MISSISSAUGA, ON, May 2, 2018 /CNW/ - Morguard Real Estate
Investment Trust ("the Trust") (TSX: MRT.UN) today is pleased to
announce its financial results for the three months ended
March 31, 2018. These results
have been prepared in accordance with International Financial
Reporting Standards ("IFRS").
The Trust's net income and comprehensive income for the three
months ended March 31, 2018, was
$17.6 million versus $37.9 million for the three months ended
March 31, 2017.
The decrease of $20.3 million is
largely the result of fair value changes. Fair value losses
for the three months ended March 31,
2018, were $6.0 million,
versus an overall gain of $12.0
million for the three months ended March 31, 2017.
Revenue from real estate properties was $69.3 million for the three months ended
March 31, 2018, versus $71.3 million for the three months ended
March 31, 2017.
The decrease in revenue of $2.0
million is largely the result of increased vacancy and lower
base rents in the Trust's office portfolio. In 2017, the
office portfolio benefited from one-time lease cancellation fees of
approximately $0.9 million.
Performance in the retail portfolio was generally flat.
Increased vacancy, including the impact of vacancy tied to the
Sears Canada Inc. space (approximately $0.5
million), and reduced rental rates were offset by increased
revenue from the Trust's development program. During 2017,
290,700 square feet of development activity became income
producing. These projects contributed $1.4 million to revenue in the first quarter.
The Trust's fully diluted funds from operations ("FFO") for the
three months ended March 31, 2018,
was $25.5 million ($0.37 per unit) versus $27.9 million ($0.40 per unit) for the same three months ended
March 31, 2017. This represents a decrease of
$2.4 million ($0.03 per unit). The decrease in FFO is
largely attributed to the decrease in revenue from the office
portfolio.
The Trust continues with its development program and expects an
additional 210,500 square feet of new area under intensification
and remerchandised area to become income producing by the end of
2018. The Trust has secured commitments on 63% of the
remerchandised area and 93% of the area under intensification.
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). The
Trust presents FFO in accordance with the Real Property Association
of Canada white paper on funds
from operations and adjusted funds from operations for IFRS issued
February 2018. FFO is a non-GAAP measure that is widely
accepted as a supplemental measure of financial performance for
real estate entities. In accordance with such white paper, the
Trust defines FFO as net income adjusted for fair value changes on
real estate properties and gains/(losses) on the sale of real
estate properties.
Financial Statements and Management's Discussion and
Analysis
The Trust's Q1 2018 Condensed Consolidated Financial Statements
and Management's Discussion and Analysis along with its 2017 Annual
Report are available on the Trust's website at www.morguard.com and
have been filed with SEDAR at www.sedar.com
Conference Call Details:
Date:
|
Thursday, May 3, 2018
at 4:00 p.m. (ET)
|
Conference
Call#:
|
647-427-7450 or
1-888-231-8191
|
Conference
ID#:
|
8467947
|
About Morguard Real Estate Investment Trust
The Trust is a closed-end real estate investment trust, which
owns a diversified portfolio of 48 retail, office and industrial
income producing properties in Canada with a book value of $2.9 billion and approximately 8.4 million square
feet of leasable space.
SOURCE Morguard Real Estate Investment Trust