IAT Air Cargo Facilities Income Fund announces second quarter 2007 results and declares third quarter 2007 distribution

    RICHMOND, BC, Aug. 2 /CNW/ - IAT Air Cargo Facilities Income Fund (the
"Fund") (TSX: ACF.UN), a limited purpose trust that owns all of the shares of
International Aviation Terminals Inc. ("IAT"), which owns and leases air cargo
and aviation related buildings at Canadian airports in Vancouver, Calgary,
Edmonton, Saskatoon and Winnipeg, today reported results for the second
quarter of 2007.

    Consolidated Financial Results of the Fund and IAT for the Second Quarter
    of 2007

    For the second quarter of 2007, the Fund reported consolidated earnings
of $0.08 per unit, as compared to consolidated earnings of $0.26 per unit for
the second quarter of 2006. The current quarter results are in line with the
Fund's full-year business plan. Results for the second quarter of 2006 reflect
a one-time recovery of future income tax benefits of $0.19 per unit, which
resulted from a change to tax rates in June 2006. Consolidated earnings for
the six month period ended June 30, 2007 were $0.15 per unit, as compared to
$0.32 per unit for the same period in 2006, including income tax recoveries.

    Operating Results

    The Fund's portfolio of properties was 83.3% leased as of June 30, 2007,
up 90 basis points from March 31, 2007, and down 280 basis points from
June 30, 2006. "We continue to lease space made vacant as a result of some
short term leases that expired in December of 2006, and are satisfied that our
strategies over the long-term are being reflected in our total rental
revenues, which are approximately $8.6 million for the six months ended
June 30, 2007 and 2006." said Alison Hill, IAT's president and chief executive
officer. "As we continue to execute our current strategy as a leading operator
of air cargo facilities with AMB Property Canada Ltd, we are also exploring
potential growth opportunities, including investments in both fee simple
industrial property and on-airport cargo facilities", announced Robert Mair,
the Fund's chairman and trustee.

    Third Quarter 2007 Distribution

    A distribution of $0.17 per unit will be paid on October 15, 2007 to
unitholders of record on September 30, 2007. The distribution represents
interest income on the subordinated notes of IAT for the second quarter of
2007 less estimated administrative expenses of the Fund, and is consistent
with the annual distribution rate for 2007 of $0.68 per unit (a quarterly rate
of $0.17 per unit) established by the Trustees of the Fund in December 2006.

    Supplemental Earnings Measures

    For the second quarter of 2007, earnings before interest, income taxes,
amortization, impairment charges, accretion and minority interest's share of
earnings ("Adjusted EBITDA") was $0.26 per unit, unchanged from the second
quarter of 2006. For the second quarters of 2007 and 2006 funds from
operations ("FFO") were $1.5 million ($0.21 per unit).
    Adjusted EBITDA and FFO are not recognized appropriate earning measures
under Canadian generally accepted accounting principles ("GAAP"). The Fund's
method of calculating Adjusted EBITDA and FFO may differ from other issuers,
and are not to be construed as alternatives to earnings determined in
accordance with GAAP, but are considered useful supplemental indicators of the
Fund's performance.
    Detailed definitions of Adjusted EBITDA and FFO, explanations as to why
management believes these are useful supplemental measures of operating
performance and reconciliations from net income to Adjusted EBITDA and FFO are
provided in the supplemental information package filed by the Fund at


    The Fund and IAT, the Fund's wholly-owned subsidiary, specialize in the
ownership, construction, management and marketing of aviation-related
facilities. IAT currently owns and manages approximately 1.1 million square
feet of air cargo and aviation related facilities at five of Canada's leading
international airports. Approximately 65% of the Fund and IAT's holdings are
located at Vancouver International Airport, Canada's second largest airport.

including statements with respect to expected distributions, cash flows,
revenues, earnings, capital expenditures, occupancy rates, growth rates, value
of future lease extensions, ongoing business strategies or prospects. Adjusted
EBITDA, possible future Fund and IAT action and other measures are based on
information available at the time they are made, assumptions made by
management, and management's good faith belief with respect to future events,
and are subject to the risks and uncertainties outlined in the Fund's annual
information form that could cause actual performance or results to differ
materially from those reflected in the forward-looking statements, historical
results or current expectations. All forward-looking statements may be
affected by and are subject to the risks set out under Risk Factors in the
Fund's annual information form.

For further information:

For further information: Alison M. Hill, President & Chief Executive
Officer, International Aviation Terminals Inc., Direct (415) 733-9499, Fax
(415) 477-2199, Email ahill@amb.com

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