Homburg Invest Inc. Announces September 30, 2007 Financial Results and Completion of Sales



    
    Homburg Invest Inc.        TSX: HII.A & HII.B
                               AEX: HII

    Shares issued              Class A - 148,944,798; Class B - 31,514,782
    

    HALIFAX, Nov. 9 /CNW/ - Mr. Richard Homburg, Chairman and CEO is pleased
to report that Homburg Invest Inc. has released the September 30, 2007
financial results prepared under both Canadian Generally Accepted Accounting
Principles (CDN. GAAP) and International Financial Reporting Standards (IFRS),
and the completed sales results from its development pipeline in the fourth
quarter to date. The complete nine-month period financial results and MD&A can
be viewed and downloaded from the corporation's web site at
www.homburginvest.com.
    Homburg Invest Inc. realized during the first forty days of the
4th Quarter a record sales profit of approximately CAD $108.0 million before
taxes and a record net profit from the 3rd Quarter 2007 of CAD $67.0 million,
under IFRS, and a record sales profit of approximately CAD $145.0 before tax
in the first forty days of the 4th Quarter and a net profit of $15.2 in the
3rd Quarter of 2007, under CDN. GAAP.

    Sales results 4th Quarter 2007
    ------------------------------

    In the first forty days of the fourth quarter of 2007, the Company has
completed sales from its development pipeline, totaling approximately
$108.0 million before income taxes under IFRS and approximately $145.0 million
under CAD GAAP. This sales profit before taxes will add approximately $0.60
per share to year end results under IFRS and approximately $0.80 under CAD
GAAP and approximately 11.3% under IFRS and approximately 21.5% under CAD GAAP
to the Company's equity. These completed sales are from three condominium
projects and one office project. All projects are in Alberta, with the
exception of one condominium project in Prince Edward Island. The Company
expects to close more property sales in the 4th Quarter 2007 with an estimated
sales profit before taxes of $10.0 million. The Company is poised to continue
growing significantly under its strategic plan to expand its revenue base
while at the same time take advantage of development opportunities in Canada,
Europe and the United States.

    
    Substantial increase in its results until 3rd Quarter 2007.

    Increase in IFRS results:

        - Funds from operations increased 45.0% over the same nine month
          period in 2006.

        - Net earnings increased 57.4% over the same nine month period in
          2006.

        - Property revenue increased 88.7% over the same nine month period in
          2006.

        - Property net operating income increased 73.7% over the same nine
          month period in 2006.

    Increase in CDN. GAAP results:

        - Funds from operations increased 52.1% over the same nine month
          period in 2006.

        - Property net operating income increased by 71.9% over the same nine
          month period in 2006.

        - Property revenue increased by 86.5% over the same nine month period
          in 2006.

        - Shareholders' equity increased 79.7% in the first nine months of
          2007.

    The company prepares it's quarterly and annual statements under both CDN.
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 CDN. 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 CDN. GAAP statements are
that while the IFRS statements reflect the fixed assets at fair value based on
independent assessments and are without depreciation charges, the CDN. GAAP
statements record the fixed assets at historical cost less accumulated
depreciation.

    The operating results are summarized as follows under IFRS

    FINANCIAL HIGHLIGHTS - IFRS
    THIRD QUARTER ENDED SEPTEMBER 30, 2007
    (In thousands except for per share calculations)

                                     Nine Months   Nine Months
                                           Ended         Ended
                                    September 30  September 30
                                            2007          2006     Increase

    Property revenue                   $ 150,582      $ 79,820         88.7%
    Property net operating income      $ 120,950      $ 69,634         73.7%
    Other income                       $  58,134      $ 23,451
    Unrealized valuation change        $  40,903      $ 19,632
    Net earnings                       $  67,011      $ 42,569         57.4%
    Net earnings per share - basic     $    0.47      $   0.43
                           - diluted   $    0.45      $   0.41
    Funds from operations              $  38,741      $ 26,726         45.0%
    Funds from operations per share
      - basic                          $    0.27      $   0.27
      - diluted                        $    0.26      $   0.25


    FINANCIAL HIGHLIGHTS - IFRS
    THIRD QUARTER ENDED SEPTEMBER 30, 2007
    (In thousands except for per share calculations)

                                    Three Months  Three Months
                                           Ended         Ended
                                    September 30  September 30
                                            2007          2006     Increase

    Property revenue                   $  57,051      $ 37,697         51.3%
    Property net operating income      $  43,584      $ 33,780         29.0%
    Other income                       $  11,285      $  7,206
    Unrealized valuation change        $  15,810      $ 17,964
    Net earnings                       $  18,433      $ 23,778
    Net earnings per share - basic     $    0.11      $   0.21
                           - diluted   $    0.10      $   0.20
    Funds from operations              $  12,243      $  9,128         34.1%
    Funds from operations per share
      - basic                          $    0.07      $   0.08
      - diluted                        $    0.07      $   0.08


    IFRS net earnings for the third quarter of 2007 were $18.4 million or
$0.11 per share compared to $23.8 million in the third quarter of 2006 or
$0.21 per share. For the nine month period ended September 30, 2007, net
earnings are $67.0 million or $0.47 per share compared to $42.6 million or
$0.43 per share in 2006.
    Funds from operations for the third quarter of 2007 were $12.2 million or
$0.07 per share compared to funds from operations of $9.1 million in 2006 or
$0.08 per share. The strength of cash flow year over year is very evident in
the real estate operations. Net earnings and Funds from operations were
negatively impacted by costs associated with the acquisition of Alexis Nihon
REIT. The total nine month cost was $15.3 million, or $0.11 per share. This
consists of commitment fees of $9.3 million, and interest costs of
$6.0 million. The impact in the three months ended September 30, 2007, was
$3.5 million in commitment fees, and $156 thousand in interest costs, or $0.02
per share.
    The Company's total assets at September 30, 2007 were $3.1 billion for
IFRS purposes, up from $2.4 billion at December 31, 2006.
    Shareholders' equity has increased from $504.0 million at December 31,
2006 to $799.5 million at September 30, 2007.
    The Company expects a substantial increase in its net profit for the year
end 2007, over the $94.8 million or $0.92 per share earned in fiscal 2006.

    Financial Highlights - CDN. GAAP
    THIRD QUARTER ENDED SEPTEMBER 30, 2007
    (IN THOUSANDS EXCEPT FOR PER SHARE CALCULATIONS)

                                     Nine Months   Nine Months
                                           Ended         Ended
                                    September 30  September 30
                                            2007          2006     Increase
    OPERATING
    Property revenue                   $ 148,903      $ 79,820         86.5%
    Property net operating income      $ 119,691      $ 69,634         71.9%
    Realized gains on sale of property $   2,177      $  8,654
    Net earnings                       $  15,209      $ 17,468
    Earnings per share - basic         $    0.11      $   0.18
                       - diluted       $    0.10      $   0.17
    Funds from operations              $  40,649      $ 26,726         52.1%
    Funds from operations per share
      - basic                          $    0.28      $   0.27
      - diluted                        $    0.27      $   0.25


    FINANCIAL HIGHLIGHTS - CDN. GAAP
    THIRD QUARTER ENDED SEPTEMBER 30, 2007
    (IN THOUSANDS EXCEPT FOR PER SHARE CALCULATIONS)

                                    Three Months  Three Months
                                           Ended         Ended
                                    September 30  September 30
    OPERATING                               2007          2006

    Property revenue                   $  53,132      $ 37,697
    Property net operating income      $  40,895      $ 33,780
    Realized gain on sale of property                 $    856
    Net earnings (loss)                  ($2,883)     $  5,679
    Earnings (loss) per share
     - basic and diluted                  ($0.02)     $   0.05
    Funds from operations              $   8,065      $ 10,164
    Funds from operations per share
      - basic                          $    0.05      $   0.09
      - diluted                        $    0.05      $   0.08
    

    The net earnings and Funds from operations in the third quarter 2007, and
the nine months ended September 30, 2007 were impacted as previously discussed
in the IFRS numbers by the Alexis Nihon costs of $3.7 million for the three
months ended, and $15.3 million for the nine months ended September 30, 2007.
Other impacts on the CAD GAAP, in the quarter were $5.0 in stock based
compensation, and $3.0 loss on fair value decrease in investments. These
non-recurring items totaled $11.7 million or $0.07 per share for the three
months ended September 30, 2007 and $19.6 million or $0.14 per share.
    The Company's total assets at September 30, 2007 were $2.8 billion for
CDN. GAAP purposes, up from $2.2 million at December 31, 2006.
    Shareholders' equity increased from $314.9 million at December 31, 2006
to $565.9 million at September 30, 2007.
    The Company expects a substantial increase in its net profit under CDN.
GAAP for the year ended December 31, 2007, up from the $23.0 million or
$0.22 per share for the year ended December 31, 2006.

    Homburg Invest Inc., with its head office in Halifax, Nova Scotia, owns a
diverse portfolio of quality real estate 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.

    The Toronto Stock Exchange has neither approved nor disapproved of the
    information contained herein.
    %SEDAR: 00013330E




For further information:

For further information: Mr. Richard Homburg, Chairman and C.E.O., (902)
468-3395; Michael Arnold, CA, Vice Chairman, (902) 566-1153; Mr. J. Richard
Stolle, President and COO, 31-20-5733855; For information on Homburg Invest
Inc., visit our website at www.homburginvest.com.

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Homburg Invest Inc.

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