IAT Air Cargo Facilities Income Fund announces fourth quarter and full year 2006 results and declares first quarter 2007 distribution to unitholders



    RICHMOND, BC, March 14 /CNW/ - IAT Air Cargo Facilities Income Fund (the
"Fund") (TSX: ACF.UN), a limited purpose trust that owns all of the shares of
International Aviation Terminals Inc. ("IAT"), which owns and leases air cargo
and aviation related buildings at Canadian airports in Vancouver, Calgary,
Edmonton, Saskatoon and Winnipeg, today reported results for the fourth
quarter and full year 2006 and announced a distribution to unitholders.

    Consolidated financial results of the Fund and IAT for the fourth quarter
    and full year 2006
    For the fourth quarter of 2006, the Fund reported consolidated earnings
of $0.10 per unit, as compared to consolidated loss of $1.04 per unit for the
fourth quarter of 2005, which included net non-cash impairment charges of
$1.21 per unit. For the full year 2006, the Fund reported consolidated
earnings of $0.52 per unit, as compared to a consolidated loss of $0.92 per
unit for 2005. The loss incurred in the previous year was due to a non-cash
impairment charge of approximately $8.4 million net of future income tax
benefit in relation to the Fund's properties.

    Operating Results

    The Fund's portfolio of properties was 82.8% leased as of December 31,
2006, down 320 basis points from September 30, 2006, and an improvement of 220
basis points from December 31, 2005. The change in occupancy in the fourth
quarter is mainly a result of the expiration of a short-term lease opportunity
that IAT capitalized on earlier in the year. "We are very pleased that through
the aggressive marketing program we initiated in 2006, along with improved
market fundamentals and increasing demand from our customers, average
occupancy for the Fund's portfolio of properties for the year improved 450
basis points to 84.2% from 79.7% in 2005," noted Michael A. Coke, IAT's
president and CEO.
    For the full year 2006, lease revenues were $9.5 million, as compared to
$9.2 million for 2005. The improvement in lease revenues was due to a higher
average occupancy partially off-set by a lower average lease rate in 2006 of
$9.40 per square foot, as compared to an average of $9.70 per square foot in
2005.

    First Quarter 2007 Distribution

    A distribution of $0.17 per unit will be paid on April 13, 2007 to
unitholders of record on March 31, 2007. The distribution represents interest
income on the subordinated notes of IAT for the first quarter 2007 less
estimated administrative expenses of the Fund, and is consistent with the
annual distribution rate for 2007 of $0.68 per unit (a quarterly rate of $0.17
per unit) established by the Trustees of the Fund in December 2006.

    Supplemental Earnings Measures

    For the fourth quarter of 2006, earnings before interest, income taxes,
amortization, impairment charges, accretion and minority interest's share of
earnings ("Adjusted EBITDA") were $1.8 million ($0.26 per unit), as compared
to $1.7 million ($0.25 per unit) for the same period in 2005. For the full
year 2006, Adjusted EBITDA was $7.4 million ($1.06 per unit), as compared to
$6.9 million ($1.02 per unit) in 2005.
    For the fourth quarter of 2006, funds from operations ("FFO") was
$1.5 million ($0.21 per unit), as compared to $1.4 million ($0.20 per unit)
for the same period in 2005. For the full year 2006, FFO was $6.1 million
($0.87 per unit), as compared to $5.5 million ($0.82 per unit) in 2005.
    Adjusted EBITDA and FFO are not recognized appropriate earning measures
under Canadian generally accepted accounting principles ("GAAP"), and are not
construed as alternatives to earnings determined in accordance with GAAP, but
are considered useful supplemental indicators of the Fund's performance.
    Detailed definitions of Adjusted EBITDA and FFO, explanations as to why
management believes these are useful supplemental measures of operating
performance and reconciliations from net income to Adjusted EBITDA and FFO are
provided in the supplemental information package filed by the Fund at
www.sedar.com.

    IAT AIR CARGO FACILITIES INCOME FUND

    The Fund and IAT, the Fund's wholly-owned subsidiary, specialize in the
ownership, construction, management and marketing of aviation-related
facilities. IAT currently owns and manages approximately 1.1 million square
feet of air cargo and aviation related facilities at five of Canada's leading
international airports. Approximately 65% of the Fund and IAT's holdings are
located at Vancouver International Airport, Canada's second largest airport.

    CAUTION REGARDING FORWARD-LOOKING STATEMENTS: Forward-looking statements,
including statements with respect to expected distributions, cash flows,
revenues, earnings, capital expenditures, occupancy rates, growth rates,
ongoing business strategies or prospects. Adjusted EBITDA, possible future
Fund and IAT action and other measures are based on information available at
the time they are made, assumptions made by management, and management's good
faith belief with respect to future events, and are subject to the risks and
uncertainties outlined in the Fund's annual information form that could cause
actual performance or results to differ materially from those reflected in the
forward-looking statements, historical results or current expectations. All
forward-looking statements may be affected by and are subject to the risks set
out under Risk Factors in the Fund's annual information form.





For further information:

For further information: IAT CONTACT: Michael A. Coke, President & Chief
Executive Officer, International Aviation Terminals Inc., Direct (415)
733-9405, Fax (415) 477-2032, Email mcoke@amb.com

Organization Profile

IAT AIR CARGO FACILITIES INCOME FUND

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890