10:54 AM EDT, 05/17/2024 (MT Newswires) -- National Bank on Thursday highlighted key takeaways from the first quarter for the real estate sector while highlighting variances to the NBF forecast on key operating, accounting, and balance sheet metrics.

"The quarter was directionally consistent, albeit income statement metrics were a bit softer," the analysts said. "Broadly speaking, occupancy ticked lower in Q1/24.

The net operating income and funds from operation per unit gap to the NBF estimates was -0.5% and -1.7%, respectively, across NBF's coverage universe.

On average, occupancy was down 50 basis points, and the office was down 93 basis points, primarily on Dream Office REIT.

"Leasing spreads were also modestly below us (-323 bps) with industrial and office being the main culprits -- for industrial, we mostly attribute to the geographic profile of maturing space more than fundamental weakness," the analysts said.

Meanwhile, capital expenditures were materially lower this quarter due to some seasonality but also reflect broader expense constraints.

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