IAT Air Cargo Facilities Income Fund declares third quarter 2008 distribution and announces second quarter 2008 results

    RICHMOND, BC, Aug. 7 /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 on ground-leased land at Canadian airports in
Vancouver, Calgary, Edmonton, Saskatoon and Winnipeg, today announced a
distribution to unitholders and reported results for the second quarter of

    Third Quarter 2008 Distribution
    A distribution of $0.17 per unit will be payable on October 15, 2008 to
unitholders of record at the close of business on September 30, 2008. The
distribution represents interest income on the subordinated notes of IAT for
the third quarter 2008 less estimated administrative expenses of the Fund, and
was determined by the Trustees of the Fund based on anticipated earnings, cash
flow and capital reserves of IAT and anticipated expenses of the Fund.

    Consolidated Financial Results of the Fund and IAT for the Second Quarter
    of 2008
    For the second quarter of 2008, the Fund reported consolidated earnings
of $0.10 per unit, as compared to consolidated earnings of $0.08 per unit for
the second quarter of 2007. Consolidated earnings for the six month period
ended June 30, 2008 were $0.20 per unit, as compared to $0.15 per unit for the
same period in 2007. Results for the quarter and six months ended June 30,
2008 were in line with the Fund's 2008 full-year business plan.

    Operating Results
    The Fund's portfolio of properties was approximately 87.1% leased as of
June 30, 2008, up 30 basis points from December 31, 2007. "We are very pleased
with the results of our continued efforts to capture customer demand and
increase occupancy, which is reflected in higher revenue and earnings for the
quarter," said Alison Hill, IAT's president & CEO. For the second quarter
2008, total rental revenues were $4.6 million, as compared to $4.3 million for
the same quarter in 2007.

    Supplemental Earnings Measures
    For the second quarters of 2008 and 2007, earnings before interest,
income taxes, amortization, accretion and non-controlling interest's share of
earnings ("Adjusted EBITDA") were $1.8 million, or $0.26 per unit. For the
second quarter of 2008, funds from operations ("FFO") was $1.6 million, or
$0.23 per unit, as compared to $1.5 million, or $0.21 per unit, for the same
quarter in 2007.
    Adjusted EBITDA and FFO are not recognized appropriate earning measures
under Canadian generally accepted accounting principles ("GAAP"), and are not
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
www.sedar.com. 2000-5000 Miller Road Richmond, B.C. V7B 1K6 Canada Main + 1
604 249 5100 Fax + 1 604 249 5101

    FrontFour Takeover Offer

    On July 8, 2008, the Fund announced that it has filed on SEDAR a
Trustees' circular in response to the June 24, 2008 takeover offer by
FrontFour Holdings Inc. and FrontFour Capital Group LLC (together,
"FrontFour") to acquire approximately 40% of the Units of the Fund so as to
hold approximately 50.0001% of the Units. For the reasons set out in the
Trustees Circular, the Trustees continue to recommend that Unitholders not
tender to the Offer at this time.
    Unitholders are urged to read in its entirety the Trustees Circular,
which may be found on www.sedar.com, as well as the update that the Trustees
are required to mail to Unitholders and file on SEDAR on or before August 13,
2008. The Offer expires at 5:00 p.m. (Vancouver time) on August 20, 2008.


    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, leases and manages approximately 1.1 million
square feet of air cargo and aviation related facilities on land leased 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: IAT CONTACT: 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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