Huntingdon Capital Corp. Announces Q3 2012 Results

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

HIGHLIGHTS:

• Funds from operations ("FFO") were $3.1 million ($0.24 per share) compared to $4.2 million ($0.32 per share) for the previous quarter. The decrease is attributable to the sale of the Ontario retail properties in Q2 2012;
• Occupancy nominally decreased to 84.1% from 84.2% as compared to the previous quarter due to the loss of some tenancies at ground-lease properties;
• Liquidity has remained strong at $27.1 million;
• Interest coverage ratio has remained consistent with the previous quarter at 2.3x; and
• Announced the exploration of converting to a diversified asset management company through the spin-off of the Corporation's stabilized assets into a newly formed real estate investment trust named FAM Real Estate Investment Trust ("FAM REIT");

SELECTED FINANCIAL INFORMATION
(unaudited)	For the three months ended
(stated in $000s except per share and % amounts)	Sept 30, 2012	Jun 30, 2012	Sept 30, 2011
Operations
Occupancy rate (period end)	84.1%	84.2%	85.4%
GLA (period end)	4,527,632	4,527,632	5,519,860
# of properties	68	68	76
Operating results
Revenue from investment property	$15,312	$17,611	$18,116
Net operating income ("NOI")^1	8,816	9,456	10,007
Funds from operations ("FFO")^2	3,055	4,169	3,321
Adjusted funds from operations ("AFFO")^3	2,172	4,083	2,375
Dividend payout ratio as a % of AFFO Financing	34.9%	18.8%	-
Interest coverage ratio	2.3x	2.3x	2.1x
Weighted average mortgage interest rate (period end)	5.36%	5.54%	5.37%
Debt to total assets ratio^4	50.0%	49.2%	53.9%
Per share amounts
NOI
Basic	$0.69	$0.73	$0.70
Diluted	$0.66	$0.71	$0.69
FFO
Basic	$0.24	$0.32	$0.23
Diluted	$0.23	$0.31	$0.23
AFFO
Basic	$0.17	$0.32	$0.17
Diluted	$0.16	$0.30	$0.16

Strategic Initiatives:

• On November 14, FAM REIT filed a preliminary prospectus in respect of an initial public offering of trust units. Management anticipates that FAM REIT will be launched in December 2012.
• Management agreed to sell the Calgary ground-leased properties to the Calgary Airport Authority. Huntingdon will be released of any obligations with respect to the ground lease as well as  any site restoration obligations; and
• Shortly after quarter-end, Huntingdon completed its substantial issuer bid ("SIB") which resulted in the purchase and cancellation of 1,132,075 shares; this resulted in an increase in the pro forma net book value per share of $0.17 per share based on the September 30, 2012 statement of financial position.

Operations:

• Occupancy decreased from the previous quarter due to the departure of selected tenants at the Alberta and British Columbia ground-leased properties;
• NOI has decreased due to the sale of five Ontario retail properties in June 2012; and
• AFFO decreased to $2.2 million from $4.1 million in the previous quarter due to the timing of higher capital expenditures during the current quarter.

Financial position:

• Interest coverage continued at a robust level at 2.3x; and
• Relative indebtedness as measured by debt to EBITDA improved to 6.1x from 6.8x the previous quarter.

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 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.

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.

 

SOURCE: Huntingdon Capital Corp.

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