QUÉBEC, August 6, 2015 /CNW
Telbec/ - Cominar Real Estate Investment Trust
("Cominar" or the "REIT") (TSX: CUF.UN) announced today its results
for the second quarter of fiscal year 2015.
Highlights for the Quarter Ended June 30,
2015
- Increased net operating income of 26.2%
- Closing of a public offering of debentures for $300.0 M
Subsequent Event after June 30,
2015
- Early redemption of the Series E convertible debentures
totalling $86.3 M and bearing
interest at 5.75%
"The important acquisitions made in 2014 continue to contribute
to the increase of our results for the second quarter of 2015.
However, Target stores closure will have, for several quarters, a
negative impact on our results. We are confident that the
reorganization of these spaces, when completed, will bring a
greater contribution that the one received from Target on these
same spaces," said Michel Dallaire,
President and Chief Executive Officer of Cominar.
"The second quarter was also marked by the economic weakness
affecting some of our clients. Organic growth in our same property
portfolio was partially cancelled out by the increase in bad debts
during the quarter and by the decrease in our occupancy rate. Our
same property net operating income, which was increasing for four
quarters, is down 0.8% for the second quarter of 2015 compared to
the same period of 2014," said Gilles
Hamel, Executive Vice President and Chief Financial
Officer of Cominar.
PRESENTATION OF RESULTS
For the quarter ended June 30,
2015, operating revenues increased to $224.8 million, up 26.7% over the comparable
period in 2014 when operating revenues were $177.5 million.
Net operating income reached $122.8 million, up 26.2% compared to net
operating income in the second quarter of 2014.
Recurring distributable income reached $67.5 million, up 29.6% over the second quarter
of 2014. The basic recurring distributable income per unit
amounted to $0.40 for the current
quarter, down $0.01 compared to the
same period in 2014.
Recurring funds from operations for the second quarter of
2015 reached $76.2 million, up 26.3%
compared to the second quarter of 2014. Recurring funds from
operations per unit fully diluted amounted to $0.45, compared to $0.47 in the corresponding quarter of 2014.
Recurring adjusted funds from operations for the second
quarter of 2015 reached $65.7
million, up 28.4% compared to the same quarter of 2014.
Fully diluted per unit, they amounted to $0.39, down $0.01
compared to the same quarter of 2014.
FINANCIAL SITUATION
As at June 30, 2015, Cominar had a
debt ratio (excluding convertible debentures) of 52.3%, down
from 53.9% as at December 31,
2014. At the end of the second quarter of 2015, total
assets reached $8.3 billion,
up 28.9% compared to June 30,
2014.
FINANCING ACTIVITIES
On June 1, 2015, Cominar closed a
public offering of debentures for $300.0 million bearing an interest rate of
4.164% and maturing in June 2022.
ACQUISITION
On April 23, 2015, Cominar
acquired a portfolio of 3 industrial properties of 697,000 square
feet leasable area, located in the Greater Montréal area, for a
purchase price of $34.5 million
paid in cash. The capitalization rate for this transaction is
8.1%.
SUBSEQUENT EVENT AFTER JUNE 30,
2015
On July 6, 2015, Cominar redeemed
early all of the Series E convertible debentures totalling
$86.3 million and bearing interest at
5.75%. This redemption will result in the next quarters in interest
savings and in the elimination of the dilution arising from these
convertible debentures.
ADDITIONAL FINANCIAL INFORMATION
Cominar's condensed interim consolidated financial statements
and interim management's discussion and analysis for the second
quarter ended June 30, 2015, will be
filed with SEDAR at www.sedar.com and will be available on
Cominar's website at www.cominar.com.
CONFERENCE CALL ON AUGUST 6,
2015
On Thursday, August 6, 2015 at
11 a.m. (ET), Cominar's management will hold a conference call
to present the results for the second quarter of 2015. Anyone who
is interested may take part in this call by dialing 1 888
390-0546. A presentation regarding these results will be
available before the conference call on the REIT's website at
www.cominar.com, under the Conference Call header. In addition, a
taped rebroadcast of the conference call will be available from
Thursday, August 6, 2015 at
2 p.m. to Thursday, August 13, 2015 at 11:59 p.m., by dialing
1 888 390-0541 followed by this code:
479035 #.
DISTRIBUTION REINVESTMENT PLAN
Cominar offers unitholders the opportunity to participate in its
Unitholder Distribution Reinvestment Plan, which allows them to
receive their monthly cash distributions as additional Cominar
units. Participants will be entitled to receive an additional
distribution equal to 5% of the distributions reinvested, which
will be reinvested in additional units. For more information and to
obtain a participation form, please visit Cominar's website at
www.cominar.com.
PROFILE AS AT AUGUST 6,
2015
Cominar is the third largest diversified real estate investment
trust in Canada and currently
remains the largest commercial property owner in the Province of
Quebec. The REIT owns a real
estate portfolio of 567 properties in three different market
segments, that is, office properties, retail properties and
industrial and mixed-use properties. Cominar's portfolio totals
46.0 million square feet spread out across Quebec, Ontario, the Atlantic Provinces and
Western Canada. Cominar's
objectives are to pay growing cash distributions to unitholders and
to maximize unitholder value through proactive management and the
expansion of its portfolio.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements
with respect to Cominar and its operations, strategy, financial
performance and financial condition. These statements generally can
be identified by the use of forward-looking words such as "may",
"will", "expect", "estimate", "anticipate", "intend", "believe" or
"continue" or the negative thereof or similar variations. The
actual results and performance of Cominar discussed herein could
differ materially from those expressed or implied by such
statements. Such statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations.
Some important factors that could cause actual results to differ
materially from expectations include, among other things, general
economic and market factors, competition, changes in government
regulation and the factors described under "Risk Factors" in
Cominar's Annual Information Form. The cautionary statements
qualify all forward-looking statements attributable to Cominar and
persons acting on its behalf. Unless otherwise stated, all
forward-looking statements speak only as of the date of this press
release. Cominar does not assume any obligation to update the
aforementioned forward-looking statements, except as required by
applicable laws.
NON-IFRS MEASURES
Net operating income, recurring distributable income (DI),
recurring funds from operations (FFO), recurring adjusted funds
from operations (AFFO) and proportionate share in joint ventures
adjustments are not measures recognized by International Financial
Reporting Standards ("IFRS") and do not have standardized meanings
prescribed by IFRS. Such measures may differ from similar
computations as reported by similar entities and, accordingly, may
not be comparable to similar measures reported by such other
entities. Cominar's Interim Management Discussion and Analysis for
the quarter ended June 30, 2015, presents the reconciliation
of DI, FFO and AFFO with the most similar IFRS
measures:
NON-IFRS FINANCIAL MEASURES
|
|
|
|
|
|
|
For the quarters
ended June 30
|
2015
|
2014
|
% Δ
|
2015
|
2014
|
% Δ
|
|
($000)
|
($000)
|
|
($ per
unit)
|
($ per
unit)
|
|
|
|
|
|
|
|
|
Net operating
income
|
122,793
|
97,274
|
26.2
|
|
|
|
Recurring
distributable income
|
67,454
|
52,051
|
29.6
|
0.40(1)
|
0.41(1)
|
(2.4)
|
Distributions
|
65,711
|
51,172
|
28.4
|
0.368
|
0.360
|
2.1
|
Recurring funds from
operations
|
76,188
|
60,308
|
26.3
|
0.45(2)
|
0.47(2)
|
(4.3)
|
Recurring adjusted
funds from operations
|
65,711
|
51,172
|
28.4
|
0.39(2)
|
0.40(2)
|
(2.5)
|
|
|
(1)
|
basic
|
(2)
|
fully
diluted
|
SOURCE COMINAR REAL ESTATE INVESTMENT TRUST