Homburg Invest Inc. announces June 30, 2008 financial results



    Shares issued: Class A - 155,578,911 Class B - 31,514,782

    HALIFAX, Aug. 8 /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 June 30, 2008 financial results prepared under both Canadian
Generally Accepted Accounting Principles (GAAP) and International Financial
Reporting Standards (IFRS). The complete June 30, 2008 financial results and
MD&A will be available for viewing and downloading from the corporation's web
site at www.homburginvest.com.
    The Company is pleased to announce a substantial increase in the results
both under IFRS and Canadian GAAP for the six months ended June 30, 2008.

    Increase in IFRS results:

    
    - Property revenue increased 60.2% to $152.1 million compared to June 30,
      2007.
    - Property net operating income (note) increased 42.4% to $112.2 million
      compared to June 30, 2007
    - Funds from operations per share (note) increased 72.2% to $0.31
      compared to June 30, 2007
    - Funds from operations (note) increased 137.0% to $56.1 million compared
      to June 30, 2007

    Increase in Canadian GAAP results:

    - Property revenue increased 59.3% to $151.2 million compared to June 30,
      2007
    - Property net operating income (note) increased 41.3% to $111.4 million
      compared to June 30, 2007
    - Funds from operations per share (note) increased 70.0% to $0.34
      compared to June 30, 2007
    - Funds from operations (note) increased 138.8% to $62.2 million compared
      to June 30, 2007

    The Company prepares it's quarterly and annual statements under both GAAP
and IFRS. This reflects the Board's view that the IFRS presentation most
accurately reflects the financial position of a real estate investment
company, while at the same time the Company continues to comply with
requirements to produce its results under GAAP. This also reflects the
Company's desire to provide its shareholders with as much information as
possible in today's environment of continuing concerns with respect to
financial disclosure in the market place.
    The most significant differences between IFRS and GAAP statements are that
while the IFRS statements reflect the investment properties at fair value and
are without depreciation charges, the GAAP statements record the fixed assets
at historical cost less accumulated depreciation. In addition, deferred
charges relating to leasing fees have been recorded as an asset in the GAAP
financial statements and will be charged to expense over the period of the
related lease. These charges are written off in the period incurred under
IFRS.

    FINANCIAL HIGHLIGHTS - IFRS

    SECOND QUARTER ENDED JUNE 30, 2008

    (000's)                           Six Months    Six Months
                                           Ended         Ended
                                         June 30       June 30
                                            2008          2007      Increase

    Property revenue                 $   152,103   $    94,961          60.2%

    Property net operating income    $   112,212   $    78,796          42.4%

    Other revenue                    $   134,615   $    47,384

    Unrealized valuation changes         ($4,011)  $    25,093

    Net earnings                     $    34,563   $    48,578

    Earnings per share - basic
     and diluted                     $0.19/$0.18   $0.38/$0.35

    Funds from operations            $    56,084   $    23,665         137.0%

    Funds from operations per
     share - basic and diluted       $0.31/$0.30   $0.18/$0.17          72.2%


    FINANCIAL HIGHLIGHTS - IFRS

    SECOND QUARTER ENDED JUNE 30, 2008

    (000's)                                Three         Three
                                          Months        Months
                                           Ended         Ended
                                         June 30       June 30
                                            2008          2007      Increase

    Property revenue                 $    77,290   $    54,925          40.7%

    Property net operating income    $    56,972   $    42,976          32.6%

    Other revenue                    $    49,672   $    27,076

    Unrealized valuation changes         ($3,389)  $    16,538

    Net earnings                     $    16,709   $    29,598

    Earnings per share - basic
     and diluted                     $0.09/$0.09   $0.22/$0.20

    Funds from operations            $    25,828   $     9,114         183.4%

    Funds from operations per
     share - basic and diluted       $0.14/$0.13   $0.07/$0.06         100.0%


    Property revenue for the second quarter is up 40.7% over the same quarter
in 2007 to $77.3 million. At the same time property net operating income (NOI)
increased to $57.0 million from $43.0 million, an increase of 32.6%.
    The positive aspects of the growth in our portfolio also manifest
themselves in our funds from operations ("FFO") which improved to
$25.8 million in the second quarter of 2008, up 183.4% from 2007's quarter
two. On an annualized basis this is a FFO of $0.62 per share, which is a FFO
payout ratio (note) of 77.4%. When the 50% participation in our dividend
reinvestment program is factored in, the cash outflow on our annual $0.48
dividend is $0.24, a FFO cash payout ratio of 38.7%.
    Shareholders' equity increased from $886.3 million at December 31, 2007 to
$886.7 million at June 30, 2008.

    FINANCIAL HIGHLIGHTS - GAAP

    SECOND QUARTER ENDED JUNE 30, 2008

    (000's)                           Six Months    Six Months
                                           Ended         Ended
                                         June 30       June 30
                                            2008          2007      Increase

    Property revenue                 $   151,241   $    94,961          59.3%

    Property net operating income    $   111,350   $    78,795          41.3%

    Other income                     $   141,054   $    50,047

    Realized gains on sale of
     property                        $       Nil   $     2,179

    Net earnings                     $    18,543   $    18,092

    Earnings per share - basic
     and diluted                     $0.10/$0.10   $0.14/$0.13

    Funds from operations            $    62,166   $    26,036         138.8%

    Funds from operations per
     share - basic and diluted       $0.34/$0.33   $0.20/$0.19          70.0%


    FINANCIAL HIGHLIGHTS - GAAP

    SECOND QUARTER ENDED JUNE 30, 2008

    (000's)                                Three         Three
                                          Months        Months
                                           Ended         Ended
                                         June 30       June 30
                                            2008          2007      Increase

    Property revenue                 $    76,879   $    54,925          40.0%

    Property net operating income    $    56,561   $    42,976          31.6%

    Other income                     $    48,731   $    29,666

    Net earnings                     $     9,325   $     9,490

    Earnings per share - basic
     and diluted                     $0.05/$0.05   $0.07/$0.07

    Funds from operations            $    28,532   $    11,485         148.4%

    Funds from operations per
     share - basic and diluted       $0.15/$0.15   $0.09/$0.08          66.7%


    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 Western 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 GAAP and Non IFRS Financial Measures

    This news release includes measures widely accepted within the real estate
industry which are not defined under CDN GAAP or IFRS. These measures include
Funds from Operations, Funds from Operations per share, Property Net Operating
Income, and Payout Ratio. As these are not defined measures under CDN GAAP or
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, stock based compensation, deferred and capital income
       taxes, unrealized and realized valuation changes, and unrealized
       foreign exchange gains; divided by the weighted average number of
       shares outstanding
    b) FFO payout ratio are presented by the Company as dividends per share
       divided by funds from operations per share
    c) FFO Cash payout ratio are presented by the Company as cash dividends
       per share divided by fund from operations per share
    d) Property Net operating income ("N0I") are presented by the Company as
       Property Revenue less Property Operating Expenses
    
    %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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