross currency interest rate swaps (note 8(b)) 5,936 (1,952 ) $ 3,402 $ (1,192 ) For the year ended December 31, 2020, the fa i ( For the year ended December 31, 2019, the fair value gain of $2.0 million was associated with the fair value movement of the 2024 Cross Currency Interest Rate Swap. The Trust did not employ or partially employed hedge accounting for the derivative and therefore the change in fair value was recognized in fair value losses (gains) on financial instruments, net, in the combined statement of net income. (f) During the year ended December 31, 2019, Granite incurred $2.7 million of real estate land transfer tax associated with an internal reorganization. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 14. INCOME TAXES (a) The major components of the income tax expense are: Years ended December 31, 2020 2019 Current income tax: Current taxes $ 8,802 $ 6,069 Current taxes referring to previous periods (2,472 ) (1,526 ) Withholding taxes and other 261 528 $ 6,591 $ 5,071 Deferred income tax: Origination and reversal of temporary differences $ 176,351 $ 41,140 Impact of changes in tax rates 2,941 (1,678 ) Benefits arising from a previously unrecognized tax loss that reduced: — Current tax expense (119,283 ) (12 ) — Deferred tax expense — (285 ) Withholding taxes on profits of subsidiaries 6 (388 ) Other 2,486 (1,181 ) $ 62,501 $ 37,596 Income tax expense $ 69,092 $ 42,667 For the year ended December 31, 2020, there was $0.7 million of current tax expense associated with the disposition of a property in Spain. For the year ended December 31, 2019, there was no current tax expense associated with property dispositions. (b) The effective income tax rate reported in the combined statements of net income varies from the Canadian statutory rate for the following reasons: Years ended December 31, 2020 2019 Income before income taxes $499,019 $424,942 Expected income taxes at the Canadian statutory tax rate of 26.5% (2019 — 26.5%) $ 132,240 $ 112,610 Income distributed and taxable to unitholders (57,791 ) (59,966 ) Net foreign rate differentials (9,954 ) (7,526 ) Net change in provisions for uncertain tax positions (784 ) 72 Net permanent differences (115 ) 519 Net effect of change in tax rates 2,941 (1,678 ) Withholding taxes and other 2,555 (1,364 ) Income tax expense $69,092 $42,667 (c) Deferred tax assets and liabilities consist of temporary differences related to the following: As at December 31, 2020 2019 Deferred tax assets: Investment properties $ 490 $ 83 Eligible capital expenditures 2,111 2,270 Other 2,129 1,704 Deferred tax assets $ 4,730 $ 4,057 Deferred tax liabilities: Investment properties $ 396,326 $ 323,385 Withholding tax on undistributed subsidiary profits 149 134 Other (3,634 ) (2,547 ) Deferred tax liabilities $ 392,841 $ 320,972 (d) Changes in the net deferred tax liabilities consist of the following: Years ended December 31, 2020 2019 Balance, beginning of year $ 316,915 $ 298,664 Deferred tax expense recognized in net income 62,501 37,596 Foreign currency translation of deferred tax balances 8,695 (19,345 ) Net deferred tax liabilities, end of year $ 388,111 $ 316,915 (e) Net cash payments of income taxes amounted to $5.7 million for the year ended December 31, 2020 (2019 — $3.0 million) which included $0.1 million of withholding taxes paid (2019 — $0.4 million). (f) The Trust conducts operations in a number of countries with varying statutory rates of taxation. Judgment is required in the estimation of income tax expense and deferred income tax assets and liabilities in each of the Trust’s operating jurisdictions. This process involves estimating actual current tax exposure, assessing temporary differences that result from the different treatments of items for tax and accounting purposes, assessing whether it is more likely than not that deferred income tax assets will be realized and, based on all the available evidence, determining if a provision is required on all or a portion of such deferred income tax assets. The Trust reports a liability for uncertain tax positions (“unrecognized tax benefits”) taken or expected to be taken in a tax return. The Trust recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. As at December 31, 2020, the Trust had $11.6 million (2019 — $11.4 million) of unrecognized income tax benefits, including $0.3 million (2019 — $0.3 million) related to accrued interest and penalties, all of which could ultimately reduce the Trust’s effective tax rate should these tax benefits become recognized. The Trust believes that it has adequately provided for reasonably foreseeable outcomes related to tax examinations and that any resolution will not have a material effect on the combined financial position, results of operations or cash flows. However, the Trust cannot predict with any level of certainty the exact nature of any future possible outcome. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: As at December 31, 2020 2019 Unrecognized tax benefits balance, beginning of year $ 11,422 $ 13,197 Decreases for tax positions of prior years (2,370 ) (3,056 ) Increases for tax positions of current year 1,766 2,090 Foreign currency impact 750 (809 ) Unrecognized tax benefits balance, end of year $ 11,568 $ 11,422 It is reasonably possible t h As at December 31, 2020, the following tax years remained subject to examination: Major Jurisdictions Canada 2014 through 2020 United States 2017 through 2020 Austria 2015 through 2020 Germany 2014 through 2020 Netherlands 2015 through 2020 As at December 31, 2020, the Trust has approximately $165.2 million of losses and other deductible temporary differences in various tax jurisdictions that the Trust believes is not probable that it will be realized. As a result, no deferred tax asset has been recognized for these losses and other deductible temporary differences as of December 31, 2020. Included in this number are Canadian capital loss carryforwards that do not expire of $116.7 million. |
SEGMENTED DISCLOSURE INFORMATIO
SEGMENTED DISCLOSURE INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENTED DISCLOSURE INFORMATION | |
SEGMENTED DISCLOSURE INFORMATION | 15. SEGMENTED DISCLOSURE INFORMATION The Trust has one reportable segment — the ownership and rental of industrial real estate as determined by the information reviewed by the chief operating decision maker who is the President and Chief Executive Officer. The following tables present certain information with respect to geographic segmentation: Revenue Years ended December 31, 2020 2019 Canada $ 63,233 19% $ 58,952 22% United States 161,165 47% 108,065 39% Austria 65,716 19% 63,724 23% Germany 26,924 8% 26,455 10% Netherlands 16,694 5% 10,250 4% Other Europe 6,467 2% 6,232 2% $ 340,199 100% $ 273,678 100% For the year ended December 31, 2020, revenue from Magna comprised approximately 37% (2019 — 47%) of the Trust’s total revenue. Investment properties As at December 31, 2020 2019 Canada $ 1,106,850 19% $ 979,290 22% United States 2,882,549 49% 2,014,489 45% Austria 821,260 14% 806,355 18% Germany 428,504 7% 389,077 9% Netherlands 550,946 10% 196,701 4% Other Europe 65,474 1% 71,987 2% $ 5,855,583 100% $ 4,457,899 100% |
DETAILS OF CASH FLOWS
DETAILS OF CASH FLOWS | 12 Months Ended |
Dec. 31, 2020 | |
DETAILS OF CASH FLOWS | |
DETAILS OF CASH FLOWS | 16. DETAILS OF CASH FLOWS (a) Items not involving operating cash flows are shown in the following table: Years ended December 31, 2020 2019 Straight-line rent amortization $ (8,842 ) $ (5,074 ) Tenant incentive amortization 5,321 5,122 Unit-based compensation expense (note 12(b)) 8,116 7,484 Fair value gains on investment properties (273,437 ) (245,442 ) Depreciation and amortization 1,151 906 Fair value losses (gains) on financial instruments, net (note 13(e)) 3,402 (1,192 ) Loss on sale of investment properties 901 3,045 Amortization of issuance costs and modification losses relating to debentures and term loans 1,024 855 Amortization of deferred financing costs 312 312 Deferred income taxes (note 14(a)) 62,501 37,596 Other (30 ) (195 ) $ (199,581 ) $ (196,583 ) (b) Changes in working capital balances are shown in the following table: Years ended December 31, 2020 2019 Accounts receivable $ 10,141 $ (3,670 ) Prepaid expenses and other 61 (906 ) Accounts payable and accrued liabilities 844 (639 ) Deferred revenue 5,595 1,800 Restricted cash — 470 $ 16,641 $ (2,945 ) (c) Non-cash During the year ended December 31, 2020, 31 thousand stapled units (2019 — 20 thousand stapled units) with a value of $2.0 million (2019 — $1.2 million) were issued under the Restricted Stapled Unit Plan (note 12(b)) and are not recorded in the combined statements of cash flows. In addition, the combined statement of cash flows for the year ended December 31, 2019 does not include the right-of-use (d) Cash and cash equivalents consist of: Years ended December 31, 2020 2019 Cash $ 780,979 $ 248,499 Short-term deposits 50,301 50,178 $ 831,280 $ 298,677 |
FAIR VALUE AND RISK MANAGEMENT
FAIR VALUE AND RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE AND RISK MANAGEMENT | |
FAIR VALUE AND RISK MANAGEMENT | 17. FAIR VALUE AND RISK MANAGEMENT (a) Fair Value of Financial Instruments The following table provides the measurement basis of financial assets and liabilities as at December 31, 2020 and 2019: As at December 31, 2020 2019 Carrying Fair Value Carrying Fair Value Financial assets Construction funds in escrow $ 8,402 $ 8,402 $ 16,767 $ 16,767 Other assets 349 (1) 349 388 (1) 388 Cross currency interest rate swap 28,676 28,676 — — Other receivable — — 11,650 11,650 Accounts receivable 6,746 6,746 7,812 7,812 Prepaid expenses and other 2,627 (2) 2,627 120 (3) 120 Cash and cash equivalents 831,280 831,280 298,677 298,677 $ 878,080 $ 878,080 $ 335,414 $ 335,414 Financial liabilities Unsecured debentures, net $ 1,643,175 (4) $ 1,737,185 $ 648,392 $ 669,090 Unsecured term loans, net 534,947 534,947 538,602 538,602 Cross currency interest rate swaps 114,264 (5) 114,264 30,365 30,365 Accounts payable and accrued liabilities 61,197 61,197 50,156 50,156 Accounts payable and accrued liabilities — — 27 (6) 27 Distributions payable 15,422 15,422 13,081 13,081 $ 2,369,005 $ 2,463,015 $ 1,280,623 $ 1,301,321 (1) Long-term receivables included in other assets (note 6). (2) Foreign exchange collars included in prepaid expenses. (3) Foreign exchange forward contracts included in prepaid expenses. (4) Balance includes current and non-current (5) Balance includes current and non-current (6) Foreign exchange forward contracts included in accounts payable and accrued liabilities. The fair values of the Trust’s construction funds in escrow, accounts receivable, cash and cash equivalents, accounts payable and accrued liabilities and distributions payable approximate their carrying amounts due to the relatively short periods to maturity of these financial instruments. The fair value of the long-term receivable included in other assets approximates its carrying amount as the receivable bears interest at rates comparable to current market rates. The fair value of the other receivable associated with proceeds from a 2018 property disposal approximates its carrying amount as the amount is revalued at each reporting period. The fair values of the unsecured debentures are determined using quoted market prices. The fair values of the term loans approximate their carrying amounts as the term loans bear interest at rates comparable to the current market rates. The fair values of the cross currency interest rate swaps and foreign exchange collars are determined using market inputs quoted by their counterparties. The fair value of the foreign exchange forward contracts approximate their carrying values as the asset or liability is revalued at the reporting date. The Trust periodically purchases foreign exchange collars and forward contracts nil € (b) Fair Value Hierarchy Fair value measurements are based on inputs of observable and unobservable market data that a market participant would use in pricing an asset or liability. IFRS establishes a fair value hierarchy which is summarized below: Level 1: Fair value determined using quoted prices in active markets for identical assets or liabilities. Level 2: Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active. Level 3: Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows or similar techniques. The following tables represent information related to the Trust’s assets and liabilities measured or disclosed at fair value on a recurring and non-recurring As at December 31, 2020 Level 1 Level 2 Level 3 ASSETS AND LIABILITIES MEASURED OR DISCLOSED AT FAIR VALUE Assets measured at fair value Investment properties (note 4) $ — $ — $ 5,855,583 Cross currency interest rate swap (note 8) — 28,676 — Foreign exchange collars included in prepaid expenses and other — 2,627 — Liabilities measured or disclosed at fair value Unsecured debentures, net (note 8) 1,737,185 — — Unsecured term loans, net (note 8) — 534,947 — Cross currency interest rate swaps (note 8) — 114,264 — Net (liabilities) assets measured or disclosed at fair value $ (1,737,185 ) $ (617,908 ) $ 5,855,583 As at December 31, 2019 Level 1 Level 2 Level 3 ASSETS AND LIABILITIES MEASURED OR DISCLOSED AT FAIR VALUE Assets measured at fair value Investment properties (note 4) $ — $ — $ 4,457,899 Short-term proceeds receivable associated with a property disposal included in accounts receivable (note 7) — — 11,650 Foreign exchange forward contracts included in prepaid expenses and other — 120 — Liabilities measured or disclosed at fair value Unsecured debentures, net (note 8) 669,090 — — Unsecured term loans, net (note 8) — 538,602 — Cross currency interest rate swaps (note 8) — 30,365 — Foreign exchange forward contracts included in accounts payable and accrued liabilities — 27 — Net (liabilities) assets measured or disclosed at fair value $ (669,090 ) $ (568,874 ) $ 4,469,549 For assets and liabilities that are measured at fair value on a recurring basis, the Trust determines whether transfers between the levels of the fair value hierarchy have occurred by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. For the years ended December 31, 2020 and 2019, there were no transfers between the levels. Refer to note 4, Investment Properties and note 7, Current Assets, for a description of the valuation technique and inputs used in the fair value measurement and for a reconciliation of the fair value measurements of investment properties and proceeds receivable associated with a property disposal which are recognized in Level 3 of the fair value hierarchy. (c) Risk Management The main risks arising from the Trust’s financial instruments are credit, interest rate, foreign exchange and liquidity risks. The Trust’s approach to managing these risks is summarized below: (i) Credit risk The Trust’s financial assets that are exposed to credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents include short-term investments, such as term deposits, which are invested in governments and financial institutions with a minimum credit rating of BBB (based on Standard & Poor’s (“S&P”) rating scale) or Baa1 (based on Moody’s Investor Services’ (“Moody’s”) rating scale). Concentration of credit risk is further reduced by limiting the amount that is invested in any one government or financial institution according to its credit rating. Magna accounts for approximately 37% of the Trust’s rental revenue. Although its operating subsidiaries are not individually rated, Magna International Inc. has an investment grade credit rating from Moody’s, S&P and Dominion Bond Rating Service which mitigates the Trust’s credit risk. The COVID-19 (ii) Interest rate risk As at December 31, 2020, the Trust’s exposure to interest rate risk is limited. Approximately 75% of the Trust’s interest bearing debt consists of fixed rate debt in the form of the 2021 Debentures, the 2023 Debentures, the 2027 Debentures and the 2030 Debentures. After taking into account the related cross currency interest rate swaps, the 2021 Debentures, the 2023 Debentures, the 2027 Debentures and the 2030 Debentures have effective fixed interest rates of 2.68%, 2.43%, 2.964% , (iii) Foreign exchange risk As at December 31, 2020, the Trust is exposed to foreign exchange risk primarily in respect of movements in the Euro and the US dollar. The Trust is structured such that its foreign operations are primarily conducted by entities with a functional currency which is the same as the economic environment in which the operations take place. As a result, the net income impact of currency risk associated with financial instruments is limited as its financial assets and liabilities are generally denominated in the functional currency of the subsidiary that holds the financial instrument. However, the Trust is exposed to foreign currency risk on its net investment in its foreign currency denominated operations and certain Trust level foreign currency denominated assets and liabilities. At December 31, 2020, the Trust’s foreign currency denominated net assets are $4.5 billion primarily in US dollars and Euros. A 1% change in the US dollar and Euro exchange rates relative to the Canadian dollar would result in a gain or loss of approximately $28.1 million and $16.2 million, respectively, to comprehensive income. Granite generates rental income that is not all denominated in Canadian dollars. Since the financial results are reported in Canadian dollars, the Trust is subject to foreign currency fluctuations that could, from time to time, have an impact on the operating results. For the year ended December 31, 2020, a 1% change in the US dollar and Euro exchange rates relative to the Canadian dollar would have impacted revenue by approximately $1.6 million and $1.2 million, respectively. For the year ended December 31, 2020, the Trust has designated its cross currency interest rate swaps relating to the $900.0 million of unsecured debentures and $535.9 million of unsecured term loans as hedges of its net investment in the European operations (note 8(b)) and has designated its cross currency interest rate swap relating to the $500.0 million of the 2027 Debentures as a hedge of its net investment in the United States operations (note 8(b)). (iv) Liquidity risk Liquidity risk is the risk the Trust will encounter difficulties in meeting its financial obligations as they become due. The Trust may also be subject to the risks associated with debt financing, including the risks that the unsecured debentures, term lo a The estimated contractual maturities of the Trust’s financial liabilities are summarized below: Payments due by year As at December 31, 2020 Total 2021 2022 2023 2024 2025 Thereafter Unsecured debentures $ 1,650,000 $ 250,000 $ — $ 400,000 $ — $ — $ 1,000,000 Unsecured term loans $ 535,949 — — — 235,949 — 300,000 Cross currency interest rate swaps $ 114,264 16,953 — 36,540 25,370 — 35,401 Interest payments (1) Unsecured debentures, net of cross currency interest rate swap savings $ 182,546 37,094 29,910 29,910 19,263 19,263 47,106 Unsecured term loans, net of cross currency interest rate swap savings $ 31,504 5,709 5,709 5,709 5,709 4,340 4,328 Accounts payable and accrued liabilities $ 61,197 57,530 3,218 449 — — — Distributions payable $ 15,422 15,422 — — — — — $ 2,590,882 $ 382,708 $ 38,837 $ 472,608 $ 286,291 $ 23,603 $ 1,386,835 (1) Represents aggregate interest expense expected to be paid over the term of the debt, on an undiscounted basis, based on actual current interest rates and average foreign exchange rates. |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
CAPITAL MANAGEMENT | 18. CAPITAL MANAGEMENT The Trust’s capital structure comprises the total of the stapled unitholders’ equity and debt. The total managed capital of the Trust is summarized below: As at December 31, 2020 2019 Unsecured debentures, net $ 1,643,175 $ 648,392 Unsecured term loans, net 534,947 538,602 Cross currency interest rate swaps, net (1) 85,588 30,365 Total debt 2,263,710 1,217,359 Stapled unitholders’ equity 3,920,069 3,146,143 Total managed capital $ 6,183,779 $ 4,363,502 (1) Balance is net of the cross currency interest rate swap asset (note 8(b)). The Trust manages, monitors and adjusts its capital balances in response to the availability of capital, economic conditions and investment opportunities with the following objectives in mind: • Compliance with investment and debt restrictions pursuant to the Amended and Restated Declaration of Trust; • Compliance with existing debt covenants; • Maintaining investment grade credit ratings; • Supporting the Trust’s business strategies including ongoing operations, property development and acquisitions; • Generating stable and growing cash distributions; and • Building long-term unitholder value. The Amended and Restated Declaration of Trust contains certain provisions with respect to capital management which include: • The Trust shall not incur or assume any indebtedness if, after giving effect to the incurring or assumption of the indebtedness, the total indebtedness of the Trust would be more than 65% of the Gross Book Value (as defined in the Amended and Restated Declaration of Trust); and • The Trust shall not invest in raw land for development, except for (i) existing properties with additional development, (ii) the purpose of renovating or expanding existing properties or (iii) the development of new properties, provided that the aggregate cost of the investments of the Trust in raw land, after giving effect to the proposed investment, will not exceed 15% of Gross Book Value. At December 31, 2020, the Trust’s combined debt consists of the unsecured debentures, the term loans and the credit facility when drawn, each of which have various financial covenants. These covenants are defined within the trust indenture, the term loan agreements and the credit facility agreement and, depending on the debt instrument, include a total indebtedness ratio, a secured indebtedness ratio, an interest coverage ratio, an unencumbered asset ratio, and a minimum equity threshold. The Trust monitors these provisions and covenants and was in compliance with their respective requirements as at December 31, 2020 and 2019. Distributions are made at the discretion of the Board of Trustees (the “Board”) and Granite REIT intends to distribute each year all of its taxable income pursuant to its Amended and Restated Declaration of Trust as calculated in accordance with the Income Tax Act. For the fiscal year 2020, the Trust declared a monthly distribution of $ 0.242 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 19. RELATED PARTY TRANSACTIONS For the year ended December 31, 2020, key management personnel include the Trustees/Directors, the President and Chief Executive Officer, the Chief Fi n Years ended December 31, 2020 2019 Salaries, incentives and short-term benefits $ 4,082 $ 5,553 Unit-based compensation expense including fair value adjustments 3,744 3,980 $ 7,826 $ 9,533 |
COMBINED FINANCIAL INFORMATION
COMBINED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
COMBINED FINANCIAL INFORMATION | |
COMBINED FINANCIAL INFORMATION | 20. COMBINED FINANCIAL INFORMATION The combined financial statements include the financial position and results of operations and cash flows of each of Granite REIT and Granite GP. Below is a summary of the financial information for each entity along with the elimination entries and other adjustments that aggregate to the combined financial statements: Balance Sheet As at December 31, 2020 Granite REIT Granite GP Eliminations/ Granite REIT and ASSETS Non-current Investment properties $ 5,855,583 $ 5,855,583 Investment in Granite LP (1) — 25 (25 ) — Other non-current 46,046 46,046 5,901,629 25 (25 ) 5,901,629 Current assets: Other current assets 14,546 17 14,563 Intercompany receivable (2) — 13,792 (13,792 ) — Cash and cash equivalents 830,455 825 831,280 Total assets $ 6,746,630 14,659 (13,817 ) $ 6,747,472 LIABILITIES AND EQUITY Non-current Unsecured debt, net $ 1,928,252 $ 1,928,252 Other non-current 523,096 523,096 2,451,348 2,451,348 Current liabilities: Unsecured debt, net 249,870 249,870 Intercompany payable (2) 13,792 (13,792 ) — Other current liabilities 109,416 14,634 124,050 Total liabilities 2,824,426 14,634 (13,792 ) 2,825,268 Equity: Stapled unitholders’ equity 3,920,044 25 3,920,069 Non-controlling 2,160 (25 ) 2,135 Total liabilities and equity $ 6,746,630 14,659 (13,817 ) $ 6,747,472 (1) Granite REIT Holdings Limited Partnership (“Granite LP”) is 100% owned by Granite REIT and Granite GP. (2) Represents employee and trustee/director compensation related amounts which will be reimbursed by Granite LP. Balance Sheet As at December 31, 2019 Granite REIT Granite GP Eliminations/ Granite REIT and ASSETS Non-current Investment properties $ 4,457,899 $ 4,457,899 Investment in Granite LP (1) — 21 (21 ) — Other non-current 24,216 24,216 4,482,115 21 (21 ) 4,482,115 Current assets: Other current assets 23,144 20 23,164 Intercompany receivable (2) — 11,828 (11,828 ) — Cash and cash equivalents 298,385 292 298,677 Total assets $ 4,803,644 12,161 (11,849 ) $ 4,803,956 LIABILITIES AND EQUITY Non-current Unsecured debt, net $ 1,186,994 $ 1,186,994 Other non-current 383,763 383,763 1,570,757 1,570,757 Current liabilities: Intercompany payable (2) 11,828 (11,828 ) — Other current liabilities 72,949 12,140 85,089 Total liabilities 1,655,534 12,140 (11,828 ) 1,655,846 Equity: Stapled unitholders’ equity 3,146,122 21 3,146,143 Non-controlling 1,988 (21 ) 1,967 Total liabilities and equity $ 4,803,644 12,161 (11,849 ) $ 4,803,956 (1) Granite LP is 100% owned by Granite REIT and Granite GP. (2) Represents employee and trustee/director compensation related amounts which will be reimbursed by Granite LP. Income Statement Year Ended December 31, 2020 Granite REIT Granite GP Eliminations/ Granite REIT and Revenue $ 340,199 $ 340,199 General and administrative expenses 32,203 32,203 Interest expense and other financing costs 35,839 35,839 Other costs and expenses, net 42,272 42,272 Share of (income) loss of Granite LP — (4 ) 4 — Fair value gains on investment properties, net (273,437 ) (273,437 ) Fair value losses on financial instruments, net 3,402 3,402 Loss on sale of investment properties 901 901 Income before income taxes 499,019 4 (4 ) 499,019 Income tax expense 69,092 69,092 Net income 429,927 4 (4 ) 429,927 Less net income attributable to non-controlling 127 (4 ) 123 Net income attributable to stapled unitholders $ 429,800 4 — $ 429,804 Income Statement Year Ended December 31, 2019 Granite REIT Granite GP Eliminations/ Granite REIT and Revenue $ 273,678 $ 273,678 General and administrative expenses 31,419 31,419 Interest expense and other financing costs 29,941 29,941 Other costs and expenses, net 30,965 30,965 Share of (income) loss of Granite LP — (4 ) 4 — Fair value gains on investment properties, net (245,442 ) (245,442 ) Fair value gains on financial instruments, net (1,192 ) (1,192 ) Loss on sale of investment properties 3,045 3,045 Income before income taxes 424,942 4 (4 ) 424,942 Income tax expense 42,667 42,667 Net income 382,275 4 (4 ) 382,275 Less net income attributable to non-controlling 200 (4 ) 196 Net income attributable to stapled unitholders $ 382,075 4 — $ 382,079 Statement of Cash Flows Year Ended December 31, 2020 Granite REIT Granite GP Eliminations/ Granite REIT and OPERATING ACTIVITIES Net income $ 429,927 4 (4 ) $ 429,927 Items not involving operating cash flows (199,581 ) (4 ) 4 (199,581 ) Changes in working capital balances 16,108 533 16,641 Other operating activities (2,666 ) (2,666 ) Cash provided by operating activities 243,788 533 — 244,321 INVESTING ACTIVITIES Property acquisitions (1,045,659 ) (1,045,659 ) Proceeds from disposals, net 42,508 42,508 Investment property capital additions — Maintenance or improvements (5,376 ) (5,376 ) — Developments or expansions (49,598 ) (49,598 ) — Costs to complete acquired property (8,622 ) (8,622 ) Other investing activities (75 ) (75 ) Cash used in investing activities (1,066,822 ) — — (1,066,822 ) FINANCING ACTIVITIES Distributions paid (163,064 ) (163,064 ) Other financing activities 1,521,261 1,521,261 Cash provided by financing activities 1,358,197 — — 1,358,197 Effect of exchange rate changes (3,093 ) (3,093 ) Net increase in cash and cash equivalents during the year $ 532,070 533 — $ 532,603 Statement of Cash Flows Year Ended December 31, 2019 Granite REIT Granite GP Eliminations/ Granite REIT and OPERATING ACTIVITIES Net income $ 382,275 4 (4 ) $ 382,275 Items not involving operating cash flows (196,583 ) (4 ) 4 (196,583 ) Changes in working capital balances (2,423 ) (522 ) (2,945 ) Other operating activities 684 684 Cash provided by (used in) operating activities 183,953 (522 ) — 183,431 INVESTING ACTIVITIES Property acquisitions (930,878 ) (930,878 ) Proceeds from disposals, net 85,536 85,536 Investment property capital additions — Maintenance or improvements (2,889 ) (2,889 ) — Developments or expansions (27,407 ) (27,407 ) Other investing activities (456 ) (456 ) Cash used in investing activities (876,094 ) — — (876,094 ) FINANCING ACTIVITIES Distributions paid (136,897 ) (136,897 ) Other financing activities 480,422 480,422 Cash provided by financing activities 343,525 — — 343,525 Effect of exchange rate changes (10,431 ) (10,431 ) Net decrease in cash and cash equivalents during the year $ (359,047 ) (522 ) — $ (359,569 ) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES (a) The Trust is subject to various legal proceedings and claims that arise in the ordinary course of business. Management evaluates all claims with the advice of legal counsel. Management believes these claims are generally covered by Granite’s insurance policies and that any liability from remaining claims is not probable to occur and would not have a material adverse effect on the combined financial statements. However, actual outcomes may differ from management’s expectations. (b) As at December 31, 2020, the Trust’s contractual commitments related to construction and development projects amounted to approximately $76.1 million. (c) In connection with an acquisition of an investment property located in Palmetto, Georgia on November 12, 2020, $72.1 million (US$55.0 million) of bonds were assumed. The authorized amount of the bonds is $70.1 million (US$55.0 million), of which $70.1 million (US$55.0 million) was outstanding as at December 31, 2020. The bonds provide for a real estate tax abatement for the acquired investment property. Through a series of transactions, the Trust is both the bondholder and the obligor of the bonds. Therefore, in accordance with IAS 32, the bonds are not recorded in the combined balance sheet. The Trust is involved, in the normal course of business, in discussions, and has various letters of intent or conditional agreements, with respect to possible acquisitions of new properties and dispositions of existing properties in its portfolio. None of these commitments or contingencies, individually or in aggregate, would have a material impact on the combined financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS (a) On January 4, 2021, the Trust redeemed in full the outstanding $250.0 million aggregate principal amount of the 2021 Debentures for a total redemption price of $254.0 million. In conjunction with the redemption, the 2021 Cross Currency Interest Rate Swap was terminated on January 4, 2021 and the related mark to market liability of $17.7 million was settled. (b) On January 28, 2021, the Trust disposed of one property located in Redditch, United Kingdom for gross proceeds of $10.6 million (£6.0 million). ( c |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation and Statement of Compliance | (a) Basis of Presentation and Statement of Compliance The combined financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). |
Combined Financial Statements and Basis of Consolidation | (b) Combined Financial Statements and Basis of Consolidation As a result of the REIT conversion described in note 1, the Trust does not have a single parent; however, each unit of Granite REIT and each share of Granite GP trade as a single stapled unit and accordingly, Granite REIT and Granite GP have identical ownership. Therefore, these financial statements have been prepared on a combined basis whereby the assets, liabilities and results of Granite GP and Granite REIT have been combined. The combined financial statements include the subsidiaries of Granite GP and Granite REIT. Subsidiaries are fully consolidated by Granite GP or Granite REIT from the date of acquisition, being the date on which control is obtained. The subsidiaries continue to be consolidated until the date that such control ceases. Control exists when Granite GP or Granite REIT have power, exposure or rights to variable returns and the ability to use their power over the entity to affect the amount of returns it generates. All intercompany balances, income and expenses and unrealized gains and losses resulting from intercompany transactions are eliminated. |
Trust Units | (c) Trust Units The stapled units are redeemable at the option of the holder and, therefore, are required to be accounted for as financial liabilities, except where certain exemption conditions are met, in which case redeemable instruments may be classified as equity. The attributes of the stapled units meet the exemption conditions set out in IAS 32, Financial Instruments: Presentation and are, therefore, presented as equity on the combined balance sheets. |
Investment Properties | (d) Investment Properties The Trust accounts for its investment properties, which include income-producing properties, properties under development and land held for development, in accordance with IAS 40, Investment Property . For acquired investment properties that meet the definition of a business, the acquisition is accounted for as a business combination (note 2(e)); otherwise they are initially measured at cost including directly attributable expenses. Subsequent to acquisition, investment properties are carried at fair value, which is determined based on available market evidence at the balance sheet date including, among other things, rental revenue from current leases and reasonable and supportable assumptions that represent what knowledgeable, willing parties would assume about rental revenue from future leases less future cash outflows in respect of capital expenditures. Gains and losses arising from changes in fair value are recognized in net income in the period of change. Income-Producing Properties The carrying value of income-producing properties includes the impact of straight-line rental revenue (note 2(l)), tenant incentives and deferred leasing costs since these amounts are incorporated in the determination of the fair value of income-producing properties. When an income-producing property is disposed of, the gain or loss is determined as the difference between the disposal proceeds, net of selling costs, and the carrying amount of the property and is recognized in net income in the period of disposal. Properties Under Development The Trust’s development properties are classified as such until the property is substantially completed and available for occupancy. The initial cost of properties under development includes the acquisition cost of the land and direct development or expansion costs, including construction costs, borrowing costs and indirect costs wholly attributable to development. Borrowing costs are capitalized to projects under development or construction based on the average accumulated expenditures outstanding during the period multiplied by the Trust’s average borrowing rate on existing debt. Where borrowings are associated with specific developments, the amount capitalized is the gross borrowing cost incurred on such borrowings less any investment income arising on temporary investment of these borrowings. The capitalization of borrowing costs is suspended if there are prolonged periods that development activity is interrupted. The Trust capitalizes direct and indirect costs, including property taxes and insurance of the development property, if activities necessary to ready the development property for its intended use are in progress. Costs of internal personnel and other indirect costs that are wholly attributable to a project are capitalized as incurred. If considered reliably measurable, properties under development are carried at fair value. Properties under development are measured at cost if fair value is not reliably measurable. In determining the fair value of properties under development consideration is given to, among other things, remaining construction costs, development risk, the stage of project completion and the reliability of cash inflows after project completion. |
Business Combinations | (e) Business Combinations The Trust accounts for property acquisitions as a business combination if the particular assets and set of activities acquired can be operated and managed as a business in their current state for the purpose of providing a return to the unitholders. In accordance with IFRS 3, Business Combinations , the acquired set of activities and assets in an acquisition must include an input and a substantive process to qualify as a business. IFRS 3 amendments, effective January 1, 2020, provide for an optional concentration test to permit a simplified assessment of whether an acquired set of activities and assets is not a business. The concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The Trust applies the acquisition method to account for business combinations. The consideration transferred for a business combination is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Trust. The total consideration includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired as well as liabilities and contingent liabilities assumed in a business combination are initially measured at fair value at the acquisition date. The Trust recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. Acquisition related costs are expensed as incurred. Any contingent consideration is recognized at fair value at the acquisition date. Subsequent changes to the fair value of contingent consideration that is recorded as an asset or liability is recognized in net income. Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the identifiable net assets acquired. If the consideration transferred is lower than the fair value of the net assets acquired, the difference is recognized in net income. |
Assets Held for Sale | (f) Assets Held for Sale Non-current assets (and disposal groups) are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. This condition is satisfied when the asset is available for immediate sale in its present condition, management is committed to the sale and the sale is highly probable to occur within one year. |
Foreign Currency Translation | (g) Foreign Currency Translation The assets and liabilities of the Trust’s foreign operations are translated into Canadian dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case, for material transactions, the exchange rates at the dates of those transactions are used. Exchange differences arising are recognized in other comprehensive income and accumulated in equity. In preparing the financial statements of each entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the average rates of exchange prevailing in the period. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognized in net income in the period in which they arise except for: • The effective portion of exchange differences on transactions entered into in order to hedge certain foreign currency risks are recognized in other comprehensive income; • Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation) are recognized in other comprehensive income; and • Exchange differences on foreign currency borrowings related to capitalized interest for assets under construction are recognized in investment properties. |
Financial Instruments and Hedging | (h) Financial Instruments and Hedging Financial Assets and Financial Liabilities The following summarizes the Trust’s classification and measurement basis of its financial assets and liabilities: Classification and Measurement Basis Financial assets Construction funds in escrow Amortized Cost Long-term receivables included in other assets Amortized Cost Cross currency interest rate swaps Fair Value Other receivable (proceeds receivable associated with a property disposal) Fair Value Accounts receivable Amortized Cost Foreign exchange derivative contracts Fair Value Cash and cash equivalents Amortized Cost Financial liabilities Unsecured debentures, net Amortized Cost Unsecured term loans, net Amortized Cost Cross currency interest rate swaps Fair Value Accounts payable and accrued liabilities Amortized Cost Foreign exchange derivative contracts Fair Value Distributions payable Amortized Cost The Trust recognizes an allowance for expected credit losses (“ECL”) for financial assets measured at amortized cost. The impact of the credit loss modeling process is summarized as follow: • The Trust did not record an ECL allowance against long-term receivables as historical experience of loss on these balances is insignificant and, based on the assessment of forward-looking information, no significant increases in losses are expected. The Trust will continue to assess the valuation of these instruments. • The Trust did not record an ECL allowance against accounts receivable and has determined that its internal processes of evaluating each receivable on a specific basis for collectability using historical experience and adjusted for forward-looking information, would appropriately allow the Trust to determine if there are significant increases in credit risk to then record a corresponding ECL allowance. For financial liabilities measured at amortized cost, the liability is amortized using the effective interest rate method. Under the effective interest rate method, any transaction fees, costs, discounts and premiums directly related to the financial liabilities are recognized in net income over the expected life of the obligation. In regards to modifications to financial liabilities, when a financial liability measured at amortized cost is modified or exchanged, and such modification or exchange does not result in derecognition, the adjustment to the amortized cost of the financial liability as a result of the modification or exchange is recognized in net income. Derivatives and Hedging Derivative instruments, such as the cross currency interest rate swaps and the foreign exchange forward contracts and collars, are recorded in the combined balance sheet at fair value, including those derivatives that are embedded in financial or non-financial contracts. Changes in the fair value of derivative instruments which are not designated as hedges for accounting purposes are recognized in the combined statements of net income. The Trust utilizes derivative financial instruments from time to time in the management of its foreign currency and interest rate exposures. The Trust’s policy is not to utilize derivative financial instruments for trading or speculative purposes. The Trust applies hedge accounting to certain derivative and non-derivative financial instruments designated as hedges of net investments in subsidiaries with a functional currency other than the Canadian dollar. Hedge accounting is discontinued prospectively when the hedge relationship is terminated or no longer qualifies as a hedge, or when the hedging item is sold or terminated. In a net investment hedging relationship, the effective portion of foreign exchange gains or losses on the hedging instruments is recognized in other comprehensive income and the ineffective portion is recognized in net income. The amounts recorded in accumulated other comprehensive income are recognized in net income when there is a disposition or partial disposition of the foreign subsidiary. |
Cash and Cash Equivalents | (i) Cash and Cash Equivalents Cash and cash equivalents include cash and short-term investments with original maturities of three months or less. |
Fixed Assets | (j) Fixed Assets Fixed assets include computer hardware and software, furniture and fixtures and leasehold improvements, which are recorded at cost less accumulated depreciation. Depreciation expense is recorded on a straight-line basis over the estimated useful lives of the fixed assets, which typically range from 3 to 5 years for computer hardware and software and 5 to 7 years for other furniture and fixtures. Leasehold improvements are amortized over the term of the applicable lease. Fixed assets also include right-of-use assets identified in accordance with IFRS 16, Leases . Refer to note 2(k) for the measurement basis of right-of-use assets. |
Leases | (k) Leases The Trust recognizes a right-of-use asset and a lease obligation at the lease commencement date, in accordance with IFRS 16, Leases. The Trust accounts for its right-of-use assets that do not meet the definition of investment property as fixed assets. The right-of-use asset is initially measured at cost and, subsequently, at cost less any accumulated depreciation and impairment, and adjusted for certain remeasurements of the lease obligation. When a right-of-use asset meets the definition of investment property, it is initially measured at cost and subsequently measured at fair value (note 2(d)). The lease liability is initially measured at the present value of the lease payments at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, at the Trust’s incremental borrowing rate. Generally, the Trust uses its incremental borrowing rate as the discount rate. The lease obligation is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee or, as appropriate, a change in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised. |
Revenue Recognition | (l) Revenue Recognition Where Granite has retained substantially all the benefits and risks of ownership of its rental properties, leases with its tenants are accounted for as operating leases. Where substantially all the benefits and risks of ownership of the Trust’s rental properties have been transferred to its tenants, the Trust’s leases are accounted for as finance leases. All of the Trust’s current leases are operating leases. Revenue from investment properties include base rents earned from tenants under lease agreements, property tax and operating cost recoveries and other incidental income. Rents from tenants may contain rent escalation clauses or free rent periods which are recognized in revenue on a straight-line basis over the term of the lease. The difference between the revenue recognized and the contractual rent is included in investment properties as straight-line rents receivable. In addition, tenant incentives including cash allowances provided to tenants are recognized as a reduction in rental revenue on a straight-line basis over the term of the lease where it is determined that the tenant fixturing has no benefit to the property beyond the existing tenancy. Property tax and operating cost recoveries from tenants are recognized as revenue in the period in which applicable costs are incurred. |
Unit-Based Compensation Plans | (m) Unit-Based Compensation Plans Incentive Stock Option Plan Compensation expense for option grants is based on the fair value of the options at the grant date and is recognized over the period from the grant date to the date the award is vested. A liability is recognized for outstanding options based upon the fair value as the Trust is an open-ended trust making its units redeemable. During the period in which options are outstanding, the liability is adjusted for changes in the fair value with such adjustments being recognized as compensation expense in general and administrative expenses in the period in which they occur. The liability balance is reduced as options are exercised and recorded in equity as stapled units along with the proceeds received on exercise. Executive Deferred Stapled Unit Plan The executive deferred stapled unit plan is measured at fair value at the date of grant and amortized to compensation expense from the effective date of the grant to the final vesting date. Compensation expense is recognized on a proportionate basis consistent with the vesting features of each tranche of the grant. Compensation expense for executive deferred stapled units granted under the plan is recognized in general and administrative expenses with a corresponding liability recognized based upon the fair value of the Trust’s stapled units as the Trust is an open-ended trust making its units redeemable. During the period in which the executive deferred stapled units are outstanding, for grants with no performance criteria, the liability is adjusted for changes in the market value of the Trust’s stapled unit, and for grants with performance criteria the liability is measured at fair value using the Monte Carlo simulation model (note 12), with both such adjustments being recognized as compensation expense in general and administrative expenses in the period in which they occur. The liability balance is reduced as deferred stapled units are settled for stapled units and recorded in equity. Director/Trustee Deferred Share Unit Plan The compensation expense and a corresponding liability associated with the director/trustee deferred share unit plan is measured based on the market value of the underlying stapled units. During the period in which the awards are outstanding, the liability is adjusted for changes in the market value of the underlying stapled unit, with such positive or negative adjustments being recognized in general and administrative expenses in the period in which they occur. The liability balance is settled for cash when a director/trustee ceases to be a member of the Board. |
Income Taxes | (n) Income Taxes Operations in Canada Granite qualifies as a mutual fund trust under the Income Tax Act (Canada) (the “Act”) and as such the Trust itself will not be subject to income taxes provided it continues to qualify as a REIT for purposes of the Act. A REIT is not taxable and not considered to be a Specified Investment Flow-through Trust provided it complies with certain tests and it distributes all of its taxable income in a taxation year to its unitholders. The Trust’s qualification as a REIT results in no current or deferred income tax being recognized in the combined financial statements for income taxes related to the Canadian investment properties. Operations in the United States The Trust’s investment property operations in the United States are conducted in a qualifying United States REIT (“US REIT”) for purposes of the Internal Revenue Code of 1986, as amended. As a qualifying US REIT, it is not taxable provided it complies with certain tests in addition to the requirement to distribute substantially all of its taxable income. As a qualifying US REIT, current income taxes on U.S. taxable income have not been recorded in the combined financial statements. However, the Trust has recorded deferred income taxes that may arise on the disposition of its investment properties as the Trust will likely be subject to entity level income tax in connection with such transactions pursuant to the Foreign Investment in Real Property Tax Act. Operations in Europe The Trust consolidates certain entities that continue to be subject to income tax. Income taxes for taxable entities in Europe, as well as other entities in Canada or the United States subject to tax, are recorded as follows: Current Income Tax The current income tax expense is determined on the basis of enacted or substantively enacted tax rates and laws at each balance sheet date. Deferred Income Tax Deferred income tax is recorded, using the liability method, on temporary differences arising between the tax basis of assets and liabilities and the amounts reported on the combined financial statements. Deferred income tax assets and liabilities are measured at tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. Deferred income tax assets are recognized to the extent that it is probable that deductions, tax credits or tax losses will be utilized. Each of the current and deferred tax assets and liabilities are offset when they are levied by the same taxation authority in either the same taxable entity or different taxable entities within the same reporting group that settle on a net basis. |
Significant Accounting Judgments, Estimates and Assumptions | (o) Significant Accounting Judgments, Estimates and Assumptions The preparation of the combined financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts and disclosures made in the financial statements and accompanying notes. Management believes that the judgments, estimates and assumptions utilized in preparing the combined financial statements are reasonable and prudent; however, actual results could be materially different and require an adjustment to the reported results. Judgments The following are the critical judgments that have been made in applying the Trust’s accounting policies and that have the most significant effect on the amounts recognized in the combined financial statements: (i) Leases The Trust’s policy for revenue recognition is described in note 2(l). The Trust makes judgments in determining whether certain leases are operating or finance leases, in particular tenant leases with long contractual terms or leases where the property is a large square-footage and/or architecturally specialized. The Trust also makes judgments in determining the lease term for some lease contracts in which it is a lessee that include renewal or termination options. The assessment of whether the Trust is reasonably certain to exercise such options impacts the lease term which, in turn, significantly affects the amount of lease obligations and right-of-use assets recognized. (ii) Investment properties The Trust’s policy relating to investment properties is described in note 2(d). In applying this policy, judgment is used in determining whether certain costs incurred for tenant improvements are additions to the carrying amount of the property or represent incentives, identifying the point at which practical completion of properties under development occurs and determining borrowing costs to be capitalized to the carrying value of properties under development. Judgment is also applied in determining the use, extent and frequency of independent appraisals. (iii) Income taxes The Trust applies judgment in determining whether it will continue to qualify as a REIT for both Canadian and U.S. tax purposes for the foreseeable future. However, should it at some point no longer qualify, it would be subject to income tax and would be required to recognize current and deferred income taxes. Estimates and Assumptions The key assumptions concerning the future and other key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities include the following: (i) Valuation of investment properties The fair value of investment properties is determined by management using primarily the discounted cash flow method in which the income and expenses are projected over the anticipated term of the investment plus a terminal value discounted using an appropriate discount rate. The Trust obtains, from time to time, appraisals from independent qualified real estate valuation experts. However, the Trust does not measure its investment properties based on these appraisals but uses them as data points, together with other external market information accumulated by management, in arriving at its own conclusions on values. Management uses valuation assumptions such as discount rates, terminal capitalization rates and market rental rates applied in external appraisals or sourced from valuation experts; however, the Trust also uses its historical renewal experience with tenants, its direct knowledge of the specialized nature of certain of Granite’s portfolio and tenant profile and the actual condition of the properties in making business judgments about lease renewal probabilities, renewal rents and capital expenditures. The critical assumptions relating to the Trust’s estimates of fair values of investment properties include the receipt of contractual rents, contractual renewal terms, expected future market rental rates, discount rates that reflect current market uncertainties, capitalization rates and recent investment property prices. If there is any change in these assumptions or regional, national or international economic conditions, the fair value of investment properties may change materially. Refer to note 4 for further information on the estimates and assumptions made by management. (ii) Fair value of financial instruments Where the fair value of financial assets or liabilities recorded on the balance sheet or disclosed in the notes cannot be derived from active markets, they are determined using valuation techniques including the discounted cash flow method. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as credit risk and volatility. Changes in assumptions about these factors could materially affect the reported fair value of financial instruments. (iii) Income taxes The Trust operates in a number of countries and is subject to the income tax laws and related tax treaties in each of its operating jurisdictions. These laws and treaties can be subject to different interpretations by relevant taxation authorities. Significant judgment is required in the estimation of Granite’s income tax expense, the interpretation and application of the relevant tax laws and treaties and the provision for any exposure that may arise from tax positions that are under audit by relevant taxation authorities. The recognition and measurement of deferred tax assets or liabilities is dependent on management’s estimate of future taxable profits and income tax rates that are expected to be in effect in the period the asset is realized or the liability is settled. Any changes in management’s estimate can result in changes in deferred tax assets or liabilities as reported in the combined balance sheets and also the deferred income tax expense in the combined statements of net income. |
Future Accounting Policy Changes | (p) Future Accounting Policy Changes As at December 31, 2020, there are no new accounting standards issued but not yet applicable to the combined financial statements except for the following: Agenda Decision — IFRS 16, Leases In December 2019, the IFRS Interpretations Committee issued a final agenda decision in regards to the determination of the lease term for cancellable or renewable leases under IFRS 16, Leases (the “Decision”) and whether the useful life of any non-removable leasehold improvements is limited to the lease term of the related lease. As of December 31, 2020, the Trust completed the impact assessment and determined that there is no material impact from the adoption of this interpretation on its combined financial statements. |
COVID-19 Pandemic | (q) COVID-19 Pandemic During the year ended December 31, 2020, the coronavirus disease (“COVID-19”) pandemic has resulted in governments across Granite’s operating markets enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Global equity and capital markets have also experienced significant volatility and weakness during this time. Governments across the globe have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. Granite is continuing to monitor the impact of the COVID-19 pandemic on its business, liquidity and results of operations. During the year ended December 31, 2020, there has not been any significant impact on Granite’s operations, assets or liabilities as a result of COVID-19. eceived 100% of 2020 rents due, and 100% and 99.9%, respectively, of January and February 2021 rents to date. Granite has not recognized any provisions for uncollected rent at this time as all outstanding rental income has been received. Granit e reviewed its future cash flow projections and the valuation of its properties considering the impacts of the COVID-19 COVID-19 Granite continues to review its future cash flow projections and the valuation of its investment properties in light of the COVID-19 pandemic. The carrying value of Granite’s investment properties reflects its best estimate for the highest and best use as at December 31, 2020 (note 4). The duration of the COVID-19 pandemic, and the potential for further waves of new infections in the markets where Granite operates that could lead to the reinstatement of emergency measures, cannot be predicted. As such, the length and full scope of the economic impact of COVID-19 and other consequential changes it will have on Granite’s business and operations in the long-term cannot be forecasted with certainty at this time. Certain aspects of Granite’s business and operations that could potentially be impacted include rental income, occupancy, capital expenditures, future demand for space and market rents, all of which ultimately impact the underlying valuation of investment properties. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACQUISITIONS | |
Schedule of business combination, income producing properties | 2020 Acquisitions Property Location Date acquired Property Transaction Total Property under development: Aquamarijnweg 2 (1) Bleiswijk, Netherlands March 13, 2020 $ 35,632 $ 145 $ 35,777 Income-producing properties: Oude Graaf 15 Weert, Netherlands May 1, 2020 31,910 253 32,163 De Kroonstraat 1 (2) Tilburg, Netherlands July 1, 2020 71,716 710 72,426 Francis Baconstraat 4 Ede, Netherlands July 1, 2020 21,403 178 21,581 8995 Airport Road Brampton, ON September 1, 22,173 593 22,766 555 Beck Crescent Ajax, ON September 30, 15,350 407 15,757 8500 Tatum Road (3) Palmetto, GA November 12, 105,184 189 105,373 Industrieweg 15 Voorschoten, November 20, 24,577 1,708 26,285 Zuidelijke Havenweg 2 Hengelo, Netherlands December 4, 46,226 2,882 49,108 Beurtvaartweg 2-4, Sprengenweg 1-2 Nijmegen, December 1 8 39,067 2,531 41,598 12 Tradeport Road Hanover Township, December 22, 174,722 2,212 176,934 250 Tradeport Road Nanticoke, PA December 22, 79,776 1,074 80,850 Memphis portfolio (three properties): 4460 E. Holmes Road, 4995 Citation Drive and 8650 Commerce Drive Memphis, TN, June 18, 2020 111,590 497 112,087 Midwest portfolio (five properties): 6201 Green Pointe Drive South, 8779 Le Saint Drive, 8754 Trade Port Drive and 445 Airtech Parkway Groveport, OH, and Indianapolis, IN June 18, 2020 177,647 801 178,448 5415 Centerpoint Parkway Obetz, OH July 8, 2020 45,092 256 45,348 Mississauga portfolio (four properties): 5600, 5610, 5620 and 5630 Timberlea Boulevard Mississauga, ON September 28, 19,450 444 19,894 Development land: 5005 Parker Henderson Road Fort Worth, TX June 8, 2020 8,932 332 9,264 $ 1,030,447 $ 15,212 $ 1,045,659 (1) The development in Bleiswijk, Netherlands was completed in September 2020 and subsequently transferred to income-producing properties. The property purchase price includes a tenant allowance of $6.8 million ( € (2) Excludes construction costs and holdbacks of $12.4 million ( € (3) The Trust acquired the leasehold interest in this property which resulted in the recognition of a right-of-use asset, including transaction costs, of $105,373. The Trust will acquire freehold title to the property on December 1, 2029. 2019 Acquisitions Property Location Date acquired Property Transaction Total Income-producing properties: 201 Sunridge Boulevard Wilmer, TX March 1, 2019 $ 58,087 $ 141 $ 58,228 3501 North Lancaster Hutchins Road Lancaster, TX March 1, 2019 106,120 168 106,288 2020 & 2095 Logistics Drive (1) Mississauga, ON April 9, 2019 174,106 146 174,252 1901 Beggrow Street Columbus, OH May 23, 2019 71,607 289 71,896 Heirweg 3 Born, July 8, 2019 25,704 1,640 27,344 1222 Commerce Parkway Horn Lake, MS August 1, 2019 24,492 231 24,723 831 North Graham Road Greenwood, IN October 4, 2019 39,581 40 39,621 100 Clyde Alexander Lane (2) Pooler, GA October 18, 2019 62,657 614 63,271 1301 Chalk Hill Road (3) Dallas, TX November 19, 2019 269,764 247 270,011 330-366 Southaven, MS December 19, 2019 63,717 38 63,755 440-480 Southaven, MS December 19, 2019 51,643 33 51,676 Development land: 6701, 6702 Purple Sage Road Houston, TX July 1, 2019 33,361 510 33,871 $ 980,839 $ 4,097 $ 984,936 (1) Includes a right-of-use (2) The Trust acquired the leasehold interest in this property which resulted in the recognition of a right-of-use (3) Excludes cash held in escrow at December 31, 2019 to complete construction. |
INVESTMENT PROPERTIES (Tables)
INVESTMENT PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENT PROPERTIES | |
Schedule of investment property summary | As at December 31, 2020 2019 Income-producing properties $ 5,786,338 $ 4,377,623 Properties under development 31,488 51,310 Land held for development 37,757 28,966 $ 5,855,583 $ 4,457,899 |
Schedule of changes in investment properties | Years Ended December 31, 2020 2019 Income- Properties Land held Income- Properties Land held Balance, beginnin g $ 4,377,623 $ 51,310 $ 28,966 $ 3,415,786 $ 17,009 $ 3,984 Maintenance or improvements 3,997 — — 3,272 — — Leasing commissions 3,449 — — 1,079 — — Tenant allowances 1,784 — — 515 — — Developments or expansions 12,582 39,083 458 3,641 27,250 — Acquisitions (note 3) 1,000,618 35,777 9,264 951,065 8,932 24,939 Costs to complete acquired property (note 6) 8,622 — — — — — Disposals (note 5) (31,276 ) — — — — — Transfer to income-producing properties 97,733 (97,733 ) — — — — Classified as assets held for sale — — — (61,120 ) — — Amortization of straight-line rent 8,842 — — 5,074 — — Amortization of tenant allowances (5,321 ) — — (5,122 ) — — Other changes (16 ) — — 189 — — Fair value gains (losses), net 273,914 (145 ) (332 ) 243,351 (135 ) 557 Foreign currency translation, net 33,787 3,196 (599 ) (180,107 ) (1,746 ) (514 ) Balance, end of year $ 5,786,338 $ 31,488 $ 37,757 $ 4,377,623 $ 51,310 $ 28,966 |
Schedule of minimum rental commitments payable on non-cancellable operating leases | 2021 $ 329,686 2022 323,125 2023 289,622 2024 211,997 2025 189,542 2026 and thereafter 1,042,995 $ 2,386,967 |
Schedule of the key valuation metrics for income-producing properties by country | Valuations are most se n As at December 31, 2020 2019 Weighted (1) Maximum Minimum Weighted (1) Maximum Minimum Canada Discount rate 5.71% 6.25% 5.25% 5.90% 8.75% 5.25% Terminal capitalization rate 5.22% 5.50% 4.75% 5.55% 8.00% 5.00% United States Discount rate 6.18% 9.25% 5.00% 6.41% 9.50% 5.00% Terminal capitalization rate 5.58% 8.50% 4.75% 6.23% 8.75% 5.25% Germany Discount rate 6.85% 9.00% 5.50% 6.83% 8.25% 5.70% Terminal capitalization rate 5.83% 8.25% 4.50% 6.31% 8.75% 5.00% Austria Discount rate 8.58% 10.50% 8.25% 7.96% 10.00% 7.00% Terminal capitalization rate 7.47% 9.75% 7.00% 7.34% 9.75% 6.75% Netherlands Discount rate 4.99% 6.25% 4.40% 5.24% 6.00% 4.70% Terminal capitalization rate 5.58% 7.40% 4.80% 6.14% 7.55% 5.60% Other Discount rate 7.32% 7.50% 7.00% 8.25% 10.00% 7.25% Terminal capitalization rate 6.97% 9.75% 6.00% 8.20% 9.75% 6.25% Total Discount rate 6.38% 10.50% 4.40% 6.60% 10.00% 4.70% Terminal capitalization rate 5.82% 9.75% 4.50% 6.32% 9.75% 5.00% (1) Weighted based on income-producing property fair value. |
Schedule of sensitivity of the fair value of income-producing properties to changes in either the discount rate or terminal capitalization rate | Discount Rate Terminal Capitalization Rate Rate sensitivity Fair value Change in fair value Fair value Change in fair value +50 basis points $ 5,571,937 $ (214,401) $ 5,503,884 $ (282,454) +25 basis points 5,677,809 (108,529) 5,638,929 (147,409) Base rate 5,786,338 — 5,786,338 — -25 basis points 5,897,286 110,948 5,947,585 161,247 -50 basis points $ 6,011,034 $ 224,696 $ 6,125,131 $ 338,793 |
DISPOSITIONS (Tables)
DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DISPOSITIONS | |
Schedule of properties disposed | During the year ended December 31, 2020, Granite disposed of three properties located in Canada and Spain. The disposed properties consist of the following: Property Location Date disposed Sale price 201 Patillo Road Tecumseh, ON September 14, 2020 $ 17,000 2032 First Street Louth St. Catharines, ON September 14, 2020 6,500 11 Santiago Russinyol Street Barcelona, Spain October 23, 2020 7,776 $ 31,276 During the year ended December 31, 2019, Granite disposed of 13 properties located in Canada and the United States. The disposed properties consist of the following: Property Location Date disposed Sale price 3 Walker Drive Brampton, ON January 15, 2019 $ 13,380 Iowa pr o perti e s f o ur rope rt ies): 403 S 8th Street Montezuma, IA 1951 A Avenue Victor, IA 408 N Maplewood Avenue Williamsburg, IA 411 N Maplewood Avenue Williamsburg, IA February 25, 2019 22,323 375 Edward Street Richmond Hill, ON February 27, 2019 8,050 330 Finchdene Square Toronto, ON September 20, 2019 13,150 200 Industrial Parkway Aurora, ON November 4, 2019 10,010 Michigan pro p erties (five pr o perties): 1800 Hayes Street Grand Haven, MI 3501 John F Donnelly Drive Holland, MI 3601 John F Donnelly Drive Holland, MI 3575 128th Avenue North Holland, MI 6151 Bancroft Avenue Alto, MI December 4, 2019 38,852 $ 105,765 |
NON-CURRENT ASSETS (Tables)
NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
NON-CURRENT ASSETS | |
Schedule of other assets | Other Assets As at December 31, 2020 2019 Deferred financing costs associated with the revolving credit facility $ 599 $ 885 Long-term receivables 349 388 $ 948 $ 1,273 |
UNSECURED DEBT AND CROSS CURR_2
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings [abstract] | |
Schedule of unsecured debentures and term loans, net | As at December 31, 2020 2019 Maturity Date Amortized (1) Principal Amortized (1) Principal 2021 Debentures July 5, 2021 $ 249,870 $ 250,000 $ 249,646 $ 250,000 2023 Debentures November 30, 2023 399,066 400,000 398,746 400,000 2027 Debentures June 4, 2027 497,179 500,000 — — 2030 Debentures December 18, 2030 497,060 500,000 — — 2024 Term Loan December 19, 2024 235,419 235,949 239,153 239,816 2026 Term Loan December 11, 2026 299,528 300,000 299,449 300,000 $ 2,178,122 $ 2,185,949 $ 1,186,994 $ 1,189,816 (1) The amounts outstanding are net of deferred financing costs and, in the case of the term loans, debt modification losses. The deferred financing costs and debt modification losses are amortized using the effective interest method and are recorded in interest expense. As at December 31, 2020 2019 Unsecured Debentures and Term Loans, Net Non-current $ 1,928,252 $ 1,186,994 Current 249,870 — $ 2,178,122 $ 1,186,994 |
Schedule of cross currency interest rate swaps | As at December 31, 2020 2019 Financial asset at fair value 2027 Cross Currency Interest Rate Swap $ 28,676 $ — Financial liabilities at fair value 2021 Cross Currency Interest Rate Swap $ 16,953 $ 3,630 2023 Cross Currency Interest Rate Swap 36,540 24,298 2030 Cross Currency Interest Rate Swap 10,545 — 2024 Cross Currency Interest Rate Swap 25,370 1,202 2026 Cross Currency Interest Rate Swap 24,856 1,235 $ 114,264 $ 30,365 As at December 31, 2020 2019 Financial liabilities at fair value Non-current $ 97,311 $ 30,365 Current 16,953 — $ 114,264 $ 30,365 |
LEASE OBLIGATIONS (Tables)
LEASE OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Future Minimum Lease Payments Relating To The Right Of Use Assets [Abstract] | |
Schedule of future minimum lease payments relating to the right-of-use assets | Future minimum lease payments relating to the right-of-use 2021 $ 829 2022 554 2023 269 2024 258 2025 269 2026 and thereafter 31,594 $ 33,773 |
CURRENT LIABILITIES (Tables)
CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
CURRENT LIABILITIES | |
Schedule of accounts payable and accrued liabilities | As at December 31, 2020 2019 Accounts payable $ 9,876 $ 6,840 Tenant security deposits 6,793 3,978 Employee unit-based compensation 7,118 5,586 Trustee/director unit-based compensation 5,219 3,301 Accrued salaries, incentives and benefits 5,783 5,416 Accrued interest payable 7,956 6,507 Accrued construction payable 6,285 5,933 Accrued professional fees 2,620 3,822 Accrued property operating costs 8,878 6,376 Accrual associated with a property disposal (note 7) — 1,944 Other accrued liabilities 669 480 $ 61,197 $ 50,183 |
STAPLED UNITHOLDERS' EQUITY (Ta
STAPLED UNITHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Unit-based Compensation | |
Disclosure Of Assumptions Used For Fair Value Calculation Of Performance Stock Units | Grant Date January 1, 2020, January 1, August 12, PSUs granted 54,863 Term to expiry 2.0 years Average volatility rate 42.5% Weighted average risk free interest rate 0.2% |
Schedule of unit-based compensation expense recognized in general and administrative expenses | The Trust’s unit-based compensation expense recognized in general and administrative expenses was: Years ended December 31, 2020 2019 DSPs for trustees/directors (1) $ 1,918 $ 1,645 Restricted Stapled Unit Plan for executives and employees 6,198 5,839 Unit-based compensation expense $8,116 $7,484 Fair value remeasurement expense included in the above: ● $ 728 $ 568 ● 1,361 1,321 Total fair value remeasurement expense $ 2,089 $ 1,889 (1) In respect of fees mandated and elected to be taken as DSUs. |
Schedule of accumulated other comprehensive income | Accumulated other comprehensive income consists of the following: As at December 31, 2020 2019 Foreign currency translation gains on investments in subsidiaries, net of related hedging activities and non-controlling (1) $ 188,169 $ 159,499 Fair value losses on derivatives designated as net investment hedges (92,269 ) (43,309 ) $ 95,900 $ 116,190 (1) Includes foreign currency translation gains and losses from non-derivative |
Director/Trustee Deferred Share Unit Plan | |
Unit-based Compensation | |
Summary of reconciliation of the changes in unit-based compensation | A reconciliation of the changes in the notional DSUs outstanding is presented below: 2020 2019 Number Weighted Average Number Weighted Average DSUs outstanding, January 1 50 $ 48.01 44 $ 46.01 Granted 17 67.04 17 55.59 Settled 0 0 (11 ) 51.57 DSUs outstanding, December 31 67 $ 52.93 50 $ 48.01 |
Executive Deferred Stapled Unit Plan | |
Unit-based Compensation | |
Summary of reconciliation of the changes in unit-based compensation | A reconciliation of the changes in notional stapled units outstanding under the Restricted Stapled Unit Plan is presented below: 2020 2019 Number Weighted Average Number Weighted Average RSUs and PSUs outstanding, January 1 145 $ 55.93 117 $ 50.34 New grants (1) 54 67.09 85 61.90 Forfeited (7 ) 73.64 (2 ) 64.16 Settled in cash (33 ) 55.70 (35 ) 52.91 Settled in stapled units (31 ) 55.70 (20 ) 52.91 RSUs and PSUs outstanding, December 31 (1) 128 $ 59.83 145 $ 55.93 (1) New grants include 22.1 RSUs and 26.5 PSUs granted during the year ended December 31, 2020 (2019 — 54.1 RSUs and 24.6 PSUs). Total restricted stapled units outstanding at December 31, 2020 include a total of 73.7 RSUs and 54.6 PSUs granted (2019 — 116.3 RSUs and 29.1 PSUs). |
RENTAL REVENUE, RECOVERIES, C_2
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES | |
Schedule of rental revenue | (a) Rental revenue consists of: Years ended December 31, 2020 2019 Base rent $ 291,714 $ 240,345 Straight-line rent amortization 8,842 5,074 Tenant incentive amortization (5,321 ) (5,122 ) Property tax recoveries 31,439 22,280 Property insurance recoveries 2,640 2,161 Operating cost recoveries 10,885 8,085 $ 340,199 $ 272,823 |
Schedule of property operating costs | (b) Property operating costs consist of: Years ended December 31, 2020 2019 Non-recoverable Property taxes and utilities $ 973 $ 1,096 Legal 160 189 Consulting 41 90 Environmental and appraisals 334 511 Repairs and maintenance 698 804 Other 616 558 $ 2,822 $ 3,248 Recoverable from tenants: Property taxes and utilities $ 33,598 $ 23,784 Property insurance 2,946 2,391 Repairs and maintenance 3,916 2,733 Property management fees 2,793 2,001 Other 1,089 1,207 $ 44,342 $ 32,116 Property operating costs $ 47,164 $ 35,364 |
Schedule of general and administrative expenses | (c) General and administrative expenses consist of: Years ended December 31, 2020 2019 Salaries, incentives and benefits $ 15,109 $ 13,753 Audit, legal and consulting 3,423 4,268 Trustee/director fees including distributions, revaluations and expenses (1) 2,108 1,976 RSU and PSU compensation expense including distributions and revaluations (1) 6,198 5,839 Other public entity costs 1,986 2,096 Office rents including property taxes and common area maintenance costs 424 379 Capital tax 568 454 Information technology costs 1,045 980 Other 1,342 1,674 $ 32,203 $ 31,419 |
Schedule of interest expense and other financing costs | (d) Interest expense and other financing costs consist of: Years ended December 31, 2020 2019 Interest and amortized issuance costs and modification losses relating to debentures and term loans $ 32,632 $ 26,632 Amortization of deferred financing costs and other interest expense and charges 2,229 2,169 Interest expense related to lease obligations (note 9) 1,595 1,300 $ 36,456 $ 30,101 Less: Capitalized interest (617 ) (160 ) $ 35,839 $ 29,941 |
Schedule of fair value losses on financial instruments | (e) Fair value losses (gains) on financial instruments, net, consist of: Years ended December 31, 2020 2019 Foreign exchange forward contracts, net (note 17(a)) $ 93 $ 8 Foreign exchange collar contracts, net (note 17(a)) (2,627 ) — Losses on term loan debt modifications (note 8(a)) — 752 Cross currency interest rate swaps (note 8(b)) 5,936 (1,952 ) $ 3,402 $ (1,192 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of major components of the income tax expense | Years ended December 31, 2020 2019 Current income tax: Current taxes $ 8,802 $ 6,069 Current taxes referring to previous periods (2,472 ) (1,526 ) Withholding taxes and other 261 528 $ 6,591 $ 5,071 Deferred income tax: Origination and reversal of temporary differences $ 176,351 $ 41,140 Impact of changes in tax rates 2,941 (1,678 ) Benefits arising from a previously unrecognized tax loss that reduced: — Current tax expense (119,283 ) (12 ) — Deferred tax expense — (285 ) Withholding taxes on profits of subsidiaries 6 (388 ) Other 2,486 (1,181 ) $ 62,501 $ 37,596 Income tax expense $ 69,092 $ 42,667 |
Schedule of effective income tax rate reported in the combined statements of income reconciled to the Canadian statutory rate | Years ended December 31, 2020 2019 Income before income taxes $499,019 $424,942 Expected income taxes at the Canadian statutory tax rate of 26.5% (2019 — 26.5%) $ 132,240 $ 112,610 Income distributed and taxable to unitholders (57,791 ) (59,966 ) Net foreign rate differentials (9,954 ) (7,526 ) Net change in provisions for uncertain tax positions (784 ) 72 Net permanent differences (115 ) 519 Net effect of change in tax rates 2,941 (1,678 ) Withholding taxes and other 2,555 (1,364 ) Income tax expense $69,092 $42,667 |
Schedule of temporary differences in deferred tax assets and liabilities | As at December 31, 2020 2019 Deferred tax assets: Investment properties $ 490 $ 83 Eligible capital expenditures 2,111 2,270 Other 2,129 1,704 Deferred tax assets $ 4,730 $ 4,057 Deferred tax liabilities: Investment properties $ 396,326 $ 323,385 Withholding tax on undistributed subsidiary profits 149 134 Other (3,634 ) (2,547 ) Deferred tax liabilities $ 392,841 $ 320,972 |
Schedule of changes in the net deferred tax liabilities | Years ended December 31, 2020 2019 Balance, beginning of year $ 316,915 $ 298,664 Deferred tax expense recognized in net income 62,501 37,596 Foreign currency translation of deferred tax balances 8,695 (19,345 ) Net deferred tax liabilities, end of year $ 388,111 $ 316,915 |
Schedule of reconciliation of the beginning and ending amounts of unrecognized tax benefits | As at December 31, 2020 2019 Unrecognized tax benefits balance, beginning of year $ 11,422 $ 13,197 Decreases for tax positions of prior years (2,370 ) (3,056 ) Increases for tax positions of current year 1,766 2,090 Foreign currency impact 750 (809 ) Unrecognized tax benefits balance, end of year $ 11,568 $ 11,422 |
Schedule of tax years subject to examination | Major Jurisdictions Canada 2014 through 2020 United States 2017 through 2020 Austria 2015 through 2020 Germany 2014 through 2020 Netherlands 2015 through 2020 |
SEGMENTED DISCLOSURE INFORMAT_2
SEGMENTED DISCLOSURE INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENTED DISCLOSURE INFORMATION | |
Schedule of revenue by geographic segmentation | Revenue Years ended December 31, 2020 2019 Canada $ 63,233 19% $ 58,952 22% United States 161,165 47% 108,065 39% Austria 65,716 19% 63,724 23% Germany 26,924 8% 26,455 10% Netherlands 16,694 5% 10,250 4% Other Europe 6,467 2% 6,232 2% $ 340,199 100% $ 273,678 100% |
Schedule of investment properties by geographic segmentation | Investment properties As at December 31, 2020 2019 Canada $ 1,106,850 19% $ 979,290 22% United States 2,882,549 49% 2,014,489 45% Austria 821,260 14% 806,355 18% Germany 428,504 7% 389,077 9% Netherlands 550,946 10% 196,701 4% Other Europe 65,474 1% 71,987 2% $ 5,855,583 100% $ 4,457,899 100% |
DETAILS OF CASH FLOWS (Tables)
DETAILS OF CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DETAILS OF CASH FLOWS | |
Schedule of items not involving current cash flows | Years ended December 31, 2020 2019 Straight-line rent amortization $ (8,842 ) $ (5,074 ) Tenant incentive amortization 5,321 5,122 Unit-based compensation expense (note 12(b)) 8,116 7,484 Fair value gains on investment properties (273,437 ) (245,442 ) Depreciation and amortization 1,151 906 Fair value losses (gains) on financial instruments, net (note 13(e)) 3,402 (1,192 ) Loss on sale of investment properties 901 3,045 Amortization of issuance costs and modification losses relating to debentures and term loans 1,024 855 Amortization of deferred financing costs 312 312 Deferred income taxes (note 14(a)) 62,501 37,596 Other (30 ) (195 ) $ (199,581 ) $ (196,583 ) |
Schedule of changes in working capital balances | Years ended December 31, 2020 2019 Accounts receivable $ 10,141 $ (3,670 ) Prepaid expenses and other 61 (906 ) Accounts payable and accrued liabilities 844 (639 ) Deferred revenue 5,595 1,800 Restricted cash — 470 $ 16,641 $ (2,945 ) |
Schedule of cash and cash equivalents | Years ended December 31, 2020 2019 Cash $ 780,979 $ 248,499 Short-term deposits 50,301 50,178 $ 831,280 $ 298,677 |
FAIR VALUE AND RISK MANAGEMENT
FAIR VALUE AND RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE AND RISK MANAGEMENT | |
Schedule of measurement of financial assets and liabilities | As at December 31, 2020 2019 Carrying Fair Value Carrying Fair Value Financial assets Construction funds in escrow $ 8,402 $ 8,402 $ 16,767 $ 16,767 Other assets 349 (1) 349 388 (1) 388 Cross currency interest rate swap 28,676 28,676 — — Other receivable — — 11,650 11,650 Accounts receivable 6,746 6,746 7,812 7,812 Prepaid expenses and other 2,627 (2) 2,627 120 (3) 120 Cash and cash equivalents 831,280 831,280 298,677 298,677 $ 878,080 $ 878,080 $ 335,414 $ 335,414 Financial liabilities Unsecured debentures, net $ 1,643,175 (4) $ 1,737,185 $ 648,392 $ 669,090 Unsecured term loans, net 534,947 534,947 538,602 538,602 Cross currency interest rate swaps 114,264 (5) 114,264 30,365 30,365 Accounts payable and accrued liabilities 61,197 61,197 50,156 50,156 Accounts payable and accrued liabilities — — 27 (6) 27 Distributions payable 15,422 15,422 13,081 13,081 $ 2,369,005 $ 2,463,015 $ 1,280,623 $ 1,301,321 |
Schedule of assets and liabilities measured or disclosed at fair value on a recurring and non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fall | As at December 31, 2020 Level 1 Level 2 Level 3 ASSETS AND LIABILITIES MEASURED OR DISCLOSED AT FAIR VALUE Assets measured at fair value Investment properties (note 4) $ — $ — $ 5,855,583 Cross currency interest rate swap (note 8) — 28,676 — Foreign exchange collars included in prepaid expenses and other — 2,627 — Liabilities measured or disclosed at fair value Unsecured debentures, net (note 8) 1,737,185 — — Unsecured term loans, net (note 8) — 534,947 — Cross currency interest rate swaps (note 8) — 114,264 — Net (liabilities) assets measured or disclosed at fair value $ (1,737,185 ) $ (617,908 ) $ 5,855,583 As at December 31, 2019 Level 1 Level 2 Level 3 ASSETS AND LIABILITIES MEASURED OR DISCLOSED AT FAIR VALUE Assets measured at fair value Investment properties (note 4) $ — $ — $ 4,457,899 Short-term proceeds receivable associated with a property disposal included in accounts receivable (note 7) — — 11,650 Foreign exchange forward contracts included in prepaid expenses and other — 120 — Liabilities measured or disclosed at fair value Unsecured debentures, net (note 8) 669,090 — — Unsecured term loans, net (note 8) — 538,602 — Cross currency interest rate swaps (note 8) — 30,365 — Foreign exchange forward contracts included in accounts payable and accrued liabilities — 27 — Net (liabilities) assets measured or disclosed at fair value $ (669,090 ) $ (568,874 ) $ 4,469,549 |
Schedule of contractual maturities of financial liabilities | Payments due by year As at December 31, 2020 Total 2021 2022 2023 2024 2025 Thereafter Unsecured debentures $ 1,650,000 $ 250,000 $ — $ 400,000 $ — $ — $ 1,000,000 Unsecured term loans $ 535,949 — — — 235,949 — 300,000 Cross currency interest rate swaps $ 114,264 16,953 — 36,540 25,370 — 35,401 Interest payments (1) Unsecured debentures, net of cross currency interest rate swap savings $ 182,546 37,094 29,910 29,910 19,263 19,263 47,106 Unsecured term loans, net of cross currency interest rate swap savings $ 31,504 5,709 5,709 5,709 5,709 4,340 4,328 Accounts payable and accrued liabilities $ 61,197 57,530 3,218 449 — — — Distributions payable $ 15,422 15,422 — — — — — $ 2,590,882 $ 382,708 $ 38,837 $ 472,608 $ 286,291 $ 23,603 $ 1,386,835 |
CAPITAL MANAGEMENT (Tables)
CAPITAL MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
Schedule of total managed capital structure of the Trust | As at December 31, 2020 2019 Unsecured debentures, net $ 1,643,175 $ 648,392 Unsecured term loans, net 534,947 538,602 Cross currency interest rate swaps, net (1) 85,588 30,365 Total debt 2,263,710 1,217,359 Stapled unitholders’ equity 3,920,069 3,146,143 Total managed capital $ 6,183,779 $ 4,363,502 (1) Balance is net of the cross currency interest rate swap asset (note 8(b)). |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
Schedule of transactions with related parties | Years ended December 31, 2020 2019 Salaries, incentives and short-term benefits $ 4,082 $ 5,553 Unit-based compensation expense including fair value adjustments 3,744 3,980 $ 7,826 $ 9,533 |
COMBINED FINANCIAL INFORMATION
COMBINED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMBINED FINANCIAL INFORMATION | |
Schedule of Balance Sheet | Balance Sheet As at December 31, 2020 Granite REIT Granite GP Eliminations/ Granite REIT and ASSETS Non-current Investment properties $ 5,855,583 $ 5,855,583 Investment in Granite LP (1) — 25 (25 ) — Other non-current 46,046 46,046 5,901,629 25 (25 ) 5,901,629 Current assets: Other current assets 14,546 17 14,563 Intercompany receivable (2) — 13,792 (13,792 ) — Cash and cash equivalents 830,455 825 831,280 Total assets $ 6,746,630 14,659 (13,817 ) $ 6,747,472 LIABILITIES AND EQUITY Non-current Unsecured debt, net $ 1,928,252 $ 1,928,252 Other non-current 523,096 523,096 2,451,348 2,451,348 Current liabilities: Unsecured debt, net 249,870 249,870 Intercompany payable (2) 13,792 (13,792 ) — Other current liabilities 109,416 14,634 124,050 Total liabilities 2,824,426 14,634 (13,792 ) 2,825,268 Equity: Stapled unitholders’ equity 3,920,044 25 3,920,069 Non-controlling 2,160 (25 ) 2,135 Total liabilities and equity $ 6,746,630 14,659 (13,817 ) $ 6,747,472 (1) Granite REIT Holdings Limited Partnership (“Granite LP”) is 100% owned by Granite REIT and Granite GP. (2) Represents employee and trustee/director compensation related amounts which will be reimbursed by Granite LP. Balance Sheet As at December 31, 2019 Granite REIT Granite GP Eliminations/ Granite REIT and ASSETS Non-current Investment properties $ 4,457,899 $ 4,457,899 Investment in Granite LP (1) — 21 (21 ) — Other non-current 24,216 24,216 4,482,115 21 (21 ) 4,482,115 Current assets: Other current assets 23,144 20 23,164 Intercompany receivable (2) — 11,828 (11,828 ) — Cash and cash equivalents 298,385 292 298,677 Total assets $ 4,803,644 12,161 (11,849 ) $ 4,803,956 LIABILITIES AND EQUITY Non-current Unsecured debt, net $ 1,186,994 $ 1,186,994 Other non-current 383,763 383,763 1,570,757 1,570,757 Current liabilities: Intercompany payable (2) 11,828 (11,828 ) — Other current liabilities 72,949 12,140 85,089 Total liabilities 1,655,534 12,140 (11,828 ) 1,655,846 Equity: Stapled unitholders’ equity 3,146,122 21 3,146,143 Non-controlling 1,988 (21 ) 1,967 Total liabilities and equity $ 4,803,644 12,161 (11,849 ) $ 4,803,956 (1) Granite LP is 100% owned by Granite REIT and Granite GP. (2) Represents employee and trustee/director compensation related amounts which will be reimbursed by Granite LP. |
Schedule of Income Statement | Income Statement Year Ended December 31, 2020 Granite REIT Granite GP Eliminations/ Granite REIT and Revenue $ 340,199 $ 340,199 General and administrative expenses 32,203 32,203 Interest expense and other financing costs 35,839 35,839 Other costs and expenses, net 42,272 42,272 Share of (income) loss of Granite LP — (4 ) 4 — Fair value gains on investment properties, net (273,437 ) (273,437 ) Fair value losses on financial instruments, net 3,402 3,402 Loss on sale of investment properties 901 901 Income before income taxes 499,019 4 (4 ) 499,019 Income tax expense 69,092 69,092 Net income 429,927 4 (4 ) 429,927 Less net income attributable to non-controlling 127 (4 ) 123 Net income attributable to stapled unitholders $ 429,800 4 — $ 429,804 Income Statement Year Ended December 31, 2019 Granite REIT Granite GP Eliminations/ Granite REIT and Revenue $ 273,678 $ 273,678 General and administrative expenses 31,419 31,419 Interest expense and other financing costs 29,941 29,941 Other costs and expenses, net 30,965 30,965 Share of (income) loss of Granite LP — (4 ) 4 — Fair value gains on investment properties, net (245,442 ) (245,442 ) Fair value gains on financial instruments, net (1,192 ) (1,192 ) Loss on sale of investment properties 3,045 3,045 Income before income taxes 424,942 4 (4 ) 424,942 Income tax expense 42,667 42,667 Net income 382,275 4 (4 ) 382,275 Less net income attributable to non-controlling 200 (4 ) 196 Net income attributable to stapled unitholders $ 382,075 4 — $ 382,079 |
Schedule of Statement of Cash Flows | Statement of Cash Flows Year Ended December 31, 2020 Granite REIT Granite GP Eliminations/ Granite REIT and OPERATING ACTIVITIES Net income $ 429,927 4 (4 ) $ 429,927 Items not involving operating cash flows (199,581 ) (4 ) 4 (199,581 ) Changes in working capital balances 16,108 533 16,641 Other operating activities (2,666 ) (2,666 ) Cash provided by operating activities 243,788 533 — 244,321 INVESTING ACTIVITIES Property acquisitions (1,045,659 ) (1,045,659 ) Proceeds from disposals, net 42,508 42,508 Investment property capital additions — Maintenance or improvements (5,376 ) (5,376 ) — Developments or expansions (49,598 ) (49,598 ) — Costs to complete acquired property (8,622 ) (8,622 ) Other investing activities (75 ) (75 ) Cash used in investing activities (1,066,822 ) — — (1,066,822 ) FINANCING ACTIVITIES Distributions paid (163,064 ) (163,064 ) Other financing activities 1,521,261 1,521,261 Cash provided by financing activities 1,358,197 — — 1,358,197 Effect of exchange rate changes (3,093 ) (3,093 ) Net increase in cash and cash equivalents during the year $ 532,070 533 — $ 532,603 Statement of Cash Flows Year Ended December 31, 2019 Granite REIT Granite GP Eliminations/ Granite REIT and OPERATING ACTIVITIES Net income $ 382,275 4 (4 ) $ 382,275 Items not involving operating cash flows (196,583 ) (4 ) 4 (196,583 ) Changes in working capital balances (2,423 ) (522 ) (2,945 ) Other operating activities 684 684 Cash provided by (used in) operating activities 183,953 (522 ) — 183,431 INVESTING ACTIVITIES Property acquisitions (930,878 ) (930,878 ) Proceeds from disposals, net 85,536 85,536 Investment property capital additions — Maintenance or improvements (2,889 ) (2,889 ) — Developments or expansions (27,407 ) (27,407 ) Other investing activities (456 ) (456 ) Cash used in investing activities (876,094 ) — — (876,094 ) FINANCING ACTIVITIES Distributions paid (136,897 ) (136,897 ) Other financing activities 480,422 480,422 Cash provided by financing activities 343,525 — — 343,525 Effect of exchange rate changes (10,431 ) (10,431 ) Net decrease in cash and cash equivalents during the year $ (359,047 ) (522 ) — $ (359,569 ) |
NATURE AND DESCRIPTION OF THE_2
NATURE AND DESCRIPTION OF THE TRUST (Details) | Jan. 03, 2013shares |
Nature and description of the Trust | |
Common shares exchange ratio for stapled units | 1 |
Granite REIT | |
Nature and description of the Trust | |
Number of units included in one stapled unit (in units) | 1 |
Granite GP | |
Nature and description of the Trust | |
Number of common shares included in one stapled unit (in shares) | 1 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES - Fixed Assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Computer hardware and software | Minimum | |
Fixed Assets | |
Useful Lives of Fixed Assets | 3 years |
Computer hardware and software | Maximum | |
Fixed Assets | |
Useful Lives of Fixed Assets | 5 years |
Other furniture and fixtures | Minimum | |
Fixed Assets | |
Useful Lives of Fixed Assets | 5 years |
Other furniture and fixtures | Maximum | |
Fixed Assets | |
Useful Lives of Fixed Assets | 7 years |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investment Properties: | ||
Current and deferred income tax expense | $ 69,092 | $ 42,667 |
Canada | ||
Investment Properties: | ||
Current and deferred income tax expense | $ 0 |
ACQUISITIONS - Income-Producing
ACQUISITIONS - Income-Producing Properties (Details) $ in Thousands | Dec. 22, 2020CAD ($) | Dec. 18, 2020CAD ($) | Dec. 04, 2020CAD ($) | Nov. 20, 2020CAD ($) | Nov. 12, 2020CAD ($) | Sep. 30, 2020CAD ($) | Sep. 28, 2020CAD ($)property | Sep. 01, 2020CAD ($) | Jul. 08, 2020CAD ($)property | Jul. 01, 2020CAD ($) | Jun. 18, 2020CAD ($)property | Jun. 08, 2020CAD ($) | May 01, 2020CAD ($) | Mar. 13, 2020CAD ($) | Dec. 19, 2019CAD ($) | Nov. 19, 2019CAD ($) | Oct. 18, 2019CAD ($) | Oct. 04, 2019CAD ($) | Aug. 01, 2019CAD ($) | Jul. 08, 2019CAD ($) | Jul. 01, 2019CAD ($) | May 23, 2019CAD ($) | Apr. 09, 2019CAD ($) | Mar. 01, 2019CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) |
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Number of properties | property | 4 | 5 | 3 | |||||||||||||||||||||||
Wilmer TX | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 58,087 | |||||||||||||||||||||||||
Transaction costs | 141 | |||||||||||||||||||||||||
Total acquisition cost | 58,228 | |||||||||||||||||||||||||
Lancaster,TX | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | 106,120 | |||||||||||||||||||||||||
Transaction costs | 168 | |||||||||||||||||||||||||
Total acquisition cost | $ 106,288 | |||||||||||||||||||||||||
Mississauga, ON | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 19,450 | $ 174,106 | ||||||||||||||||||||||||
Transaction costs | 444 | 146 | ||||||||||||||||||||||||
Total acquisition cost | $ 19,894 | $ 174,252 | ||||||||||||||||||||||||
Columbus,OH | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 71,607 | |||||||||||||||||||||||||
Transaction costs | 289 | |||||||||||||||||||||||||
Total acquisition cost | $ 71,896 | |||||||||||||||||||||||||
Bom, Netherlands | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 25,704 | |||||||||||||||||||||||||
Transaction costs | 1,640 | |||||||||||||||||||||||||
Total acquisition cost | $ 27,344 | |||||||||||||||||||||||||
Horn Lake MS | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 24,492 | |||||||||||||||||||||||||
Transaction costs | 231 | |||||||||||||||||||||||||
Total acquisition cost | $ 24,723 | |||||||||||||||||||||||||
GreenWood IN | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 39,581 | |||||||||||||||||||||||||
Transaction costs | 40 | |||||||||||||||||||||||||
Total acquisition cost | $ 39,621 | |||||||||||||||||||||||||
Pooler GA | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 62,657 | |||||||||||||||||||||||||
Transaction costs | 614 | |||||||||||||||||||||||||
Total acquisition cost | $ 63,271 | $ 105,373 | $ 63,271 | |||||||||||||||||||||||
Dallas, TX | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 269,764 | |||||||||||||||||||||||||
Transaction costs | 247 | |||||||||||||||||||||||||
Total acquisition cost | $ 270,011 | |||||||||||||||||||||||||
Southaven, MS | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 63,717 | |||||||||||||||||||||||||
Transaction costs | 38 | |||||||||||||||||||||||||
Total acquisition cost | 63,755 | |||||||||||||||||||||||||
Southaven, MS | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | 51,643 | |||||||||||||||||||||||||
Transaction costs | 33 | |||||||||||||||||||||||||
Total acquisition cost | $ 51,676 | |||||||||||||||||||||||||
HoustonTX | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 33,361 | |||||||||||||||||||||||||
Transaction costs | 510 | |||||||||||||||||||||||||
Total acquisition cost | $ 33,871 | |||||||||||||||||||||||||
Total Property | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | 1,030,447 | 980,839 | ||||||||||||||||||||||||
Transaction costs | 15,212 | 4,097 | ||||||||||||||||||||||||
Total acquisition cost | $ 1,045,659 | $ 984,936 | ||||||||||||||||||||||||
Bleiswijk, Netherlands | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 35,632 | |||||||||||||||||||||||||
Transaction costs | 145 | |||||||||||||||||||||||||
Total acquisition cost | $ 35,777 | |||||||||||||||||||||||||
Weert, Netherlands | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 31,910 | |||||||||||||||||||||||||
Transaction costs | 253 | |||||||||||||||||||||||||
Total acquisition cost | $ 32,163 | |||||||||||||||||||||||||
Tilburg, Netherlands | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 71,716 | |||||||||||||||||||||||||
Transaction costs | 710 | |||||||||||||||||||||||||
Total acquisition cost | 72,426 | |||||||||||||||||||||||||
Ede, Netherlands | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | 21,403 | |||||||||||||||||||||||||
Transaction costs | 178 | |||||||||||||||||||||||||
Total acquisition cost | $ 21,581 | |||||||||||||||||||||||||
Brampton, ON | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 22,173 | |||||||||||||||||||||||||
Transaction costs | 593 | |||||||||||||||||||||||||
Total acquisition cost | $ 22,766 | |||||||||||||||||||||||||
Ajax, ON | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 15,350 | |||||||||||||||||||||||||
Transaction costs | 407 | |||||||||||||||||||||||||
Total acquisition cost | $ 15,757 | |||||||||||||||||||||||||
Memphis, TN, and Southaven, MS | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 111,590 | |||||||||||||||||||||||||
Transaction costs | 497 | |||||||||||||||||||||||||
Total acquisition cost | 112,087 | |||||||||||||||||||||||||
Groveport, OH, Hamilton, OH, West Chester, OH, and Indianapolis, IN | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | 177,647 | |||||||||||||||||||||||||
Transaction costs | 801 | |||||||||||||||||||||||||
Total acquisition cost | $ 178,448 | |||||||||||||||||||||||||
Obetz, OH | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 45,092 | |||||||||||||||||||||||||
Number of properties | property | 5 | |||||||||||||||||||||||||
Transaction costs | $ 256 | |||||||||||||||||||||||||
Total acquisition cost | $ 45,348 | |||||||||||||||||||||||||
Fort Worth, TX | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 8,932 | |||||||||||||||||||||||||
Transaction costs | 332 | |||||||||||||||||||||||||
Total acquisition cost | $ 9,264 | |||||||||||||||||||||||||
Palmetto, GA | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 105,184 | |||||||||||||||||||||||||
Transaction costs | 189 | |||||||||||||||||||||||||
Total acquisition cost | $ 105,373 | |||||||||||||||||||||||||
Voorschoten, Netherlands | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 24,577 | |||||||||||||||||||||||||
Transaction costs | 1,708 | |||||||||||||||||||||||||
Total acquisition cost | $ 26,285 | |||||||||||||||||||||||||
Hengelo, Netherlands | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 46,226 | |||||||||||||||||||||||||
Transaction costs | 2,882 | |||||||||||||||||||||||||
Total acquisition cost | $ 49,108 | |||||||||||||||||||||||||
Nijmegen, Netherlands | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 39,067 | |||||||||||||||||||||||||
Transaction costs | 2,531 | |||||||||||||||||||||||||
Total acquisition cost | $ 41,598 | |||||||||||||||||||||||||
Hanover Township, PA | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | $ 174,722 | |||||||||||||||||||||||||
Transaction costs | 2,212 | |||||||||||||||||||||||||
Total acquisition cost | 176,934 | |||||||||||||||||||||||||
Nanticoke, PA | ||||||||||||||||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||||||||||||||||
Investment properties | 79,776 | |||||||||||||||||||||||||
Transaction costs | 1,074 | |||||||||||||||||||||||||
Total acquisition cost | $ 80,850 |
ACQUISITIONS - Income Producing
ACQUISITIONS - Income Producing Properties - Additional Information (Details) $ in Thousands, € in Millions, ft² in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020CAD ($) | Sep. 30, 2020EUR (€) | Dec. 31, 2020CAD ($)ft² | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2020EUR (€) | Oct. 18, 2019CAD ($) | |
Disclosure of detailed information about business combination [line items] | |||||||
Construction costs | $ 12,400 | $ 12,400 | € 8.1 | ||||
Sqaure feet land used for expansion | ft² | 0.1 | ||||||
Income-producing properties | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Investment Properties Transaction Costs Recognised As on Acquisition Date | 15,200 | $ 4,100 | |||||
Right-of-use assets | 20,500 | ||||||
Payment of tenant allowance as part of property purchase | $ 6,800 | € 4.4 | |||||
Pooler GA | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Total acquisition cost | $ 105,373 | $ 105,373 | $ 63,271 | $ 63,271 |
INVESTMENT PROPERTIES - Compone
INVESTMENT PROPERTIES - Components of investment properties (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Investment Properties: | |||
Investment properties | $ 5,855,583 | $ 4,457,899 | |
Income-producing properties | |||
Investment Properties: | |||
Investment properties | 5,786,338 | 4,377,623 | $ 3,415,786 |
Properties under development | |||
Investment Properties: | |||
Investment properties | 31,488 | 51,310 | 17,009 |
Land held for development | |||
Investment Properties: | |||
Investment properties | $ 37,757 | $ 28,966 | $ 3,984 |
INVESTMENT PROPERTIES - Changes
INVESTMENT PROPERTIES - Changes in investment properties (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investment Properties: | ||
Balance, beginning of year | $ 4,457,899 | |
Capital expenditures: Costs to complete acquired property | 8,622 | |
Amortization of straight-line rent | (8,842) | $ (5,074) |
Amortization of tenant allowances | (5,321) | (5,122) |
Fair value gains (losses), net | 273,437 | 245,442 |
Balance, end of year | 5,855,583 | 4,457,899 |
Income-producing properties | ||
Investment Properties: | ||
Balance, beginning of year | 4,377,623 | 3,415,786 |
Capital expenditures: Maintenance or improvements | 3,997 | 3,272 |
Leasing commissions | 3,449 | 1,079 |
Tenant allowances | 1,784 | 515 |
Capital expenditures: Developments or expansions | 12,582 | 3,641 |
Acquisitions | 1,000,618 | 951,065 |
Capital expenditures: Costs to complete acquired property | 8,622 | |
Disposals | (31,276) | |
Transfer to income-producing properties | 97,733 | |
Classified as assets held for sale | (61,120) | |
Amortization of straight-line rent | 8,842 | 5,074 |
Amortization of tenant allowances | (5,321) | (5,122) |
Other changes | (16) | 189 |
Fair value gains (losses), net | 273,914 | 243,351 |
Foreign currency translation, net | 33,787 | (180,107) |
Balance, end of year | 5,786,338 | 4,377,623 |
Properties under development | ||
Investment Properties: | ||
Balance, beginning of year | 51,310 | 17,009 |
Capital expenditures: Developments or expansions | 39,083 | 27,250 |
Acquisitions | 35,777 | 8,932 |
Transfer to income-producing properties | (97,733) | |
Fair value gains (losses), net | (145) | (135) |
Foreign currency translation, net | 3,196 | (1,746) |
Balance, end of year | 31,488 | 51,310 |
Land held for development | ||
Investment Properties: | ||
Balance, beginning of year | 28,966 | 3,984 |
Capital expenditures: Developments or expansions | 458 | |
Acquisitions | 9,264 | 24,939 |
Fair value gains (losses), net | (332) | 557 |
Foreign currency translation, net | (599) | (514) |
Balance, end of year | $ 37,757 | $ 28,966 |
INVESTMENT PROPERTIES - Fair va
INVESTMENT PROPERTIES - Fair value methodology (Details) | 12 Months Ended |
Dec. 31, 2020yr | |
INVESTMENT PROPERTIES | |
General period of discounting the expected future cash flows | 10 years |
Year of application of capitalization rate to the estimated cash flows in that year | 11 |
INVESTMENT PROPERTIES - Net str
INVESTMENT PROPERTIES - Net straight-line rent receivable (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
INVESTMENT PROPERTIES | ||
Net straight-line rent receivable | $ 27.2 | $ 18.9 |
INVESTMENT PROPERTIES - Minimum
INVESTMENT PROPERTIES - Minimum rental commitments payable on non-cancellable operating leases (Details) $ in Thousands | Dec. 31, 2020CAD ($) |
Investment Properties: | |
Minimum rental commitments on non-cancellable tenant operating leases | $ 2,386,967 |
2021 | |
Investment Properties: | |
Minimum rental commitments on non-cancellable tenant operating leases | 329,686 |
2022 | |
Investment Properties: | |
Minimum rental commitments on non-cancellable tenant operating leases | 323,125 |
2023 | |
Investment Properties: | |
Minimum rental commitments on non-cancellable tenant operating leases | 289,622 |
2024 | |
Investment Properties: | |
Minimum rental commitments on non-cancellable tenant operating leases | 211,997 |
2025 | |
Investment Properties: | |
Minimum rental commitments on non-cancellable tenant operating leases | 189,542 |
2026 and thereafter | |
Investment Properties: | |
Minimum rental commitments on non-cancellable tenant operating leases | $ 1,042,995 |
INVESTMENT PROPERTIES - Key val
INVESTMENT PROPERTIES - Key valuation metrics by country (Details) - Income-producing properties | Dec. 31, 2020 | Dec. 31, 2019 |
Maximum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 10.50% | 10.00% |
Maximum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 9.75% | 9.75% |
Minimum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 4.40% | 4.70% |
Minimum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 4.50% | 5.00% |
Weighted average | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 6.38% | 6.60% |
Weighted average | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 5.82% | 6.32% |
Canada | Maximum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 6.25% | 8.75% |
Canada | Maximum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 5.50% | 8.00% |
Canada | Minimum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 5.25% | 5.25% |
Canada | Minimum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 4.75% | 5.00% |
Canada | Weighted average | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 5.71% | 5.90% |
Canada | Weighted average | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 5.22% | 5.55% |
United States | Maximum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 9.25% | 9.50% |
United States | Maximum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 8.50% | 8.75% |
United States | Minimum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 5.00% | 5.00% |
United States | Minimum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 4.75% | 5.25% |
United States | Weighted average | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 6.18% | 6.41% |
United States | Weighted average | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 5.58% | 6.23% |
Germany | Maximum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 9.00% | 8.25% |
Germany | Maximum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 8.25% | 8.75% |
Germany | Minimum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 5.50% | 5.70% |
Germany | Minimum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 4.50% | 5.00% |
Germany | Weighted average | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 6.85% | 6.83% |
Germany | Weighted average | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 5.83% | 6.31% |
Austria | Maximum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 10.50% | 10.00% |
Austria | Maximum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 9.75% | 9.75% |
Austria | Minimum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 8.25% | 7.00% |
Austria | Minimum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 7.00% | 6.75% |
Austria | Weighted average | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 8.58% | 7.96% |
Austria | Weighted average | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 7.47% | 7.34% |
Netherlands | Maximum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 6.25% | 6.00% |
Netherlands | Maximum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 7.40% | 7.55% |
Netherlands | Minimum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 4.40% | 4.70% |
Netherlands | Minimum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 4.80% | 5.60% |
Netherlands | Weighted average | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 4.99% | 5.24% |
Netherlands | Weighted average | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 5.58% | 6.14% |
Other | Maximum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 7.50% | 10.00% |
Other | Maximum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 9.75% | 9.75% |
Other | Minimum | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 7.00% | 7.25% |
Other | Minimum | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 6.00% | 6.25% |
Other | Weighted average | Discount rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 7.32% | 8.25% |
Other | Weighted average | Terminal capitalization rate | ||
Investment Properties: | ||
Key valuation metrics (as a percent) | 6.97% | 8.20% |
INVESTMENT PROPERTIES - Sensiti
INVESTMENT PROPERTIES - Sensitivity (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Discount rate | |
Investment Properties: | |
Fair value at +50 basis points | $ 5,571,937 |
Fair value at +25 basis points | 5,677,809 |
Fair value at base rate | 5,786,338 |
Fair value at -25 basis points | 5,897,286 |
Fair value at -50 basis points | 6,011,034 |
Change in fair value at +50 basis points | (214,401) |
Change in fair value at +25 basis points | (108,529) |
Change in fair value at -25 basis points | 110,948 |
Change in fair value at -50 basis points | 224,696 |
Terminal capitalization rate | |
Investment Properties: | |
Fair value at +50 basis points | 5,503,884 |
Fair value at +25 basis points | 5,638,929 |
Fair value at base rate | 5,786,338 |
Fair value at -25 basis points | 5,947,585 |
Fair value at -50 basis points | 6,125,131 |
Change in fair value at +50 basis points | (282,454) |
Change in fair value at +25 basis points | (147,409) |
Change in fair value at -25 basis points | 161,247 |
Change in fair value at -50 basis points | $ 338,793 |
DISPOSITIONS - Disposals (Detai
DISPOSITIONS - Disposals (Details) $ in Thousands, $ in Millions | Jun. 18, 2020CAD ($)Property | Jun. 28, 2019USD ($) | Dec. 31, 2020CAD ($)Property | Dec. 31, 2019CAD ($)Property |
DISPOSITIONS | ||||
Number of properties disposed | Property | 3 | 13 | ||
Sale price | $ 31,276 | $ 105,765 | ||
Brampton, ON | ||||
DISPOSITIONS | ||||
Sale price | $ 13,380 | |||
Iowa properties | ||||
DISPOSITIONS | ||||
Number of properties disposed | Property | 4 | 4 | ||
Sale price | $ 22,300 | $ 16.9 | ||
Williamsburg, IA | ||||
DISPOSITIONS | ||||
Sale price | $ 22,323 | |||
Richmond Hill, ON | ||||
DISPOSITIONS | ||||
Sale price | 8,050 | |||
Toronto, ON | ||||
DISPOSITIONS | ||||
Sale price | 13,150 | |||
Aurora, ON | ||||
DISPOSITIONS | ||||
Sale price | 10,010 | |||
Alto, MI | ||||
DISPOSITIONS | ||||
Sale price | $ 38,852 | |||
201 Patillo Road | ||||
DISPOSITIONS | ||||
Sale price | 17,000 | |||
2032 First Street Louth | ||||
DISPOSITIONS | ||||
Sale price | 6,500 | |||
11 Santiago Russinyol Street | ||||
DISPOSITIONS | ||||
Sale price | $ 7,776 | |||
Michigan properties | ||||
DISPOSITIONS | ||||
Number of properties disposed | Property | 5 |
DISPOSITIONS - Disposals - Addi
DISPOSITIONS - Disposals - Additional Information (Details) $ in Thousands, $ in Millions | Jun. 18, 2020CAD ($)Property | Jun. 18, 2020USD ($)Property | Jun. 28, 2019USD ($) | Dec. 31, 2020CAD ($)Property | Dec. 31, 2019CAD ($)Property |
DISPOSITIONS | |||||
Broker commissions, legal and advisory costs | $ 900 | $ 3,000 | |||
Change in consumer price index inflation factor | 400 | 400 | |||
Gross proceeds | $ 31,276 | $ 105,765 | |||
Number of properties disposed | Property | 3 | 13 | |||
Mortgage receivable proceeds | $ 16,800 | $ 16,845 | |||
Loss on sale of investment properties | $ 901 | $ 3,045 | |||
Iowa properties | |||||
DISPOSITIONS | |||||
Gross proceeds | $ 22,300 | $ 16.9 | |||
Number of properties disposed | Property | 4 | 4 | 4 | ||
Mortgage receivable proceeds | $ 12.7 |
NON-CURRENT ASSETS (Details)
NON-CURRENT ASSETS (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
NON-CURRENT ASSETS | ||
Deferred financing costs associated with the revolving credit facility | $ 599 | $ 885 |
Long-term receivables | 349 | 388 |
Other assets | $ 948 | $ 1,273 |
NON-CURRENT ASSETS-Additional I
NON-CURRENT ASSETS-Additional Information (Details) $ in Thousands, $ in Millions | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Jun. 08, 2020CAD ($) | Dec. 31, 2019USD ($) | Nov. 19, 2019CAD ($) | Nov. 19, 2019USD ($) |
Disclosure Of Noncurrent Assets Explanatory [Line Items] | |||||||||
Construction funds in escrow | $ 8,402 | $ 16,767 | |||||||
Texas Income Producing Property Three | |||||||||
Disclosure Of Noncurrent Assets Explanatory [Line Items] | |||||||||
Investment properties | $ 8,932 | ||||||||
Construction funds in escrow | 8,400 | 16,800 | $ 6.6 | $ 12.9 | |||||
Transfers to properties under development | $ 8,600 | $ 3,700 | $ 6.3 | $ 2.6 | |||||
Construction Funds In Escrow Account | Texas Income Producing Property Three | |||||||||
Disclosure Of Noncurrent Assets Explanatory [Line Items] | |||||||||
Investment properties | $ 20,500 | $ 15.5 |
CURRENT ASSETS - Additional Inf
CURRENT ASSETS - Additional Information (Details) $ in Millions, $ in Millions | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Jul. 22, 2020CAD ($) | Jul. 22, 2020USD ($) |
Property at 120 moon acres road | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Long-term proceeds received associated with a property disposal | $ 11.7 | $ 9 | $ 12.1 | $ 9 |
UNSECURED DEBT AND CROSS CURR_3
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Jun. 04, 2020 | Dec. 31, 2019 | |
Unsecured debentures and term loans, net | ||||
Amortized Cost | $ 2,178,122 | $ 1,186,994 | [1] | |
Principal issued and outstanding | 2,185,949 | 1,189,816 | ||
Non-current | 1,928,252 | 1,186,994 | ||
Current | 249,870 | |||
Net Unsecured Debentures and Term Loans, Non current | 2,178,122 | 1,186,994 | ||
2021 Debentures | ||||
Unsecured debentures and term loans, net | ||||
Amortized Cost | 249,870 | 249,646 | [1] | |
Principal issued and outstanding | 250,000 | 250,000 | ||
2023 Debentures | ||||
Unsecured debentures and term loans, net | ||||
Amortized Cost | 399,066 | 398,746 | [1] | |
Principal issued and outstanding | 400,000 | 400,000 | ||
2027 Debentures | ||||
Unsecured debentures and term loans, net | ||||
Amortized Cost | 497,179 | |||
Principal issued and outstanding | 500,000 | $ 370,300 | ||
2030 Debentures | ||||
Unsecured debentures and term loans, net | ||||
Amortized Cost | 497,060 | |||
Principal issued and outstanding | 500,000 | |||
2024 Term Loan | ||||
Unsecured debentures and term loans, net | ||||
Amortized Cost | 235,419 | 239,153 | [1] | |
Principal issued and outstanding | 235,949 | 239,816 | ||
2026 Term Loan | ||||
Unsecured debentures and term loans, net | ||||
Amortized Cost | 299,528 | 299,449 | [1] | |
Principal issued and outstanding | $ 300,000 | $ 300,000 | ||
[1] | The amounts outstanding are net of deferred financing costs and, in the case of the term loans, debt modification losses. The deferred financing costs and debt modification losses are amortized using the effective interest method and are recorded in interest expense. |
UNSECURED DEBT AND CROSS CURR_4
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - 2021 Debentures (Details) - CAD ($) $ in Thousands | Jul. 03, 2014 | Dec. 31, 2020 | Jan. 04, 2021 | Dec. 31, 2019 |
Unsecured debentures and term loans, net | ||||
Principal issued and outstanding | $ 2,185,949 | $ 1,189,816 | ||
Redemption period of debentures | 2 months | |||
2021 Debentures | ||||
Unsecured debentures and term loans, net | ||||
Principal issued and outstanding | $ 250,000 | $ 250,000 | ||
2021 Debentures | Granite LP | ||||
Unsecured debentures and term loans, net | ||||
Principal issued and outstanding | $ 250,000 | $ 250,000 | ||
Interest rate | 3.788% | |||
Deferred financing costs | $ 1,600 | |||
Redemption percentage | 100.00% | |||
Redemption spread (in percent) | 46.00% | |||
Redemption period of debentures | 1 month |
UNSECURED DEBT AND CROSS CURR_5
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - 2023 Debentures (Details) - CAD ($) $ in Thousands | Dec. 20, 2016 | Dec. 31, 2020 | Dec. 31, 2019 |
Unsecured debentures and term loans, net | |||
Principal issued and outstanding | $ 2,185,949 | $ 1,189,816 | |
Redemption period of debentures | 2 months | ||
2023 Debentures | |||
Unsecured debentures and term loans, net | |||
Principal issued and outstanding | $ 400,000 | $ 400,000 | |
2023 Debentures | Granite LP | |||
Unsecured debentures and term loans, net | |||
Principal issued and outstanding | $ 400,000 | ||
Interest rate | 3.873% | ||
Deferred financing costs | $ 2,200 | ||
Redemption percentage | 100.00% | ||
Redemption spread (in percent) | 62.50% | ||
Redemption period of debentures | 2 months |
UNSECURED DEBT AND CROSS CURR_6
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - 2027 Debentures (Details) $ in Thousands, $ in Millions | Dec. 20, 2016 | Dec. 31, 2020CAD ($) | Jun. 04, 2020CAD ($) | Jun. 04, 2020USD ($) | Dec. 31, 2019CAD ($) |
Disclosure of detailed information about borrowings [line items] | |||||
Principal issued and outstanding | $ 2,185,949 | $ 1,189,816 | |||
Redemption period of debentures | 2 months | ||||
2027 Debentures | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Principal issued and outstanding | $ 500 | ||||
Interest rate | 3.062% | 3.062% | |||
Redemption percentage | 100.00% | ||||
2027 Debentures | Granite LP | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Redemption spread (in percent) | 0.65% | 0.65% | |||
Deferred financing costs | $ 3,000 |
UNSECURED DEBT AND CROSS CURR_7
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - 2030 Debentures (Details) $ in Thousands, $ in Millions | Dec. 18, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) |
Disclosure of detailed information about borrowings [line items] | ||||
Principal issued and outstanding | $ 2,185,949 | $ 1,189,816 | ||
Redemption period of debentures | 2 months | |||
Deferred finance costs paid | $ 0.2 | |||
2030 Debentures | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal issued and outstanding | $ 500,000 | |||
2030 Debentures | Granite LP | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Principal issued and outstanding | $ 500 | |||
Interest rate | 2.378% | |||
Deferred financing costs | $ 3 | |||
Redemption percentage | 100.00% | |||
Redemption spread (in percent) | 39.50% | |||
Redemption period of debentures | 3 months |
UNSECURED DEBT AND CROSS CURR_8
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - 2024 Term Loan (Details) $ in Thousands, $ in Millions | Dec. 19, 2018USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Oct. 10, 2019USD ($) | Dec. 19, 2018CAD ($) |
Unsecured debentures and term loans, net | |||||
Principal issued and outstanding | $ 2,185,949 | $ 1,189,816 | |||
2024 Term Loan | |||||
Unsecured debentures and term loans, net | |||||
Principal issued and outstanding | $ 235,949 | $ 239,816 | |||
2024 Term Loan | Granite LP | |||||
Unsecured debentures and term loans, net | |||||
Principal issued and outstanding | $ 185 | ||||
Proceeds from term loan | $ 185 | ||||
Deferred financing costs | $ 800 |
UNSECURED DEBT AND CROSS CURR_9
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - 2026 Term Loan (Details) - CAD ($) $ in Thousands | Dec. 12, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | Nov. 27, 2019 |
Unsecured debentures and term loans, net | ||||
Principal issued and outstanding | $ 1,189,816 | $ 2,185,949 | ||
2026 Term Loan | ||||
Unsecured debentures and term loans, net | ||||
Principal issued and outstanding | 300,000 | $ 300,000 | ||
2026 Term Loan | Granite LP | ||||
Unsecured debentures and term loans, net | ||||
Principal issued and outstanding | $ 300,000 | |||
Proceeds from term loan | $ 300,000 | |||
Deferred financing costs | $ 1,500 | |||
Gain (loss) on debt modification | $ (700) |
UNSECURED DEBT AND CROSS CUR_10
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - Cross Currency Interest Rate Swaps (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Cross Currency Interest Rate Swap - fair value | $ 114,264 | $ 30,365 |
Non-current | 97,311 | 30,365 |
Current | 16,953 | |
Cross currency interest rate swaps noncurrent | 114,264 | 30,365 |
2021 Cross Currency Interest Rate Swap | 2021 Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Cross Currency Interest Rate Swap - fair value | 16,953 | 3,630 |
2023 Cross Currency Interest Rate Swap | 2023 Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Cross Currency Interest Rate Swap - fair value | 36,540 | 24,298 |
2030 Cross Currency Interest Rate Swap | 2030 Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Cross Currency Interest Rate Swap - fair value | 10,545 | |
2024 Cross Currency Interest Rate Swap | 2024 Term Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Cross Currency Interest Rate Swap - fair value | 25,370 | 1,202 |
2026 Cross Currency Interest Rate Swap | 2026 Term Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Cross Currency Interest Rate Swap - fair value | 24,856 | $ 1,235 |
2027 Cross Currency Interest Rate Swap | 2027 Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Cross Currency Interest Rate Swap - fair value | $ 28,676 |
UNSECURED DEBT AND CROSS CUR_11
UNSECURED DEBT AND CROSS CURRENCY INTEREST RATE SWAPS - Cross Currency Interest Rate Swaps - Additional information (Details) $ in Thousands, € in Millions, $ in Millions | Dec. 18, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | Jun. 04, 2020CAD ($) | Jun. 04, 2020USD ($) | Nov. 27, 2019CAD ($) | Nov. 27, 2019EUR (€) | Sep. 24, 2019CAD ($) | Sep. 24, 2019EUR (€) | Dec. 20, 2016CAD ($) | Dec. 20, 2016EUR (€) | Jul. 03, 2014CAD ($) | Jul. 03, 2014EUR (€) |
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Principal issued and outstanding | $ 2,185,949 | $ 1,189,816 | |||||||||||
Gain Loss On Hedges | (3,402) | 1,192 | |||||||||||
December 11, 2026 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Exchange of principal proceeds | € | € 205.5 | ||||||||||||
Principal issued and outstanding | $ 300,000 | ||||||||||||
2021 Debentures | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Principal issued and outstanding | 250,000 | 250,000 | |||||||||||
2023 Debentures | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Principal issued and outstanding | 400,000 | 400,000 | |||||||||||
2024 Term Loan | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Principal issued and outstanding | 235,949 | 239,816 | |||||||||||
2026 Term Loan | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Principal issued and outstanding | 300,000 | 300,000 | |||||||||||
2026 Term Loan | December 11, 2026 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Fixed interest rate on EUR | 1.355% | 1.355% | |||||||||||
Fixed interest rate on US | 1.355% | 1.355% | |||||||||||
2027 Debentures | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Principal issued and outstanding | 500,000 | $ 370,300 | |||||||||||
2027 Debentures | Interest rate risk | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Fixed interest rate on EUR | 2.964% | 2.964% | |||||||||||
Fixed interest rate on US | 2.964% | 2.964% | |||||||||||
June 4 2027 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Exchange of principal proceeds | $ 370,300 | ||||||||||||
Principal issued and outstanding | $ 500,000 | ||||||||||||
2030 Debentures | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Principal issued and outstanding | $ 500,000 | ||||||||||||
2021 Cross Currency Interest Rate Swap | 2021 Debentures | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Interest rate on CAD | 3.788% | 3.788% | |||||||||||
Fixed interest rate on EUR | 2.68% | 2.68% | |||||||||||
Fixed interest rate on US | 2.68% | 2.68% | |||||||||||
2021 Cross Currency Interest Rate Swap | 2021 Debentures | July 5 2021 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Exchange of principal proceeds | € | € 171.9 | ||||||||||||
Principal issued and outstanding | $ 250,000 | ||||||||||||
2023 Cross Currency Interest Rate Swap | 2023 Debentures | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Interest rate on CAD | 3.873% | 3.873% | |||||||||||
Fixed interest rate on EUR | 2.43% | 2.43% | |||||||||||
Fixed interest rate on US | 2.43% | 2.43% | |||||||||||
2023 Cross Currency Interest Rate Swap | 2023 Debentures | November 30, 2023 | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Exchange of principal proceeds | € | € 281.1 | ||||||||||||
Principal issued and outstanding | $ 400,000 | ||||||||||||
2024 Cross Currency Interest Rate Swap | 2024 Term Loan | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Fixed interest rate on EUR | 0.522% | 0.522% | |||||||||||
Exchange of principal proceeds | € | € 168.2 | ||||||||||||
Principal issued and outstanding | $ 185,000 | ||||||||||||
Gain Loss On Hedges | $ 5,900 | ||||||||||||
Fixed interest rate on US | 0.522% | 0.522% | |||||||||||
2027 Cross Currency Interest Rate Swap | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Interest rate on CAD | 3.062% | 3.062% | |||||||||||
Exchange of principal proceeds | $ 500,000 | ||||||||||||
Principal issued and outstanding | $ 500 | ||||||||||||
2030 Cross Currency Interest Rate Swap | 2030 Debentures | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Interest rate on CAD | 2.378% | ||||||||||||
Fixed interest rate on EUR | 1.045% | ||||||||||||
Exchange of principal proceeds | $ 319.4 | ||||||||||||
Principal issued and outstanding | 500 | ||||||||||||
Gain Loss On Hedges | $ 0.1 | ||||||||||||
Fixed interest rate on US | 1.045% |
LEASE OBLIGATIONS - Summary of
LEASE OBLIGATIONS - Summary of Future minimum lease payments relating to the right-of-use assets (Detail) $ in Thousands | Dec. 31, 2020CAD ($) |
Schedule of Future Minimum Lease Payments Relating To The Right Of Use Assets [Line Items] | |
Right Of Use Assets | $ 33,773 |
2021 | |
Schedule of Future Minimum Lease Payments Relating To The Right Of Use Assets [Line Items] | |
Right Of Use Assets | 829 |
2022 | |
Schedule of Future Minimum Lease Payments Relating To The Right Of Use Assets [Line Items] | |
Right Of Use Assets | 554 |
2023 | |
Schedule of Future Minimum Lease Payments Relating To The Right Of Use Assets [Line Items] | |
Right Of Use Assets | 269 |
2024 | |
Schedule of Future Minimum Lease Payments Relating To The Right Of Use Assets [Line Items] | |
Right Of Use Assets | 258 |
2025 | |
Schedule of Future Minimum Lease Payments Relating To The Right Of Use Assets [Line Items] | |
Right Of Use Assets | 269 |
2026 and thereafter | |
Schedule of Future Minimum Lease Payments Relating To The Right Of Use Assets [Line Items] | |
Right Of Use Assets | $ 31,594 |
LEASE OBLIGATIONS - Additional
LEASE OBLIGATIONS - Additional Information (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Future Minimum Lease Payments Relating To The Right Of Use Assets [Abstract] | ||
Interest expense on lease liabilities | $ 1,595 | $ 1,300 |
Additions to right-of-use assets | $ 600 |
CURRENT LIABILITIES - Bank Inde
CURRENT LIABILITIES - Bank Indebtedness (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 01, 2018 |
CURRENT LIABILITIES | |||
Outstanding borrowings | $ 2,263,710 | $ 1,217,359 | |
Credit Facility | |||
CURRENT LIABILITIES | |||
Borrowing capacity | $ 500,000 | ||
Percentage of minimum aggregate amount | 66.66% | ||
Additional borrowing capacity | $ 100,000 | ||
Drawn from credit facility | 0 | 0 | |
Letters of credit | |||
CURRENT LIABILITIES | |||
Outstanding borrowings | $ 1,000 | $ 1,000 |
CURRENT LIABILITIES - Accounts
CURRENT LIABILITIES - Accounts Payable and Accrued Liabilities (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Payable and Accrued Liabilities | ||
Accounts payable | $ 9,876 | $ 6,840 |
Accrual Tenant Security Deposits | 6,793 | 3,978 |
Accrual Liabilities Of Employee UnitBased Compensation | 7,118 | 5,586 |
Accrual Of TrusteeDirector UnitBased Compensation | 5,219 | 3,301 |
Accrued salaries, incentives and benefits | 5,783 | 5,416 |
Accrued interest payable | 7,956 | 6,507 |
Accrued construction payable | 6,285 | 5,933 |
Accrued professional fees | 2,620 | 3,822 |
Accrued property operating costs | 8,878 | 6,376 |
Accrual associated with a property disposal | 0 | 1,944 |
Other accrued liabilities | 669 | 480 |
Total accounts payable and accrued liabilities | $ 61,197 | $ 50,183 |
CURRENT LIABILITIES - Disposal
CURRENT LIABILITIES - Disposal of a property (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Current liabilities | ||
Accrual associated with a property disposal | $ 0 | $ 1,944 |
Property At120 Moon Acres Road [Member] | ||
Current liabilities | ||
Accrual associated with a property disposal | 2,000 | |
cash payment for accrual associated with property disposal | $ 1,600 |
DISTRIBUTIONS TO STAPLED UNIT_2
DISTRIBUTIONS TO STAPLED UNITHOLDERS (Details) - CAD ($) $ / shares in Units, $ in Thousands | Feb. 28, 2021 | Jan. 31, 2021 | Jan. 15, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Distributions to stapled unitholders | ||||||
Distributions payable | $ 15,422 | $ 13,081 | ||||
Distributions declared per stapled unit | $ 30 | |||||
Special distribution payable in cash and stapled units per stapled units | $ 1.20 | |||||
Normal Course Issuer Bid | ||||||
Distributions to stapled unitholders | ||||||
Increase Decrease In Contributed Surplus | $ 41,100 | |||||
Distributions | ||||||
Distributions to stapled unitholders | ||||||
Distributions payable | $ 15,400 | $ 15,400 | $ 165,400 | $ 139,300 | ||
Distributions declared per stapled unit | $ 25 | $ 25 | $ 2.91 | $ 2.81 | ||
Special distribution | ||||||
Distributions to stapled unitholders | ||||||
Distributions payable | $ 13,700 | |||||
Distributions declared per stapled unit | $ 90,000,000 | |||||
Stapled Unitholders' Equity | Special distribution | ||||||
Distributions to stapled unitholders | ||||||
Distributions payable | $ 13,700 |
STAPLED UNITHOLDERS' EQUITY - D
STAPLED UNITHOLDERS' EQUITY - Director/Trustee Deferred Share Unit Plan (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Director/Trustee Deferred Share Unit Plan | |
Executive Deferred Stapled Unit Plan | |
Maximum percent of deferral of each non-employee director's total annual remuneration | 100.00% |
STAPLED UNITHOLDERS' EQUITY -_2
STAPLED UNITHOLDERS' EQUITY - Director/Trustee Deferred Share Unit Plan - Reconciliation of the changes (Details) - Director/Trustee Deferred Share Unit Plan EquityInstruments in Thousands | 12 Months Ended | |
Dec. 31, 2020EquityInstruments$ / shares | Dec. 31, 2019EquityInstruments$ / shares | |
Executive Deferred Stapled Unit Plan | ||
Outstanding, Number, beginning balance | EquityInstruments | 50 | 44 |
Granted, Number | EquityInstruments | 17 | 17 |
Settled, Number | EquityInstruments | (11) | |
Outstanding, Number, ending balance | EquityInstruments | 67 | 50 |
Outstanding, Weighted Average Grant Date Fair Value, beginning balance | $ / shares | $ 48.01 | $ 46.01 |
New Grants, Weighted Average Grant Date Fair Value | $ / shares | 67.04 | 55.59 |
Settled, Weighted Average Grant Date Fair Value | $ / shares | 51.57 | |
Outstanding, Weighted Average Grant Date Fair Value, ending balance | $ / shares | $ 52.93 | $ 48.01 |
STAPLED UNITHOLDERS' EQUITY - E
STAPLED UNITHOLDERS' EQUITY - Executive Deferred Stapled Unit Plan (Details) - Executive Deferred Stapled Unit Plan shares in Millions | 12 Months Ended |
Dec. 31, 2020shares | |
Disclosure of terms and conditions of share-based payment arrangement | |
Percentage of vesting of the number of stapled units | 100.00% |
Maximum | |
Disclosure of terms and conditions of share-based payment arrangement | |
Number of stapled units which may be issued | 1 |
Number of preceding trading days in Toronto Stock Exchange or New York Stock Exchange | 5 days |
Settlement period | 60 days |
STAPLED UNITHOLDERS' EQUITY -_3
STAPLED UNITHOLDERS' EQUITY - Executive Deferred Stapled Unit Plan - Reconciliation of the changes (Details) | 12 Months Ended | |
Dec. 31, 2020EquityInstruments$ / shares | Dec. 31, 2019EquityInstruments$ / shares | |
Executive Deferred Stapled Unit Plan | ||
Executive Deferred Stapled Unit Plan | ||
Outstanding, Number, beginning balance | 145,000 | 117,000 |
New grants — RSUs and PSUs | 54,000 | 85,000 |
Forfeited, Number | (7,000) | (2,000) |
Outstanding, Number, ending balance | 128,000 | 145,000 |
Outstanding, Weighted Average Grant Date Fair Value, beginning balance | $ / shares | $ 55.93 | $ 50.34 |
New grants — RSUs and PSUs , Weighted Average Grant Date Fair Value | $ / shares | 67.09 | 61.90 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 73.64 | 64.16 |
Outstanding, Weighted Average Grant Date Fair Value, ending balance | $ / shares | $ 59.83 | $ 55.93 |
Executive Deferred Stapled Unit Plan | Cash settlement | ||
Executive Deferred Stapled Unit Plan | ||
Settled, Number | (33,000) | (35,000) |
Settled, Weighted Average Grant Date Fair Value | $ / shares | $ 55.70 | $ 52.91 |
Executive Deferred Stapled Unit Plan | Settled in shares stapled units | ||
Executive Deferred Stapled Unit Plan | ||
Settled, Number | (31,000) | (20,000) |
Settled, Weighted Average Grant Date Fair Value | $ / shares | $ 55.70 | $ 52.91 |
Performance based units | ||
Executive Deferred Stapled Unit Plan | ||
Outstanding, Number, beginning balance | 29,100 | |
New grants — RSUs and PSUs | 26,500 | 24,600 |
Outstanding, Number, ending balance | 54,600 | 29,100 |
Restricted based units | ||
Executive Deferred Stapled Unit Plan | ||
Outstanding, Number, beginning balance | 116,300 | |
New grants — RSUs and PSUs | 22,100 | 54,100 |
Outstanding, Number, ending balance | 73,700 | 116,300 |
STAPLED UNITHOLDERS' EQUITY -_4
STAPLED UNITHOLDERS' EQUITY - Disclosure Of Assumptions Used For Fair Value Calculation Of Performance Stock Units (Details) - Stapled Units Performance Stock 2019 | 12 Months Ended |
Dec. 31, 2020sharesyr | |
Disclosure Of Assumptions Used For Fair Value Calculation Of Performance Stock Units [Line Items] | |
Grant Date | January 1, 2020, January 1, August 12, September 24, 2019 and November 16, 2018 |
PSUs granted | shares | 54,863 |
Term to expiry | yr | 2 |
Average volatility rate | 42.50% |
Weighted average risk free interest rate | 0.20% |
STAPLED UNITHOLDERS' EQUITY -_5
STAPLED UNITHOLDERS' EQUITY - Disclosure Of Assumptions Used For Fair Value Calculation Of Performance Stock Units (Detail) - Fair Value Of The PSU Granded (Details) - Stapled Units Performance Stock 2019 $ in Millions | Dec. 31, 2020CAD ($) |
Performance based units | |
Disclosure Of Assumptions Used For Fair Value Calculation Of Performance Stock Units [Line Items] | |
Weighted average fair value at measurement date, other equity instruments granted | $ 2.5 |
Restricted based units | |
Disclosure Of Assumptions Used For Fair Value Calculation Of Performance Stock Units [Line Items] | |
Weighted average fair value at measurement date, other equity instruments granted | $ 4.6 |
STAPLED UNITHOLDERS' EQUITY - T
STAPLED UNITHOLDERS' EQUITY - Trust's unit-based compensation expense (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unit-based Compensation | ||
Unit-based compensation expense | $ 8,116 | $ 7,484 |
Total fair value remeasurement expense | 2,089 | 1,889 |
Director/Trustee Deferred Share Unit Plan | ||
Unit-based Compensation | ||
Unit-based compensation expense | 1,918 | 1,645 |
Total fair value remeasurement expense | 728 | 568 |
Executive Deferred Stapled Unit Plan | ||
Unit-based Compensation | ||
Unit-based compensation expense | 6,198 | 5,839 |
Restricted Stapled Units Plan For Exceutive And Employees | ||
Unit-based Compensation | ||
Total fair value remeasurement expense | $ 1,361 | $ 1,321 |
STAPLED UNITHOLDERS' EQUITY - N
STAPLED UNITHOLDERS' EQUITY - Normal Course Issuer Bid (Details) - CAD ($) $ / shares in Units, $ in Millions | May 19, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Normal Course Issuer Bid | |||
Maximum number of stapled units issued and outstanding that may be repurchased pursuant to the normal course issuer bid | 5,344,576 | ||
Maximum daily purchases that may be made by Granite | 58,842 | ||
Units repurchased for cancellation | $ 25 | $ 0.1 | |
Repurchase price per unit | $ 50.95 | ||
Normal Course Issuer Bid | |||
Normal Course Issuer Bid | |||
Units repurchased (in units) | 490,952 | ||
Difference between the repurchase price and the average cost | $ 1.3 | $ 0.1 |
STAPLED UNITHOLDERS' EQUITY - S
STAPLED UNITHOLDERS' EQUITY - Stapled Unit Offerings (Details) - Issued capital - CAD ($) $ / shares in Units, $ in Millions | Nov. 24, 2020 | Jun. 02, 2020 | Oct. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Stappled units offering units | 3,841,000 | 4,255,000 | 4,600,000 | 3,749,000 | 8,096,000 | 8,349,000 |
Price per unit issued | $ 75 | $ 68 | $ 64 | $ 61.50 | ||
Proceeds from units issue | $ 288.1 | $ 289.3 | $ 294.4 | $ 230.6 | ||
Issuance costs of units | 12.2 | 12.4 | 12.8 | 10.2 | $ 0.1 | |
Net proceeds after deducting offering cost | $ 275.9 | $ 276.9 | $ 281.6 | $ 220.4 | ||
Underwriter over allotment option | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Stappled units offering units | 501,000 | 555,000 | 600,000 | 489,000 |
STAPLED UNITHOLDERS' EQUITY - A
STAPLED UNITHOLDERS' EQUITY - Accumulated Other Comprehensive Income (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
STAPLED UNITHOLDERS' EQUITY | ||
Foreign currency translation gains on investments in subsidiaries, net of related hedging activities and non-controlling interests | $ 188,169 | $ 159,499 |
Fair value losses on derivatives designated as net investment hedges | (92,269) | (43,309) |
Accumulated Other Comprehensive Income | $ 95,900 | $ 116,190 |
RENTAL REVENUE, RECOVERIES, C_3
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES - Tenant recoveries revenue (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Rental revenue [Abstract] | ||
Base rent | $ 291,714 | $ 240,345 |
Straight-line rent amortization | 8,842 | 5,074 |
Tenant incentive amortization | (5,321) | (5,122) |
Property tax recoveries | 31,439 | 22,280 |
Property insurance recoveries | 2,640 | 2,161 |
Operating cost recoveries | 10,885 | 8,085 |
Total rental revenue | $ 340,199 | $ 272,823 |
RENTAL REVENUE, RECOVERIES, C_4
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES - Property operating costs (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property operating costs | ||
Property operating costs | $ 47,164 | $ 35,364 |
Non-recoverable from tenants: | ||
Property operating costs | ||
Property taxes and utilities | 973 | 1,096 |
Legal | 160 | 189 |
Consulting | 41 | 90 |
Environmental and appraisals | 334 | 511 |
Repairs and maintenance | 698 | 804 |
Other | 616 | 558 |
Property operating costs | 2,822 | 3,248 |
Recoverable from tenants: | ||
Property operating costs | ||
Property taxes and utilities | 33,598 | 23,784 |
Property insurance | 2,946 | 2,391 |
Repairs and maintenance | 3,916 | 2,733 |
Property management fees | 2,793 | 2,001 |
Other | 1,089 | 1,207 |
Property operating costs | $ 44,342 | $ 32,116 |
RENTAL REVENUE, RECOVERIES, C_5
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES - General and administrative expenses (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES | ||
Salaries, incentives and benefits | $ 15,109 | $ 13,753 |
Audit, legal and consulting | 3,423 | 4,268 |
Trustee/director fees including distributions, revaluations and expenses | 2,108 | 1,976 |
RSU and PSU compensation expense including distributions and revaluations | 6,198 | 5,839 |
Other public entity costs | 1,986 | 2,096 |
Office rents including property taxes and common area maintenance costs | 424 | 379 |
Capital tax | 568 | 454 |
Information technology costs | 1,045 | 980 |
Other | 1,342 | 1,674 |
General and administrative expenses | $ 32,203 | $ 31,419 |
RENTAL REVENUE, RECOVERIES, C_6
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES - Interest expense and other financing costs (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES | ||
Interest and amortized issuance costs and modification losses relating to debentures and term loans | $ 32,632 | $ 26,632 |
Amortization of deferred financing costs and other interest expense and accretion charges | 2,229 | 2,169 |
Interest expense related to lease obligations | 1,595 | 1,300 |
Interest expense and other finance costs | 36,456 | 30,101 |
Less: Capitalized interest | (617) | (160) |
Interest expense and other finance costs | $ 35,839 | $ 29,941 |
RENTAL REVENUE, RECOVERIES, C_7
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES - Fair value (gains) losses (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair value losses (gains) on financial instruments | ||
Fair value losses on financial instruments | $ (3,402) | $ 1,192 |
Cross currency interest rate swaps | (3,402) | 1,192 |
Foreign exchange forward contracts | ||
Fair value losses (gains) on financial instruments | ||
Fair value losses on financial instruments | 93 | 8 |
Cross currency interest rate swaps | 93 | 8 |
Foreign exchange collar contracts | ||
Fair value losses (gains) on financial instruments | ||
Fair value losses on financial instruments | (2,627) | |
Cross currency interest rate swaps | (2,627) | |
Losses on term loan debt modifications | ||
Fair value losses (gains) on financial instruments | ||
Fair value losses on financial instruments | 752 | |
Cross currency interest rate swaps | 752 | |
Cross currency interest rate swaps | ||
Fair value losses (gains) on financial instruments | ||
Fair value losses on financial instruments | 5,936 | (1,952) |
Cross currency interest rate swaps | $ 5,936 | $ (1,952) |
RENTAL REVENUE, RECOVERIES, C_8
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES - Settlement agreement (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Settlement agreement | |
Real estate land transfer tax incurred | $ 2.7 |
RENTAL REVENUE, RECOVERIES, C_9
RENTAL REVENUE, RECOVERIES, COSTS AND EXPENSES - Additional Information (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | |
Statement [Line Items] | ||||
General and administrative expenses | $ 32,203 | $ 31,419 | ||
Fair value gain on financial instruments | 273,437 | 245,442 | ||
Fair value losses (gains) on financial instruments, net | 3,402 | (1,192) | ||
COVID-19 [member] | ||||
Statement [Line Items] | ||||
General and administrative expenses | $ 200 | $ 0 | ||
Cross currency interest swaps 2021 and 2024 | ||||
Statement [Line Items] | ||||
Fair value gain on financial instruments | $ 2 | |||
Fair value losses (gains) on financial instruments, net | $ 5.9 |
INCOME TAXES - Major components
INCOME TAXES - Major components (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | |
Current income tax: | ||||
Current taxes | $ 8,802 | $ 6,069 | ||
Current taxes referring to previous periods | (2,472) | (1,526) | ||
Withholding taxes and other | 261 | 528 | ||
Total current income tax | 6,591 | 5,071 | ||
Deferred income tax: | ||||
Origination and reversal of temporary differences | 176,351 | 41,140 | ||
Impact of changes in tax rates | 2,941 | (1,678) | ||
- Current tax expense | (119,283) | (12) | ||
- Deferred tax expense | (285) | |||
Withholding taxes on profits of subsidiaries | 6 | (388) | ||
Other | 2,486 | (1,181) | ||
Total deferred income tax | 62,501 | 37,596 | ||
Total income tax expense | $ 69,092 | $ 42,667 | ||
Spain | ||||
Current income tax: | ||||
Total current income tax | $ 0.7 | $ 0 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Canadian statutory rate and the effective income tax rate (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of accounting profit multiplied by applicable tax rates | ||
Income before income taxes | $ 499,019 | $ 424,942 |
Tax rate (in percent) | 26.50% | 26.50% |
Expected income taxes at the Canadian statutory tax rate of 26.5% (2019 - 26.5%) | $ 132,240 | $ 112,610 |
Income distributed and taxable to unitholders | (57,791) | (59,966) |
Net foreign rate differentials | (9,954) | (7,526) |
Net change in provisions for uncertain tax positions | (784) | 72 |
Net permanent differences | (115) | 519 |
Net effect of change in tax rates | 2,941 | (1,678) |
Withholding taxes and other | 2,555 | (1,364) |
Total income tax expense | $ 69,092 | $ 42,667 |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and liabilities (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Temporary differences | ||
Deferred tax assets | $ 4,730 | $ 4,057 |
Deferred tax liabilities | 392,841 | 320,972 |
Investment properties | ||
Temporary differences | ||
Deferred tax assets | 490 | 83 |
Deferred tax liabilities | 396,326 | 323,385 |
Eligible capital expenditures | ||
Temporary differences | ||
Deferred tax assets | 2,111 | 2,270 |
Withholding tax on undistributed subsidiary profits | ||
Temporary differences | ||
Deferred tax liabilities | 149 | 134 |
Other | ||
Temporary differences | ||
Deferred tax assets | 2,129 | 1,704 |
Deferred tax liabilities | $ (3,634) | $ (2,547) |
INCOME TAXES - Changes in net d
INCOME TAXES - Changes in net deferred tax liabilities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in the net deferred tax liabilities: | ||
Balance, beginning of year | $ 316,915 | $ 298,664 |
Deferred tax expense recognized in net income | 62,501 | 37,596 |
Foreign currency translation of deferred tax balances | 8,695 | (19,345) |
Net deferred tax liabilities, end of year | $ 388,111 | $ 316,915 |
INCOME TAXES - Income tax paid
INCOME TAXES - Income tax paid - (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax paid | ||
Income tax paid | $ 5.7 | $ 3 |
Withholding taxes | ||
Income tax paid | ||
Income tax paid | $ 0.1 | $ 0.4 |
INCOME TAXES - Unrecognized tax
INCOME TAXES - Unrecognized tax benefits (Details) - CAD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Unrecognized tax benefits | ||
Unrecognized tax benefits that could impact effective tax rate | $ 11.6 | $ 11.4 |
Unrecognized tax benefits related to accrued interest and penalties | $ 0.3 | $ 0.3 |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of unrecognized tax benefits (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | ||
Unrecognized tax benefits balance, beginning of year | $ 11,422 | $ 13,197 |
Decreases for tax positions of prior years | (2,370) | (3,056) |
Increases for tax positions of current year | 1,766 | 2,090 |
Foreign currency impact | 750 | (809) |
Unrecognized tax benefits balance, end of year | 11,568 | 11,422 |
Maximum possible decrease in unrecognized tax benefits | 2,400 | 2,400 |
Interest and penalties | 100 | $ 100 |
Carryforwards of Canadian capital loss | 116,700 | |
Other losses and deductible temporary differences in various tax jurisdictions | $ 165,200 |
SEGMENTED DISCLOSURE INFORMAT_3
SEGMENTED DISCLOSURE INFORMATION - Revenues (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Geographic segmentation: | ||
Revenue | $ 340,199 | $ 273,678 |
Trust's total revenue (in percent) | 100.00% | 100.00% |
Canada | ||
Geographic segmentation: | ||
Revenue | $ 63,233 | $ 58,952 |
Trust's total revenue (in percent) | 19.00% | 22.00% |
United States | ||
Geographic segmentation: | ||
Revenue | $ 161,165 | $ 108,065 |
Trust's total revenue (in percent) | 47.00% | 39.00% |
Austria | ||
Geographic segmentation: | ||
Revenue | $ 65,716 | $ 63,724 |
Trust's total revenue (in percent) | 19.00% | 23.00% |
Germany | ||
Geographic segmentation: | ||
Revenue | $ 26,924 | $ 26,455 |
Trust's total revenue (in percent) | 8.00% | 10.00% |
Netherlands | ||
Geographic segmentation: | ||
Revenue | $ 16,694 | $ 10,250 |
Trust's total revenue (in percent) | 5.00% | 4.00% |
Other Europe | ||
Geographic segmentation: | ||
Revenue | $ 6,467 | $ 6,232 |
Trust's total revenue (in percent) | 2.00% | 2.00% |
SEGMENTED DISCLOSURE INFORMAT_4
SEGMENTED DISCLOSURE INFORMATION - Magna (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of major tenant | ||
Trust's total revenue (in percent) | 100.00% | 100.00% |
Magna | Credit risk | ||
Disclosure of major tenant | ||
Trust's total revenue (in percent) | 37.00% | 47.00% |
SEGMENTED DISCLOSURE INFORMAT_5
SEGMENTED DISCLOSURE INFORMATION - Investment Properties (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Geographic segmentation: | ||
Investment properties | $ 5,855,583 | $ 4,457,899 |
Percentage of investment property | 100.00% | 100.00% |
Canada | ||
Geographic segmentation: | ||
Investment properties | $ 1,106,850 | $ 979,290 |
Percentage of investment property | 19.00% | 22.00% |
United States | ||
Geographic segmentation: | ||
Investment properties | $ 2,882,549 | $ 2,014,489 |
Percentage of investment property | 49.00% | 45.00% |
Austria | ||
Geographic segmentation: | ||
Investment properties | $ 821,260 | $ 806,355 |
Percentage of investment property | 14.00% | 18.00% |
Germany | ||
Geographic segmentation: | ||
Investment properties | $ 428,504 | $ 389,077 |
Percentage of investment property | 7.00% | 9.00% |
Netherlands | ||
Geographic segmentation: | ||
Investment properties | $ 550,946 | $ 196,701 |
Percentage of investment property | 10.00% | 4.00% |
Other Europe | ||
Geographic segmentation: | ||
Investment properties | $ 65,474 | $ 71,987 |
Percentage of investment property | 1.00% | 2.00% |
DETAILS OF CASH FLOWS - Items n
DETAILS OF CASH FLOWS - Items not involving current cash flows (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
DETAILS OF CASH FLOWS | ||
Straight-line rent amortization | $ (8,842) | $ (5,074) |
Tenant incentive amortization | 5,321 | 5,122 |
Unit-based compensation expense | 8,116 | 7,484 |
Fair value gains on investment properties, net | (273,437) | (245,442) |
Depreciation and amortization | 1,151 | 906 |
Fair value losses (gains) on financial instruments, net | 3,402 | (1,192) |
Loss on sale of investment properties | 901 | 3,045 |
Amortization of issuance costs and modification losses relating to debentures and term loans | 1,024 | 855 |
Amortization of deferred financing costs | 312 | 312 |
Deferred income taxes | 62,501 | 37,596 |
Other | (30) | (195) |
Items not involving current cash flows | $ (199,581) | $ (196,583) |
DETAILS OF CASH FLOWS - Changes
DETAILS OF CASH FLOWS - Changes in working capital balances (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
DETAILS OF CASH FLOWS | ||
Accounts receivable | $ 10,141 | $ (3,670) |
Prepaid expenses and other | 61 | (906) |
Accounts payable and accrued liabilities | 844 | (639) |
Deferred revenue | 5,595 | 1,800 |
Restricted cash | 470 | |
Changes in working capital balances | $ 16,641 | $ (2,945) |
DETAILS OF CASH FLOWS - Non-cas
DETAILS OF CASH FLOWS - Non-cash investing and financing activities (Details) shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2020CAD ($)shares | Dec. 31, 2019CAD ($)propertyshares | |
Additions to right of use assets | $ 0.6 | |
Canada | Investment property completed | ||
Additions to right of use assets | $ 20.5 | |
Lease liabilities additional right of use assets | $ 20.5 | |
Number of properties acquired during the year on lease | property | 2 | |
Stapled Units | ||
Distributions declared | $ 41.1 | |
Units issued under the stapled unit plan (in units) (note 12 (b)) | shares | 31 | 20 |
Value of stapled units issued | $ 2 | $ 1.2 |
DETAILS OF CASH FLOWS - Cash an
DETAILS OF CASH FLOWS - Cash and cash equivalents (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
DETAILS OF CASH FLOWS | |||
Cash | $ 780,979 | $ 248,499 | |
Short-term deposits | 50,301 | 50,178 | |
Total cash and cash equivalents | $ 831,280 | $ 298,677 | $ 658,246 |
FAIR VALUE AND RISK MANAGEMEN_2
FAIR VALUE AND RISK MANAGEMENT - Fair Value of Financial Instruments (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | $ 878,080 | $ 335,414 |
Financial liabilities | 2,369,005 | 1,280,623 |
Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 878,080 | 335,414 |
Financial liabilities | 2,463,015 | 1,301,321 |
Unsecured debentures, net | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial liabilities | 1,643,175 | 648,392 |
Unsecured debentures, net | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial liabilities | 1,737,185 | 669,090 |
Unsecured term loans, net | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial liabilities | 534,947 | 538,602 |
Unsecured term loans, net | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial liabilities | 534,947 | 538,602 |
Cross currency interest rate swaps | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial liabilities | 114,264 | 30,365 |
Cross currency interest rate swaps | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial liabilities | 114,264 | 30,365 |
Accounts payable and accrued liabilities | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial liabilities | 61,197 | 50,156 |
Accounts payable and accrued liabilities | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial liabilities | 61,197 | 50,156 |
Foreign exchange forward contracts included in accounts payable and accrued liabilities | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial liabilities | 27 | |
Foreign exchange forward contracts included in accounts payable and accrued liabilities | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial liabilities | 27 | |
Distributions payable | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial liabilities | 15,422 | 13,081 |
Distributions payable | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial liabilities | 15,422 | 13,081 |
Other assets | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 349 | 388 |
Other assets | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 349 | 388 |
Cross currency interest rate swaps | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 28,676 | |
Cross currency interest rate swaps | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 28,676 | |
Other receivable | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 11,650 | |
Other receivable | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 11,650 | |
Accounts receivable | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 6,746 | 7,812 |
Accounts receivable | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 6,746 | 7,812 |
Prepaid expenses and other | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 2,627 | 120 |
Prepaid expenses and other | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 2,627 | 120 |
Cash and cash equivalents | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 831,280 | 298,677 |
Cash and cash equivalents | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 831,280 | 298,677 |
Construction funds in escrow | Carrying value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | 8,402 | 16,767 |
Construction funds in escrow | Fair value | ||
Disclosure of fair value measurements of assets and liabilities | ||
Financial assets | $ 8,402 | $ 16,767 |
FAIR VALUE AND RISK MANAGEMEN_3
FAIR VALUE AND RISK MANAGEMENT - Foreign Exchange Forward Contracts (Details) $ in Thousands, € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($)contract | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€)contract | |
Foreign exchange forward contracts | |||||
Fair value losses (gains) on financial instruments, net | $ 3,402 | $ (1,192) | |||
Notional amount | 2,185,949 | 1,189,816 | |||
Fair value gains (losses), net | 273,437 | $ 245,442 | |||
Foreign exchange forward contracts | |||||
Foreign exchange forward contracts | |||||
Number of contracts outstanding | contract | 7 | 7 | |||
Fair value losses (gains) on financial instruments, net | (93) | $ (8) | |||
Foreign Exchange Collar contracts [Member] | |||||
Foreign exchange forward contracts | |||||
Fair value gains (losses), net | $ 2,600 | $ 0 | |||
Foreign Exchange Collar contracts [Member] | Sell US Dollars And Receive Canadian Dollars [Member] | |||||
Foreign exchange forward contracts | |||||
Notional amount | $ 60 | ||||
Foreign Exchange Collar contracts [Member] | sell Eurosand Receive Canadian Dollars [Member] | |||||
Foreign exchange forward contracts | |||||
Notional amount | € | € 24 | € 0 |
FAIR VALUE AND RISK MANAGEMEN_4
FAIR VALUE AND RISK MANAGEMENT - Fair Value Hierarchy (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | $ (1,737,185) | |
Net assets (liabilities) measured or disclosed at fair value | $ (669,090) | |
Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | (617,908) | |
Net assets (liabilities) measured or disclosed at fair value | (568,874) | |
Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 5,855,583 | |
Net assets (liabilities) measured or disclosed at fair value | 4,469,549 | |
Unsecured debentures, net | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 1,737,185 | 669,090 |
Unsecured debentures, net | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 0 | |
Unsecured debentures, net | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 0 | |
Unsecured term loans, net | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 0 | |
Unsecured term loans, net | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 534,947 | 538,602 |
Unsecured term loans, net | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 0 | |
Cross currency interest rate swaps | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 0 | |
Cross currency interest rate swaps | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 114,264 | 30,365 |
Cross currency interest rate swaps | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities | 0 | |
Foreign exchange forward contracts included in accounts payable and accrued liabilities | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 120 | |
Financial liabilities | 27 | |
Investment properties | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 0 | |
Investment properties | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 0 | |
Investment properties | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 5,855,583 | 4,457,899 |
Short-term proceeds receivable associated with a property disposal included in accounts receivable | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | $ 11,650 | |
Cross currency interest rate swap included in other assets | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 0 | |
Cross currency interest rate swap included in other assets | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 28,676 | |
Cross currency interest rate swap included in other assets | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 0 | |
Foreign exchange forward contracts included in prepaid expenses and other | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 0 | |
Foreign exchange forward contracts included in prepaid expenses and other | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | 2,627 | |
Foreign exchange forward contracts included in prepaid expenses and other | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets | $ 0 |
FAIR VALUE AND RISK MANAGEMEN_5
FAIR VALUE AND RISK MANAGEMENT - Risk Management - Credit risk (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Risk Management | ||
Percentage of trust's rental revenue | 100.00% | 100.00% |
Magna | Credit risk | ||
Risk Management | ||
Percentage of trust's rental revenue | 37.00% | 47.00% |
FAIR VALUE AND RISK MANAGEMEN_6
FAIR VALUE AND RISK MANAGEMENT - Risk Management - Interest rate risk (Details) - Interest rate risk | 12 Months Ended | |
Dec. 31, 2020 | Jun. 04, 2020 | |
Fixed interest rate | ||
Risk Management | ||
Percentage of debt | 75.00% | |
Variable interest rate | ||
Risk Management | ||
Percentage of debt | 25.00% | |
2021 Debentures | Fixed interest rate | ||
Risk Management | ||
Effective interest rate (in percent) | 2.68% | |
2023 Debentures | Fixed interest rate | ||
Risk Management | ||
Effective interest rate (in percent) | 2.43% | |
2024 Term Loan | Variable interest rate | ||
Risk Management | ||
Effective interest rate (in percent) | 0.522% | |
2026 Term Loan | Variable interest rate | ||
Risk Management | ||
Effective interest rate (in percent) | 1.355% | |
2027 Debentures | ||
Risk Management | ||
Effective interest rate (in percent) | 2.964% | |
2027 Debentures | Fixed interest rate | ||
Risk Management | ||
Effective interest rate (in percent) | 2.964% | |
2030 Debentures | Fixed interest rate | ||
Risk Management | ||
Effective interest rate (in percent) | 1.045% |
FAIR VALUE AND RISK MANAGEMEN_7
FAIR VALUE AND RISK MANAGEMENT - Risk Management - Foreign exchange risk (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020CAD ($) | |
Risk Management | |
Unsecured debentures | $ 1,650,000 |
Unsecured term loans | 535,949 |
Foreign exchange risk | |
Risk Management | |
Foreign currency denominated net assets | $ 4,500,000 |
Change in foreign currency rate (in percent) | 1.00% |
US dollar exchange risk | |
Risk Management | |
Gain or Loss on change in value of foreign currency exchange rate | $ 28,100 |
Effect of exchange rate changes on revenue | 1,600 |
Euro exchange risk | |
Risk Management | |
Gain or Loss on change in value of foreign currency exchange rate | 16,200 |
Effect of exchange rate changes on revenue | $ 1,200 |
FAIR VALUE AND RISK MANAGEMEN_8
FAIR VALUE AND RISK MANAGEMENT - Contractual Maturities (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Contractual maturities | ||
Unsecured debentures | $ 1,650,000 | |
Unsecured term loans | 535,949 | |
Cross currency interest rate swaps | 114,264 | $ 30,365 |
Unsecured debentures, net of cross currency interest rate swap savings | 182,546 | |
Unsecured term loans, net of cross currency interest rate swap savings | 31,504 | |
Accounts payable and accrued liabilities | 61,197 | 50,183 |
Distributions payable | 15,422 | $ 13,081 |
Total payments | 2,590,882 | |
2021 | ||
Contractual maturities | ||
Unsecured debentures | 250,000 | |
Cross currency interest rate swaps | 16,953 | |
Unsecured debentures, net of cross currency interest rate swap savings | 37,094 | |
Unsecured term loans, net of cross currency interest rate swap savings | 5,709 | |
Accounts payable and accrued liabilities | 57,530 | |
Distributions payable | 15,422 | |
Total payments | 382,708 | |
2022 | ||
Contractual maturities | ||
Unsecured debentures, net of cross currency interest rate swap savings | 29,910 | |
Unsecured term loans, net of cross currency interest rate swap savings | 5,709 | |
Accounts payable and accrued liabilities | 3,218 | |
Total payments | 38,837 | |
2023 | ||
Contractual maturities | ||
Unsecured debentures | 400,000 | |
Cross currency interest rate swaps | 36,540 | |
Unsecured debentures, net of cross currency interest rate swap savings | 29,910 | |
Unsecured term loans, net of cross currency interest rate swap savings | 5,709 | |
Accounts payable and accrued liabilities | 449 | |
Total payments | 472,608 | |
2024 | ||
Contractual maturities | ||
Unsecured term loans | 235,949 | |
Cross currency interest rate swaps | 25,370 | |
Unsecured debentures, net of cross currency interest rate swap savings | 19,263 | |
Unsecured term loans, net of cross currency interest rate swap savings | 5,709 | |
Total payments | 286,291 | |
2025 | ||
Contractual maturities | ||
Unsecured debentures, net of cross currency interest rate swap savings | 19,263 | |
Unsecured term loans, net of cross currency interest rate swap savings | 4,340 | |
Total payments | 23,603 | |
Thereafter | ||
Contractual maturities | ||
Unsecured debentures | 1,000,000 | |
Unsecured term loans | 300,000 | |
Cross currency interest rate swaps | 35,401 | |
Unsecured debentures, net of cross currency interest rate swap savings | 47,106 | |
Unsecured term loans, net of cross currency interest rate swap savings | 4,328 | |
Total payments | $ 1,386,835 |
CAPITAL MANAGEMENT (Details)
CAPITAL MANAGEMENT (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of objectives, policies and processes for managing capital [abstract] | ||
Unsecured debentures, net | $ 1,643,175 | $ 648,392 |
Unsecured term loans, net | 534,947 | 538,602 |
Cross currency interest rate swaps, net | 85,588 | 30,365 |
Total debt | 2,263,710 | 1,217,359 |
Stapled unitholders' equity | 3,920,069 | 3,146,143 |
Total managed capital | $ 6,183,779 | $ 4,363,502 |
CAPITAL MANAGEMENT - Declaratio
CAPITAL MANAGEMENT - Declaration of Trust (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
Maximum percentage of total indebtedness on Gross Book Value | 65.00% |
Maximum percentage of proposed investment on Gross Book Value | 15.00% |
CAPITAL MANAGEMENT - Distributi
CAPITAL MANAGEMENT - Distributions (Details) - $ / shares | 1 Months Ended | ||||||||||
Dec. 31, 2020 | Nov. 30, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jul. 31, 2020 | Jun. 30, 2020 | May 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Feb. 29, 2020 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |||||||||||
Distribution (per stapled unit) | $ 0.250 | $ 0.242 | $ 0.242 | $ 0.242 | $ 0.242 | $ 0.242 | $ 0.242 | $ 0.242 | $ 0.242 | $ 0.242 | $ 0.242 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties | ||
Salaries, incentives and short-term benefits | $ 4,082 | $ 5,553 |
Unit-based compensation expense including fair value adjustments | 3,744 | 3,980 |
Total compensation paid or payable to key management personnel | $ 7,826 | $ 9,533 |
COMBINED FINANCIAL INFORMATIO_2
COMBINED FINANCIAL INFORMATION - Balance Sheet (Details) - CAD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current assets: | |||
Investment properties | $ 5,855,583 | $ 4,457,899 | |
Other non-current assets | 46,046 | 24,216 | |
Total non-current assets | 5,901,629 | 4,482,115 | |
Current assets: | |||
Other current assets | 14,563 | 23,164 | |
Cash and cash equivalents | 831,280 | 298,677 | $ 658,246 |
Total assets | 6,747,472 | 4,803,956 | |
Non-current liabilities: | |||
Unsecured debt, net | 1,928,252 | 1,186,994 | |
Other non-current liabilities | 523,096 | 383,763 | |
Total non-current liabilities | 2,451,348 | 1,570,757 | |
Current liabilities: | |||
Unsecured debt, net | 249,870 | ||
Other current liabilities | 124,050 | 85,089 | |
Total liabilities | 2,825,268 | 1,655,846 | |
Equity: | |||
Stapled unitholders' equity | 3,920,069 | 3,146,143 | |
Non-controlling interests | 2,135 | 1,967 | |
Total liabilities and equity | 6,747,472 | 4,803,956 | |
Granite REIT | |||
Non-current assets: | |||
Investment properties | 5,855,583 | 4,457,899 | |
Other non-current assets | 46,046 | 24,216 | |
Total non-current assets | 5,901,629 | 4,482,115 | |
Current assets: | |||
Other current assets | 14,546 | 23,144 | |
Cash and cash equivalents | 830,455 | 298,385 | |
Total assets | 6,746,630 | 4,803,644 | |
Non-current liabilities: | |||
Unsecured debt, net | 1,928,252 | 1,186,994 | |
Other non-current liabilities | 523,096 | 383,763 | |
Total non-current liabilities | 2,451,348 | 1,570,757 | |
Current liabilities: | |||
Unsecured debt, net | 249,870 | ||
Intercompany payable | 13,792 | 11,828 | |
Other current liabilities | 109,416 | 72,949 | |
Total liabilities | 2,824,426 | 1,655,534 | |
Equity: | |||
Stapled unitholders' equity | 3,920,044 | 3,146,122 | |
Non-controlling interests | 2,160 | 1,988 | |
Total liabilities and equity | 6,746,630 | 4,803,644 | |
Granite GP | |||
Non-current assets: | |||
Investment in Granite LP | 25 | 21 | |
Total non-current assets | 25 | 21 | |
Current assets: | |||
Other current assets | 17 | 20 | |
Intercompany receivable | 13,792 | 11,828 | |
Cash and cash equivalents | 825 | 292 | |
Total assets | 14,659 | 12,161 | |
Current liabilities: | |||
Other current liabilities | 14,634 | 12,140 | |
Total liabilities | 14,634 | 12,140 | |
Equity: | |||
Stapled unitholders' equity | 25 | 21 | |
Total liabilities and equity | 14,659 | 12,161 | |
Eliminations/Adjustments | |||
Non-current assets: | |||
Investment in Granite LP | (25) | (21) | |
Total non-current assets | (25) | (21) | |
Current assets: | |||
Intercompany receivable | (13,792) | (11,828) | |
Total assets | (13,817) | (11,849) | |
Current liabilities: | |||
Intercompany payable | (13,792) | (11,828) | |
Total liabilities | (13,792) | (11,828) | |
Equity: | |||
Non-controlling interests | (25) | (21) | |
Total liabilities and equity | $ (13,817) | $ (11,849) |
COMBINED FINANCIAL INFORMATIO_3
COMBINED FINANCIAL INFORMATION - Income Statement (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
COMBINED FINANCIAL INFORMATION - Income Statement | ||
Revenue | $ 340,199 | $ 273,678 |
General and administrative expenses | 32,203 | 31,419 |
Interest expense and other financing costs | 35,839 | 29,941 |
Other costs and expenses, net | 42,272 | 30,965 |
Fair value gains on investment properties, net | (273,437) | (245,442) |
Fair value losses (gains) on financial instruments, net | 3,402 | (1,192) |
Loss on sale of investment properties | 901 | 3,045 |
Income before income taxes | 499,019 | 424,942 |
Income tax expense | 69,092 | 42,667 |
Net income | 429,927 | 382,275 |
Less net income attributable to non-controlling interests | 123 | 196 |
Net income attributable to stapled unitholders | 429,804 | 382,079 |
Granite REIT | ||
COMBINED FINANCIAL INFORMATION - Income Statement | ||
Revenue | 340,199 | 273,678 |
General and administrative expenses | 32,203 | 31,419 |
Interest expense and other financing costs | 35,839 | 29,941 |
Other costs and expenses, net | 42,272 | 30,965 |
Fair value gains on investment properties, net | (273,437) | (245,442) |
Fair value losses (gains) on financial instruments, net | 3,402 | (1,192) |
Loss on sale of investment properties | 901 | 3,045 |
Income before income taxes | 499,019 | 424,942 |
Income tax expense | 69,092 | 42,667 |
Net income | 429,927 | 382,275 |
Less net income attributable to non-controlling interests | 127 | 200 |
Net income attributable to stapled unitholders | 429,800 | 382,075 |
Granite GP | ||
COMBINED FINANCIAL INFORMATION - Income Statement | ||
Share of (income) loss of Granite LP | (4) | (4) |
Income before income taxes | 4 | 4 |
Net income | 4 | 4 |
Net income attributable to stapled unitholders | 4 | 4 |
Eliminations/Adjustments | ||
COMBINED FINANCIAL INFORMATION - Income Statement | ||
Share of (income) loss of Granite LP | 4 | 4 |
Income before income taxes | (4) | (4) |
Net income | (4) | (4) |
Less net income attributable to non-controlling interests | $ (4) | $ (4) |
COMBINED FINANCIAL INFORMATIO_4
COMBINED FINANCIAL INFORMATION - Cash Flows (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 429,927 | $ 382,275 |
Items not involving current cash flows | (199,581) | (196,583) |
Changes in working capital balances | 16,641 | (2,945) |
Other operating activities | (2,666) | 684 |
Cash provided by operating activities | 244,321 | 183,431 |
INVESTING ACTIVITIES | ||
Property acquisitions | (1,045,659) | (930,878) |
Proceeds from disposals, net | 42,508 | 85,536 |
Investment property capital additions - Maintenance or improvements | (5,376) | (2,889) |
Investment property capital additions - Developments or expansions | (49,598) | (27,407) |
Investment property capital additions - Costs to complete acquired property | (8,622) | |
Other investing activities | (75) | (456) |
Cash used in investing activities | (1,066,822) | (876,094) |
FINANCING ACTIVITIES | ||
Distributions paid | (163,064) | (136,897) |
Other financing activities | 1,521,261 | 480,422 |
Cash provided by financing activities | 1,358,197 | 343,525 |
Effect of exchange rate changes | (3,093) | (10,431) |
Net increase (decrease) in cash and cash equivalents during the year | 532,603 | (359,569) |
Granite REIT | ||
OPERATING ACTIVITIES | ||
Net income (loss) | 429,927 | 382,275 |
Items not involving current cash flows | (199,581) | (196,583) |
Changes in working capital balances | 16,108 | (2,423) |
Other operating activities | (2,666) | 684 |
Cash provided by operating activities | 243,788 | 183,953 |
INVESTING ACTIVITIES | ||
Property acquisitions | (1,045,659) | (930,878) |
Proceeds from disposals, net | 42,508 | 85,536 |
Investment property capital additions - Maintenance or improvements | (5,376) | (2,889) |
Investment property capital additions - Developments or expansions | (49,598) | (27,407) |
Investment property capital additions - Costs to complete acquired property | (8,622) | |
Other investing activities | (75) | (456) |
Cash used in investing activities | (1,066,822) | (876,094) |
FINANCING ACTIVITIES | ||
Distributions paid | (163,064) | (136,897) |
Other financing activities | 1,521,261 | 480,422 |
Cash provided by financing activities | 1,358,197 | 343,525 |
Effect of exchange rate changes | (3,093) | (10,431) |
Net increase (decrease) in cash and cash equivalents during the year | 532,070 | (359,047) |
Granite GP | ||
OPERATING ACTIVITIES | ||
Net income (loss) | 4 | 4 |
Items not involving current cash flows | (4) | (4) |
Changes in working capital balances | 533 | (522) |
Cash provided by operating activities | 533 | (522) |
FINANCING ACTIVITIES | ||
Net increase (decrease) in cash and cash equivalents during the year | 533 | (522) |
Eliminations/Adjustments | ||
OPERATING ACTIVITIES | ||
Net income (loss) | (4) | (4) |
Items not involving current cash flows | $ 4 | $ 4 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions, $ in Millions | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Nov. 12, 2020CAD ($) | Nov. 12, 2020USD ($) |
Disclosure of commitments and contingencies | ||||
Contractual commitments related to construction and development projects, the purchase of property | $ 76.1 | |||
Contractual commitments for acquisition of property plant and equipment bonds issued | $ 72.1 | $ 55 | ||
Contractual commitments for acquisition of property plant and equipment bonds authorised to issue | 70.1 | $ 55 | ||
Bonds issued outstanding | $ 70.1 | $ 55 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands, £ in Millions | Jan. 28, 2021CAD ($)a | Jan. 28, 2021GBP (£)a | Jan. 04, 2021CAD ($) | Feb. 28, 2021CAD ($) | Jan. 31, 2021CAD ($) | Dec. 31, 2020CAD ($)Property | Dec. 31, 2019CAD ($)Property |
SUBSEQUENT EVENTS | |||||||
Number of properties disposed | Property | 3 | 13 | |||||
Gross proceeds | $ 31,276 | $ 105,765 | |||||
Monthly distributions paid and payable in cash | 163,064 | 136,897 | |||||
Principal issued and outstanding | $ 2,185,949 | $ 1,189,816 | |||||
2021 Debentures | |||||||
SUBSEQUENT EVENTS | |||||||
Principal issued and outstanding | $ 250,000 | ||||||
Acquisition of property | Georgia | |||||||
SUBSEQUENT EVENTS | |||||||
Investment properties | $ 0 | ||||||
Distributions | |||||||
SUBSEQUENT EVENTS | |||||||
Monthly distributions paid and payable in cash | $ 15,400 | $ 15,400 | |||||
Debenture redemption | 2021 Debentures | |||||||
SUBSEQUENT EVENTS | |||||||
Redemption price of debentures | 254,000 | ||||||
Debenture redemption | 2021 Debentures | Cross Currency Interest Rate Swap2021 [Member] | July 5 2021 | |||||||
SUBSEQUENT EVENTS | |||||||
Mark to market liability settled | $ 17,700 | ||||||
Disposal of assets | |||||||
SUBSEQUENT EVENTS | |||||||
Number of properties disposed | a | 1 | 1 | |||||
Gross proceeds | $ 10,600 | £ 6 |