Overland announces first quarter 2010 results
Quarterly Highlights
- The Company achieved a 5% increase in cash flow from operating
activities in the quarter compared to the same quarter in the previous
fiscal year with $640,564 in cash flow generation versus $608,932.
- Property Net Operating Income (NOI) was $1.613 million in the quarter,
a 2.54% increase over the comparable quarter last year.
- Occupancy levels remained strong at 96.2% with a very good tenant
retention ratio of 100% along with a 5.0% weighted average rental
increase from renewing tenants.
- Completed a private placement of Common Stock in the quarter for gross
proceeds of $4.487 million at $0.50/share.
- With the proceeds from the private placement the Company repaid the
outstanding Term Loan in full and subsequent to quarter end the Company
repaid both the Note Payable and the short-term bank indebtedness.
- With the repayment of the debt noted above Overland's remaining
long-term debt is all secured first-mortgage debt held almost
exclusively by conventional mortgage lenders with only one mortgage of
$1.9 million maturing between now and the end of fiscal 2012.
"With the successful completion of the private placement and the repayment of the Term Loan and Note Payable the Company has significantly reduced its long-term debt and has successfully created a capital structure that will allow for future growth." said
FIRST QUARTER FINANCIAL HIGHLIGHTS
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Quarter Ended October 31
In $000's (except Per Share Amounts) 2009 2008
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Total Revenue 2,622 2,669
Property Net Operating Income (NOI) 1,614 1,592
EBITDA 1,348 1,366
Recurring Funds from Operations (FFO) 379 509
Recurring Adjusted Funds from Operations (AFFO) 533 462
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Per Share Amounts ($'s/share)
Recurring FFO - basic 0.014 0.020
Recurring FFO - diluted 0.014 0.020
Recurring AFFO - basic 0.020 0.018
Recurring AFFO - diluted 0.019 0.018
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October 31 July 31
OTHER DATA (In $000's) 2009 2009
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Gross Book Value (GBV) of Assets 68,135 66,717
Cash & Restricted Cash 3,214 1,430
Total Assets 61,514 61,044
Total Liabilities 50,671 54,201
Shareholders Equity 10,843 6,843
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Weighted Average Remaining Lease Term (Years) 5.34 5.59
Weighted Average Long Term Mortgage Rate 6.06% 6.06%
Weighted Average Long Term Mortgage Expiry
(Years) 4.55 4.80
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Property rent revenue rose by just over 2.5% in the quarter on strong growth from renewing tenants, while Total Revenue was down slightly in Q1 2010 versus the similar quarter in 2010 on lower property management revenue. Property management revenue was in line with Managements expectations. With the inclusion of interest, depreciation and amortization, Overland incurred a Net Loss of
Overland's, stable, long-term tenant roster is predominately leased to federal and provincial governments or credit quality covenants, with an average lease expiration of 5.34 years. The Company's long term mortgage portfolio is equally as stable, with only one mortgage of
About Overland
Overland Realty Limited is a TSX-V listed, real estate corporation based in
Forward Looking Information
This press release contains forward looking statements. Overland is subject to significant risks and uncertainties which may cause the actual results, performance or achievements of Overland to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. Such risk factors include, but are not limited to, risks associated with real property ownership, availability of cash flow, general uninsured losses, future property acquisitions, environmental matters, tax related matters, debt financing, potential conflicts of interest, potential dilution, reliance on key personnel and the potential any disclosed acquisitions will not close. A description of these risk factors can be found in Overland's most recent Management Discussion and Analysis, which can be found at www.sedar.com. Overland cannot assure investors that actual results will be consistent with these forward looking statements and Overland assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.
Non GAAP Measures
Net Property Operating Income (NOI), Free funds from operations (FFO), Adjusted free funds from operations (AFFO) and EBITDA are not measures recognized under Canadian Generally Accepted Accounting Principles (GAAP). Overland's method of calculating these supplemental measures is detailed within our Management Discussion and Analysis and may vary from those standards utilized by similar issuers.
The Corporation has issued and outstanding 35,118,440 common shares.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information: Scott McCrea, President & CEO, (902) 474-3000, [email protected]; www.overlandrealty.ca; Source: Overland Realty Limited
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