In c9445 which crossed at 17:36e today, an error occurred in
bulleted text under "Operations."
The text should have read, "The portfolio occupancy remained
stable and was 96% at June 30, 2014,
96% at December 31, 2013 and 96% at
June 30, 2013." and not "The
portfolio occupancy remained stable and was 97% at June 30, 2014, 96% at December 31, 2013 and 97% at June 30, 2013." Full corrected copy follows:
Morguard Real Estate Investment Trust announces 2014 second
quarter results
TSX: MRT.UN
MISSISSAUGA, ON, Aug. 5, 2014 /CNW/ - Morguard Real Estate
Investment Trust ("the Trust") (TSX: MRT.UN) today is pleased to
announce its financial results for the three and six months ended
June 30, 2014 ("Q2"). These results
have been prepared in accordance with International Financial
Reporting Standards ("IFRS").
Highlights
Funds from Operations (FFO)
- Funds from operations for the three and six months ended
June 30, 2014 was $27.0 million and $53.1
million, respectively, as compared to $24.4 million and $49.3
million, respectively, for the same periods in 2013. On a
per unit diluted basis, funds from operations for the three and six
months ended June 30, 2014 was
$0.42 and $0.83, respectively, as compared to $0.37 and $0.75,
respectively for the same periods in 2013. The increase in FFO was
primarily the result of the acquisition of Pine Centre completed by
the Trust in December 2013.
- Funds from operations is not a term defined under IFRS and may
not be comparable to similar measures used by other Trusts. A
reconciliation of net income to funds from operations is
included.
Net Operating Income (NOI)
- Net operating income for the three and six months ended
June 30, 2014 was $42.7 million and $84.3
million, respectively, as compared to $39.2 million and $79.4
million, respectively, for the same periods in 2013.
- Net operating income is an additional GAAP measure, but not a
term defined under IFRS and may not be comparable to similar
measures used by other Trusts. A calculation of net operating
income is included.
Net Income
- Net income for the three and six months ended June 30, 2014 was $34.2
million and $70.4 million,
respectively, as compared to $51.3
million and $127.1 million,
respectively, for the same periods in 2013. The decrease in net
income was mainly the result of lower fair value gains on real
estate properties recorded in 2014.
Operations
- The portfolio occupancy remained stable and was 96% at
June 30, 2014, 96% at December 31, 2013 and 96% at June 30, 2013.
At June 30, 2014,
the Trust's total enterprise value was approximately $2.5 billion (based on the market closing price
of the Trust's units on June 30, 2014
plus total debt outstanding). At June 30,
2014, the Trust had $1.4
billion of outstanding debt, equating to debt to total value
ratio of 55.5%. The Trust's debt consisted of $1.2 billion of fixed-rate debt with weighted
average interest rate of 4.2% and weighted average term to maturity
of 6.22 years, $146.0 million of
4.85% fixed-rate convertible debentures and $13.8 million debt associated with real estate
properties held for sale. The Trust has a debt to total assets
ratio of 45.5%.
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 Q2 2014 Condensed Interim Consolidated Financial
Statement and Management's Discussion and Analysis along with its
2013 Annual Report are available on Morguard REIT's website at
www.morguard.com and have been filed with SEDAR at
www.sedar.com
CONFERENCE CALL DETAILS:
|
|
Date: |
|
Thursday, August 7, 2014 at 4:00 p.m. (ET) |
|
|
Conference Call#: |
|
647.427.7450 or 1.888.231.8191 |
|
|
Conference ID#: |
|
78885729 |
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
income producing properties in Canada with a book value of $2.9 billion and approximately 9.1 million square
feet of leaseable space.
Condensed Interim Consolidated Balance Sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands of Canadian dollars) |
|
|
|
June 30, |
|
|
|
December 31, |
|
|
|
|
2014 |
|
|
|
2013 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Real estate properties |
|
|
$ |
2,865,017 |
|
|
$ |
2,869,358 |
Equity accounted investments |
|
|
|
46,102 |
|
|
|
44,857 |
Amounts receivable |
|
|
|
15,374 |
|
|
|
14,505 |
Other assets |
|
|
|
11,848 |
|
|
|
920 |
Cash and cash equivalents |
|
|
|
42,424 |
|
|
|
13,159 |
|
|
|
|
2,980,765 |
|
|
|
2,942,799 |
Real estate properties classified as held for
sale |
|
|
|
41,022 |
|
|
|
— |
|
|
|
$ |
3,021,787 |
|
|
$ |
2,942,799 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Mortgages and bonds payable |
|
|
$ |
1,214,294 |
|
|
$ |
1,194,682 |
Convertible debentures payable |
|
|
|
146,006 |
|
|
|
145,460 |
Accounts payable and other liabilities |
|
|
|
55,202 |
|
|
|
44,919 |
Bank indebtedness |
|
|
|
— |
|
|
|
5,000 |
|
|
|
|
1,415,502 |
|
|
|
1,390,061 |
Mortgages payable on real estate properties
classified as held for sale |
|
|
|
13,800 |
|
|
|
— |
Total liabilities |
|
|
|
1,429,302 |
|
|
|
1,390,061 |
|
|
|
|
|
|
|
|
|
Unitholders' Equity |
|
|
|
1,592,485 |
|
|
|
1,552,738 |
|
|
|
$ |
3,021,787 |
|
|
$ |
2,942,799 |
Condensed Interim Consolidated Statements of
Income and Comprehensive Income |
|
(In thousands of Canadian dollars) |
|
|
|
Three months ended |
|
|
|
Six months ended |
|
|
|
|
June 30, |
|
|
|
June 30, |
|
|
|
June 30, |
|
|
|
June 30, |
|
|
|
|
2014 |
|
|
|
2013 |
|
|
|
2014 |
|
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from real estate
properties |
|
|
$ |
73,925 |
|
|
$ |
67,155 |
|
|
$ |
148,129 |
|
|
$ |
137,584 |
Property operating expenses |
|
|
|
28,832 |
|
|
|
25,723 |
|
|
|
59,016 |
|
|
|
53,744 |
Property management fees |
|
|
|
2,375 |
|
|
|
2,188 |
|
|
|
4,784 |
|
|
|
4,421 |
Net operating income |
|
|
|
42,718 |
|
|
|
39,244 |
|
|
|
84,329 |
|
|
|
79,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
15,334 |
|
|
|
14,639 |
|
|
|
30,746 |
|
|
|
29,825 |
General and administrative |
|
|
|
1,433 |
|
|
|
1,115 |
|
|
|
2,662 |
|
|
|
2,237 |
Amortization expense |
|
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
|
21 |
Other income |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5) |
Income before fair value gains, gain on sale of
real estate properties and net income from
equity accounted investments |
|
|
|
25,951 |
|
|
|
23,480 |
|
|
|
50,921 |
|
|
|
47,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value gains on real estate
properties |
|
|
|
7,168 |
|
|
|
24,843 |
|
|
|
17,416 |
|
|
|
74,241 |
Gain on sale of real estate
properties |
|
|
|
— |
|
|
|
2,058 |
|
|
|
— |
|
|
|
2,058 |
Net income from equity accounted
investments |
|
|
|
1,032 |
|
|
|
909 |
|
|
|
2,087 |
|
|
|
3,501 |
Net income for the period |
|
|
$ |
34,151 |
|
|
$ |
51,290 |
|
|
$ |
70,424 |
|
|
$ |
127,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items to be reclassified to profit or
loss in
subsequent periods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization - cash flow hedge |
|
|
|
252 |
|
|
|
247 |
|
|
|
503 |
|
|
|
493 |
Comprehensive income |
|
|
$ |
34,403 |
|
|
$ |
51,537 |
|
|
$ |
70,927 |
|
|
$ |
127,634 |
Reconciliation of Net Income to Funds from
Operations |
|
(In thousands of Canadian dollars,
except per-unit amounts) |
|
|
|
Three months ended |
|
|
|
Six months ended |
|
|
|
|
June 30, |
|
|
|
June 30, |
|
|
|
June 30, |
|
|
|
June 30, |
|
|
|
|
2014 |
|
|
|
2013 |
|
|
|
2014 |
|
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the period |
|
|
$ |
34,151 |
|
|
$ |
51,290 |
|
|
$ |
70,424 |
|
|
$ |
127,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add/(deduct) : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value gains on
real estate properties(1) |
|
|
|
(7,129) |
|
|
|
(24,787) |
|
|
|
(17,362) |
|
|
|
(75,793) |
Gain on sale of real estate
properties |
|
|
|
— |
|
|
|
(2,058) |
|
|
|
— |
|
|
|
(2,058) |
Funds from operations |
|
|
$ |
27,022 |
|
|
$ |
24,445 |
|
|
$ |
53,062 |
|
|
$ |
49,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on convertible
debentures |
|
|
|
1,814 |
|
|
|
1,844 |
|
|
|
3,608 |
|
|
|
3,638 |
Diluted FFO |
|
|
$ |
28,836 |
|
|
$ |
26,289 |
|
|
$ |
56,670 |
|
|
$ |
52,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations per
unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
$0.43 |
|
|
|
$0.38 |
|
|
|
$0.85 |
|
|
|
$0.77 |
|
Diluted(2) |
|
|
|
$0.42 |
|
|
|
$0.37 |
|
|
|
$0.83 |
|
|
|
$0.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average units outstanding
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
62,138 |
|
|
|
64,043 |
|
|
|
62,181 |
|
|
|
64,067 |
|
Diluted(2) |
|
|
|
68,235 |
|
|
|
70,141 |
|
|
|
68,279 |
|
|
|
70,165 |
(1) Includes fair value gains from equity accounted
investments |
(2) Includes dilutive impact of convertible
debentures |
|
SOURCE Morguard Real Estate Investment Trust