Homburg Invest Inc. announces March 31, 2009 financial results



    Shares issued: Class A - 16,764,919 Class B - 3,149,839

    HALIFAX, May 14 /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 March 31, 2009 financial results prepared under both Canadian Generally
Accepted Accounting Principles (GAAP) and International Financial Reporting
Standards (IFRS). The complete March 31, 2009 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 both IFRS and
Canadian GAAP for the three months ended March 31, 2009.

    
    Increase in IFRS results:

    - Property revenue increased 7.8% to $80.6 million compared to March 31,
      2008
    - Property net operating income (note) increased 3.7% to $57.3 million
      compared to March 31, 2008
    - Funds from operations per share (note) were $0.55.
    - Funds from operations (note) were $11.0 million.

    Increase in Canadian GAAP results:

    - Property revenue increased 7.6% to $80.0 million compared to March 31,
      2008
    - Property net operating income (note) increased 4.4% to $57.2 million
      compared to March 31, 2008
    - Funds from operations per share (note) were $0.66.
    - Funds from operations (note) were $13.2 million.
    

    "Same Property" (properties owned throughout the entire comparative
reporting periods) N0I increased by 5.5% in the first quarter.
    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

    FIRST QUARTER ENDED MARCH 31, 2009

    (000's)                         Three Months  Three Months
                                           Ended         Ended
                                        March 31      March 31
                                            2009          2008      Increase

    Property revenue                     $80,640       $74,813           7.8%
    Property net operating income        $57,268       $55,240           3.7%
    Funds from operations                $10,980       $30,256
    Funds from operations per
     share - basic and diluted       $0.55/$0.55   $1.57/$1.53
    

    Property revenue for the first quarter is up 7.8% over the same quarter
in 2008 to $80.6 million. At the same time property net operating income (NOI)
increased to $57.3 million from $55.2 million, an increase of 3.7%.
    Shareholders' equity increased from $606.8 million at December 31, 2008
to $625.5 million at March 31, 2009.
    Net asset value per share (note) at March 31, 2009 under IFRS is $31.41.
    The current global capital and real estate markets are experiencing
significant and dramatic change. As a result, there has been a tightening of
access to capital for new debt as well as refinancing existing debt as it
matures. We believe we are well positioned to withstand this credit crisis as
only $74.0 million, or 2.6%, of our total long term debt is maturing over the
next 21 months to the end of 2010; and this maturing debt has a weighted
average interest rate of 7.51%. We have already secured refinancing on $8.0
million of the $11.0 maturing in 2009 at an effective interest rate of 6.3%.
    The Company has been very successful in the past in raising non-asset
backed debt financing and mortgage bond financing on the global market to the
extent of $700 million. The Company can continue to look to these unique
financing markets for additional funds.
    With the tightening of the capital markets, the Company feels it is
prudent to raise cash from various sources and is exploring various
alternatives such as partnering of deals, selling (a portion) of specific
projects, delaying start of development projects and the issue of new equity
bonds.
    Our objective is to further strengthen the balance sheet.

    
    FINANCIAL HIGHLIGHTS - GAAP

    FIRST QUARTER ENDED MARCH 31, 2009

    (000's)                         Three Months  Three Months
                                           Ended         Ended
                                        March 31      March 31
                                            2009          2008      Increase

    Property revenue                     $80,032       $74,362           7.6%
    Property net operating income        $57,195       $54,789           4.4%
    Funds from operations                $13,203       $33,634
    Funds from operations per
     share - basic and diluted       $0.66/$0.66   $1.74/$1.70
    

    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 Net Asset Value per share. 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
       depreciation and amortization, non-recurring stock based compensation,
       deferred and capital income taxes, unrealized and realized valuation
       changes, gain (loss) on financial instruments and derivatives, and
       unrealized foreign exchange gains(losses); 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
       Shareholders' Equity divided by the number of shares outstanding at
       period end.
    
    %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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