Homburg Invest Reports Second Quarter Financial Results and Obtains Fifth CCAA Protection Extension
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
MONTREAL, Aug. 31, 2012 /CNW Telbec/ - Homburg Invest Inc. (NYSE Euronext Amsterdam: HII) ("Homburg Invest" or the "Company") announced today its financial results for the second quarter ended June 30, 2012. In compliance with National Instrument 51-102 of the Canadian Securities Administrators, Management notifies readers that the unaudited interim condensed consolidated financial statements for the periods ended June 30, 2012, and June 30, 2011 have not been reviewed by the Company's external auditors.
The Company also announced that it obtained an order from the Superior Court under the Canadian Companies' Creditors Arrangement Act ("CCAA") further extending the CCAA protection granted to Homburg Invest and certain of its affiliates on September 9, 2011, as amended, until September 14, 2012, at which time the matter will be reviewed by the Court. In addition, certain direct or indirect subsidiaries of the Company are now also under the protection of the CCAA, namely North Calgary Land Ltd. and Homco Realty Fund (96) Limited Partnership.
The extension will provide Homburg Invest with additional time to further develop a restructuring plan for the benefit of all stakeholders, including its creditors. The CCAA process is carried out under the supervision of the Superior Court, which appointed Samson Bélair / Deloitte & Touche Inc. as independent monitor to oversee proceedings (the "Monitor"). The Monitor provides oversight of Homburg Invest's business and assists the Company in preparing its restructuring plan.
All Courts applications and orders as well as a copy of the Monitor's reports are posted by the Monitor on its website at the following address: http://www.deloitte.com/ca/homburg-invest. The Monitor's contact information is also available on its website.
Consolidated Financial Results (ended June 30, 2012)
Property revenues from continuing operations were $30.4 million during the second quarter ended June 30, 2012, compared to $31.9 million for the same quarter in 2011, for a decrease of $1.5 million. The average Canadian dollar foreign exchange rate versus the Euro was 4.7% higher in the second quarter of 2012 versus the same period in 2011, which negatively impacted the results.
Net operating income (NOI) was $25.0 million in the second quarter of 2012, compared to $25.2 million in the second quarter of 2011 for a decrease of $0.2 million.
The Company incurred a loss before taxes from continuing operations for the second quarter of 2012 of $104.4 million ($5.18 per share), compared to a loss before taxes of $40.2 million in the same period in 2011 ($(1.99) per share), an unfavourable variance of $64.2 million. This was primarily due to an increase in negative fair value adjustments of $102.3 million, related to declining market values since 2010. Due to the CCAA filing, the Company began incurring, in the third quarter of 2011, expenses relating to CCAA filings. For the quarter ended June 30, 2012, these amounted to $7.0 million.
Funds from operations (FFO), net of the sale of properties developed for resale, was $7.0 million for the three month period ended June 30, 2012 compared to $(1.8) million recorded for the same period in 2011, for a positive variance of $8.8 million.
Key Financial Results for the Period Ended June 30, 2012:
|June 30, 2012||June 30, 2011|
|(millions of CDN $, except per share items)|
|Sale of properties developed for resale||6.2||3.2|
|Total revenues and other gains||(55.2)||0.9|
|Net operating income||25.0||25.2|
|Net income (loss)||(104.4)||(40.2)|
|Basic and diluted earnings (loss) per share||(5.18)||(1.99)|
|Funds from operations, net of the sale of properties developed for resale||7.0||(1.8)|
|Funds from operations per share||(0.35)||(0.09)|
|The financial statements and related documentation are available on the System for Electronic Document Analysis and Retrieval (SEDAR), at www.sedar.com and on Homburg Invest's website, at www.homburginvest.com.|
The Company remains under creditor protection pursuant to the provisions of the CCAA, with its stay of proceedings having been extended by the Court respectively to December 9, 2011, March 16, 2012, May 31, 2012, August 31, 2012 and September 14, 2012, at which time the matter will be reviewed by the Court. The stay period is subject to further extensions as the Court may deem appropriate.
About Homburg Invest
Homburg Invest owns and develops a diversified portfolio of commercial real estate including office, retail, industrial and development properties throughout Canada, Europe and the United States. The head office of Homburg Invest is located in Halifax, Nova Scotia.
Forward Looking Statements
This news release may contain statements which by their nature are forward looking and express the Company's beliefs, expectations or intentions regarding future performance, future events or trends. Forward looking statements are made by the Company in good faith, given management's expectations or intention. However, they are subject to market conditions, acquisitions, occupancy rates, capital requirements, sources of funds, expense levels, operating performance and other matters. Therefore, forward looking statements contain assumptions which are subject to various factors including: unknown risks and uncertainties; general economic conditions; local market factors; performance of other third parties; environmental concerns; and interest rates, any of which may cause actual results to differ from the Company's good faith beliefs, expectations or intentions which have been expressed in or may be implied from this news release. Therefore, forward looking statements are not guarantees of future performance and are subject to known and unknown risks. Information and statements in this document, other than historical information, should be considered forward-looking and reflect management's current views of future events and financial performance that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to, the following: general economic conditions and developments within the real estate industry, competition and the management of growth. Additional information about these assumptions and risks and uncertainties is contained in the Company's filings with securities regulatory authorities, including the latest annual information form of the Company, all of which are available on SEDAR at www.sedar.com. The NYSE Euronext Amsterdam has neither approved nor disapproved of the information contained herein.
Non-IFRS Financial Measures
This news release includes measures widely accepted within the real estate industry which are not defined under IFRS. These measures include funds from operations, funds from operations per share, property net operating income, and net asset value per share. As these are not defined measures under IFRS, other issuers may have different calculations from those used by the Company.
The Company considers these amounts to be measures of operating and financial performance.
|a)||Funds from operations ("FFO") and FFO per share are presented by the Company as net income (loss) from continuing operations adjusted for unrealized and realized valuation changes, deferred and capital income taxes, amortization of financing costs, change in provisions, gain or loss on derivative financial instruments, accelerated accretion expense, expenses related to CCAA filing, and net exchange differences; divided by the weighted average number of shares outstanding.|
Property net operating income ("NOI") is presented by the Company as
property revenue less property operating expenses.
SOURCE: HOMBURG INVESTFor further information:
NATIONAL Public Relations
Cohn & Wolfe
Tel 0031 (0)20 6768666