RICHMOND, BC, March 10 /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 on land ground leased at Canadian airports in
Vancouver, Calgary, Edmonton, Saskatoon, and Winnipeg, today announced a
distribution to unitholders and reported results for the fourth quarter and
full year 2007.
The Trustees of the Fund and IAT's manager, AMB Property Canada Ltd.,
have reviewed the Fund's full-year 2008 business plan. The Trustees have
determined to continue a distribution rate for the first quarter of 2008 of
$0.17 per unit, reflecting the Fund's decision to retain cash in order to
continue to make significant investments in building and tenant improvements.
A distribution of $0.17 per unit is expected to be paid on April 15, 2008
to unitholders of record on March 31, 2008.
Consolidated financial results of the Fund and IAT for the fourth quarter
and full year 2007
For the fourth quarter of 2007, the Fund reported consolidated earnings
of $0.19 per unit, as compared to consolidated earnings of $0.10 per unit for
the fourth quarter of 2006. For the full year 2007, the Fund reported
consolidated earnings of $0.43 per unit, as compared to consolidated earnings
of $0.52 per unit for 2006.
The Fund's portfolio of properties was 86.8% leased as of December 31,
2007, as compared to 84.1% at September 30, 2007 and 82.8% at December 31,
For the full-year 2007, lease revenue was $9.4 million, as compared to
$9.5 million for 2006. The year-to-year decrease in lease revenue is due to a
lower average lease rate in 2007 of $9.34 per square foot, as compared to
$9.40 per square foot in 2006. "Due to both market conditions and our focus on
occupancy, as an inducement to lease, we extended free rent on space vacated
in late 2006, which had a temporary impact on the average lease rate in 2007,"
commented Alison M. Hill, IAT's President and CEO. "Average rent levels should
normalize, as the concessions come to an end."
Supplemental Earnings Measure
For the fourth quarter of 2007, earnings before interest, income taxes,
amortization, accretion and minority interest's share of earnings ("Adjusted
EBITDA") was $1.7 million or $0.24 per unit, as compared to $1.8 million or
$0.26 per unit for the same period in 2006. For the full year 2007, Adjusted
EBITDA was $7.0 million or $1.00 per unit, as compared to $7.4 million or
$1.06 per unit in 2006. Adjusted EBITDA is not a recognized measure under
Canadian generally accepted accounting principles ("GAAP"), and is not
construed as an alternative to earnings determined in accordance with GAAP,
but is a useful supplemental indicator of cash available for distribution
prior to mortgage debt payments, interest requirements on notes, amortization,
minority interest's share of earnings and income taxes. The Fund's method of
calculating Adjusted EBITDA may differ from other issuers and is not to be
construed as an alternative to earnings determined in accordance with GAAP.
Reconciliation from net income to Adjusted EBITDA is provided in the
quarterly 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 on land that is ground leased. 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,
renewal of ground and tenant leases, and 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: Alison M. Hill, President & Chief
Executive Officer, International Aviation Terminals Inc., Direct (415)
733-9499, Fax (415) 477-2199, Email email@example.com