Correction - This a a summary of the results published November 21, 2011 - Homburg Invest Reports 2011 Third Quarter Financial Results

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

MONTREAL, Nov. 23, 2011 /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, 2011 which were prepared under International Financial Reporting Standards.

Financial Results (Quarter ended September 30, 2011)

Property revenues from continuing operations were $31.6 million during the third quarter ended September 30, 2011, compared to $27.5 million for the same quarter in 2010, an increase of $4.1 million.

Net operating income (NOI) was $25.8 million in the third quarter of 2011, compared to $21.3 million in the third quarter of 2010, an increase of $4.5 million. The increase is primarily due to increased property revenue.

The Company incurred a net loss for the third quarter of 2011 of $70.0 million ($1.95 per share), compared to net income of $0.1 million in the same period in 2010 ($0.04 per share), an unfavourable variance of $70.1 million. The decrease relates primarily to $37 million accelerated accretion expense that was recorded in the third quarter of 2011 relating to the conversion of Homburg Capital Securities A from an equity to a debt instrument.

As well, the Company incurred a $17.9 million loss from the share of an associate in the third quarter of 2011, versus a loss of $0.1 million in the third quarter of 2010.  Interest expense was $37.4 million in the third quarter of 2011 and $26.9 million in the third quarter of 2011, a negative variance of $10.5 million.  A $5.5 million net decrease in the fair value of investment properties, compared to a gain of $13.5 million in the same quarter of prior year yielded a further negative variance of $19 million.

Funds from operations (FFO), net of the sale of properties developed for resale, was $(2.9) million in the third quarter of 2011 compared to $(2.5) million in the third quarter of 2010. The decrease of $0.4 million primarily related to increased general and administration expenses.

Key Financial Results for the Quarters Ended September 30:

  September 30, 2011 September 30, 2010
  (millions of CDN $, except per share items)
Property revenue
Sale of properties developed for resale
Total revenues and other gains
31.6
5.8
23.4
27.5
2.5
30.8
Net operating income
Net income (loss)
Basic earnings per share
Diluted earnings per share
25.8
(70.0)
(1.95)
(1.95)
21.3
0.1
(0.04)
(0.04)
Funds from operations, net of the sale of properties developed for resale
Funds from operations per share
(2.9)
(0.14)
(2.5)
(0.13)
The financial statements and related documentation are available on the System for Electronic Document Analysis and Retrieval (SEDAR), at www.sedar.com.

About Homburg Invest  
Homburg Invest owns and develops a diversified portfolio of quality commercial real estate including office, retail, industrial and development properties throughout Europe and the United States, as well as an interest in CANMARC Real Estate Investment Trust. 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 intentions 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. 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

For further information:

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

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