TSX: MRT.UN
MISSISSAUGA, ON, Aug. 2, 2012 /CNW/ - Morguard Real Estate
Investment Trust ("the Trust") (TSX: MRT.UN) 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 Canadian dollars,
except per-unit amounts) |
2012 |
2011 |
2012 |
2011 |
| |
|
|
|
|
| Revenue from real estate
properties |
$
60,874 |
$ 57,970 |
$
122,395 |
$ 117,037 |
| Property operating expenses |
24,572 |
23,269 |
50,306 |
47,289 |
| Property management fees |
1,981 |
1,906 |
3,979 |
3,789 |
| Net operating income |
34,321 |
32,795 |
68,110 |
65,959 |
| |
|
|
|
|
| Interest expense |
12,953 |
12,715 |
26,121 |
25,361 |
| General and administrative |
1,172 |
1,280 |
2,529 |
2,501 |
| Amortization expense |
10 |
15 |
22 |
24 |
| Other (income)/expenses |
(1) |
6 |
(39) |
6 |
| Income before fair value gains on
real estate properties |
20,187 |
18,779 |
39,477 |
38,067 |
| |
|
|
|
|
| Fair value gains on real estate
properties |
26,693 |
22,553 |
51,389 |
26,592 |
| Net income for the
period |
$ 46,880
|
$ 41,332
|
$ 90,866
|
$ 64,659
|
| |
|
|
|
|
| Other comprehensive
income |
|
|
|
|
| Amortization - cash flow hedge |
242 |
237 |
483 |
473 |
| Comprehensive income |
$ 47,122 |
$ 41,569 |
$ 91,349 |
$ 65,132 |
| |
|
|
|
|
| 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 30 |
Six months ended June 30 |
| (in thousands of Canadian dollars,
except per-unit amounts) |
2012 |
2011 |
2012 |
2011 |
| |
|
|
|
|
| Net income for the period |
$
46,880 |
$ 41,332 |
$ 90,866 |
$ 64,659 |
| |
|
|
|
|
| Add/(deduct) items not affecting
cash: |
|
|
|
|
| |
Accretion of convertible debentures |
152 |
325 |
479 |
674 |
| |
Fair value gains on real estate
properties |
(26,693) |
(22,553) |
(51,389) |
(26,592) |
| Funds from operations |
$
20,339 |
$
19,104 |
$
39,956 |
$
38,741 |
| |
|
|
|
|
| Funds from operations per
unit: |
|
|
|
|
| |
Basic |
$0.35 |
$0.34 |
$0.69 |
$0.69 |
| |
Diluted |
$0.34 |
$0.33 |
$0.67 |
$0.66 |
SOURCE Morguard Real Estate Investment Trust