Overland Realty announces fiscal 2009 results

HALIFAX, Oct. 26 /CNW/ - (TSXV - OVL) Overland Realty Limited (the "Company" or "Overland") announced today its financial results for the fourth quarter and audited results for the fiscal year ended July 31, 2009. The following highlights should be read in conjunction with the Company's Audited Financial Statements and Management Discussion and Analysis for the period, which are available on the Company's website - www.overlandrealty.ca.

    Fiscal Year Highlights

    - Record Annual FFO / AFFO - Free Funds from Operations (FFO) on a
      recurring basis increased to a record $0.078 per share for the year
      ending July 31, 2009, a 20% increase over the previous year. Adjusted
      Free Funds from Operations (AFFO) on a recurring basis was $0.073 per
      share for the same timeframe.

    - Property Net Operating Income - Property Net Operating Income (NOI)
      grew to $6.25 million, in-line with projections.

    - Strong Leasing - Occupancy level for the portfolio was 96.2% at year
      end, up from 95.1% at the previous year end. Rental rates increased by
      an average 6.22% on renewing tenants and the Company retained 82.7% of
      all expiring leases.

    - Reduction in debt - The Company continued to lower its overall
      indebtedness, with a $3.7 million reduction in Mortgages, Term Loans,
      and Notes Payable, paid primarily through cash-flow generation.

    - Cash Flow - The Company achieved strong cash flow with approximately
      $2.5 million generated from operating activities ($2.7 million after
      factoring in non-cash working capital balances).

    "We continue to maintain strong operating results along with solid cash
flow generation with an on-going reduction in some higher interest bearing
debt," said Scott Armour McCrea, President and CEO. "Property NOI grew to
$6.25 million; with recurring FFO per share growing by 20%, and recurring AFFO
per share by 32.7%."

    ------------------------------------  ----------------- -----------------
                                            Quarters Ended     Years Ended
                                                July 31           July 31
    In $000's (except Per Share Amounts)     2009     2008     2009     2008
    ------------------------------------  ----------------- -----------------
    Total Revenue                           2,699    2,804   11,029   11,116
    Property Net Operating Income (NOI)     1,574    1,620    6,254    6,176
    EBITDA                                  1,289    1,525    5,358    5,674
    Recurring Funds from Operations (FFO)     480      564    2,010    1,301
    Recurring Adjusted Funds from
     Operations (AFFO)                        259      495    1,888    1,090
    ------------------------------------  ----------------- -----------------
    Per Share Amounts ($'s/share)

    Recurring FFO - basic                   0.019    0.028    0.078    0.065
    Recurring FFO - diluted                 0.018    0.028    0.076    0.064
    Recurring AFFO - basic                  0.010    0.025    0.073    0.055
    Recurring AFFO - diluted                0.010    0.025    0.071    0.054
    ------------------------------------  ----------------- -----------------

    ------------------------------------  -----------------
    OTHER DATA - as of July 31
    (In $000's)                              2009     2008
    ------------------------------------  -----------------
    Gross Book Value (GBV) of Assets       66,717   67,735
    Cash & Restricted Cash                  1,430    2,855
    Total Assets                           61,044   65,888
    Total Liabilities                      54,201   58,620
    Shareholders Equity                     6,843    7,267
    ------------------------------------  -----------------
    Weighted Average Remaining Lease
     Term (Years)                            5.59     5.93
    Weighted Average Long Term Mortgage
     Rate                                    6.06%    6.06%
    Weighted Average Long Term Mortgage
     Expiry (Years)                          4.80     5.73
    ------------------------------------  -----------------

Total revenues remained flat at $11.0 million versus $11.1 million in the previous fiscal year. While revenue derived from Company-owned properties grew by almost $200,000 year over year, this gain was offset by a similar reduction in property management revenue and a decline in interest revenue. Overland reported a Net Loss of $832,578 ($0.032 per share) for the fiscal year ending July 31, 2009, but reported positive Net Income of $37,301 ($0.001 per share) for the fourth quarter. Total assets declined from $65,887,811 at July 31, 2008, to $61,044,122 at the current year end, mainly as a result of depreciation and amortization and the use of cash in repayment of debt.

Based on management's forecasts, Overland anticipates its current real property portfolio will generate approximately $6,370,000 to $6,470,000 in Property Net Operating Income (NOI) for the current fiscal year ending July 31, 2010. Readers are cautioned that forecasts are based on management's current judgment of the most probable set of economic conditions and operating plans for the year, which incorporate various key assumptions and risks outlined within the Company's Management Discussion and Analysis (MD&A). As a result, actual figures are likely to vary, and may vary materially from forecast results. Property Net Operating Income is a non-GAAP measurement and Overland's format for calculating NOI, which is contained within its MD&A, may be different then that used by other issuers.

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 5.59 years. The Company's long term mortgage portfolio is equally as stable, with only one mortgage of $1.9 million, maturing in the next two years.

About Overland

Overland Realty Limited is a TSX-V listed, 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 www.overlandrealty.ca.

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) and Adjusted free funds from operations (AFFO) 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 26,084,940 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, information@overlandrealty.ca; www.overlandrealty.ca; Source: Overland Realty Limited

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