Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • Data Privacy
  • Français
  • my CNW 
    • Login
    • Register
  • Client Login 
    • Online Member Centre
    • Next Gen Communications Cloud
    • Cision Communications Cloud®
  • Sign Up
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
Advanced Search
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Canadian Federal Government
      • Canadian Municipal Government
      • Canadian Provincial Government
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

  • Advanced Search
  • Overview
  • Multichannel Amplification
  • Monitoring
  • Distribution
  • Multimedia
  • Guaranteed Paid Placement
  • AI Tools
  • IR
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Worldwide Offices
  • Hamburger menu
  • Cision Canada
  • Send a Release
  • FR
    • Phone

    • 877-269-7890 from 8 AM - 10 PM ET

    • ALL CONTACT INFO
    • Contact Cision

      877-269-7890
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • Overview
  • Multichannel Amplification
  • Monitoring
  • Distribution
  • Multimedia
  • Guaranteed Paid Placement
  • AI Tools
  • IR
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR

Artis Real Estate Investment Trust Releases Second Quarter Results and Provides Update on New Initiatives

Artis Real Estate Investment Trust (CNW Group/Artis Real Estate Investment Trust)

News provided by

Artis Real Estate Investment Trust

Aug 01, 2019, 16:00 ET

Share this article

Share toX

Share this article

Share toX

WINNIPEG, Aug. 1, 2019 /CNW/ - Today Artis Real Estate Investment Trust ("Artis" or the "REIT") issued its financial results and achievements for the three and six months ended June 30, 2019, and provided an update on its new initiatives announced on November 1, 2018, (the "New Initiatives").  The second quarter results in this press release should be read in conjunction with the REIT's consolidated financial statements and Management's Discussion and Analysis ("MD&A") for the period ended June 30, 2019.  All amounts are in thousands of Canadian dollars unless otherwise noted.

SECOND QUARTER HIGHLIGHTS

  • Increased FFO per unit by 12.5% to $0.36 for the quarter ended June 30, 2019, compared to $0.32 for the quarter ended June 30, 2018. Increased AFFO per unit by 12.5% to $0.27 for the quarter ended June 30, 2019, compared to $0.24 for the quarter ended June 30, 2018.

  • Stabilized Same Property NOI (which excludes properties planned for disposition and the Calgary office segment) in Canadian dollars increased 6.3% for the quarter ended June 30, 2019. Same Property NOI for the total portfolio increased 4.6% in Canadian dollars, or increased 2.9% in functional currency for the quarter ended June 30, 2019.

  • Weighted-average rental rate on renewals that commenced during the quarter ended June 30, 2019, increased 4.0%, excluding the Calgary office segment and increased 4.0% including the Calgary office segment.

  • Reported NAV per unit of $15.37 at June 30, 2019, compared to $15.55 at December 31, 2018.

  • Increased unencumbered assets, inclusive of properties held in joint venture arrangements, to $1.9 billion, compared to $1.8 billion at December 31, 2018.

  • Increased portfolio occupancy to 92.7% (94.7% including commitments) at June 30, 2019, compared to 92.0% at March 31, 2019.

  • Reduced the Calgary office segment to 6.1% of total Proportionate Share Property NOI for the quarter ended June 30, 2019, compared to 8.1% (7.3% excluding lease termination income) for the quarter ended June 30, 2018.

  • Reported Proportionate Share total long-term debt and credit facilities to GBV of 51.9% at June 30, 2019, compared to 50.6% at December 31, 2018, and reported Proportionate Share total debt and credit facilities to normalized EBITDA of 8.8 at June 30, 2019, compared to 9.0 at December 31, 2018.

  • Reported a Proportionate Share normalized EBITDA interest coverage ratio of 3.00 for the quarter ended June 30, 2019, compared to 3.02 for the quarter ended June 30, 2018.

  • Disposed of one office property in Calgary, Alberta, one retail property in Winnipeg, Manitoba, one office and three retail properties in Nanaimo, British Columbia, and two office properties in the Greater Denver Area, Colorado, for aggregate sale prices of $68.2 million and US$105.0 million, for a total of $208.7 million in Canadian dollars.

  • Acquired the remaining 15% interest in an office property in Calgary, Alberta, for total consideration of $3.0 million and the remaining 5% interest in an industrial property in the Greater Houston Area, Texas, for total consideration of US$4.7 million.

  • Completed the development of Park Lucero IV, a 95,000 square foot industrial property in the Greater Phoenix Area, Arizona. Completed the development of Cedar Port I and Park 8Ninety III, industrial properties in the Greater Houston Area, Texas, comprised of 519,000 and 33,000 square feet, respectively. All three completed development properties are 100% leased.

  • Utilized the normal course issuer bid ("NCIB") to purchase 3,753,481 common units and 81,400 preferred units at weighted-average prices of $11.03 and $21.17, respectively, for the quarter ended June 30, 2019.

SELECTED FINANCIAL INFORMATION








Three months ended June 30,

$000's, except per unit amounts


2019


2018


% Change







Revenue


$

133,928


$

126,140


6.2%

Property NOI


80,533


75,888


6.1%

Net income


19,872


74,975


(73.5)%

Total comprehensive (loss) income


(10,758)


103,235


(110.4)%

Distributions per common unit


0.14


0.27


(48.1)%







FFO (1)


$

51,909


$

48,807


6.4%

FFO per unit (1)


0.36


0.32


12.5%

Normalized  FFO (1)


51,909


48,807


6.4%

Normalized FFO per unit (1)


0.36


0.32


12.5%

Normalized FFO payout ratio (1)


38.9%


84.4%


(45.5)%







AFFO (1)


$

39,370


$

36,304


8.4%

AFFO per unit (1)


0.27


0.24


12.5%

Normalized  AFFO (1)


39,370


36,304


8.4%

Normalized AFFO per unit (1)


0.27


0.24


12.5%

Normalized AFFO payout ratio (1)


51.9%


112.5%


(60.6)%







Six months ended June 30,

$000's, except per unit amounts


2019


2018


% Change








Revenue


$

267,475


$

251,909


6.2%

Property NOI


159,011


150,853


5.4%

Net income


45,228


125,697


(64.0)%

Total comprehensive (loss) income


(15,266)


188,467


(108.1)%

Distributions per common unit


0.27


0.54


(50.0)%








FFO (1)


$

102,193


$

91,154


12.1%

FFO per unit (1)


0.70


0.60


16.7%

Normalized FFO (1) (2)


102,193


99,571


2.6%

Normalized FFO per unit (1) (2)


0.70


0.65


7.7%

Normalized FFO payout ratio (1) (2)


38.6%


83.1%


(44.5)%








AFFO (1)


$

76,977


$

65,884


16.8%

AFFO per unit (1)


0.53


0.43


23.3%

Normalized AFFO (1) (2)


76,977


74,301


3.6%

Normalized AFFO per unit (1) (2)


0.53


0.49


8.2%

Normalized AFFO payout ratio (1) (2)


50.9%


110.2%


(59.3)%









(1) Represents a non-GAAP measure.  Refer to the Notice with Respect to non-GAAP Measures.

(2) Calculated after excluding a non-recurring pension liability adjustment and non-recurring property management termination fees in Q1-18.

LIQUIDITY AND LEVERAGE





$000's, except per unit amounts

June 30,

2019


December 31,

2018







Fair value of investment properties

$

5,210,881


$

5,381,894

Cash

94,597


66,143

Available on revolving term credit facilities

173,565


225,293

Proportionate Share fair value of unencumbered assets

1,871,620


1,847,443

NAV per unit

15.37


15.55







Proportionate Share secured mortgage and loans to GBV

29.5%


30.6%

Proportionate Share total long-term debt and credit facilities to GBV

51.9%


50.6%

Proportionate Share total long-term debt and credit facilities to normalized EBITDA


8.8



9.0

Proportionate Share unencumbered assets to unsecured debt

1.5


1.6







Proportionate Share normalized EBITDA interest coverage ratio

3.00


3.04

Weighted-average effective interest rate on Proportionate Share mortgages and other loans

4.26%


4.30%

Weighted-average term to maturity on Proportionate Share mortgages and other loans (in years)

2.9


3.3

Unhedged Proportionate Share variable rate mortgage debt as a percentage of total debt

18.0%


18.1%

PORTFOLIO ACTIVITY

Acquisitions

On May 15, 2019, the REIT acquired the remaining 15% interest in the Centre 70 Building, an office property located in Calgary, Alberta, for total consideration of $3.0 million.

On May 16, 2019, the REIT acquired the remaining 5% interest in Park 8Ninety I, an industrial property located in the Greater Houston Area, Texas, for total consideration of US$4.7 million.

Dispositions

During Q2-19, Artis sold the following properties:














Owned share




Property


Disposition


of GLA (000's



Property

Count

Location

date

Asset Class

of S.F.)


Sale Price









169 Inverness Drive West I & II

1

Greater Denver Area, CO

April 9, 2019

Office

119


$ US

27,000

Reenders Square

1

Winnipeg, MB

May 21, 2019

Retail

66


20,550

Britannia Building

1

Calgary, AB

May 22, 2019

Office

134


10,650

Nanaimo Portfolio

4

Nanaimo, BC

June 17, 2019

Office / Retail

112


37,038

1700 Broadway

1

Greater Denver Area, CO

June 27, 2019

Office

394


US

78,000

During Q2-19, Artis repaid mortgage debt related to the disposition of the above properties in the amount of US$56.6 million.

LIQUIDITY AND CAPITAL RESOURCES

At June 30, 2019, Artis had $94.6 million of cash on hand and $173.6 million available on its revolving term credit facilities.  Liquidity and capital resources will be impacted by financing activities, portfolio acquisition and disposition activities, debt repayments and unit purchases under the NCIB occurring subsequent to June 30, 2019.

NEW DEVELOPMENT ACTIVITY

Artis has numerous development projects in process.  The table below lists the ongoing projects and completion progress.  Additional information pertaining to each project can be found in the Q2-19 MD&A.











Owned share







of GLA (000's




Property

Location

Asset class

  of S.F.)


% Completed

% Committed (1)








Tower Business Center

Greater Denver Area, CO

Industrial

336


90.0%

69.0%

Park 8Ninety II

Greater Houston Area, TX

Industrial

543


80.0%

46.0%

330 Main

Winnipeg, MB

Retail

27


65.0%

90.0%

300 Main

Winnipeg, MB

Residential / Commercial

580


27.0%

0.0%








(1) Percentage committed is based on occupancy at June 30, 2019, plus commitments on vacant space.

FUTURE DEVELOPMENT PROGRAM

Artis has an extensive development pipeline, which consists of projects that are in the early planning stages to be developed over the next several years and projects that are being considered for future development.  These development projects are designed to create value for unitholders while improving the overall quality of Artis' portfolio.  Artis' pipeline consists of four development projects totalling up to approximately 1.5 million square feet of gross leasable area.

Additional information pertaining to these projects and Artis' future development initiatives can be found in the Q2-19 MD&A.

PORTFOLIO OPERATIONAL AND LEASING RESULTS

Occupancy at June 30, 2019, was 92.7% (94.7% including commitments on vacant space) compared to 91.4% at June 30, 2018, excluding properties held for redevelopment and new development projects.








Q2-19

Q1-19

Q4-18

Q3-18

Q2-18







Property NOI

$

80,533

$

78,478

$

77,259

$

76,211

$

75,888

Property NOI change (1)

2.6%

1.6%

1.4%

0.4%

1.2%







Same Property NOI change

4.6%

5.1%

2.7%

3.9%

(0.4)%

Stabilized Same Property NOI change

6.3%

5.7%

4.4%

5.1%

1.3%












(1) Property NOI has been impacted by acquisition, disposition and (re)development activity, foreign exchange and lease termination income.

Artis' portfolio has a stable lease expiry profile with 48.1% of gross leasable area expiring in 2023 or later and 28.9% of the remaining 2019 expiries renewed or committed to new leases at June 30, 2019.  Weighted-average in-place rents for the entire portfolio are $13.16 per square foot and are estimated to be 1.8% below market rents.  Information about Artis' lease expiry profile is as follows:














2019


2020


 

2021


2022


2023

& later












Expiring square footage


8.1%


12.5%


14.0%


9.7%


48.1%

Committed percentage


28.9%


26.5%


4.2%


3.2%


1.7%

In-place rents


$

13.13


$

13.40


$

13.16


$

11.28


$

13.48

Comparison of market to in-place rents


(1.4)%


4.6%


0.2%


2.4%


2.1%

Comparison of market to in-place rents
















excluding Calgary office segment


0.5%


4.8%


1.9%


2.2%


1.0%

UPDATE ON NEW INITIATIVES

In November 2018, we announced several new initiatives that are focused on improving our growth profile, strengthening our balance sheet and ensuring the REIT is best positioned for long-term and sustainable AFFO and NAV per unit growth.  These initiatives included revising the REIT's distribution, immediately and continually purchasing units under the NCIB, optimizing our portfolio by narrowing our focus to key assets in fewer markets, and pursuing high-yield, accretive development projects in our target markets that will improve the value and quality of our portfolio.

NCIB Activity

During the second quarter of 2019, we purchased 3,753,481 common units at a weighted-average price of $11.03, and 81,400 preferred units at a weighted-average price of $21.17 under our NCIB program.  From November 1, 2018 to June 30, 2019, we have purchased 12,901,220 common units at a weighted-average price of $10.48, and 189,500 preferred units at a weighted-average price of $20.95.

Property Dispositions

In November 2018, we announced our intention to sell between $800.0 million to $1.0 billion of non-core assets over the following three years.  In accordance with these initiatives, we have sold the following nine properties:







Owned share

Annualized





Property



Asset

of GLA (000's

Property

Capitalization

Sale

Fair

Property

count

Location

Disposition date

class

  of S.F.)

 NOI (1)

 rate

 price

value (2)











Centrepoint (3)

1

Winnipeg, MB

October 31, 2018

Office

52

$

1,479

6.00%

$

27,250

$

26,106

169 Inverness

1

Greater Denver

April 9, 2019

Office

119

(146)

N/A

36,113

46,590

Drive West I & II


Area, CO








Reenders Square

1

Winnipeg, MB

May 21, 2019

Retail

66

1,258

6.00%

20,550

18,315

Britannia Building

1

Calgary, AB

May 22, 2019

Office

134

(269)

N/A

10,650

10,101

Nanaimo Portfolio

4

Nanaimo, BC

June 17, 2019

Office

112

2,079

4.60%

37,038

36,621





/ Retail






1700 Broadway (4)

1

Greater Denver

June 27, 2019

Office

394

8,867

N/A

104,325

111,196



Area, CO



















9




877

$

235,926


$

235,926

$

248,929
















(1) Based on the annualized Property NOI reported for the quarter prior to disposition.

(2) Based on the fair value reported at the quarter prior to disposition.

(3) The REIT disposed of its 50% interest in Centrepoint, a property held under a joint venture arrangement.

(4) Property NOI for 1700 Broadway does not account for a large tenant that will be vacating in Q4-19. This tenant accounts for $7,578 of Property NOI (based on the annualized Property NOI reported for the quarter prior to disposition).

At June 30, 2019, we had 16 properties (plus two parcels of development land) classified as held for sale, including six office properties and 10 retail properties for a total fair value of $398.0 million.  Subsequent to June 30, 2019, we sold the GSA Professional Office Building located in the Greater Phoenix Area, Arizona for approximately $120.7 million.

The REIT will continue to provide updates on the New Initiatives as progress is made.

UPCOMING WEBCAST AND CONFERENCE CALL

Interested parties are invited to participate in a conference call with management on Thursday, August 1, 2019, at 4:30 p.m. CT (5:30 p.m. ET). In order to participate, please dial 1.416.764.8688 or 1.888.390.0546. You will be required to identify yourself and the organization on whose behalf you are participating.

Alternatively, you may access the simultaneous webcast by following the link from our website at www.artisreit.com/investor-link/conference-calls/ during or after the conference call and webcast. Prior to the webcast, you may follow the link to confirm you have the right software and system requirements.

If you cannot participate on Thursday, August 1, 2019, a replay of the conference call will be available by dialing 1.416.764.8677 or 1.888.390.0541 and entering passcode 938119#.  The replay will be available until Wednesday, September 2, 2020. The webcast will be archived 24 hours after the end of the conference call and will be accessible for 90 days.

Artis is a diversified Canadian real estate investment trust investing in office, retail and industrial properties.  Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and select markets in the United States.  As of June 30, 2019, Artis' commercial property comprises approximately 24.9 million square feet of leasable area.

During the three months ended June 30, 2019, Proportionate Share Property NOI by asset class, was approximately 52.2% office, 19.5% retail and 28.3% industrial.  Proportionate Share Property NOI by geographical region, was approximately 2.9% in British Columbia, 18.9% in Alberta, 6.4% in Saskatchewan, 12.9% in Manitoba, 11.4% in Ontario, 11.3% in Arizona, 19.9% in Minnesota, 8.8% in Wisconsin and 7.5% in U.S. - Other.

NOTICE WITH RESPECT TO NON-GAAP MEASURES

In addition to reported IFRS measures, the following non-GAAP measures are commonly used by Canadian real estate investment trusts as an indicator of financial performance.  "GAAP" means the generally accepted accounting principles described by the CPA Canada Handbook - Accounting, which are applicable as at the date on which any calculation using GAAP is to be made.  Artis applies IFRS, which is the section of GAAP applicable to publicly accountable enterprises.  These non-GAAP measures are not defined under IFRS and are not intended to represent operating profits for the period, or from a property, nor should any of these measures be viewed as an alternative to net income, cash flow from operations or other measures of financial performance calculated in accordance with IFRS.  Readers should be further cautioned that the following measures as calculated by Artis may not be comparable to similar measures presented by other issuers.

Proportionate Share

The REIT has properties held in its investments in joint ventures, which are accounted for using the equity method in its consolidated financial statements in accordance with IFRS.  Amounts presented on a Proportionate Share basis include Artis' interest in properties held in its joint ventures based on its percentage of ownership in these properties in addition to the amounts per its consolidated financial statements.  Management is of the view that presentation on a Proportionate Share basis is meaningful for investors as it is representative of how Artis manages its properties as well as certain operating and financial metrics.  Artis does not independently control its unconsolidated joint ventures, and the presentation of pro-rata assets, liabilities, revenue and expenses may not accurately depict the legal and economic implications of the REIT's interest in its joint ventures. 

Property Net Operating Income ("Property NOI")

Artis calculates Property NOI as revenues less property operating expenses such as utilities, repairs and maintenance and realty taxes.  Property NOI does not include charges for interest or other expenses not specific to the day-to-day operation of the REIT's properties.  Management considers Property NOI to be a valuable measure for evaluating the operating performance of the REIT's properties.

Interest Coverage Ratio

Artis calculates the interest coverage ratio by dividing the total of Property NOI and interest income, less corporate expenses by interest expense over the same period.  Management considers this ratio to be a valuable measure of Artis' ability to service the interest requirements on its outstanding debt.

Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") Interest Coverage Ratio

Artis calculates EBITDA as net income, adjusted for interest expense, transaction costs, income taxes and all non-cash revenue and expense items.  Management considers this ratio to be a valuable measure of Artis' ability to service the interest requirements on its outstanding debt.

Same Property NOI

Artis calculates Same Property NOI by including Property NOI for investment properties that were owned for a full quarterly reporting period in both the current and comparative year, and excludes properties held for (re)development and properties that are unconditionally sold.  Adjustments are made to this measure to exclude non-cash revenue items and other non-recurring revenue amounts such as lease termination income.  Management considers Same Property NOI to be a valuable measure for evaluating the operating performance of the REIT's properties due to changes in occupancy, rental rates and the recovery of property operating expenses and realty taxes.

Funds from Operations ("FFO")

Artis calculates FFO in accordance with the guidelines set out by the Real Property Association of Canada ("REALpac"), as issued in February 2019.  Management considers FFO to be a valuable recurring earnings measure for evaluating the REIT's operating performance as it adjusts net income for gains or losses that are not recurring in nature such as fair value gains or losses on investment properties.

Adjusted Funds from Operations ("AFFO")

Artis calculates AFFO in accordance with the guidelines set out by REALpac, as issued in February 2019.   Management considers AFFO to be a valuable recurring earnings measure for evaluating the REIT's operating performance.

FFO and AFFO Payout Ratios

Artis calculates FFO and AFFO payout ratios by dividing the distributions per common unit by diluted FFO per unit and diluted AFFO per unit, respectively, over the same period.  Management uses the FFO and AFFO payout ratios to measure the REIT's ability to pay distributions.

Debt to Gross Book Value ("GBV")

Artis calculates GBV based on the total consolidated assets of the REIT, adding back the amount of accumulated depreciation of property and equipment.  The REIT has adopted debt to GBV as an indebtedness ratio used to measure its leverage.

Debt to EBITDA Ratio

Artis calculates debt to EBITDA based on annualizing the current quarter's EBITDA as defined above and comparing that balance to Artis' total outstanding debt.  Management considers this ratio to be a valuable measure of Artis' leverage.

Net Asset Value ("NAV") per Unit

Artis calculates NAV per unit as its unitholders' equity, adjusted for the outstanding face value of its preferred units, divided by its total number of dilutive units outstanding.  Management considers this metric to be a valuable measure of the REIT's residual equity available to its common unitholders.

CAUTIONARY STATEMENTS

This press release contains forward-looking statements.  For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements.  Particularly, statements regarding the REIT's future operating results, performance and achievements, including the implementation of Artis' new initiatives, are forward-looking statements.  Without limiting the foregoing, the words "expects", "anticipates", "intends", "estimates", "projects", and similar expressions are intended to identify forward-looking statements.

Artis is subject to significant risks and uncertainties which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements.  Such risk factors include, but are not limited to, risks related to risks related to the implementation of Artis' new initiatives, risks associated with real property ownership, debt financing, foreign currency, credit and tenant concentration, lease rollover, availability of cash flow, general uninsured losses, future property acquisitions and dispositions, environmental matters, tax related matters, changes in legislation and changes in the tax treatment of trusts, cyber security, new or (re)developments, unitholder liability, potential conflicts of interest, potential dilution and reliance on key personnel.  Artis cannot assure investors that actual results will be consistent with any forward-looking statements and Artis assumes no obligation to update or revise such forward-looking statements to reflect actual events or new circumstances.  All forward-looking statements contained in this press release are qualified by this cautionary statement.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE Artis Real Estate Investment Trust

Mr. Armin Martens, President and Chief Executive Officer, Mr. Jim Green, Chief Financial Officer or Ms. Heather Nikkel, Vice-President - Investor Relations of the REIT at 204.947.1250

Related Links

http://www.artisreit.com

Modal title

Organization Profile

Artis Real Estate Investment Trust

    Also from this source

  • ARTIS REAL ESTATE INVESTMENT TRUST ANNOUNCES PUBLICATION OF 2024 ESG REPORT

  • ARTIS REAL ESTATE INVESTMENT TRUST ANNOUNCES QUARTERLY CASH DISTRIBUTION

  • ARTIS REAL ESTATE INVESTMENT TRUST ANNOUNCES MONTHLY CASH DISTRIBUTION

Contact Cision

  • 866-245-2317
    from 8 AM - 10 PM ET
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media

Products

  • Cision Communications Cloud®
  • Media Monitoring
  • Content Distribution
  • Multimedia Distribution
  • Measurement & Analytics
  • Investor Relations

About

  • About Cision Canada
  • About Cision
  • Media Partners
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Online Member Centre
  • Next Gen Communications Cloud
  • Cision Communications Cloud®
  • my CNW

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Centre
  • Next Gen Communications Cloud
  • Cision Communications Cloud
  • my CNW
877-269-7890
from 8 AM - 10 PM ET
  • Terms of Use
  • Information Security Policy
  • Site Map
  • Cookie Settings
  • Accessibility Statement
Copyright © 2025 CNW Group Ltd. All Rights Reserved. A Cision company.