Group 1 - CT REIT is a Canadian-based REIT primarily renting to Canadian Tire stores, which recently celebrated its 100th anniversary [1] - The REIT is currently attractive due to its reasonable valuation and dividend payments [1] Group 2 - The article expresses a beneficial long position in the shares of CRT.UN:CA [2]

Financial Performance - Net profits income for 2024 was $6,563,177, a 47% decrease from $12,300,176 in 2023, primarily due to decreased oil and gas production and lower prices[132]. - Total income for 2024 was $6,623,430, down from $12,364,073 in 2023, reflecting a decline of 46.6%[182]. - Distributable income for 2024 was $5,677,818, compared to $11,547,888 in 2023, representing a decrease of 50.8%[182]. - Distributable income per unit for 2024 was $0.946303, down from $1.924648 in 2023, a decline of 50.8%[182]. - Fourth quarter 2024 net profits income totaled $1,462,841, a 43% decrease from $2,548,233 in the fourth quarter of 2023[143]. - Distributable income for the fourth quarter of 2024 was $1,317,594, or $0.219599 per unit, compared to $2,416,884, or $0.402814 per unit in the fourth quarter of 2023[144]. Production and Reserves - Approximately 46% of the net profits income received by the Trust during 2024 was attributable to natural gas, with 40% of the Trust's estimated future net cash flows from proved reserves at December 31, 2024[30]. - Estimated proved reserves for the net profits interests are based on estimates of reserves for the underlying properties and can be significantly affected by fluctuations in oil and gas prices[41]. - The Trust's total proved reserves as of December 31, 2024, consist of 1,301,000 Bbls of oil and 8,334,000 Mcf of gas[87]. - The Trust's net profits are derived from the sale of hydrocarbons from depleting assets, and if no successful development projects are performed, the assets may deplete faster than expected[46]. - The underlying properties include over 2,900 producing properties with an average reserve-to-production index of approximately 11 years as of December 31, 2024[72]. Costs and Expenses - Total costs deducted in the calculation of net profits income were $9.8 million in 2024, a 14% decrease from $11.5 million in 2023[141]. - Average production cost per BOE for oil is $2.33 in 2024, an increase of 39.5% from $1.67 in 2023 and an increase of 25.3% from $1.86 in 2022[92]. - Average production cost per BOE for gas is $54.04 in 2024, an increase of 1.8% from $53.09 in 2023 and an increase of 95.0% from $27.71 in 2022[92]. - Total underlying development costs for 2024 were $1,509,510, representing a 42% increase from 2023 development costs of $1,061,887[84]. Market and Pricing - The Trust's monthly cash distributions are highly dependent on the prices realized from the sale of natural gas and oil, which can fluctuate widely due to various uncontrollable factors[36]. - Average sales price for oil in 2024 is $78.78 per Bbl, a slight decrease of 0.9% from $79.50 in 2023 and a decrease of 3.4% from $81.62 in 2022[92]. - Average sales price for gas in 2024 is $3.92 per Mcf, a significant decrease of 34.1% from $5.94 in 2023 and a decrease of 50.7% from $7.95 in 2022[92]. Risks and Liabilities - The Trust's financial performance is subject to various risk factors, including geopolitical instability and market volatility, which could materially affect its distributable income[32]. - The Trust's distributions may be adversely affected by operational risks and hazards associated with the production and transportation of oil and natural gas[42]. - Government actions or regulations aimed at reducing oil and natural gas production could impact the price of these commodities and, consequently, the Trust's net profits[38]. - Cybersecurity threats pose risks that could materially affect the Trust's business, financial condition, and results of operations[68]. - The Trust unitholders may be exposed to personal liability due to the structure of the Trust not providing the same limited liability protections as a corporation[55]. Trust Structure and Governance - Trust unitholders have limited voting rights and cannot influence the operations or future development of the underlying properties[52]. - The Trust's financial statements are prepared on a modified cash basis of accounting, differing from U.S. GAAP[54]. - The Trust expects to continue being exempt from Texas franchise tax as a passive entity[200]. - The Trust's only cash requirement is the declared monthly distribution of income to unitholders, funded by net profits income after administration expenses[149]. Future Outlook - Future net cash flows from proved reserves are approximately 38% natural gas and 62% oil, with total future net cash flows estimated at $52.652 million, discounted at an annual rate of 10%[87]. - Future net profits may be impacted by the creditworthiness of operators and purchasers of crude oil and natural gas, influenced by market prices[44]. - The Trust will terminate if it fails to generate gross revenues of at least $1,000,000 per year over any successive two-year period[49].

Cash Distribution - The Registrant announced a monthly cash distribution to unitholders of record on January 31, 2025[5] - The news release regarding the cash distribution was issued on January 21, 2025[5] - The cash distribution details are included in Exhibit 99.1 of the report[7]

Distribution Announcement - Argent Trust Company declared a cash distribution of $0.095045 per unit for the Cross Timbers Royalty Trust, payable on February 14, 2025, to unitholders of record on January 31, 2025 [1] Underlying Sales Data - Current month sales volumes included 13,000 barrels of oil and 114,000 Mcf of gas, with average prices of $68.38 per barrel for oil and $3.78 per Mcf for gas [2] - Prior month sales volumes were the same for oil at 13,000 barrels but lower for gas at 68,000 Mcf, with average prices of $69.15 per barrel for oil and $3.26 per Mcf for gas [2] Excess Costs Information - XTO Energy reported recovery of $24,000 in excess costs related to properties underlying the Texas Working Interest net profits interests, but no remaining proceeds were available for this month's distribution [3] - Cumulative excess costs on the Texas Working Interest net profits interests total $4,260,000, which includes accrued interest of $1,143,000 [3]

Core Insights - CT REIT has become the largest REIT position in the investment portfolio, indicating strong confidence in its performance and potential growth [3] Company Overview - CT REIT is highlighted as a significant player in the REIT sector, with a focus on high-quality investment opportunities [3] - The company is part of a broader investment strategy that includes European small-cap ideas, emphasizing capital gains and dividend income [3] Investment Strategy - The investment group offers exclusive access to actionable research on appealing Europe-focused investment opportunities, particularly in the small-cap space [3] - Features of the investment group include two model portfolios, weekly updates, and educational content aimed at enhancing understanding of European investment opportunities [3]

Cash Distribution - The Registrant announced a monthly cash distribution to unitholders of record on October 31, 2024[2] - The news release regarding the cash distribution was issued on October 21, 2024[2] - The cash distribution details are included in Exhibit 99.1 of the report[2] Report Filing - The report is filed under Item 2.02 of Form 8-K, indicating results of operations and financial condition[2] - The report is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934[2] - The report was submitted to the SEC on October 21, 2024[1] Signatories - The report was signed by Nancy Willis, Director of Royalty Trust Services[2] - The report was also signed by Kristy Walker, Unconventional Finance General Manager of Exxon Mobil Corporation[2] Company Information - The Registrant is Cross Timbers Royalty Trust, with Argent Trust Company as the trustee[1] - The Registrant's principal executive offices are located in Dallas, Texas[1]

Financial Performance - For the quarter ended September 30, 2024, net profits income decreased by 37% to $1,697,724 compared to $2,676,180 in Q3 2023[44]. - Distributable income for the quarter was $1,521,252, or $0.253542 per unit, down from $2,451,192, or $0.408532 per unit in Q3 2023[45]. - Total revenues for Q3 2024 were $4,588,397, a 15% decrease from $5,372,316 in Q3 2023[51]. - For the nine months ended September 30, 2024, net profits income was $5,100,336, a 48% decrease from $9,751,943 in the same period of 2023[47]. - Distributable income for the nine months was $4,360,224, or $0.726704 per unit, down from $9,131,004, or $1.521834 per unit in the prior year[47]. Sales and Pricing - Oil sales volumes decreased by 23% in Q3 2024, while gas sales volumes increased by 17% for the same period[55][56]. - Average oil price increased by 4% to $77.54 per Bbl in Q3 2024, while average gas price decreased by 14% to $3.65 per Mcf[57][58]. Expenses and Costs - Production expenses increased by 34% in Q3 2024, primarily due to higher processing costs and increased labor[60]. - Development costs increased by 103% for the nine-month period due to timing of drilling activity costs[61]. - Underlying cumulative excess costs for the Texas working interest conveyance totaled $3.8 million as of September 30, 2024[62]. Governance and Compliance - The Trust's disclosure controls and procedures are effective in ensuring timely reporting of required information under the Securities Exchange Act of 1934[66]. - There have been no material changes in the risk factors disclosed in the Trust's Annual Report for the year ended December 31, 2023[67]. - The Trust does not have any directors or officers, which affects the adoption or termination of trading arrangements[68].

Cash Distribution - The Registrant announced a monthly cash distribution to unitholders of record on September 30, 2024[2] - The news release regarding the cash distribution was issued on September 20, 2024[2] Financial Reporting - The report is filed under Item 2.02 of Form 8-K, indicating results of operations and financial condition[2] - The report is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934[2] Signatories - The report was signed by Nancy Willis, Director of Royalty Trust Services, on behalf of Cross Timbers Royalty Trust[3] - The report was also signed by Kristy Walker, Unconventional Finance General Manager of Exxon Mobil Corporation[3]

Core Viewpoint - The article discusses the performance and outlook of CT Real Estate Investment Trust (CT REIT), highlighting its strong financial metrics despite rising interest expenses and the potential for future growth in earnings and dividends as interest rates decrease [2][3][20]. Financial Performance - The net operating income (NOI) increased by approximately 4.4% year-over-year, reaching nearly C$115 million, with a quarter-over-quarter increase of about 1% [3][4]. - Funds from operations (FFO) rose by 2.1% in the second quarter, while adjusted funds from operations (AFFO) increased by 3.6% to C$74.25 million [12][14]. - The AFFO per share is projected to be C$1.26 annually, with a current distribution of C$0.925 per unit, yielding approximately 6.03% based on the recent share price [17][19]. Debt and Interest Expenses - Total interest and finance expenses increased by approximately C$1.7 million year-over-year, with net interest expenses rising by about C$2.3 million [5][7][10]. - The average cost of debt was approximately 4.13% at the end of June 2024, and the REIT has primarily fixed-rate debt, insulating it from rising interest rates [10][11]. Dividend and Distribution Growth - CT REIT has a history of gradually increasing its distributions, with the current annualized distribution being about 20% higher than in 2019 [18]. - The AFFO payout ratio is around 73%, indicating a healthy balance between earnings and distributions [19]. Market Position and Valuation - The stock is trading at a discount of nearly 10% to its net asset value (NAV), based on a multiple of approximately 16 times the NOI from Q2 [20]. - The current price-to-AFFO multiple is around 12, which is considered attractive [20].

Financial Performance - Net profits income for the three months ended June 30, 2024, was $1,564,871, down from $3,163,059 for the same period in 2023, indicating a decrease of about 50.5%[12] - Distributable income for the three months ended June 30, 2024, was $1,345,758, compared to $3,040,614 for the same period in 2023, reflecting a decline of approximately 55.8%[12] - Total income for the six months ended June 30, 2024, was $3,434,758, compared to $7,107,110 for the same period in 2023, a decrease of approximately 51.6%[12] - For the quarter ended June 30, 2024, net profits income was $1,564,871, a 51% decrease from $3,163,059 in the second quarter of 2023, primarily due to lower gas prices and increased development costs[36] - For the six months ended June 30, 2024, net profits income was $3,402,612, a 52% decrease from $7,075,763 in the same period of 2023, primarily due to lower gas prices and decreased production[38] - For the quarter ended June 30, 2024, distributable income was $1,345,758, or $0.224293 per unit, a decrease from $3,040,614, or $0.506769 per unit in the same quarter of 2023, representing a 56% decline[37] - Total revenues for the quarter ended June 30, 2024, were $4,714,656, a 25% decrease from $6,247,815 in the same quarter of 2023[43] Assets and Trust Corpus - As of June 30, 2024, total assets of Cross Timbers Royalty Trust amounted to $3,731,769, a decrease from $4,528,965 as of December 31, 2023, representing a decline of approximately 17.6%[8] - The trust corpus at the end of the period was $2,550,725, down from $2,671,583 at the end of 2023, marking a decrease of about 4.5%[9] - The trust's cash and short-term investments decreased to $1,175,691 from $1,852,320, a decline of approximately 36.5%[8] Expenses - Administration expenses for the three months ended June 30, 2024, were $234,286, an increase from $139,454 in the same period of 2023, representing an increase of about 68%[12] - Administration expenses for the six months ended June 30, 2024, increased by $168,488 compared to the prior year, totaling $595,786[39] - Production expenses decreased by 4% for the second quarter and by 3% for the six-month period, primarily due to lower power and fuel costs[49] - Development costs increased by 290% for the second quarter and 115% for the six-month period, mainly due to the timing of drilling activity costs[50] - Taxes, transportation, and other costs decreased by 33% for the second quarter and 48% for the six-month period, attributed to lower gas deductions and production taxes[48] Distribution to Unitholders - The distribution payable to unitholders for the quarter was $181,044, significantly lower than $857,382 for the same period in 2023, indicating a reduction of about 78.8%[9] Revenue Sources and Taxation - The Trust's revenues are sourced entirely from Texas, Oklahoma, or New Mexico, and it has not been taxed at the trust level in these states[22] - The Trust expects to continue being exempt from Texas franchise tax as a passive entity[23] Other Financial Information - The average oil price for the second quarter increased by 4% to $77.24 per Bbl, while the average gas price decreased by 66% to $4.04 per Mcf[46][47] - Oil sales volumes increased by 3% for the second quarter and 1% for the six-month period, while gas sales volumes increased by 27% for the second quarter but decreased by 45% for the six-month period[45] - Cumulative excess costs remaining at June 30, 2024, totaled $2,765,489, with accrued interest of $966,443[30] - Cumulative excess costs for the Texas and Oklahoma working interest conveyances totaled $3.7 million as of June 30, 2024[52] Governance and Compliance - The Trustee evaluated the effectiveness of the Trust's disclosure controls and procedures, concluding they are effective in timely reporting required information[56] - There have been no material changes in the risk factors disclosed in the Trust's Annual Report for the year ended December 31, 2023[58] - The Trust does not have any directors or officers, thus no trading arrangements were adopted or terminated[59] Impairment and Amortization - Accumulated amortization of net profits interests was $58,549,724 as of June 30, 2024, compared to $58,428,866 as of December 31, 2023[20] - No impairment of net profits interests was recorded as of June 30, 2024, as no trigger events indicated a need for assessment[19] Other Notes - The monthly overhead charge deducted by XTO Energy as of June 30, 2024, was $50,442, subject to annual adjustment based on an oil and gas industry index[33] - For the quarter ended June 30, 2024, excess costs were $80,661 on properties underlying the Texas working interest net profits interests[31] - The allocation of a portion of the Chieftain settlement to the Trust will be resolved in the third quarter of 2024[27]