Huntingdon Capital Corp. Announces Q1 2012 Results

RICHMOND, BC, May 14, 2012 /CNW/ - Huntingdon Capital Corp. (the "Corporation" or "Huntingdon") (TSX: HNT, HNT.DB and HNT.WT) today announced first quarter 2012 results.

HIGHLIGHTS:

• Funds from operations ("FFO") increased by $1.4 million to $4.2 million ($0.32 per share) compared to the same period in 2011 despite fewer properties in the portfolio in 2012
• Occupancy decreased by 90 basis points to 85.0% compared to the same period in the prior year and 120 basis points from December 31, 2011
• Invested $1.1 million during the quarter in investment properties to attract new tenants and improve building operations
• Disposed of three investment properties during the quarter for net proceeds of $5.6 million
• Agreed to sell Ontario retail portfolio for net proceeds of $64.4 million representing a capitalization rate of 6.7% based on 2012 budgeted performance

SELECTED FINANCIAL INFORMATION
(unaudited)						For the three months ended
(stated in $000s except per share and % amounts)						Mar 31, 2012				Dec 31, 2011				Mar 31, 2011
Operations
Occupancy rate (period end)						85.0%				86.2%				85.9%
GLA (period end)						5,397,037				5,520,012				5,531,586
# of properties						73				76				77
Operating results
Revenue from investment property						$18,487				$18,529				$18,223
Net operating income ("NOI")^1						9,495				9,273				9,625
Funds from operations ("FFO")^2						4,195				5,840				2,747
Adjusted funds from operations ("AFFO")^3						2,940				5,320				433
Dividend payout ratio^4						26.5%				-				-
Financing
Interest coverage ratio						2.0x				1.9x				2.3x
Weighted average mortgage interest rate (period end)						5.44%				5.40%				5.38%
Debt to total assets ratio^5						53.1%				53.9%				56.2%
Per share amounts
NOI
Basic						$0.73				$0.69				$0.66
Diluted						$0.71				$0.68				$0.65
FFO
Basic						$0.32				$0.43				$0.19
Diluted						$0.32				$0.43				$0.19
AFFO
Basic						$0.22				$0.40				$0.03
Diluted						$0.22				$0.39				$0.03

Operations:

• Occupancy has decreased from the previous quarter and the comparative period in the prior year due to lease terminations in tertiary markets and the disposal of two fully leased properties.
• NOI of $9.5 million during the quarter was relatively consistent with $9.6 million in the comparative quarter in 2011 despite the sale of several properties. Strength in NOI is the result of increased parking revenues and improved recovery of property operating costs.
• FFO increased by $1.4 million to $4.2 million compared to $2.8 million in the same period in the prior year. The improvement in FFO is the result of the corporate conversion and the impact that it has on deferred income tax.

Financial position:

• Interest coverage improved to 2.0 times compared to 1.9 times in the previous quarter as a result of increased net operating income and lower finance costs.
• In February, management initiated a monthly dividend of 0.02 cents per share representing an annualized yield of 2.1% based on the May 11, 2012 closing price. The quarterly payout ratio is 26.5%.

Strategic Update:

• The closing of the sale of the Ontario retail portfolio is scheduled to occur at the end of Q2 2012.

Information appearing in this press release is a select summary of results.  The financial statements and management's discussion and analysis for the Corporation are available at www.huntingdoncapital.ca and on www.sedar.com

Footnotes

1. NOI is defined as revenue from investment properties less property operating expenses.
   
   
2. FFO is defined as net income, adjusted for deferred taxes, depreciation and amortization, realized gain or loss on sale of investment properties, and fair value adjustments on investment properties.
   
   
3. AFFO is defined as funds from operations adjusted for non-cash revenue, maintenance and growth capital expenditures, leasing expenditures and other non-cash operating expenses.
   
   
4. Stated as a percentage of dividends paid divided by AFFO for the period.
   
   
5. Debt to total assets is defined as mortgage debt and secured or convertible debentures at their maturity value divided by total assets at their fair value.

NOI, FFO and AFFO are not recognized as appropriate earning measures under IFRS, and are not construed as an alternative to earnings determined in accordance with IFRS, but are considered a useful supplemental indicator of the Corporation's performance.

Huntingdon is listed on the Toronto Stock Exchange under the symbols HNT (Shares), HNT.DB (Debentures), and HNT.WT (Warrants).  Huntingdon owns, directly or indirectly, 73 income producing office, industrial, retail and standalone parking lot properties, including aviation-related facilities at five of Canada's leading international airports with a total gross leasable area of 5.4 million square feet; and two land parcels held for development, with other development and expansion opportunities within the portfolio.

Forward-Looking Information:

Certain statements contained in this press release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of our tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest rate fluctuations. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations including, but not limited to, the risks detailed from time to time in Huntingdon's filings with Canadian provincial securities regulators, including its most recent annual information form and management's discussion and analysis. Huntingdon cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and Huntingdon does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by applicable law.

The Toronto Stock Exchange has not reviewed nor approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.

 

Zachary R. George, Director, President and Chief Executive Officer
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