MRT.UN Morguard Real Estate Investment Trust

TSX: MRT.UN MISSISSAUGA, ON, Aug. 2, 2012 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") today announced its financial results for the three and six months ended June 30, 2012 ("Q2"). Net income for the three and six months ended June 30, 2012 was $46.9 million and $90.9 million, respectively, as compared to $41.3 million and $64.7 million, respectively, for the same periods in 2011. Net income per unit for the three and six months ended June 30, 2012 was $0.81 per unit ($0.76 per unit fully diluted) and $1.57 per unit ($1.48 per unit fully diluted), respectively, as compared to $0.73 per unit ($0.68 per unit fully diluted) and $1.14 per unit ($1.08 per unit fully diluted), respectively, for the same periods in 2011. Funds from operations ("FFO") for the three and six months ended June 30, 2012 was $20.3 million and $40.0 million, respectively, as compared to $19.1 million and $38.7 million, respectively, for the same periods in 2011. Funds from operations per unit for the three and six months ended June 30, 2012 was $0.35 per unit ($0.34 per unit fully diluted) and $0.69 per unit ($0.67 per unit fully diluted), as compared to $0.34 per unit ($0.33 per unit fully diluted) and $0.69 per unit ($0.66 per unit fully diluted), respectively, for the same periods in 2011. Net operating income for the three and six months ended June 30, 2012 was $34.3 million and $68.1 million, respectively, as compared to $32.8 million and $ 66.0 million, respectively, for the same periods in 2011. NET OPERATING INCOME, FFO This press release and accompanying financial information make reference to net operating income and funds from operations ("FFO") on a total and per unit basis.  Net operating income is defined as income from property operations after operating expenses have been deducted, but prior to deducting interest expense, general and administrative expenses and fair value gains (losses).  FFO is defined as net income prior to extraordinary items, valuation adjustments, and certain other non-cash items, if any. Readers are cautioned that although the terms "Net Operating Income" and "Funds from Operations" are commonly used to measure, compare and explain the operating and financial performance of Canadian real estate investment trusts and such terms are defined in the Management's Discussion and Analysis, such terms are not recognized terms under IFRS.  Such terms do not necessarily have a standardized meaning and may not be comparable to similarly titled measures presented by the other publicly traded entities. FINANCIAL STATEMENTS AND MORGUARD'S DISCUSSION AND ANALYSIS Morguard REIT's Q2 2012 Consolidated Financial Statement and Management's Discussion and Analysis along with its 2011 Annual Report are available on Morguard REIT's website at www.morguardreit.com and have been filed with SEDAR at www.sedar.com ABOUT MORGUARD REAL ESTATE INVESTMENT TRUST Morguard REIT is a closed-end real estate investment trust, which owns a diversified portfolio of 53 retail, office and mixed-use properties in Canada with a book value of $2.2 billion and approximately 8.5 million square feet of leaseable space. Consolidated Balance Sheet As at June 30, December 31, (in thousands of Canadian dollars) 2012 2011 Assets Real estate properties $ 2,182,314 $ 2,119,084 Amounts receivable 10,586 8,851 Other assets 11,394 1,321 Cash and cash equivalents 7,289 8,134 $ 2,211,583 $ 2,137,390 Liabilities Mortgages and bonds payable $ 791,233 $ 799,672 Convertible debentures payable 82,364 86,457 Accounts payable and other liabilities 42,745 34,496 Notes payable 10,000 — Bank indebtedness 42,754 43,852 969,096 964,477 Unitholders' Equity 1,242,487 1,172,913 $ 2,211,583 $ 2,137,390 Consolidated Statements of Income and Comprehensive Income Three months ended June 30 Six months ended June 30 (in thousands of 2012 2011 2012 2011 Canadian dollars, except per-unit amounts) Revenue from real $ 60,874 $ 57,970 $ $ 117,037 estate properties 122,395 Property 24,572 23,269 50,306 47,289 operating expenses Property 1,981 1,906 3,979 3,789 management fees Net operating 34,321 32,795 68,110 65,959 income Interest expense 12,953 12,715 26,121 25,361 General and 1,172 1,280 2,529 2,501 administrative Amortization 10 15 22 24 expense Other (1) 6 (39) 6 (income)/expenses Income before 20,187 18,779 39,477 38,067 fair value gains on real estate properties Fair value gains 26,693 22,553 51,389 26,592 on real estate properties Net income for $ 46,880 $ 41,332 $ $ 64,659 the period 90,866 Other comprehensive income Amortization - 242 237 483 473 cash flow hedge Comprehensive $ $ 41,569 $ $ 65,132 income 47,122 91,349 Net income per unit Basic $0.81 $0.73 $1.57 $1.14 Diluted $0.76 $0.68 $1.48 $1.08 Reconciliation of Net Income to Funds from Operations Three months ended June Six 30 months ended June 30 (in thousands of 2012 2012 Canadian dollars, 2011 except per-unit 2011 amounts) Net income for the $ $ 41,332 $ $ period 46,880 90,866 64,659 Add/(deduct) items not affecting cash: Accretion of 152 325 479 674 convertible debentures Fair value gains (26,693) (22,553) (51,389) (26,592) on real estate properties Funds from $ $ $ operations $ 19,104 39,956 38,741 20,339 Funds from operations per unit: Basic $0.35 $0.34 $0.69 $0.69 Diluted $0.34 $0.33 $0.67 $0.66   Morguard Real Estate Investment Trust CONTACT: K. (Rai) Sahi, President and Chief Executive Officer, Tel:905.281.4800, or;Tim Walker, Vice President and Chief Financial Officer, Tel:905.281.4800

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