Morguard Corporation Announces 2009 Third Quarter Results and Regular
Dividend
MISSISSAUGA, ON,
Q3 2009 HIGHLIGHTS
- Total revenues for the three months ended September 30, 2009, were
$87.1 million compared to $87.2 million for the same period in 2008;
- Net operating income increased to $38.0 million compared to $36.9
million in the third quarter of 2008, with foreign exchange rate
changes causing $0.5 million of the increase;
- Net income from continuing operations totalled $5.8 million
compared to $7.3 million in the same period in 2008;
- Funds from operations in Q3 2009 increased to $28.2 million, or $2.01
per share, compared to $27.4 million, or $1.96 per share in 2008;
- Three multi-unit residential properties were refinanced resulting in
$82.9 million of gross proceeds at a weighted average interest rate
of 4.1%.
FINANCIAL HIGHLIGHTS
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Three months ended Nine months ended
September 30 September 30
(in thousands of dollars) 2009 2008 2009 2008
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Income from real estate
properties $69,628 $67,837 $211,806 $198,696
Management and advisory
fee revenue 16,185 17,330 45,540 47,186
Sales of product and land 1,328 1,987 3,867 5,102
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Total revenues $87,141 $87,154 $261,213 $250,984
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Income from real estate
properties $69,628 $67,837 $211,806 $198,696
Property operating expense (31,637) (30,912) (97,981) (89,811)
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Net operating income $37,991 $36,925 $113,825 $108,885
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Funds from operations $28,192 $27,364 $84,431 $79,899
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Net income from continuing
operations $5,828 $7,325 $17,380 $42,677
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Net income for the period $5,828 $9,667 $17,380 $47,315
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Income per share
Basic - continuing operations $0.42 $0.52 $1.24 $3.06
Diluted - continuing operations $0.42 $0.52 $1.24 $3.03
Basic - net income $0.42 $0.69 $1.24 $3.39
Diluted - net income $0.42 $0.69 $1.24 $3.36
NET INCOME
Net income for the three months ended
NET OPERATING INCOME ("NOI")
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Three months ended Nine months ended
September 30 September 30
(in thousands of dollars) 2009 2008 2009 2008
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Multi-unit residential - Canada $13,443 $13,394 $36,116 $37,257
Multi-unit residential - U.S. 4,128 4,225 13,697 11,390
Retail - Canada 6,262 5,824 20,106 18,253
Retail - U.S. 5,253 4,687 17,611 15,441
Office/Industrial 8,905 8,795 26,295 26,544
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Net operating income $37,991 $36,925 $113,825 $108,885
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Net operating income for the three months ended
FUNDS FROM OPERATIONS ("FFO")
FFO was calculated as follows:
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Three months ended Nine months ended
September 30 September 30
(in thousands of dollars) 2009 2008 2009 2008
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Net earnings from continuing
operations $5,828 $7,325 $17,380 $42,677
Items not affecting cash:
Amortization 16,463 15,213 50,154 45,608
Future income taxes 2,042 1,254 3,899 14,176
Non-controlling interest (25) (430) (25) (690)
Equity income from Morguard REIT
- continuing operations (1,717) (4,062) (9,120) (26,177)
Morguard REIT's equity accounted
FFO - continuing 5,601 8,064 21,765 23,746
Gain on pension valuation allowance - - - (19,441)
Gain on sale of property - - (72) -
Other - - 450 -
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Funds from operations $28,192 $27,364 $84,431 $79,899
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Per share amount - basic $2.01 $1.96 $6.01 $5.73
Per share amounts - diluted $2.01 $1.94 $6.01 $5.68
For the three months ended
FINANCING AND LIQUIDITY
The Company has successfully refinanced all mortgages maturing during 2009. Gross proceeds from 2009 refinancings totaled
FOURTH QUARTER DIVIDEND
The board of directors of Morguard Corporation announced today that the fourth quarter dividend of 2009 in the amount of
The Company's unaudited financial statements for the three months ended
Readers are cautioned that although the terms "Net Operating Income", and "Funds From Operations" are commonly used to measure, compare and explain the operating and financial performance of Canadian real estate companies and such terms are defined in the Management's Discussion and Analysis, such terms are not recognized terms under Canadian generally accepted accounting principles. Such terms do not necessarily have a standardized meaning and may not be comparable to similarly titled measures presented by the other publicly traded entities.
Morguard Corporation is a real estate company, which owns a diversified portfolio of 102 properties in
For further information: Morguard Corporation, K. (Rai) Sahi, Chief Executive Officer, (905) 281-3800; Paul Miatello, Chief Financial Officer, (905) 281-3800
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