Huntingdon REIT reports 2007 operating results



    WINNIPEG, March 25 /CNW/ - Huntingdon Real Estate Investment Trust
("HREIT") (TSX: HNT.UN) is pleased to report the operating results for the
year ended December 31, 2007. The following comments in regard to the
financial position and operating results of HREIT should be read in
conjunction with the 2007 Annual Report and the financial statements for the
year ended December 31, 2007, which may be obtained from the HREIT website at
www.hreit.ca or the SEDAR website at www.sedar.com.

    
    2007 HIGHLIGHTS

    Acquisition and Development

    -   Invested $103 Million in the acquisition of 24 properties, with
        1,215,887 square feet of leasable area, and five parking lots.

    -   Invested $20.1 Million in property improvements and leasing costs.

    -   Year ending portfolio consists of 81 income producing properties with
        a total leasable area of 5.4 million square feet.

    Financial

    Compared to 2006:

    -   Net operating income increased by $11.1 Million or 34% in total and
        by $0.126 or 26.0% on a per unit basis.

    -   "Same property" operating income increased by $683,014 or 3.1% for
        the 40 properties which have been in the HREIT portfolio since
        January 1, 2006 and are not undergoing major redevelopment (Portage
        Place).

    -   Adjusted funds from operations (AFFO) increased by $3,858,146 or
        31.3% in total and by $0.043 or 23.5% on a per unit basis.

    -   Year ending occupancy rate for entire portfolio has remained
        relatively constant at 93%, compared to 94% at December 31, 2006.

    -   Payout ratio for distributable income of 109.8% in 2007, compared to
        128.8% in 2006.

    -   Operating margin for property portfolio remained relatively constant
        at 60% in 2007 compared to 59% in 2006.

    Capital Structure

    -   Weighted average interest rate on the aggregate mortgage loan balance
        decreased to 6.44% at December 31, 2007 compared to 6.79% at
        December 31, 2006.


    FINANCIAL AND OPERATING SUMMARY

                                                    Year Ended
                                    -----------------------------------------
                                       Dec. 31,      Dec. 31,      Dec. 31,
                                         2007          2006          2005
                                    ------------- ------------- -------------
    DISTRIBUTIONS
    Amount - total                    20,141,386    18,931,533    13,025,222
           - per unit                       0.28          0.28          0.21

    KEY PERFORMANCE INDICATORS

    Operating results
      Total revenue                   75,429,445    57,330,848    18,443,543
      Net operating income            43,863,357    32,764,623    10,117,412
      Income (loss) from continuing
       operations before income tax
       recovery (expense)             (3,015,872)     (926,988)      474,044
      Income (loss) from continuing
       operations                        739,992      (986,588)      474,044
      Income (loss) for the period       879,706       (74,682)      491,478

    Cash flows
      Cash inflow (outflow) from
       operating activities           10,954,940     9,505,080     6,637,066
      FFO                             16,862,026    14,518,877     5,285,624
      AFFO                            16,194,889    12,336,743     5,252,483
      Distributable income            18,352,504    14,700,094     5,779,916
    Operations
      Year end occupancy rate                93%           94%           93%
      Increase in same property
       operating income (excluding
       properties undergoing
       redevelopment)                         3%           N/A           N/A
      Capital reinvestment
      Additions to building
       and equipment                  11,736,248     1,908,769     1,816,690
      Lease acquisition costs          5,685,198     4,327,459       595,657
      Long term maintenance costs
        Recoverable                    1,991,664     1,718,230       160,772
        Non recoverable                  660,047       279,257             -
                                    ------------- ------------- -------------
        Total                          2,651,711     1,997,487       160,772
                                    ------------- ------------- -------------

    Financing
      Mortgage loan debt to gross
       book value ratio at year end        59.0%         65.3%         48.9%
      Weighted average interest
       rate of long-term debt
       at year end                         6.44%         6.79%         6.67%


    PER UNIT AMOUNTS

                                               Year Ended
                         ----------------------------------------------------
                           Dec. 31, 2007     Dec. 31, 2006     Dec, 31, 2005
                         ----------------  ----------------  ----------------
                          Basic   Diluted   Basic    Basic    Basic   Diluted
                         -------  -------  -------  -------  -------  -------
    Operating income      0.611    0.611    0.485    0.485    0.283    0.283
    Income (loss) from
     continuing
     operations           0.010    0.010   (0.015)  (0.015)   0.013    0.013
    Income (loss) from
     continuing
     operations before
     income tax recovery
     (expense)           (0.042)  (0.042)  (0.014)  (0.014)   0.014    0.014
    Income (loss) for
     the period           0.012    0.012   (0.001)  (0.001)   0.014    0.014
    Distributable income  0.256    0.256    0.217    0.217    0.162    0.162
    FFO                   0.235    0.235    0.234    0.234    0.147    0.147
    AFFO                  0.226    0.226    0.183    0.183    0.147    0.147
    


    In 2007, HREIT completed the third year of its initial growth phase and
has further progressed towards its primary investment goal of creating a large
diversified portfolio of quality commercial properties. After completing 2006
with approximately $140 Million in new property acquisitions, HREIT followed
up with over $100 Million of additional property acquisitions in 2007 and
invested approximately $20 Million in comprehensive leasehold and property
improvement programs. The ongoing growth in the asset base of the Trust and
the focus on value-added capital improvements is reflected in the revenue, NOI
and cash flow increases in 2007 as compared to 2006, as follows:

    
    -   Total revenue increased by approximately $18 Million or 32%.

    -   NOI increased by approximately $11 Million or 34%.

    -   Funds from Operations increased by approximately $2.3 Million or 16%
        ($0.02 and 9% on a per unit basis).

    -   Distributable income increased by approximately $3.7 Million or 25%
        ($0.038 or 17% on a per unit basis).
    

    Overall, HREIT completed 2007 with income of $879,706, compared to a loss
of $74,682 in 2006. After excluding future income tax recoveries (net of
expense), HREIT incurred a loss of $2,876,158 in 2007, compared to a loss of
$15,082 in 2006.
    The operational performance of the property portfolio in 2007 reflected
an increase in "same property" NOI of 3%, compared to 2006, and with the
overall occupancy level of the portfolio remaining relatively constant at 93%
in 2007, compared to 94% in 2006.
    The rapid growth of the HREIT property portfolio over the past three
years has, in large part, been fuelled by investment capital raised from the
issuance of trust units and convertible debentures. To a large extent, the
income returns on new property acquisitions and capital expenditures have
lagged behind the cost of the investment capital. In 2007, there was
improvement in this variance, with the increase in distributable income
out-pacing the increase in distributions paid by approximately $2.4 Million,
resulting in a distribution payout ratio of 110% for the year.

    
    Comparison to 2007 Third Quarter
    -------------------------------------------------------------------------
                                         Three Months Ended
                                    ---------------------------
                                       Dec. 31,     Sept. 30,      Increase
                                         2007          2007       (Decrease)
                                    -----------------------------------------
    Total revenues                  $ 20,191,736  $ 19,145,432  $  1,046,304
    Total operating and property
     management costs                  8,475,186     7,799,819       675,367
                                    ------------- ------------- -------------
    Net operating income              11,716,550    11,345,613       370,937
    Trust expenses                       671,036       510,338      (160,698)
                                    ------------- ------------- -------------
    Income before financing expense,
     amortization, discontinued
     operations and taxes             11,045,514    10,835,275       210,239
    Financing expense                  7,066,944     6,111,699      (955,245)
                                    ------------- ------------- -------------
    Income before amortization,
     discontinued operations
     and taxes                         3,978,570     4,723,576      (745,006)
    Amortization                       5,439,558     5,035,272      (404,286)
                                    ------------- ------------- -------------
    Income (loss) from continuing
     operations before future income
     tax recoveries                   (1,460,988)     (311,696)   (1,149,292)
    Income tax recoveries                919,124       129,175       789,949
                                    ------------- ------------- -------------
    Loss for the period             $   (541,864) $   (182,521) $   (359,343)
                                    ------------- ------------- -------------
                                    ------------- ------------- -------------
    


    HREIT is a real estate investment trust, which is listed on the Toronto
Stock Exchange under the symbol HNT.UN. HREIT owns 81 income producing
properties that have a total gross leaseable area of 5.4 million square feet.
The properties are located in Manitoba, Ontario, Saskatchewan, Alberta,
British Columbia and Northwest Territories. HREIT also owns a third party
property management business. The objective of HREIT is to provide Unitholders
with stable cash distributions from investment in a geographically diversified
Canadian portfolio of commercial real estate properties. There are currently
72,324,407 trust units outstanding. For further information on HREIT, please
visit our website at www.hreit.ca.

    This press release contains certain statements that could be considered
as forward-looking information. The forward-looking information is subject to
certain risks and uncertainties, which could result in actual results
differing materially from the forward-looking statements.

    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.





For further information:

For further information: Arni Thorsteinson, President & Chief Executive
Officer, or Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax:
(204) 452-5505, Email: info@hreit.ca

Organization Profile

HUNTINGDON REAL ESTATE INVESTMENT TRUST

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