07:33 AM EST, 03/06/2024 (MT Newswires) -- Melcor Real Estate Investment Trust (MR-UN.TO) overnight Tuesday reported its Q4 2023 results.

The company reported funds from operations of $5.65 million, or $0.18 per diluted unit, compared with FFO of $5.78 million, or $0.19 per diluted unit, last year.

Adjusted funds from operations were $3.56 million, or $0.12 per basic unit. The comparable figures for Q4 2022 were $3.52 million, and $0.12 per basic unit.

Melcor reported that revenue was down 2% YoY, to $18.5 million, from $18.8 million.

CEO Andrew Melton said, "We anticipate sustained pressure on operational cash flow due to several factors including reduction in office lease rates, heightened tenant incentive and capital expenditure costs, increasing operational expenses, and continued higher financing costs."

Melcor's Saskatchewan properties were listed for sale earlier this year, as part of the REIT's strategic decision to focus on its Alberta markets and create additional liquidity. Melcor has also listed its remaining asset in Kelowna for sale as well as a building in Lethbridge. "We have seen interest on these asset listings, and sales efforts continue," Melton said.

Melcor also announced that board members Larry Pollock and Carolyn Graham are retiring. Independent trustee Richard Kirby will serve as Lead Trustee and will also Chair the Independent Committee of the Board. The Independent Committee will lead the initiative to review strategic alternatives, first announced on February 22.