Huntingdon REIT Reports 2007 Third Quarter Results



    WINNIPEG, Nov. 9 /CNW/ - Huntingdon Real Estate Investment Trust
("HREIT") (TSX: HNT.UN) is pleased to report the financial results for the
quarter ended September 30, 2007. The following comments in regard to the
financial position and operating results of HREIT should be read in
conjunction with the 2007 Third Quarter Report and the financial statements
for the quarter ended September 30, 2007, which may be obtained from the HREIT
website at www.hreit.ca or the SEDAR website at www.sedar.com.

    
    2007 THIRD QUARTER HIGHLIGHTS

    Acquisition and Development

    -   Invested $56.7 Million in the acquisition of 14 properties and five
        parking lots, with 547,191 square feet of leasable area.

    -   Invested $7.4 Million in property improvements and leasing costs.

    -   Quarter ending portfolio consisting of 73 properties and five parking
        lots with a total leasable area of 5.4 million square feet.

    Financial

    Third quarter of 2007, compared to third quarter of 2006:

    -   Operating income increased by $2.0 Million or 21% in total and by
        $0.020 or 14.5% on a per unit basis.

    -   "Same property" operating income increased by $539,072 or 6.1% for
        the 50 properties which have been in the HREIT portfolio since
        July 1, 2006.

    -   Adjusted funds from operations (AFFO) increased by $824,898 or 21.8%
        in total and by $0.008 or 14.3% on a per unit basis.

    -   Quarter-ending occupancy rate for entire portfolio has reduced
        slightly to 92%, compared to 94% at September 30, 2006 and 93% at
        June 30, 2007.

    Capital Structure

    -   Weighted average interest rate on the aggregate mortgage loan balance
        decreased to 6.35% at September 30, 2007 compared to 6.71% at
        September 30, 2006.

    -   Mortgage loan debt to current estimated property value ratio of 51.9%
        at September 30, 2007.


    RESULTS OF OPERATIONS

    Financial and Operating Summary

                               Three Months Ended        Nine Months Ended
                           ------------------------  ------------------------
                             Sept. 30,    Sept. 30,    Sept. 30,    Sept. 30,
                                 2007         2006         2007         2006
                           --------------------------------------------------

    DISTRIBUTIONS
      Amount - total        5,036,172    4,736,940   15,087,263   14,178,741
             - per unit          0.07         0.07         0.21         0.21

    KEY PERFORMANCE
     INDICATORS

    Operating results
      Total revenue        19,145,432   16,199,803   55,237,709   40,024,400
      Operating income     11,345,613    9,356,326   32,146,807   22,954,514
      Income (loss) from
       continuing
       operations before
      income tax             (311,696)    (982,059)  (1,554,884)    (777,823)
      Income (loss) for
       the period            (182,521)    (177,179)   1,421,570       40,764

    Cash flows
      Cash inflow (outflow)
       from operating
       activities           3,695,769   (5,257,127)   8,980,646    7,401,841
      Funds from
       Operations (FFO)     4,723,576    3,749,954   12,952,885   10,451,966
      Adjusted Funds
       from Operations
       (AFFO)               4,604,137    3,779,239   12,472,869    8,351,309
      Distributable
       income               5,034,156    3,863,170   13,885,714   10,263,663

    Operations
      Quarter-ending
       occupancy rate                                     92.0%        93.0%
      Increase in same
       property operating
       income                 539,072

    Capital
     reinvestment
      Additions to building
       and equipment        4,904,385       71,245    7,766,878      247,445
      Lease acquisition
       costs                1,458,060      829,337    4,033,024    2,912,078
      Long term maintenance
       costs
        Recoverable           488,352      167,018      927,562      838,515
        Non recoverable       601,338      224,268      735,251      236,406
                           -----------  -----------  -----------  -----------
        Total               1,089,690      391,286    1,662,813    1,074,921
                           -----------  -----------  -----------  -----------
    Financing
      Mortgage loan
       debt ratio at
       quarter end                                        51.9%        60.4%
      Weighted average
       interest rate of
       long-term debt
       at quarter end                                     6.35%        6.71%



    PER UNIT AMOUNTS

                                                  Three Months Ended
                                      ---------------------------------------
                                          Sept. 30, 2007      Sept. 30, 2006
                                      ------------------- -------------------
                                        Basic    Diluted    Basic    Diluted
                                      --------- --------- --------- ---------
    Operating income                    0.158     0.158     0.138     0.138
    Income (loss) from continuing
     operations before income tax      (0.004)   (0.004)   (0.015)   (0.015)
    Income (loss) for the period       (0.003)   (0.003)   (0.003)   (0.003)
    Distributable income                0.070     0.070     0.057     0.057
    Funds from Operations (FFO)         0.066     0.066     0.055     0.055
    Adjusted Funds from
     Operations (AFFO)                  0.064     0.064     0.056     0.056


                                                   Nine Months Ended
                                      ---------------------------------------
                                          Sept. 30, 2007      Sept. 30, 2006
                                      ------------------- -------------------
                                        Basic    Diluted    Basic    Diluted
                                      --------- --------- --------- ---------
    Operating income                    0.449     0.448     0.340     0.340
    Income (loss) from continuing
     operations before income tax      (0.022)   (0.022)   (0.012)   (0.012)
    Income (loss) for the period        0.020     0.020     0.001     0.001
    Distributable income                0.194     0.194     0.152     0.152
    Funds from Operations (FFO)         0.181     0.181     0.155     0.155
    Adjusted FUnds from
     Operations (AFFO)                  0.174     0.174     0.124     0.124
    

    During the third quarter of 2007, HREIT achieved another strong period of
growth by adding $56.7 Million of new property acquisitions to its portfolio
and investing approximately $7.4 Million in leasehold and property
improvements. The ongoing investment initiatives of HREIT are reflected in the
positive operating results for the third quarter of 2007, as follows:

    
                              Increase Compared to the Third Quarter of 2006
    -------------------------------------------------------------------------
                                             Amount      Percent    Per Unit
                                        -------------------------------------

    Operating income                    $ 1,989,287       21.26%  $    0.020
    Funds from Operations (FF0)             973,622       25.96%       0.011
    Adjusted Funds from
     Operations (AFFO)                      824,898       21.83%       0.008
    Distributable income                  1,170,986       30.31%       0.013
    Same property operating income          539,072        6.06%       0.007

    Overall, operating results for the third quarter of 2007 were generally in
accordance with expectations, as follows:

    (i)    for the three and nine month period ended September 30, 2007,
           total revenue increased by $2,945,629 (18%) and $15,213,309 (38%)
           respectively, compared to corresponding periods in 2006. In
           comparison to the second quarter of 2007, total revenue increased
           by $755,098 (4%) during the third quarter of 2007;

    (ii)   for the three and nine month period ended September 30, 2007,
           operating income increased by $1,989,287 (21%) and $9,192,293
           (40%) respectively, compared to corresponding periods in 2006. In
           comparison to the second quarter of 2007, operating income
           increased by $402,790 (4%) during the third quarter of 2007; and

    (iii)  after excluding the income tax recovery of $2,836,740 which was
           recorded in 2007 as a result of new income tax legislation, HREIT
           incurred a loss from continuing operations for the three and nine
           month periods ended September 30, 2007, of $311,696 and $1,554,884
           respectively, compared to a loss of $982,059 and of $777,823 for
           the corresponding periods in 2006. The loss from continuing
           operations, excluding the income tax recovery, decreased by
           $49,956 in the third quarter of 2007, compared to the second
           quarter of 2007.
    

    During the third quarter 2007, FFO increased by $973,622 or 26.0%,
compared to the third quarter 2006, while AFFO increased by $824,898 or 21.8%.
On a per unit basis, FFO increased by $0.011 per unit, while AFFO increased by
$0.008 per unit. For the nine months comparative figures, FFO and AFFO
increased by $2,500,919 and $4,121,560, respectively in 2007, representing an
increase of $0.026 per unit for FFO and $0.050 per unit of AFFO.
    Distributable income increased by $1,170,986 or 30.3% during the third
quarter of 2007, compared to the third quarter of 2006. For the nine months
period ended September 30, 2007, distributable income increased by $3,622,051
or 35.3% compared to the corresponding period in 2006.

    
    Comparison to 2007 Second Quarter
    -------------------------------------------------------------------------
                                         Three Months Ended
                                     --------------------------
                                        Sept. 30,      June 30,     Increase
                                            2007          2007     (Decrease)
                                     ----------------------------------------
    Operating income                 $11,345,613   $10,942,823   $   402,790
    Financing expense                  6,111,699     5,940,419       171,280
                                     ------------  ------------  ------------
    Operating income, net of
     financing expense                 5,233,914     5,002,404       231,510
    Trust expense                        510,338       687,262      (176,924)
                                     ------------  ------------  ------------
    Income from continuing
     operations, before
     amortization                      4,723,576     4,315,142       408,434
    Amortization                       5,035,272     4,676,794       358,478
                                     ------------  ------------  ------------
    Income (loss) from continuing
     operations before income taxes     (311,696)     (361,652)       49,956
    Income tax recovery                  129,175     2,654,163    (2,524,988)
                                     ------------  ------------  ------------
    Income (loss) from continuing
     operations                         (182,521)    2,292,511    (2,475,032)
    Income (loss) from discontinued
     operations                                -       146,274      (146,274)
                                     ------------  ------------  ------------
    Income (loss)                    $  (182,521)  $ 2,438,785  $ (2,621,306)
                                     ------------  ------------  ------------
                                     ------------  ------------  ------------
    

    HREIT is a real estate investment trust, which is listed on the Toronto
Stock Exchange under the symbol HNT.UN. The objective of HREIT is to provide
Unitholders with stable cash distributions from investment in a geographically
diversified Canadian portfolio of quality commercial and industrial real
estate properties. There are currently 71,974,873 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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