Overland announces first quarter 2010 results

HALIFAX, Dec. 22 /CNW/ - (TSXV - OVL) Overland Realty Limited (the "Company" or "Overland") announced today its financial results for the first quarter ended October 31, 2009. The following highlights should be read in conjunction with the Company's Financial Statements and Management Discussion and Analysis for the quarter, which are available on the Company's website - www.overlandrealty.ca or on SEDAR.

Quarterly Highlights

    - The Company achieved a 5% increase in cash flow from operating
      activities in the quarter compared to the same quarter in the previous
      fiscal year with $640,564 in cash flow generation versus $608,932.

    - Property Net Operating Income (NOI) was $1.613 million in the quarter,
      a 2.54% increase over the comparable quarter last year.

    - Occupancy levels remained strong at 96.2% with a very good tenant
      retention ratio of 100% along with a 5.0% weighted average rental
      increase from renewing tenants.

    - Completed a private placement of Common Stock in the quarter for gross
      proceeds of $4.487 million at $0.50/share.

    - With the proceeds from the private placement the Company repaid the
      outstanding Term Loan in full and subsequent to quarter end the Company
      repaid both the Note Payable and the short-term bank indebtedness.

    - With the repayment of the debt noted above Overland's remaining
      long-term debt is all secured first-mortgage debt held almost
      exclusively by conventional mortgage lenders with only one mortgage of
      $1.9 million maturing between now and the end of fiscal 2012.

"With the successful completion of the private placement and the repayment of the Term Loan and Note Payable the Company has significantly reduced its long-term debt and has successfully created a capital structure that will allow for future growth." said Scott Armour McCrea, President and CEO. "At the same time our leasing remains strong and the properties are continuing to generate sold NOI and cash flow growth."


    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------
                                                    Quarter Ended October 31
    In $000's (except Per Share Amounts)                    2009        2008
    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------
    Total Revenue                                          2,622       2,669
    Property Net Operating Income (NOI)                    1,614       1,592
    EBITDA                                                 1,348       1,366
    Recurring Funds from Operations (FFO)                    379         509
    Recurring Adjusted Funds from Operations (AFFO)          533         462
    ----------------------------------------------- -------------------------
    Per Share Amounts ($'s/share)
    Recurring FFO - basic                                  0.014       0.020
    Recurring FFO - diluted                                0.014       0.020
    Recurring AFFO - basic                                 0.020       0.018
    Recurring AFFO - diluted                               0.019       0.018
    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------

    ----------------------------------------------- -------------------------
                                                      October 31     July 31
    OTHER DATA (In $000's)                                  2009        2009
    ----------------------------------------------- -------------------------
    Gross Book Value (GBV) of Assets                      68,135      66,717
    Cash & Restricted Cash                                 3,214       1,430
    Total Assets                                          61,514      61,044
    Total Liabilities                                     50,671      54,201
    Shareholders Equity                                   10,843       6,843
    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------
    Weighted Average Remaining Lease Term (Years)           5.34        5.59
    Weighted Average Long Term Mortgage Rate                6.06%       6.06%
    Weighted Average Long Term Mortgage Expiry
     (Years)                                                4.55        4.80
    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------

Property rent revenue rose by just over 2.5% in the quarter on strong growth from renewing tenants, while Total Revenue was down slightly in Q1 2010 versus the similar quarter in 2010 on lower property management revenue. Property management revenue was in line with Managements expectations. With the inclusion of interest, depreciation and amortization, Overland incurred a Net Loss of $542,566 for the quarter ending October 31, 2009 versus a Net Loss of $329,742 in the first quarter of fiscal 2009. Total assets rose slightly from $61,044,122 at July 31, 2009 to 61,514,226 as cash flow generation and the proceeds from the private placement slightly exceeded debt repayment and amortization in the quarter.

Overland's, stable, long-term tenant roster is predominately leased to federal and provincial governments or credit quality covenants, with an average lease expiration of 5.34 years. The Company's long term mortgage portfolio is equally as stable, with only one mortgage of $1.9 million, maturing in the next two years.

About Overland

Overland Realty Limited is a TSX-V listed, real estate corporation based in Halifax, Nova Scotia. The company is focused on increasing shareholder value through the acquisition, development, and management of commercial properties in targeted Canadian markets, starting within Atlantic Canada. Further information on Overland can be found at www.overlandrealty.ca.

Forward Looking Information

This press release contains forward looking statements. Overland is subject to significant risks and uncertainties which may cause the actual results, performance or achievements of Overland to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Such risk factors include, but are not limited to, risks associated with real property ownership, availability of cash flow, general uninsured losses, future property acquisitions, environmental matters, tax related matters, debt financing, potential conflicts of interest, potential dilution, reliance on key personnel and the potential any disclosed acquisitions will not close. A description of these risk factors can be found in Overland's most recent Management Discussion and Analysis, which can be found at www.sedar.com. Overland cannot assure investors that actual results will be consistent with these forward looking statements and Overland assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.

Non GAAP Measures

Net Property Operating Income (NOI), Free funds from operations (FFO), Adjusted free funds from operations (AFFO) and EBITDA are not measures recognized under Canadian Generally Accepted Accounting Principles (GAAP). Overland's method of calculating these supplemental measures is detailed within our Management Discussion and Analysis and may vary from those standards utilized by similar issuers.

The Corporation has issued and outstanding 35,118,440 common shares.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


For further information: For further information: Scott McCrea, President & CEO, (902) 474-3000, information@overlandrealty.ca; www.overlandrealty.ca; Source: Overland Realty Limited

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