- Huntingdon shares continue to trade well below implied IFRS Value
- IFRS methodology implies no value for Huntingdon's asset and property management platform
- Value add portfolio of 35 industrial, office, retail and aviation properties provides upside valuation potential
RICHMOND, BC, Feb. 19, 2014 /CNW/ - Huntingdon Capital Corp. ("Huntingdon" or the "Company") (TSX: HNT, TSX: HNT.DB andTSX: HNT.WT) announced today that Huntingdon's Board of Directors (the "Board") has approved a strategic review process aimed at enhancing shareholder value. The Board has initiated this process to address the persistent discount between Huntingdon's trading price and the Board's view of the Company's intrinsic value.
Trimaven Capital Advisors Inc. and Evercore Partners Canada Ltd. have been retained by Huntingdon to act as its financial advisors with regards to the process. The Board and its advisors will entertain all proposals and alternatives to enhance shareholder value including proposals to acquire or merge with the Company.
A recently established Special Committee chaired by Mr. Matt Goldfarb and comprised of all Huntingdon's independent directors will oversee the process. "The Company's primary objective since the 2009 merger of IAT Air Cargo Facilities Income Fund and Huntingdon Real Estate Investment Trust has been to deliver superior risk-adjusted returns to our shareholders. Since the merger we have improved operating margins through cost control and aggressive leasing programs, significantly de-leveraged our balance sheet, successfully brought to market the initial public offering of FAM Real Estate Investment Trust ("FAM REIT") which is now comprised of 26 stabilized properties vended in by the Company, established a profitable third-party management business and delivered a total return of approximately 176% to shareholders, " said Matt Goldfarb, Chairman of the Special Committee. "Despite these milestones, Huntingdon's shares continue to trade well below IFRS value and do not reflect the true value of Huntingdon's assets and management platform," added Mr. Goldfarb.
The Board and its advisors believe that Huntingdon's value-add portfolio of 35 industrial, office, retail and aviation-related properties (primarily in Western Canada with a gross leasable area of 2.7 million square feet) combined with the Company's approximate 29% interest in FAM REIT and its 10-year external management contract will provide a unique platform for potential process participants in both the U.S. and Canada.
Key highlights of Huntingdon today include:
- Market capitalization of approximately $120 million
- Cash balance of approximately $46 million
- Value-add, 2.7 million square foot, portfolio of 35 industrial, office, retail and aviation properties located throughout Canada
- IFRS value of $80 per square foot on the freehold portfolio, well below replacement cost
- Internalized asset and property management platform with over 60 employees
- 29% interest in FAM REIT, a diversified TSX-listed REIT with $270 million in gross assets
- 10-year initial term Management Agreement with FAM REIT
Shareholders are cautioned that there can be no assurance that the strategic review process will lead to any particular course of action or, if a transaction is undertaken, the terms or timing of such transaction.
About Huntingdon Capital Corp.
Huntingdon is a real estate operating company listed on the TSX (Common Shares: HNT; Debentures: HNT.DB; Warrants: HNT.WT). Huntingdon owns and manages a portfolio of 35 industrial, office, retail and aviation-related properties throughout Canada with a total gross leasable area of 2.7 million square feet. In addition, Huntingdon owns an approximate 29% interest in FAM REIT (TSX: F.UN, TSX:F.WT) and manages, on behalf of FAM REIT, a portfolio of 28 industrial, office, and retail properties throughout Canada with a gross leasable area of 1.8 million square feet.
About Trimaven Capital Advisors Inc.
Trimaven Capital Inc. ("Trimaven") is an independently owned real estate investment bank. Trimaven offers clients highly specialized advice in mergers and acquisitions, including hostile and special situations, corporate finance, private equity and real estate asset advisory. Trimaven's clients include public, private and corporate owners of real estate as well as investment management firms and hedge funds. With a reputation and expertise built over 40 years of experience as owners, managers and advisors, Trimaven is known for its deep industry knowledge, quality advice, and transaction execution capabilities. Trimaven's principals are accomplished advisors with significant transactional experience. Prior to forming Trimaven, the principals advised on over $30 billion of transactions during their tenures at other top-tier firms.
About Evercore Partners Canada Ltd.
Evercore Partners Canada Ltd. is an affiliate of Evercore Partners Inc. ("Evercore"), a leading independent investment banking advisory firm. Evercore's Investment Banking business advises its clients on mergers, acquisitions, divestitures, restructurings, financings, public offerings, private placements and other strategic transactions and also provides institutional investors with high quality equity research, sales and trading execution that is free of the conflicts created by proprietary activities. Evercore's Investment Management business comprises wealth management, institutional asset management and private equity investing. Evercore serves a diverse set of clients around the world from 20 offices in North America, Europe, South America and Asia. More information about Evercore can be found on the Company's website at www.evercore.com.
Cautionary Note Regarding Forward-Looking Statements
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.
SOURCE: Huntingdon Capital Corp.
For further information:
Trimaven Capital Advisors Inc.
Contact: Jeffrey Dean, Managing Director
Tel: (416) 602-6415
Email: [email protected]
Evercore Partners Canada Ltd.
Contact: Martin J. Cicco, Senior Managing Director
Tel: (212) 822-7576
Email: [email protected]