Overland announces third quarter April 30, 2008 financial results

    HALIFAX, June 27 /CNW/ - (TSXV - OVL) Overland Realty Limited (the
"Company" or "Overland") announced today its unaudited financial results for
the three and nine months ended April 30, 2008. The results reflect continued
strong operating performance and leasing efforts.
    The Company reported revenue of $2,670,968 for the quarter and $8,312,195
for the 9 months ended April 30, 2008 reflecting Overland's stabile long term
contractual income and some revenue growth on lease renewals. Revenue for the
comparable periods in the previous fiscal year was $131,571 and $330,620
respectively. Net Property Operating Income ("NOI") was $1,490,160 for the
current quarter versus $61,533 for the same quarter in fiscal 2007. The NOI
results for the quarter were up marginally over the previous quarters NOI of
$1,458,837. The Company is on track to exceed its fiscal 2008 NOI projection
of $5.5 million with NOI for the first nine months of the year at $4,556,335
and with revised projections anticipated to exceed $6.0 million in Net
Property Operating Income for the fiscal year.
    While Funds from Operations ("FFO") turned negative for the quarter
($538,540) and year-to-date (71,490) due to the inclusion of one-time debt
repayment penalties, FFO from recurring operations (adjusting for the $808,885
of debt repayment costs) remained strong at $270,345 or $0.014 per share
(basic) for the quarter, while Adjusted Funds from Operations ("AFFO") was
$351,671 or $0.018 per share (basic). On a nine month year-to-date basis FFO
from recurring operations was $737,395 or $0.038/share (basic) and AFFO was
$595,243 or $0.031/share (basic); this compares with FFO of -$354,555 and AFFO
of -$263,845 in the same period in the previous year. Net property operating
income, FFO and AFFO are defined in the Management Discussion and Analysis
that accompanies these financial results.
    Cash flow from operating activities was $986,110 within the quarter and
$1,893,533 year-to-date. This compared to negative cash flow from operating
activities of $48,853 and $196,052 respectively in the previous year.
    Management and Administrative ("M&A") expense totaled $358,889 for the
current quarter compared to $134,156 for the quarter ended April 30, 2007, and
down from $397,827 in the second quarter of the current fiscal year. The
quarter over quarter decline reflects management's efforts to reduce M&A
expenses as recent portfolio acquisitions are integrated. Overland recorded a
Net Loss of $1,100,094 or $0.057 per share (basic) for the quarter ended
April 30, 2008, versus a Net Loss of $106,603 or $0.007 (basic) per share for
the similar quarter in fiscal 2007. The quarterly Net Loss has been materially
impacted by the accounting for the referenced non-recurring mortgage
restructuring costs which totaled $808,885.
    Total assets for the Company were $69,720,396 as at April 30, 2008,
versus $70,164,509 as at July 31, 2007. The reduction in Assets relates in
part to the reclassification of deferred finance costs as required under new
CICA guidelines, and depreciation on the Company's real property and
intangible assets. Liabilities for the Company increased marginally to
$65,817,953 as at April 30, 2008, compared with $65,148,516 as at July 31,
    Operationally the Company's portfolio produced very strong results with
occupancy remaining tight at 96.3%, up slightly from the previous quarters
mark of 95.7% occupancy. For the year-to-date period the Company has renewed
90% of rolling tenancies representing 7.25% of the portfolio square footage
with a weighted average net rental increase for renewing tenants of 13.9%.

    About Overland

    Overland Realty Limited is a TSX-V listed, growth-orientated real estate
corporation based in Halifax, Nova Scotia. The company is focused on
increasing shareholder value through the acquisition, development, and
management of commercial properties in targeted Canadian markets, starting
within Atlantic Canada. Further information on Overland can be found at

    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.
    The Corporation has issued and outstanding 19,654,517 common shares.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

For further information:

For further information: Scott McCrea, President & CEO, (902) 474-3000,
info@overlandrealty.ca; www.overlandrealty.ca; Source: Overland Realty

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