/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
MONTREAL, Nov. 14, 2012 /CNW Telbec/ - Homburg Invest Inc. (NYSE
Euronext Amsterdam: HII) ("Homburg Invest" or the "Company") announced today its financial results for the third quarter ended
September 30, 2012. In compliance with National Instrument 51-102 of
the Canadian Securities Administrators, Management notifies readers
that the unaudited interim condensed consolidated financial statements
for the periods ended September 30, 2012 and September 30, 2011, have
not been reviewed by the Company's external auditors.
The Company remains under the Canadian Companies' Creditors Arrangement Act ("CCAA"), further to the extension of the CCAA protection granted to
Homburg Invest and certain of its affiliates on September 9, 2011, and
as amended, until December 14, 2012, at which time the matter will be
reviewed by the Court.
The extension provides Homburg Invest with additional time to further
develop a restructuring plan for the benefit of all stakeholders,
including its creditors. The CCAA process is carried out under the
supervision of the Superior Court, which appointed
Samson Bélair / Deloitte & Touche Inc. as independent monitor to
oversee proceedings (the "Monitor"). The Monitor provides oversight of
Homburg Invest's business and assists the Company in preparing its
All Courts applications and orders as well as a copy of the Monitor's
reports are posted by the Monitor on its website at the following
address: http://www.deloitte.com/ca/homburg-invest. The Monitor's contact information is also available on its website.
Consolidated Financial Results (ended September 30, 2012)
Property revenues from continuing operations were $29.4 million during
the third quarter ended September 30, 2012, compared to $31.6 million
for the same quarter in 2011 for a decrease of 2.2 million. The
average Canadian dollar foreign exchange rate versus the Euro was 6.5%
lower in the third quarter 2012 versus the same period for 2011, which
negatively impacted the results given that the majority of revenues are
earned in Euros.
Net operating income (NOI) was $24.2 million in the third quarter of
2012, compared to $25.8 million in the third quarter of 2011 for a
decrease of $1.6 million.
The Company incurred a loss before taxes from continuing operations for
the period ended September 30, 2012 of $22.1 million ($1.06 per share),
compared to loss before taxes of $70.3 million in the same period in
2011 ($1.98 per share), a favourable variance of $48.2 million.
Funds from operations (FFO) net of the sale of properties developed for
resale, was $8.0 million for the three month period ended September 30,
2012 compared to $(2.9) million for the same period in 2011, for a
positive variance of $10.9 million.
Key Financial Results for the Period Ended September 30, 2012:
September 30, 2012
September 30, 2011
(CDN $ thousands)
Sale of properties developed for resale
Total revenues and other gains
Gross income from operation
Net income (loss)
Loss from continuing operations
Net loss from continuing operations
Funds from operations, net of the sale of properties developed for
resale (CND $ millions)
The financial statements and related documentation are available on the
System for Electronic Document Analysis and Retrieval (SEDAR), at www.sedar.com and on Homburg Invest's website, at www.homburginvest.com.
About Homburg Invest
Homburg Invest owns and develops a diversified portfolio of commercial
real estate including office, retail, industrial and development
properties throughout Canada, Europe and the United States. The head
office of Homburg Invest is located in Halifax, Nova Scotia.
Forward Looking Statements
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 intention. 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. Additional information about
these assumptions and risks and uncertainties is contained in the
Company's filings with securities regulatory authorities, including the
latest annual information form of the Company, all of which are
available on SEDAR at www.sedar.com. The NYSE Euronext Amsterdam has neither approved nor disapproved of
the information contained herein.
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, and net asset value per share. 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
Funds from operations ("FFO") and FFO per share are presented by the
Company as net income (loss) from continuing operations adjusted for
unrealized and realized valuation changes, deferred and capital income
taxes, amortization of financing costs, change in provisions, gain or
loss on derivative financial instruments, accelerated accretion
expense, expenses related to CCAA filing, and net exchange differences;
divided by the weighted average number of shares outstanding.
Property net operating income ("NOI") is presented by the Company as
property revenue less property operating expenses.
SOURCE: HOMBURG INVEST INC
For further information:
NATIONAL Public Relations
Cohn & Wolfe
Tel 0031 (0)20 6768666