MISSISSAUGA, ON, Nov. 4, 2013 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today is pleased to announce its operating results for the three and nine months ended September 30, 2013. ("Q3"). These results have been prepared in accordance with International Financial Reporting Standards ("IFRS").
Funds from Operations (FFO)
- Funds from operations for the three and nine months ended September 30, 2013 was $24.3 million and $73.6 million, respectively, as compared to $22.4 million and $61.8 million, respectively, for the same periods in 2012. On a per unit diluted basis, funds from operations for the three and nine months ended September 30, 2013 was $0.38 and $1.13, respectively, as compared to $0.38 and $1.06, respectively, for the same periods in 2012. The increase in FFO is primarily due to the increase in NOI resulting from an acquisition completed by the Trust in October 2012.
- Funds from operations is not a term defined under IFRS and may not be comparable to similar measures used by other Trusts. A reconciliation of net income to funds from operations is included.
Net Operating Income (NOI)
- Net operating income for the three and nine months ended September 30, 2013 was $39.6 million and $119.1 million, respectively, as compared to $33.7 million and $99.0 million, respectively, for the same periods in 2012.
- Net operating income is an additional GAAP measure, but not a term defined under IFRS and may not be comparable to similar measures used by other Trusts. A calculation of net operating income is included.
- Net income for the three and nine months ended September 30, 2013 was $31.7 million and $158.8 million, respectively, as compared to $53.0 million and $143.9 million, respectively, for the same periods in 2012.
- The portfolio occupancy remained stable and was 95% at September 30, 2013, at June 30, 2013 and at September 30, 2012.
At September 30, 2013, the Trust's total enterprise value was approximately $2.2 billion (based on the market closing price of the Trust's units on September 30, 2013 plus total debt outstanding). At September 30, 2013, the Trust had $1.2 billion of outstanding debt, equating to debt to total value ratio of 54.2%. The Trust's debt consisted of $990.9 million of fixed-rate debt with weighted average interest rate of 4.7% and weighted average term to maturity of 4.68 years, $145.1 million of 4.85% fixed-rate convertible debentures, $30.0 million in notes payable and $46.3 million utilization of the operating line of credit. The Trust has a debt to total assets ratio of 43.5%.
NET OPERATING INCOME, FUNDS FROM OPERATIONS
This press release and accompanying financial information make reference to net operating income and funds from operations on a total and per unit basis. Net operating income is defined as income from property operations after operating expenses have been deducted, but prior to deducting interest expense, general and administrative expenses and fair value gains (losses). Funds from operations is defined as net income prior to extraordinary items, valuation adjustments, and certain other non-cash items, if any.
FINANCIAL STATEMENTS AND MORGUARD'S DISCUSSION AND ANALYSIS
Morguard REIT's Q3 2013 Consolidated Financial Statement and Management's Discussion and Analysis along with its 2012 Annual Report are available on Morguard REIT's website at www.morguard.com and have been filed with SEDAR at www.sedar.com
ABOUT MORGUARD REAL ESTATE INVESTMENT TRUST
Morguard REIT is a closed-end real estate investment trust, which owns a diversified portfolio of 54 retail, office and mixed-use properties in Canada with a book value of $2.8 billion and approximately 9.1 million square feet of leaseable space.
|Consolidated Balance Sheet|
|As at||September 30,||December 31,|
|(In thousands of Canadian dollars)||2013||2012|
|Real estate properties||$||2,705,145||$||2,592,740|
|Equity accounted investments||44,849||41,249|
|Cash and cash equivalents||15,818||13,624|
|Mortgages and bonds payable||$||990,938||$||956,069|
|Convertible debentures payable||145,127||144,356|
|Accounts payable and other liabilities||57,128||46,650|
|Consolidated Statements of Income and Comprehensive Income|
(In thousands of Canadian dollars)
Three months ended
Nine months ended
|| September 30,
| September 30,
| September 30,
| September 30,
|Revenue from real estate properties||$||68,945||$||59,319||$||206,529||$||177,742|
|Property operating expenses||27,109||23,678||80,853||72,869|
|Property management fees||2,202||1,954||6,623||5,825|
|Net operating income||39,634||33,687||119,053||99,048|
|General and administrative||1,387||1,267||3,624||3,769|
| Income before fair value gains, gain on sale of real estate
properties and net income from equity accounted investments
|Fair value gains on real estate properties||6,888||30,745||81,129||82,991|
|Gain on sale of real estate properties||—||—||2,058||—|
|Net income from equity accounted investments||1,248||881||4,749||1,991|
|Net income for the period||$||31,680||$||53,014||$||158,821||$||143,880 90,866|
|Other comprehensive income|
|Amortization - cash flow hedge||248||244||741||727|
|Reconciliation of Net Income to Funds from Operations|
|(In thousands of Canadian dollars,except per-unit amounts)||
Three months ended
|Nine months ended|
|September 30,||September 30,||September 30,||September 30,|
|Net income for the period||$||31,680||$||53,014||$||158,821||$||143,880|
|Fair value gains on real estate properties(1)||(7,351)||(30,649)||(83,144)||(82,038)|
|Gain on sale of real estate properties||—||—||(2,058)||—|
|Funds from operations||$||24,329||$||22,365||$||73,619||$||61,842|
|Interest expense on convertible debentures||1,803||1,117||5,441||4,028|
|Funds from operations per unit:|
|Weighted average units outstanding(in thousands)|
|(1)||Includes fair value gains from equity accounted investments|
|(2)||Includes dilutive impact of convertible debentures|
SOURCE: Morguard Real Estate Investment Trust
For further information:
K. (Rai) Sahi, President and Chief Executive Officer, Tel: 905.281.4800, or;
Tim Walker, Vice President and Chief Financial Officer, Tel: 905.281.4800.