Homburg Invest Reports Third Quarter Financial Results

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

MONTREAL, Nov. 14, 2012 /CNW Telbec/ - Homburg Invest Inc. (NYSE Euronext Amsterdam: HII) ("Homburg Invest" or the "Company") announced today its financial results for the third quarter ended September 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 September 30, 2012 and September 30, 2011, have not been reviewed by the Company's external auditors.

The Company remains under the Canadian Companies' Creditors Arrangement Act ("CCAA"), further to the extension of the CCAA protection granted to Homburg Invest and certain of its affiliates on September 9, 2011, and as amended, until December 14, 2012, at which time the matter will be reviewed by the Court.

The extension provides 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 September 30, 2012)
Property revenues from continuing operations were $29.4 million during the third quarter ended September 30, 2012, compared to $31.6 million for the same quarter in 2011 for a decrease of  2.2 million. The average Canadian dollar foreign exchange rate versus the Euro was 6.5% lower in the third quarter 2012 versus the same period for 2011, which negatively impacted the results given that the majority of revenues are earned in Euros.

Net operating income (NOI) was $24.2 million in the third quarter of 2012, compared to $25.8 million in the third quarter of 2011 for a decrease of $1.6 million.

The Company incurred a loss before taxes from continuing operations for the period ended September 30, 2012 of $22.1 million ($1.06 per share), compared to loss before taxes of $70.3 million in the same period in 2011 ($1.98 per share), a favourable variance of $48.2 million.

Funds from operations (FFO) net of the sale of properties developed for resale, was $8.0 million for the three month period ended September 30, 2012 compared to $(2.9) million for the same period in 2011, for a positive variance of $10.9 million.

Key Financial Results for the Period Ended September 30, 2012:

  September 30, 2012   September 30, 2011
  (CDN $ thousands)
       
Property revenue 29,432   31,557
Sale of properties developed for resale 985   5,767
Total revenues and other gains 30,417   37,324
Gross income from operation 21,153   26,099
Net income (loss) (21,356)   (70,072)
Loss from continuing operations (22,147)   (70,293)
Net loss from continuing operations (21,277)   (70,504)
Funds from operations, net of the sale of properties developed for resale (CND $ millions) 8.0   (2.9)


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.

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.

Note
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.
   
b) Property net operating income ("NOI") is presented by the Company as property revenue less property operating expenses.

 

 

SOURCE: HOMBURG INVEST INC

For further information:

Media:

Canada
Caroline Martel
NATIONAL Public Relations
(514) 843-2313
cmartel@national.ca

Netherlands
Heleen Jansen
Cohn & Wolfe
Tel 0031 (0)20 6768666
heleen.jansen@cohnwolfe.nl