The Nobel REIT announces filing of results for the quarter ended June 30, 2014

MONTREAL, Aug. 29, 2014 /CNW Telbec/ - (TSXV: NEL.UN) The Nobel Real Estate Investment Trust (« Nobel REIT ») announces the filing of its interim consolidated financial statements and its management discussion and analysis report for the quarter ended June 30, 2014.

Highlights and selected financial information

The following table shows highlights and selected financial information for the three-month and six-month periods ended June 30, 2014.





As at June 30

As at December 31


2014

2013


$

$

Financial position




Investment properties

14,920,939

15,061,212


Total assets

15,294,428

15,753,596


Mortgage payable

10,306,905

10,098,676


Liability related to Class B Limited Partnership units

291,000

545,625


Unitholders' equity

4,283,339

4,692,200





Three-month

Three-month


period ended

period ended


June 30, 2014

June 30, 2013


$

$

Comprehensive loss




Rental revenues from properties

485,354

170,767


Net operating income

277,023

120,580


Costs related to discontinued projects

460,965

-


Net loss before changes in fair values

(510,013)

(50,486)


Net loss and comprehensive loss for the period

(398,438)

(578,225)





Six-month

Six-month


period ended 

period ended


June 30, 2014

June 30, 2013


$

$

Comprehensive loss




Rental revenues from properties

977,015

170,767


Net operating income 

564,383

120,580


Costs related to discontinued projects

460,965

-


Net loss before changes in fair values

(484,024)

(162,996)


Net loss and comprehensive loss for the period

(353,912)

(690,735)

 

Costs related to discontinued projects

The negative results of the second quarter of 2014 are mainly due to costs related to discontinued projects.  More specifically, $358,298 of costs related to potential acquisitions of investment properties, including a $200,000 deposit, were expensed; an amount of $102,667 related to equity financing search activities was also expensed.

Subsequent events

Following the end of the quarter, the REIT completed a $10,000,000 private placement et acquired two investment properties at a purchase price of $16,000,000, partly financed by mortgages totalling $10,900,000.  The REIT also completed a consolidation of its units, 10 pre-consolidation units for one post-consolidation unit.

According to Jean Teasdale, Chief Executive Officer of the REIT "the Board of Trustees and Management are confident about the future.  The private placement will allow the REIT to deploy its business plan and to extend its investor base".

The interim consolidated financial statements of Nobel REIT, which were prepared in accordance with IFRS, and the management discussion and analysis report for the quarter ended on June 30, 2014 have been filed on SEDAR at www.sedar.com.

About Nobel Real Estate Investment Trust

Nobel REIT is an unincorporated open-ended real estate investment trust governed by the laws of the Province of Québec. Nobel REIT has been created for the purpose of acquiring and owning income producing properties. The REIT will focus on acquiring commercial retail, mixed-used retail, and industrial and suburban office properties in the primary and secondary markets in the Province of Québec.

Nobel REIT currently owns four properties located in Québec, comprising 168,318 square feet of gross leasable area.

 

SOURCE Nobel Real Estate Investment Trust

For further information: Louis Lemire, CPA, CA, Chief Financial Officer, (450) 655-4338