Huntingdon Capital Corp. Announces Q1 2013 Results

RICHMOND, BC, May 14, 2013 /CNW/ - Huntingdon Capital Corp. (the "Corporation" or "Huntingdon") (TSX: HNT, HNT.DB and HNT.WT) announced its first quarter 2013 results.

KEY HIGHLIGHTS:

  • Increase in net book value per share of 2.1% to $15.71 per share as compared to $15.39 in the previous quarter;
  • Significant liquidity on-hand with approximately $48.6 million of available cash to fund acquisitions, invest in Huntingdon's portfolio or return capital to shareholders;
  • Completed a $6.0 million issuer bid increasing net book value by $0.10 per common share;
  • Same-property net operating income of $4.2 million was consistent with comparative period in prior year reflecting the stability of the properties; and
  • Strategic investment in FAM REIT strengthened operating performance during the quarter;
  • Hired key property and asset management personnel to support future growth of FAM REIT and our asset management platform.

       
SELECTED FINANCIAL INFORMATION       For the three months ended
(stated in $000s unless otherwise noted and except for
per share amounts)
    Mar 31, 2013 Mar 31, 20121
Same-property metrics        
Occupancy rate (period end)     76.6% 77.7%
Revenue from investment properties     $9,102 $8,952
Net operating income ("NOI")     4,157 4,230
Consolidated operating metrics        
Funds from operations ("FFO")     3,053 4,195
Adjusted funds from operations ("AFFO")     1,852 3,038
Dividend/AFFO payout ratio     36.5% 25.6%
Financing        
Weighted average mortgage interest rate (period end)     5.46% 5.44%
Weighted average term to maturity (years) (period end)     6.51 4.74
Interest coverage ratio2     2.0x 2.2x
Debt to total assets ratio3     37.8% 53.0%
Debt to EBITDA ratio4     4.35x 8.02x
Per share amounts        
  FFO        
    Basic     $0.27 $0.32
    Diluted     $0.25 $0.32
  AFFO        
    Basic     $0.16 $0.23
    Diluted     $0.15 $0.23


OPERATIONS:

  • On a same-property basis, core portfolio remains steady with a stable NOI of $4.2 million for the quarter compared to the same period in the prior year.
  • Compared to 2012, FFO decreased to $3.1 million due to a reduction in net operating income arising from the sale of certain assets to FAM REIT on December 28, 2012 and higher one-time professional fees associated with the KEYreit transaction. This decrease was partially offset by a number of factors, including lower interest costs, gains related to the investment in KEYreit, higher interest income earned on vendor take-back loans, as well as lower current income taxes.
  • Investment in FAM REIT yielded $0.5 million in distributions and gross fee revenue of $0.5 million during the quarter, which will increase as FAM REIT executes on its growth strategy.

CAPITAL STRUCTURE:

  • Interest coverage ratio continues to be strong and stable at 2.0 times coverage for the current quarter.
  • Conservative capital structure and strong financial position with debt to total assets ratio declining to 37.8%.

STRATEGIC UPDATE:

  • Completed a substantial issuer bid ("SIB"), which resulted in the purchase and cancellation of 463,320 shares resulting in an increase in the net book value per share of $0.10.
  • During the quarter, the Corporation made an all-cash offer to purchase all of the outstanding trust units of KEYreit. Although the minimum tender condition for the tender offer was not satisfied, the Corporation will be monetizing the $6.5 million investment related to the KEYreit trust units prior to June 30, 2013.

OUTLOOK:

Management is building out its asset and property management platform as FAM REIT grows its portfolio. Huntingdon recently opened its Toronto office and hired key personnel (Associate Director of Investments, Regional Property Manager, and Manager of Financial Reporting and Analysis) to support FAM REIT in executing accretive transactions and operating effectively.  On May 1, 2013, FAM REIT announced that it completed a $43.0 million investment property acquisition in Toronto.  This acquisition resulted in $0.5 million of transaction fees for Huntingdon. The transactional growth in FAM REIT will provide a source of recurring cash flow to Huntingdon.

Core portfolio properties continue to perform as planned as capital improvement programs and value-creation initiatives were implemented during the quarter. With significant liquidity and a strong balance sheet, Huntingdon is well positioned to create value for its shareholders.

Information appearing in this press release is a select summary of results.  The financial statements and management's discussion and analysis for the Corporation are available at www.huntingdoncapital.ca and on www.sedar.com

Footnotes

The results for the three months ended March 31, 2012 were retrospectively restated as a result of the adoption of IFRS 11, Joint Arrangements.
2 Interest coverage ratio does not have a standard meaning prescribed under IFRS and as such may not be comparable to similarly titled measures presented by other publicly traded entities.
3 Computed as total mortgages including mortgages related to assets held for sale adjusted for transaction costs plus secured debentures divided by total assets.
4 Earnings before interest, taxes, depreciation and amortization ("EBITDA") is defined as net income adjusted for income taxes, fair value adjustments to investments and investment properties, realized gains or losses on disposal of investment properties and finance costs. The amount is calculated on a trailing twelve-month basis. EBITDA is a supplemental non-IFRS financial measure of operating performance and is not defined under IFRS.  EBITDA as computed by the Corporation may differ from computations reported by other similar organizations and, accordingly, the ratio calculated above may not be comparable.


NOI, FFO and AFFO are not recognized as appropriate earning measures under IFRS, and are not construed as an alternative to earnings determined in accordance with IFRS, but are considered a useful supplemental indicator of the Corporation's performance.

Huntingdon is a real estate operating company listed on the TSX (Common Shares: HNT; Debentures: HNT.DB; Warrants). Huntingdon owns and manages a portfolio of 36 industrial, office, retail and aviation-related properties throughout Canada that have a total gross leasable area of 2.7 million square feet. In addition, Huntingdon owns a 30% interest in FAM REIT (TSX: F.UN, F.WT) and manages, on behalf of FAM REIT, a portfolio of 27 industrial, office, and retail properties throughout Canada that have a gross leasable area of 1.7 million square feet.

Forward-Looking Information:

Certain statements contained in this press release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of our tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest rate fluctuations. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations including, but not limited to, the risks detailed from time to time in Huntingdon's filings with Canadian provincial securities regulators, including its most recent annual information form and management's discussion and analysis. Huntingdon cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and Huntingdon does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by applicable law.

The Toronto Stock Exchange has not reviewed nor approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release. 

SOURCE: Huntingdon Capital Corp.

For further information:

Zachary R. George, Director, President and Chief Executive Officer
Tel: (604) 249-5119
Fax: (604) 249-5101
Email: zgeorge@huntingdoncapital.com

Profil de l'entreprise

Huntingdon Capital Corp.

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