RICHMOND, BC, Aug. 9, 2012 /CNW/ - Huntingdon Capital Corp. (the "Corporation" or "Huntingdon") (TSX: HNT, HNT.DB and HNT.WT) today announced second quarter 2012 results.
- Funds from operations ("FFO") were $4.2 million ($0.32 per share), consistent with the previous quarter despite fewer properties within the portfolio;
- Occupancy decreased to 84.2% compared to the previous quarter due to vacancies in the Alberta and British Columbia ground-lease properties;
- Liquidity improved to over $30 million including cash and available lines of credit; and
- Significant improvement in capital structure as interest coverage increased to 2.3x and debt to total assets fell to 49.2%.
|SELECTED FINANCIAL INFORMATION|
|(unaudited)||For the three months ended|
|(stated in $000s except per share and % amounts)||Jun 30, 2012||Mar 31, 2012||Jun 30, 2011|
|Occupancy rate (period end)||84.2%||85.0%||84.7%|
|GLA (period end)||4,527,632||5,397,037||5,532,749|
|# of properties||68||73||74|
|Revenue from investment property||$17,611||$18,487||$17,549|
|Net operating income ("NOI")1||9,456||9,495||9,985|
|Funds from operations ("FFO")2||4,169||4,195||4,589|
|Adjusted funds from operations ("AFFO")3||4,083||2,940||3,369|
| Dividend payout ratio4
|Interest coverage ratio||2.3x||2.0x||2.2x|
|Weighted average mortgage interest rate (period end)||5.54%||5.44%||5.37%|
|Debt to total assets ratio5||49.2%||53.1%||54.0%|
|Per share amounts|
- Occupancy has decreased from the previous quarter and the comparative period in the prior year due to the departure of selected tenants at the Alberta and British Columbia ground-leased properties as some tenants consolidated leased areas;
- NOI was relatively consistent with the prior quarter despite the sale of the Ontario retail properties; and
- AFFO increased to $4.1 million from $2.9 million in the previous quarter due to lower general and administrative costs and fewer capital expenditures.
- Interest coverage improved to 2.3 times compared to 2.0 times in the previous quarter as a result of lower interest expense;
- Relative indebtedness decreased to 49.2% from 53.1% in the previous quarter due to the discharge of four mortgages relating to investment properties that are now pledged as security for the secured debentures; and
- Significant liquidity to pursue accretive opportunities as available cash resources grows to $30.1 million.
- Disposed of the Ontario retail portfolio for gross sale proceeds of $80.0 million. After adjusting for vendor financing of $23.7 million, mortgage discharges and other closing adjustments, net cash proceeds were $34.0 million. The terms of the secured vendor financing include an $18.7 million vendor take-back mortgage receivable bearing interest at 12.0% per annum and a $5.0 million receivable bearing interest at 5.5% per annum. The vendor take-back mortgage receivables mature in June 2013 and 2014 respectively.
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
|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, 68 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 4.5 million square feet; and two land parcels held for development, with other development and expansion opportunities within the portfolio.
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.
SOURCE: Huntingdon Capital Corp.
For further information:
Zachary R. George, Director, President and Chief Executive Officer
Tel: (604) 249-5119
Fax: (604) 249-5101