Homburg Invest Inc. announces December 31, 2008 IFRS financial results



    Shares issued: Class A - 16,764,918 Class B - 3,149,839

    HALIFAX, April 22 /CNW/ - (TSX: HII.A & HII.B and NYSE Euronext
Amsterdam: HII)- Richard Homburg, Chairman and CEO of Homburg Invest Inc.
("Homburg Invest" or "the Company") is pleased to announce Homburg Invest has
released the December 31, 2008 financial results prepared under International
Financial Reporting Standards (IFRS). The complete December 31, 2008 financial
results and MD&A will be available for viewing and downloading from the
corporation's web site at www.homburginvest.com and at SEDAR at www.sedar.com.
    The Company is pleased to announce the results under IFRS for the year
ended December 31, 2008 (all figures in $CAD). The Company previously
announced on March 26, 2009 its results for the same period under Canadian
Generally Accepted Accounting Principles.

    
    Year Ended December 31, 2008:

    - Property revenue increased 47.1% to $310.5 million compared to December
      31, 2007
    - Property net operating income (note) increased 39.5% to $222.1 million
      compared to December 31, 2007
    - Funds from operations per share, (note) is $4.14
    - Funds from operations (note) is $82.1 million

    Three Months Ended December 31, 2008:

    - Property revenue increased 35.5% to $81.9 million compared to December
      31, 2007
    - Property net operating income (note) increased 41.5% to $54.1 million
      compared to December 31, 2007
    - Funds from operations per share (note) is $0.37
    - Funds from operations (note) is $7.3 million
    

    When comparing the fourth quarter and annual results from 2008 to 2007,
during the fourth quarter of 2007, the Company realized a profit of $56
million on the initial sale of the Homburg Harris property in Calgary,
Alberta.
    During 2008 the Company recorded an unrealized valuation change of $286
million, of this amount $274 million was a write down of the investment
properties.
    This is a write down of 7.7% of the assets based on December 2008
balances, or 8.3% based on December 2007.
    This write-off is consistent with that experienced by other real estate
companies reporting their results under IFRS.
    The resulting net yield (note) on the investment property assets of the
Company is 7.08%, which again is consistent with the net yield reported by
entities utilizing IFRS and operating in similar markets. This net yield by
the major markets of Homburg Invest Inc. is as follows:

    
            Canada                      7.25%
            The Netherlands             7.24%
            The Baltic States           7.08%
            Germany                     6.72%
            United States of America    7.63%

    Operationally, the occupancy levels remain strong with an overall weighted
average occupancy rate of 97.1% compared to 97.3% at December 31, 2007.
    Net asset value per share (note) at December 31, 2008 is $30.43

    Financial Highlights - IFRS
    Year ended December 31, 2008
    (000's)                                 Year          Year
                                           Ended         Ended
                                     December 31   December 31
                                            2008          2007      Increase

    Property revenue                 $   310,466   $   211,025          47.1%

    Property net operating income    $   222,052   $   159,171          39.5%

    Funds from operations            $    82,148   $    95,478

    Funds from operations per
     share - basic and diluted       $4.14/$4.14   $5.87/$5.59

    Net income (loss)                $  (276,653)  $   140,495


                                    Three Months  Three Months
                                           Ended         Ended
                                     December 31   December 31
                                            2008          2007      Increase

    Property revenue                 $    81,894   $    60,443          35.5%

    Property net operating income    $    54,083   $    38,221          41.5%

    Funds from operations            $     7,302   $    59,034
    Funds from operations per
     share - basic and diluted       $0.37/$0.37   $3.06/$2.98

    Net income (loss)                $  (302,065)  $    73,484
    

    The core operations of the Company, being the property operations, have
remained strong year over year as evidenced by the FFO. The net loss for the
year ended December 31, 2008, and in particular the fourth quarter of 2008, is
primarily related to significant non-cash expenses being incurred.
Specifically, during 2008 the Company has a goodwill impairment loss of $48.6
million; a negative exchange difference of $19.6 million; a fair value
adjustment on derivative instrument loss of $18.5 million; and a fair value
adjustment on held for trading financial assets of $23.1 million.
    Currently, Homburg Invest has $50.8 million of long term debt classified
as current on its balance sheet. Of this amount $13.3 million is the
maturities of conventional first mortgages, of which the company has already
renewed approximately $10 million, at interest rates substantially lower than
the rate on maturity. The remaining $37.5 million is the principal component
of monthly mortgage payments, of which the company would have already paid
approximately $12.0 million in the first four months of 2009.
    Homburg Invest Inc also has $102.4 million of construction financing
maturing in 2009, secured by $194.6 million in assets held for resale. The
company will either retire maturing debt through the ongoing sale of
condominium units from its development pipeline, or will renew the debt under
similar terms and conditions.
    Homburg Invest does not anticipate any problems in renewing, refinancing,
or paying out any debt maturing in 2009.

    Homburg Invest, with its head office in Halifax, Nova Scotia, owns and
develops a diversified portfolio of quality real estate including office,
retail, industrial and residential apartment and townhouse properties
throughout Canada, the United States and Europe.

    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 Toronto Stock Exchange 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, Net Asset Value per share, and Net Yield. 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
       amortization, non-recurring stock based compensation, deferred and
       capital income taxes, gain on sale of investment properties, net
       adjustments to fair value of investment properties, held for trading
       financial assets and derivative financial instruments and net exchange
       differences; divided by the weighted average number of shares
       outstanding.
    b) Property Net operating income ("N0I") is presented by the Company as
       Property Revenue less Property Operating Expenses.
    c) Net Asset Value per share is presented by the Company as Equity
       attributable to shareholders divided by the number of shares
       outstanding at year end.
    d) Net Yield is presented by the Company as normalized NOI divided by the
       carrying value of investment properties.
    
    %SEDAR: 00013330E




For further information:

For further information: Mr. Richard Homburg, Chairman and CEO, Homburg
Invest Inc., (902) 468-3395; J. Richard Stolle, President and COO, Homburg
Invest Inc., 31-20-573-3855

Organization Profile

Homburg Invest Inc.

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