MISSISSAUGA, ON, May 3, 2017 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today is pleased to announce its financial results for the three months ended March 31, 2017. These results have been prepared in accordance with International Financial Reporting Standards ("IFRS").
The Trust's fully diluted FFO for the three months ended March 31, 2017, was $27.9 million versus $27.3 million for the same three months ended March 31, 2016, an increase of $0.6 million. Diluted FFO per unit for the three months ended March 31, 2017 was $0.40 per unit. This is a decrease of $0.01 per unit over the same period in 2016. The decrease in diluted FFO on a per unit basis is directly attributable to an increase in the number of diluted units outstanding as a result of the new convertible debenture issue in December 2016. This increase in diluted units outstanding decreased diluted FFO per unit by $0.01.
The favorable diluted FFO of $0.6 million is largely the result of favorable interest expense.
Total net operating income for the three months ended March 31, 2017, was $41.1 million, a decrease of $0.1 million over the same period in 2016. The Trust's same asset NOI of $39.6 million for the three months ended March 31, 2017, is unfavourable by $0.1 million compared to the same period in 2016. Decreases in the Trust's enclosed retail centres ($0.2 million) are offset by favorable results in the Trust's multi-tenant office portfolio ($0.1 million).
The Trust's development program includes the remerchandising of 500,500 square feet of retail space as well as the intensification of an additional 109,200 square feet. As at March 31, 2017, the Trust has secured lease commitments on 197,300 square feet (39%) of the remerchandised area and 85,300 (78%) square feet of the intensified area. Move-in dates for the new tenancies are scheduled to commence during the second quarter of 2017 and continue through the third quarter of 2018.
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. Funds from operations is not a term defined under IFRS and may not be comparable to similar measures used by other Trusts.
Financial Statements and Management's Discussion and Analysis
The Trust's Q1 2017 Condensed Consolidated Financial Statements and Management's Discussion and Analysis along with its 2016 Annual Report are available on the Trust's website at www.morguard.com and have been filed with SEDAR at www.sedar.com
Conference Call Details:
Date: Thursday, May 4, 2017 at 4:00 p.m. (ET)
Conference Call#: 647-427-7450 or 1-888-231-8191
Conference ID#: 2390961
About Morguard Real Estate Investment Trust
The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 49 retail, office and industrial income producing properties in Canada with a book value of $2.9 billion and approximately 8.7 million square feet of leasable space.
SOURCE Morguard Real Estate Investment Trust
For further information: Morguard Real Estate Investment Trust: K. Rai Sahi, President and Chief Executive Officer, T 905-281-4800; Pamela McLean, Chief Financial Officer, T 905-281-4800