Realex Properties Corp. - Results for the three months ended December 31, 2007 and declaration of dividend


    CALGARY, Feb. 15 /CNW/ - Realex Properties Corp. ("Realex" or
"Corporation") today announced its first quarter results from operations.
Financial highlights for the three months ended December 31, 2007 are as

    Financial Highlights
    Income Statement Summary Data

                                              Three Months Ended December 31,
    ($000's except per share amounts)                    2007           2006
                                              ---------------- --------------

    Revenues                                            8,258          6,237

    NOI(1)                                              4,697          3,486

    Net Income (loss)                                  (2,929)           272
    Net income (loss) per share - basic                (0.026)         0.002
    Net income (loss) per share - diluted              (0.026)         0.002

    FFO(2)                                              2,798          2,154
    FFO per share                                       0.025          0.020

    Dividends on common and non-voting shareholders       850              -

    Weighted average shares outstanding (000's)
     - basic                                          113,302        111,587

    Balance Sheet Summary Data
    ($000's)                                      December 31,  September 30,
                                                         2007           2007
                                              ---------------- --------------
    Assets                                            266,595        250,359
    Debt                                              135,157        118,064
    Shares outstanding (000's)                        113,302        113,302

    (1) Net Operating Income (NOI) - is a measure used to assist management
        to evaluate the Corporation's profitability from its principal
        business activities without regard to the manner in which these
        activities are financed or amortized, the allocation of general,
        administrative and stock-based compensation costs, or the manner in
        which the results are taxed. Realex defines NOI as rent from income
        producing properties, excluding straight lining of rents and
        amortization of above- and below-market leases, less property
        operating costs.
    (2) Funds From Operations (FFO) - is a measure used to assist management
        to evaluate the Corporation's ability to generate cash, evaluate
        its return on projects and evaluate the performance of the enterprise
        as a whole. FFO as presented should not be viewed as an alternative
        to cash from operations, net income, or other measures calculated in
        accordance with GAAP. Realex defines FFO as being net income for the
        period before amortization (which includes amortization of buildings,
        tenant improvements, in place lease values, tenant relationship
        values and deferred leasing costs), amortization of below-market
        leases, straight-lining of rents, amortization of fair value
        mortgages payable adjustment and deferred financing costs, stock-
        based compensation expense, future income tax expense and
        Internalization costs.
    NOI and FFO do not have any standardized meaning prescribed by GAAP and
    users are cautioned that these measures may not be comparable to similar
    measures presented by other issuers, and should not be construed as an
    alternative or replacement to GAAP measures.

    First Quarter Highlights

    The first quarter of our 2008 fiscal year showed strong growth and is
beginning to reflect the significant impact of initiatives completed in the
last several months and the strength underpinning Realex's property portfolio.
Revenues for the first quarter ending December 31, 2007 increased by 10% over
the previous quarter ended September 30, 2007 and by 32% over the same quarter
last year, ended December 31, 2006. Similarly, first quarter Net Operating
Income rose by 13% and 35% over the previous quarter and the first quarter of
last year, respectively, while Funds From Operations increased by 15% and 30%
for these same periods.
    The past fiscal year has seen continued strength in Realex's core
property portfolio located in Calgary and Edmonton in that lease rates were
effectively doubled on those leases which were renewed since October 2006. We
anticipate that 2008 will continue to yield positive lease rate growth and
tenant retention as 173,000 square feet (19% of Realex's owned rentable area)
is available for renewal or releasing. Of the 2008 lease rollovers,
121,400 square feet have already been renewed or newly leased. This includes a
100,519 square foot, five year lease renewal with the National Energy Board at
its current rate in accordance with the renewal provision of its lease. Realex
is engaged in active discussions with the bulk of the remaining tenants having
lease expiries in 2008 and has commenced discussions with a number of tenants,
with 2009 lease expiries, in an effort to bring these negotiations to a
successful conclusion well in advance of the expiry dates. This proactive
approach reduces the nearer term uncertainty for tenant and landlord alike.
    Effective November 1, 2007 Realex completed the internalization of
Realex's asset manager. The asset management and certain property management
services were internalized at a cost to the Corporation of $1,133,500, payable
in non-voting shares of Realex, priced at the October 2006 private placement
price of $1.434 per share. Realex expects that the management revenues
generated in 2008 will effectively offset the added general and administrative
costs of the asset manager.
    The Corporation's mezzanine loan portfolio, included in mortgages and
notes receivable, was $6.5 million as of December 31, 2007, and is yielding an
average annual return of more than 16%. Management plans to expand this
program, as appropriate opportunities are made available.
    Realex continues to monitor activities related to the East Village
redevelopment zone in Calgary. The City of Calgary announced $175 million
infrastructure upgrade to this 40 acre district which is expected to commence
in 2008, bringing Realex's plans for property in this district closer to
fruition. Realex hopes to use its position in this district to actively pursue
public private partnerships with educational institutions seeking to develop
downtown campuses.
    On January 31, 2008 the Corporation formed a new partnership, the
principle business of which is the ownership,operation and development of
self-storage facilities in Canada. The partnership will be managed by a proven
management team who have, over the past 7 years, developed/acquired and
managed 15 self storage properties totaling approximately 800,000 square feet.
Concurrent with the formation of the partnership, the partnership acquired
three properties, including a 60,000 square foot, recently developed facility
located in Windermere, British Columbia and two facilities, totalling over
125,000 square feet, under development in Sherwood Park and Fort Saskatchewan,
Alberta. Realex is confident that, with the exceptional management expertise
provided by its new partners, this new business unit, through a combination of
development and acquisitions, will provide for potential significant growth
and superior returns. The Corporation's effective ownership interest in the
partnership is approximately 88%.
    "Realex is committed to increasing shareholder value by building on the
Corporation's platform of high quality assets and leveraging its strong
management expertise through alliances with strategic partners," stated Marc
Sardachuk,Realex's president and CEO. "In addition to exploiting opportunities
in Realex's core property portfolio, we continue to investigate expansion
opportunities in synergistic businesses and in select markets throughout
western Canada and in central Canadian markets which demonstrate strong
economic fundamentals," he added.


    The Board of Directors has authorized the payment of a dividend for the
quarter ended December 31, 2007 to common and non voting shareholders at a
rate of $0.0075 per share. The dividend will be paid March 14, 2008 to
shareholders of record on February 29, 2008 and is designated as an eligible
dividend pursuant to subsection 89(14) of the Income Tax Act. An eligible
dividend paid to a Canadian resident individual is entitled to the enhanced
dividend tax credit.

    In Commemoration

    We convey our sincere condolences to the family of Mr. Thomas Jones who
served as a director of Realex from October 3, 2006 until his passing on
January 6, 2008. Tom served with distinction as chair of the Audit Committee
and his guidance and input will be missed.

    Full reports of the financial results are outlined in the unaudited
Consolidated Financial Statements and Management's Discussion and Analysis of
Financial Condition and Results of Operations, which are available on SEDAR
and on the Realex Properties Corp. website at

    The TSX Venture Exchange has neither approved nor disapproved the
    contents of this news release. The TSXVenture Exchange does not accept
    responsibility for the adequacy or accuracy of this news release.

    This news release contains forward looking statements subject to various
significant risks and uncertainties which may cause actual results,
performances and achievements of Realex to be materially different from any
future results, performances or achievements, expressed or implied by such
forward looking statements. Realex cannot assure investors that actual results
will be consistent with these forward looking statements and Realex assumes no
obligation to update or revise them to reflect new events or circumstances.

For further information:

For further information: Marc Sardachuk, President and Chief Executive
Officer, Realex Properties Corp., Telephone: (403) 264-5889, Facsimile: (403)
264-5892; Mark Suchan, Realex Properties Corp., Chief Financial Officer,
Telephone: (403) 264-5889, Facsimile: (403) 264-5892

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