BRAMPTON, Ont. – Choice Properties Real Estate Investment Trust (TSX:CHP.UN) says its fourth-quarter results were in line with its IPO forecasts last summer.

It had an adjusted profit of $36.8 million — above a forecast of $34.6 million when Choice prepared its initial public offering.

Its funds from operations, another key financial measure for real estate companies, $82.8 million — compared with the forecast of $78.9 million.

Choice said the better than forecast FFO was driven by the acquisition of investment properties during the quarter and savings from general and administrative expenses.

Under standard accounting, Choice recorded a $6.5 million net loss due to a $112 million negative adjustment for the fair value of its exchangable units, which were not included in the IPO forecast.

The negative adjustment was partially offset by a $68.8 million gain on the fair value of its investment properties.

The real estate trust was spun off as a separate business last year by Loblaw (TSX:L), which remains its largest investor and tenant.

Its units began trading in July after selling about $400 million of equity through its initial public offering.

The units closed Friday at $10.45, up from the July 5 opening price of $9.95 when public trading began and up from the IPO price of $10.

Loblaw’s parent, George Weston Ltd. (TSX:WN), indirectly purchased 20 million units for $200 million, representing a 5.6 per cent interest.

At the time of the spinoff, Choice had 415 retail properties, one office complex and nine warehouse properties totalling 35.3 million square feet of gross leasable area.

During the fourth quarter, Choice acquired 12 additional properties for $186 million.