Whiterock REIT Announces Q3 2007 Results, Outlook and Achievements

    TORONTO, Nov. 14 /CNW/ - Whiterock Real Estate Investment Trust
("Whiterock") today announced financial results for the three and nine months
ended September 30, 2007. The following comments and highlights should be read
in conjunction with the unaudited consolidated financial statements and
management's discussion and analysis for the three and nine months ended
September 30, 2007. These will be available on Whiterock's website at


    -  Yield - Distribution yield of 10.6% annualized, based on per Unit
       distributions for the nine months ended September 30, 2007 totaling
       $0.84, and the November 9, 2007 Unit closing price of $10.55.

    -  FFO Growth - Q3 recurring FFO per Unit (basic) increased by 23% to
       $0.27 per Unit compared to $0.22 per Unit (basic) for the same period
       in the prior year.

    -  Solid Leasing Performance - Average rate increase of 12% on 2007
       expiring leases with Saskatchewan delivering increases of 31%. Tenant
       inducements on renewals were minimal at $1.34 per square foot, and for
       new leasing were $4.33 per square foot.

    -  Same Property Growth - Property operating income for the nine months
       ended September 30, 2007 increased approximately 5.2% on a same
       property basis from the prior year comparative period.

    -  Investment Grade Tenants on Long-Term Leases - At September 30, 2007,
       70% of revenues from government and other investment grade tenants.
       Average lease term of portfolio is 9 years.

    -  Long-Term Fixed Rate Debt - Average 9 year debt term at a weighted
       average interest rate of 5.4% with 95% at fixed rates.

    -  Continued Deleveraging - $2.3 million of Series A convertible
       debentures converted to equity in the quarter ended September 30,

    -  Geographically Balanced Portfolio - 20% in Saskatchewan, 28% in
       Ontario, 37% in Quebec and 15% in Atlantic Canada, based on property
       operating income.


    -  Acquisition Pipeline - Whiterock has resumed its acquisition program.
       Acquired a 395,159 square foot industrial facility in Regina,
       Saskatchewan for $14.55 million, including closing costs, on
       October 1, 2007. The stabilized cap rate of the property will be
       approximately 8.6% upon the finalization of lease-up. Announced
       agreements to acquire two additional properties totaling 41,000 square
       feet for approximately $5 million, before closing costs, at a blended
       cap rate of approximately 8.7%. Whiterock is also in negotiations to
       acquire an additional 80,000 square foot property for approximately
       $15 million, before closing costs.

    -  New Leasing Activity - Executed 28,000 square feet of new leasing at
       655 Bay Street which will add approximately $1.1 million to net
       operating income on an annualized basis ($0.11 per basic Unit

    (including discontinued operations, except as noted)

                                        Three Months Ended  Nine Months Ended
                                            September 30,     September 30,
                                        ------------------- -----------------
    (in $000's except per Unit data)        2007     2006     2007     2006

    Total revenue - continuing operations  12,005    7,339   35,910   18,653
    Property operating income
      - continuing operations               7,257    4,684   21,574   11,712
    Income (loss)                            (235)    (438)   1,519   (2,229)

    Income (loss) per unit - basic
     and diluted
      - basic                               (0.02)   (0.06)    0.15    (0.35)
      - diluted                             (0.02)   (0.06)    0.15    (0.35)

    Funds From Operations (FFO)(1)          2,737    1,711    8,218    3,418
    FFO per Unit
      - basic                                0.27     0.22     0.82     0.54
      - diluted                              0.27     0.21     0.81     0.53

    Adjusted Funds From
      Operations (AFFO)(1)                  2,234    1,605    6,540    2,861
    AFFO per Unit
      - basic                                0.22     0.20     0.65     0.45
      - diluted                              0.21     0.20     0.64     0.44

    (1) FFO, FFO per unit, AFFO and AFFO per Unit exclude non-recurring

    Balance sheet highlights for Whiterock as at September 30, 2007 and
December 31, 2006 are as follows:

    (in $000's)                        September 30, 2007  December 31, 2006

    Investment in real estate                     335,794            376,927
    Mortgages payable and acquisition facility    211,696            250,886
    Convertible debentures (face value)            48,367             51,000
    Cash                                           10,162              9,298
    Unitholders' equity                            76,765             80,252

    Selected financial ratios for Whiterock as at, and for the period ended,
September 30, 2007 and 2006 are as follows:

                                       September 30, 2007 September 30, 2006
    Weighted average mortgage rate                   5.4%               5.6%
    Weighted average debenture rate                  7.1%               8.2%
    Interest coverage ratio(1)                        1.6                1.4
    Occupancy level                                 98.8%              98.3%
    FFO payout ratio(2)                              103%               157%
    (1) Interest coverage for the quarter is calculated based on property
        operating income less G&A, divided by interest expense (including
        debentures and financing fee amortization) net of interest income.

    (2) FFO payout ratio is calculated as year-to-date distributions divided
        by recurring FFO.

    The improvement in the financial results reflects the accretive
acquisitions completed and the increase in same asset property operating
income exceeding interest and administrative costs.
    FFO and AFFO are supplemental non-GAAP financial measures used by the
real estate industry to measure and compare the operating performance of real
estate organizations. Whiterock's method of calculating FFO and AFFO may be
different from methods used by other REITs or corporations. A description of
Whiterock's calculation of FFO and AFFO is included in Whiterock's
Management's Discussion and Analysis for the three and nine months ended
September 30, 2007.


    Whiterock has a solid business platform of high quality assets with
investment grade tenants, a committed management team and Board of Trustees
(the majority of which is independent), and established relationships in
select markets across Canada.
    In the nine months ended September 30, 2007, Whiterock significantly
improved its recurring FFO, AFFO, FFO per Unit, AFFO per Unit, property
operating income, weighted average debenture interest rate, and increased its
interest coverage ratio while reducing its payout ratio compared to the prior
year comparative period.
    Further, the requirements for future increases in FFO and AFFO per Unit
at Whiterock have been, and continue to be, successfully put into place.
Management expects that completed and anticipated new leasing and renewals,
the reinvestment of balance sheet cash, selected property management and G&A
improvements, the refinancing of floating rate debt and in-place rent
increases will result in basic AFFO per Unit exceeding distributions in early


    Whiterock Real Estate Investment Trust ("Whiterock") invites you to
participate in its live conference call with senior management on Thursday
November 15, 2007 at 11:00 a.m. E.S.T., to discuss the REIT's results and
achievements for the three and nine months ended September 30, 2007.
    You may participate in the live conference call toll free at
1-800-214-0745 and enter the passcode '915461' followed by the number sign
when prompted by the operator. To ensure your participation, please call five
minutes prior to the scheduled start of the call. The call will be archived on
Whiterock's website and available after the call.

    Forward Looking Statements

    This news release contains "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995
and applicable Canadian securities legislation. Forward-looking statements
include, but are not limited to, statements with respect to financial
performance, sale-leaseback opportunities, proposed acquisitions and equity or
debt offerings, new markets for growth, financial position, comparable
commercial REITs and proposed acquisitions. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not anticipate",
or "believes", or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved".
    Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Whiterock to be materially different
from those expressed or implied by such forward-looking statements, including
but not limited to: the risks related to the market for Whiterock's
securities, the general risks associated with real property ownership and
acquisition, that future accretive acquisition opportunities will be
identified and/or completed by Whiterock, lease maturities, risk management,
liquidity, debt financing, credit risk, competition, general uninsured losses,
interest rate fluctuations, environmental matters, restrictions on redemptions
of outstanding Whiterock securities, lack of availability of growth
opportunities, diversification, reliance on anchor or single tenant
properties, potential Unitholder liability, potential conflicts of interest,
the availability of sufficient cash flow, fluctuations in cash distributions,
the market price of Whiterock's Units, the failure to obtain additional
financing, dilution, reliance on key personnel, changes in legislation,
failure to obtain or maintain mutual fund trust status and delays in obtaining
governmental approvals or financing as well as those additional factors
discussed in the section entitled "Risk Factors" in Whiterock's Annual
Information Form dated March 21, 2007 which can be obtained at www.sedar.com.
In particular, but without limitation, there is no assurance that Whiterock
will be able to increase its AFFO as anticipated.

    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    %SEDAR: 00022234E

For further information:

For further information: www.whiterockreit.ca, Jason Underwood, (416)
907-4861; Paul Simcox, (416) 907-4862; Frank Bucys, CFO, (416) 907-4864

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890