Whiterock REIT Announces Solid 2009 Year End Results

TORONTO, March 29 /CNW/ - Whiterock Real Estate Investment Trust ("Whiterock") today announced financial results for the year ended December 31, 2009. The following comments and highlights should be read in conjunction with the consolidated financial statements and management's discussion and analysis for the year ended December 31, 2009. These will be available on Whiterock's website at www.whiterockreit.ca.

In 2009, Whiterock proactively increased its financial flexibility in anticipation of difficult economic conditions and to prepare for future opportunities. Since September 2009 to date, Whiterock has acquired an interest in over $350 million of property, 89% of which are in the Greater Toronto Area, ("GTA") primarily on the Hwy 427 corridor. For the full 2009 year, Whiterock's FFO cash payout ratio averaged 93%, 55% of its revenue comes from government and other investment grade tenants and the average lease term for the portfolio is 7.4 years, well matched with the 6.2 year average term for its mortgage debt."

"We are pleased to have acquired such high quality assets in a pre-eminent market in Canada. This strengthening of our GTA portfolio will also be accompanied by significant AFFO growth in 2010 from these acquisitions", said Whiterock CEO Jason Underwood. "Whiterock's results continue to demonstrate the strength of our long term, high credit, leased portfolio."

    HIGHLIGHTS - December 31, 2009

    -   Solid FFO - FFO was $14.7 million or $1.64 per unit for the year
        ended December 31, 2009. This represents a 93% FFO cash payout ratio.

    -   Stable AFFO - AFFO for the year ended December 31, 2009 was
        $13.0 million or $1.46 per unit.

    -   Growing Portfolio in Major Markets - Acquired equity interests in
        $108.7 million of office buildings totaling 0.5 million square feet,
        predominantly in the Greater Toronto Area. Acquired equity interests
        in $47.0 million of industrial buildings totaling 0.6 million square
        feet in Montreal and Regina. Subsequent to December 31, 2009,
        acquired a 49.9% equity interest in $214 million of acquisitions
        totaling 1.1 million square feet of office buildings in the Greater
        Toronto Area.

    -   Award Winning Acquisitions - Awarded the Real Estate Excellence Award
        for Investment Deal of the Year by NAIOP, the leading organization
        for developers, owners and related professionals in office,
        industrial and mixed-use real estate, in connection with Whiterock
        and its co-owner's acquisition of a 411,285 square foot office
        building in the heart of the Greater Toronto Area.

    -   Accretive Acquisitions - In-place AFFO yield on 2009 acquisitions of
        approximately 17%. In-place AFFO yield on properties acquired
        subsequent to year end of approximately 13%.

    -   Success in Renewals - Finished 2009 leasing with 21% increase in
        rates. To date, 50% of leases up for renewal in 2010 have been re-
        leased. Increases in 2010 lease renewal rates have averaged 25%.

    -   Excellent Financial Flexibility - In the twelve months ended
        December 31, 2009, issued $23 million of convertible debentures, (26%
        of which have already converted at a 19% premium to the unit price at
        time of issue), $10.9 million of equity, and renewed $42 million of
        credit facilities. $1.7 million was drawn on credit facility at
        December 31, 2009, which was subsequently repaid in full.

    -   High Quality Acquisition Pipeline - The right of first opportunity to
        purchase, at fair market value, Whiterock's co-owner's $213 million
        current interest in co-owned properties provides a high quality
        potential pipeline of future acquisitions in major markets.

    -   Decreasing Leverage - Decreased debt to gross book value leverage
        ratio from 73% at December 31, 2008 to approximately 65% at
        December 31, 2009, adjusted for the February 2010 public offering and

    -   Investment Grade Tenants on Long-Term Leases - 55% of revenues were
        from government and other investment grade tenants in 2009. Average
        lease term of the portfolio was 7.4 years, providing strong cash flow

    -   Secure Top Ten Tenants - Average remaining lease term of top ten
        tenants, all investment grade and representing 43% of revenue, is
        10.8 years.

    -   Stable Occupancy - 96.2% occupancy rate at December 31, 2009.

    -   Long-Term Fixed Rate Debt - Average 6.2 year term for mortgage debt
        at a weighted average interest rate of 5.7%, all at fixed rates.

    -   Geographically Balanced Portfolio - At December 31, 2009, 13% of the
        portfolio's property operating income was in Alberta, 19% in
        Saskatchewan, 31% in Ontario, 24% in Quebec and 13% in Atlantic

    -   Yield - Distribution yield of 11.0%, based on per unit
        distributions for the year ended December 31, 2009, totaling $1.68,
        and the March 26, 2010 Unit closing price of $15.25.

    -   Tax Efficient Distributions - 100% of the distributions made since
        its formation in 2005 have been classed as return of capital for tax

                                          Three months ended    Year ended
                                              December 31,      December 31,
                                           ----------------  ----------------
    (in $000's except per unit data)          2009    2008      2009    2008
    Total revenue - continuing operations   15,379  15,717    61,126  56,222
    Property operating income
      - continuing operations                9,234   9,380    36,839  34,051

    Funds from operations (FFO)              3,716   4,109    14,700  15,035
    FFO per Unit
      - basic                                 0.39    0.52      1.64    2.02
      - diluted                               0.37    0.50      1.61    1.94

    Adjusted funds from operations (AFFO)    3,300   3,432    13,034  12,463
    AFFO per Unit
      - basic                                 0.34    0.43      1.46    1.68
      - diluted                               0.32    0.41      1.40    1.59

Balance sheet highlights for Whiterock as at December 31, 2009 and December 31, 2008 are as follows:

                                                  December 31,   December 31,
    (in $000's)                                          2009           2008

    Net equity investment in real estate(1)            17,741              -
    Investment in wholly owned real estate
     assets(2)                                        436,638        444,960
    Mortgages payable and facilities                  266,482        284,154
    Convertible debentures (face value)                75,097         55,410
    Unitholders' equity                                77,939         80,069
    (1) Whiterock's net investment in its co-ownership share of $156 million
        of real estate acquired, net of mortgage debt.
    (2) December 31, 2008 includes $7.3 million in mortgages receivable
        secured by real estate assets.

Selected financial ratios for Whiterock as at, and for the year ended, December 31, 2009 and 2008 are as follows:

                                                  December 31,   December 31,
                                                         2009           2008
    Weighted average fixed mortgage rate                 5.7%           5.5%
    Weighted average debenture rate                      6.8%           6.8%
    Interest coverage ratio(1)                           1.7x           1.9x
    Occupancy level(2)                                  96.2%          98.1%
    FFO payout ratio(3)                                  103%            84%
    FFO cash payout ratio(4)                              93%            73%
    (1) Interest coverage for the period is calculated based on property
        operating income less G&A, divided by interest expense (including
        debentures and financing fee amortization) net of interest and other
    (2) Includes leases executed to December 31, 2009
    (3) FFO payout ratio is calculated as 2009 distributions divided by 2009
    (4) FFO cash payout ratio is calculated as 2009 cash distributions
        divided by 2009 FFO.

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 ("MD&A") for the year ended December 31, 2009.

Whiterock's consolidated Financial Statements and MD&A for the year ended December 31, 2009 are posted on Whiterock's website. Readers are directed to these documents for a more detailed discussion of Whiterock's results.


Whiterock invites you to participate in its conference call with senior management on Monday March 29, 2010 at 11:00 a.m. E.D.T., to discuss the REIT's results and achievements for the year ended December 31, 2009. A presentation to accompany management's comments during the call will be available on Whiterock's website. To view it, please go to www.whiterockreit.ca and click on the link for Quarterly Financial Statements on the homepage or access it directly using www.whiterockreit.ca/financial_reports.php.

You may participate in the live conference by calling 416-800-1066 or toll free at 1-866-212-4491. 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 applicable securities legislation. These forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect" "estimate", "anticipate", "intend", "believe" or "continue", the negative forms thereof and similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. These statements are not guarantees of future events or performance and, by their nature, are based on Whiterock's estimates and assumptions, which are subject to known and unknown risks, uncertainties and other factors that may cause the actual events, results or prospects to be materially different from those expressed or implied herein. Readers are cautioned that a number of factors, including those discussed in the section entitled "Risk Factors" in Whiterock's Annual Information Form which can be obtained at www.sedar.com, could cause actual events, results or prospects to differ materially from those stated or implied. These factors should be considered carefully, and a reader should not place undue reliance on forward-looking statements, as there can be no assurance that actual events, results or prospects will be consistent with such statements. In particular, but without limitation, there can be no assurance that Whiterock will be to able to increase its AFFO. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a less robust leasing environment than has been seen for the last several years; relatively stable interest costs; an increase in acquisition capitalization rates and more limited access to equity and debt capital markets to fund, at acceptable costs, Whiterock's growth plans, and to enable Whiterock to refinance its debts as they mature. Except as required by law, Whiterock does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

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, Frank Bucys, CFO, (416) 907-4864; Jennifer Kosloski, (416) 979-3026

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