TSX: MRT.UN
MISSISSAUGA, ON, Nov. 1, 2012 /CNW/ - Morguard Real Estate
Investment Trust ("the Trust") (TSX: MRT.UN) today announced its
financial results for the three and nine months ended September 30, 2012 ("Q3").
- Net income for the three and nine months ended September 30, 2012 was $53.0 million and $143.9
million, respectively, as compared to $45.3 million and $109.9
million, respectively, for the same periods in 2011.
- Net income per unit for the three and nine months ended
September 30, 2012 was $0.89 per unit ($0.85 per unit diluted) and $2.47 per unit ($2.40 per unit diluted), respectively, as
compared to $0.79 per unit
($0.74 per unit diluted) and
$1.93 per unit ($1.82 per unit diluted), respectively, for the
same periods in 2011.
- Funds from operations for the three and nine months ended
September 30, 2012 was $20.7 million and $60.7
million, respectively, as compared to $19.4 million and $58.1
million, respectively, for the same periods in 2011.
- Funds from operations per unit for the three and nine months
ended September 30, 2012 was
$0.35 per unit ($0.35 per unit diluted) and $1.04 per unit ($1.04 per unit diluted), as compared to
$0.34 per unit ($0.33 per unit diluted) and $1.02 per unit ($0.98 per unit diluted), respectively, for the
same periods in 2011.
- Net operating income for the three and nine months ended
September 30, 2012 was $35.0 million and $103.1
million, respectively, as compared to $32.9 million and $ 98.8
million, respectively, for the same periods in 2011.
NET OPERATING INCOME, FUNDS FROM
OPERATIONS
This press release and accompanying financial
information make reference to net operating income and funds from
operations 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). Funds from operations is defined as net
income prior to extraordinary items, valuation adjustments, and
certain other non-cash items, if any.
FINANCIAL STATEMENTS AND MORGUARD'S
DISCUSSION AND ANALYSIS
Morguard REIT's Q3 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.morguard.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 |
|
September 30, |
|
December 31, |
| (in thousands of Canadian dollars) |
|
2012 |
|
2011 |
| |
|
|
|
|
| Assets |
|
|
|
|
| Real estate properties |
$ |
2,223,942 |
$ |
2,119,084 |
| Amounts receivable |
|
9,080 |
|
8,851 |
| Other assets |
|
10,382 |
|
1,321 |
| Cash and cash equivalents |
|
9,416 |
|
8,134 |
| |
$ |
2,252,820 |
$ |
2,137,390 |
| |
|
|
|
|
| Liabilities |
|
|
|
|
| Mortgages and bonds payable |
$ |
784,490 |
$ |
799,672 |
| Convertible debentures payable |
|
42,586 |
|
86,457 |
| Accounts payable and other liabilities |
|
45,618 |
|
34,496 |
| Notes payable |
|
25,000 |
|
— |
| Bank indebtedness |
|
34,464 |
|
43,852 |
| |
|
932,158 |
|
964,477 |
| |
|
|
|
|
| Unitholders' Equity |
|
1,320,662 |
|
1,172,913 |
| |
$ |
2,252,820 |
$ |
2,137,390
|
Consolidated Statements of Income and Comprehensive
Income
| |
Three months
ended |
Nine months
ended |
(in thousands of Canadian
dollars,
except per-unit amounts) |
|
September 30,
2012 |
|
September 30,
2011 |
|
September 30,
2012 |
|
September 30,
2011 |
| |
|
|
|
|
|
|
|
|
| Revenue from real estate
properties |
$ |
61,267 |
$ |
57,983 |
$ |
183,662 |
$ |
175,020 |
| Property operating expenses |
|
24,220 |
|
23,270 |
|
74,526 |
|
70,559 |
| Property management fees |
|
2,008 |
|
1,851 |
|
5,987 |
|
5,640 |
| Net operating income |
|
35,039 |
|
32,862 |
|
103,149 |
|
98,821 |
| |
|
|
|
|
|
|
|
|
| Interest expense |
|
11,400 |
|
12,686 |
|
37,521 |
|
38,047 |
| General and administrative |
|
1,269 |
|
1,177 |
|
3,798 |
|
3,678 |
| Amortization expense |
|
11 |
|
13 |
|
33 |
|
37 |
| Other income |
|
(6) |
|
(15) |
|
(45) |
|
(9) |
| Income before fair value gains
on real estate properties |
|
22,365 |
|
19,001 |
|
61,842 |
|
57,068 |
| |
|
|
|
|
|
|
|
|
| Fair value gains on real estate
properties |
|
30,649 |
|
26,269 |
|
82,038 |
|
52,861
|
| Net income for the period |
$ |
53,014 |
$ |
45,270 |
$ |
143,880 |
$ |
109,929 |
|
|
|
|
|
|
|
|
|
| Amortization - cash flow
hedge |
|
244 |
|
238 |
|
727 |
|
711 |
| Comprehensive income |
$ |
53,258 |
$ |
45,508 |
$ |
144,607 |
$ |
110,640 |
| |
|
|
|
|
|
|
|
|
| Net income per unit |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.89 |
$ |
0.79 |
$ |
2.47 |
$ |
1.93 |
|
Diluted |
$ |
0.85 |
$ |
0.74 |
$ |
2.40 |
$ |
1.82 |
Reconciliation of Net Income to Funds from Operations
| |
Three months ended |
Nine months ended |
(in thousands of Canadian dollars,
except per-unit amounts) |
|
September 30,
2012 |
|
September 30,
2011 |
|
September 30,
2012 |
|
September 30,
2011 |
| |
|
|
|
|
|
|
|
|
| Net income for the period |
$ |
53,014 |
$ |
45,270 |
$ |
143,880 |
$ |
109,929 |
| |
|
|
|
|
|
|
|
|
| Add/(deduct) : |
|
|
|
|
|
|
|
|
| Accretion of convertible debentures |
|
(1,622) |
|
367 |
|
(1,143) |
|
1,041 |
| Fair value gains on real estate
properties |
|
(30,649) |
|
(26,269) |
|
(82,038) |
|
(52,861) |
| Funds from operations |
$ |
20,743 |
$ |
19,368 |
$ |
60,699 |
$ |
58,109 |
| |
|
|
|
|
|
|
|
|
| Funds from operations per unit: |
|
|
|
|
|
|
|
|
| Basic |
|
$0.35 |
|
$0.34 |
|
$1.04 |
|
$1.02 |
| Diluted |
|
$0.35 |
|
$0.33 |
|
$1.04 |
|
$0.98 |
SOURCE Morguard Real Estate Investment Trust