RICHMOND, BC, April 7 /CNW/ - Huntingdon Real Estate Investment Trust ("HREIT") (TSX: HNT.UN) today announces results of the fourth quarter and full year 2009.
Consolidated Financial Results for the Fourth Quarter and Full Year 2009
For the fourth quarter of 2009, HREIT reported a consolidated loss from continuing operations of $0.05 per unit, as compared to a consolidated loss of $0.06 per unit for the fourth quarter of 2008. For the full year 2009, HREIT reported a consolidated loss from continuing operations of $0.13 per unit, as compared to a consolidated loss of $0.10 per unit for 2008. The loss from continuing operations for 2009 increased from the prior year due to (i) a reduction in income tax recovery of approximately $0.4 million, (ii) higher property operating costs of approximately $2.8 million arising from higher leasing fees, increased bad debt expense, and higher utility and general maintenance costs.
During the year HREIT sold seven properties totalling 714,809 square feet of leasable area for gross proceeds of $107.3 million and net proceeds of approximately $33.1 million after transaction costs and repayment of related mortgage debt. The net proceeds from the sale of properties was a source of funds for the repayment of higher cost debt and the funding of leasehold improvements and property improvements.
The HREIT portfolio was approximately 83% leased as of December 31, 2009, down 600 basis points since September 30, 2009 and down 1000 basis points from December 31, 2008 due primarily to an increase in vacancy at various Ontario retail and industrial properties. In particular, the vacancy from International Trucking of 650 Riverview, Chatham, Ontario for approximately 219,000 sf represented about 480 basis points of the decline in occupancy.
For the fourth quarter 2009, total rental revenues from continuing operations were $13.7 million, down 7.8% from $14.9 million for the same quarter in 2008. For 2009, annual revenue from continuing operations was $58.0 million, as compared to $59.0 million for 2008 a decrease of 1.8%. The year-over-year decrease is due to a decline in occupancy over the second and third quarters of the year offset by increases in lease rates on renewals.
Supplemental Earnings Measures
For the fourth quarters of 2009 and 2008, funds from operations ("FFO") was a loss of $0.2 million, or $0.00 per unit and income of $0.6 million, or $0.01 per unit respectively. For the full year 2009, FFO was $5.3 million, or $0.07 per unit, as compared to $7.2 million, or $0.10 per unit, for 2008.
FFO is not recognized as an appropriate earning measure under Canadian generally accepted accounting principles ("GAAP"), and is not construed as an alternative to earnings determined in accordance with GAAP, but is considered a useful supplemental indicator of HREIT's performance. Detailed definition of FFO and explanations as to why management believes it is a useful performance measure are provided in the 2009 annual report filed by HREIT on SEDAR at www.sedar.com.
HREIT is a real estate investment trust which is listed on the Toronto Stock Exchange under the symbols HNT.UN (Trust Units) and HNT.DB.C (Series C Convertible Debentures). HREIT owns, directly or indirectly, 82 income producing office, industrial, retail and standalone parking lot properties, including the aviation-related facilities on ground leased land at five of Canada's leading international airports that have a total gross leasable area of 5.5 million square feet; two land parcels held for development and one property held for sale, with other development and expansion opportunities within the portfolio.
The Toronto Stock Exchange has not reviewed or approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.
SOURCE HUNTINGDON REAL ESTATE INVESTMENT TRUST
For further information: For further information: Zachary R. George, Trustee, President and Chief Executive Officer, Tel: (604) 249-5119, Fax: (604) 249-5101, Email: firstname.lastname@example.org