Homburg Invest Inc. Announces June 30, 2007 Financial Results



    
    Homburg Invest Inc.        TSX: HII.A & HII.B
                               AEX: HII

    Shares issued              Class A - 144,063,133; Class B - 31,514,782
    

    HALIFAX, Aug. 9 /CNW/ - Mr. Richard Homburg, Chairman and CEO is pleased
to report that Homburg Invest Inc. has released the June 30, 2007 financial
results prepared under both Canadian Generally Accepted Accounting Principles
(CDN. GAAP) and International Financial Reporting Standards (IFRS). The
complete three-month period financial results and Management, Discussion and
Analysis can be viewed and downloaded from the corporation's web site at
www.homburginvest.com.
    The company is pleased to announce a substantial increase in the
continuing operations results under IFRS and Canadian GAAP. These results
reflect the most profitable six months in the Company's history based on IFRS
and CDN GAAP reporting and the property revenue and property net operating
income from continuing operations reflect only a partial period for the
recently completed acquisition of Alexis Nihon REIT which occurred in stages
during the second quarter of 2007. The Company is now poised to grow
significantly under its strategic plan to expand its revenue base while at the
same time taking advantage of development opportunities in Canada, Europe and
the United States.

    
    Increase in results as prepared under IFRS:

    - Property revenue increased 125.4% to $95.0 million
    - Property net operating income increased 119.8% to $78.8 million
    - Net earnings from continuing operations increased 169.7 % to
      $50.7 million
    - Funds from operations increased 51.7% to the $26.7 million

    Increase in Canadian GAAP results:

    - Property revenue increased by 125.4% to $95.0 million
    - Property net operating income increased by 119.8% to $78.8 million
    - Net earnings from continuing operations increased by 71.2% to
      $20.2 million
    - Funds from operations increased 65.9% to $26.1 million

    Funds from operations in the three months and six months ended June 30,
2007 have been impacted by the financing of the acquisition of Alexis Nihon
REIT. Costs associated with the Bridge Loan that are impacting funds from
operations are $2.4 million in interest and $1.9 million in commitment fees
included in continuing operations; and $3.5 million in interest and
$3.7 million in commitment fees included in discontinued operations. The
impact of this $11.5 million is $0.09 per basic share and $0.08 per diluted
share for the three months ended June 30, 2007 and the six months ended June
30, 2007.

    The operating results are summarized as follows under IFRS and CDN GAAP.

    FINANCIAL HIGHLIGHTS - IFRS
    SECOND QUARTER ENDED JUNE 30, 2007

                                      Six Months    Six Months
                                           Ended         Ended
                                         June 30       June 30
                                            2007          2006      Increase

    Property revenue                    $ 94,961      $ 42,123         125.4%
    Property net operating income       $ 78,796      $ 35,854         119.8%
    Other income                        $ 46,332      $  9,182
    Unrealized valuation changes        $ 25,093      $  1,668
    Realized valuation changes          $  1,052      $  7,798
    Net earnings from continuing
     operations                         $ 50,670      $ 18,790         169.7%
    Net earnings per share from
     continuing operations
      - basic                           $   0.40      $   0.21
      - diluted                         $   0.37      $   0.19
    Funds from operations               $ 26,691      $ 17,598          51.7%
    Funds from operations per share
      - basic                           $   0.21      $   0.19
      - diluted                         $   0.19      $   0.18


    FINANCIAL HIGHLIGHTS - IFRS
    SECOND QUARTER ENDED JUNE 30, 2007
    (IN THOUSANDS EXCEPT FOR PER SHARE CALCULATIONS)

                                    Three Months  Three Months
                                           Ended         Ended
                                         June 30       June 30
                                            2007          2006      Increase

    Property revenue                    $ 54,925      $ 24,538         123.8%
    Property net operating income       $ 42,976      $ 21,599          99.0%
    Other income                        $ 27,076      $  5,922
    Unrealized valuation change         $ 16,538      $     75
    Net earnings from continuing
     operations                         $ 31,690      $  6,731         370.8%
    Net earnings per share from
     continuing operations
      - basic                           $   0.24      $   0.07
      - diluted                         $   0.22      $   0.07
    Funds from operations               $  9,508      $ 10,595
    Funds from operations per share
      - basic                           $   0.07      $   0.11
      - diluted                         $   0.07      $   0.10


    IFRS net earnings from continuing operations for the second quarter of
2007 were $31.7 million or $0.24 per share compared to $6.7 million in the
second quarter of 2006 or $0.07 per share. For the six-month period ended
June 30, 2007, net earnings from continuing operations are $50.7 million or
$0.40 per share compared to $18.8 million or $0.21 per share in 2006.
    Funds from operations for the second quarter of 2007 were $9.5 million or
$0.07 per share compared to funds from operations of $10.6 million in 2006 or
$0.11 per share. The stability of cash flow year over year is very evident in
the real estate operations.
    The Company's total assets at June 30, 2007 were $3.3 billion for IFRS
purposes, up from $2.4 billion at December 31, 2006.
    Shareholders equity under IFRS increased from $504.0 million at
December 31, 2006 to $765.2 million at June 30, 2007.


    Financial Highlights - CDN. GAAP
    SECOND QUARTER ENDED JUNE 30, 2007

                                      Six Months    Six Months
                                           Ended         Ended
                                         June 30       June 30
                                            2007          2006      Increase
    OPERATING
    Property revenue                    $ 94,961      $ 42,123         125.4%
    Property net operating income       $ 78,796      $ 35,854         119.8%
    Other income                        $ 50,047      $  9,182
    Realized gains on sale of property  $  2,179      $  7,798
    Net earnings from continuing
     operations                         $ 20,184      $ 11,789          71.2%
    Earnings per share
      - basic                           $   0.16      $   0.13
      - diluted                         $   0.15      $   0.12
    Funds from operations               $ 26,086      $ 15,726          65.9%
    Funds from operations per share
      - basic                           $   0.20      $   0.17
      - diluted                         $   0.19      $   0.16


    FINANCIAL HIGHLIGHTS - CDN. GAAP
    SECOND QUARTER ENDED JUNE 30, 2007

                                    Three Months  Three Months
                                           Ended         Ended
                                         June 30       June 30
    OPERATING                               2007          2006      Increase

    Property revenue                    $ 54,925      $ 24,538         123.8%
    Property net operating income       $ 42,976      $ 21,599          99.0%
    Other income                        $ 27,863      $  5,420
    Realized gain on sale of property   $  1,803             -
    Net earnings from continuing
     operations                         $ 11,582      $  3,346         246.1%
    Earnings per share
      - basic                           $   0.09      $   0.04
      - diluted                         $   0.08      $   0.03
    Funds from operations               $  9,498      $  9,030
    Funds from operations per share
      - basic                           $   0.07      $   0.10
      - diluted                         $   0.07      $   0.09
    

    CDN GAAP net earnings from continuing operations for the second quarter
of 2007 were $11.6 million or $0.09 per share compared to $3.3 million in the
second quarter of 2006 or $0.04 per share. For the six-month period ended June
30, 2007, net earnings were $20.2 million or $0.16 per share compared to
$11.8 million or $0.13 per share in 2006.
    The results for the three months ended June 30, 2007 clearly demonstrates
the strength of the underlying continuing operations and the contribution to
earnings and funds from operations of the European acquisitions.
    Funds from operations for the second quarter of 2007 were $9.5 million or
$0.07 per share compared to funds from operations of $9.0 million in 2006 or
$0.10 per share. The stability of cash flow year over year is very evident in
the real estate operations.
    The Company's total assets at June 30, 2007 were $3.0 billion for
CDN GAAP purposes, up from $2.2 billion at December 31, 2006.
    Shareholders equity under CAD GAAP increased from $314.9 at December 31,
2006 to $548.4 million at June 30, 2007.
    The company prepares it's quarterly and annual statements under both CDN
GAAP and IFRS. This reflects the Board's view that the IFRS presentation most
accurately reflects the financial position of a real estate investment
company, while at the same time the company continues to comply with
requirements to produce its results under CDN GAAP. This also reflects the
company's desire to provide its shareholders with as much information as
possible in today's environment of continuing concerns with respect to
financial disclosure in the market place.
    The most significant differences between IFRS and CDN GAAP statements are
that while the IFRS statements reflect the investment properties at fair
market value and are without depreciation charges, the GAAP statements record
the fixed assets at historical cost less accumulated depreciation. In
addition, deferred charges relating to leasing fees have been recorded as an
asset in the GAAP financial statements and will be charged to expenses over
the period of the related lease. These charges are written off in the period
incurred under IFRS.
    Homburg Invest, with its head office in Halifax, Nova Scotia, owns and
develops a diversified portfolio of quality real estate including office,
retail, industrial and residential apartment and townhouse properties
throughout Canada, the United States and Europe.

    The Toronto Stock Exchange has neither approved nor disapproved of the
    information contained herein.
    %SEDAR: 00013330E




For further information:

For further information: Mr. Richard Homburg, Chairman and C.E.O., (902)
468-3395; Michael Arnold, CA, Vice Chairman, (902) 566-1153; For information
on Homburg Invest Inc., visit our website at www.homburginvest.com

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Homburg Invest Inc.

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