MISSISSAUGA, ON, Feb. 13, 2019 /CNW/ - Morguard Real Estate
Investment Trust ("the Trust") (TSX: MRT.UN) today is pleased to
announce its 2018 annual results. These results have been
prepared in accordance with International Financial Reporting
Standards ("IFRS").
FOR THE YEAR ENDED DECEMBER
31
In thousands of
dollars, except per unit amounts
|
2018
|
|
2017
|
|
Revenue from real
estate properties
|
$276,473
|
|
$278,754
|
|
Net operating
income
|
152,078
|
|
157,025
|
|
Fair value
(losses)/gains on real estate properties
|
(18,602)
|
|
(31,225)
|
|
Net
income
|
73,015
|
|
67,306
|
|
Funds from
operations
|
94,992
|
|
100,766
|
|
Amounts presented
on a per unit basis
|
|
|
|
|
Net
income
|
|
|
|
|
Basic
|
$1.20
|
|
$1.11
|
|
Diluted
|
$1.12
|
|
$1.05
|
|
Funds from
operations
|
|
|
|
|
Basic
|
$1.56
|
|
$1.66
|
|
Diluted
|
$1.48
|
|
$1.57
|
|
Cash distributions
per unit
|
$0.96
|
|
$0.96
|
|
The Trust is pleased to report that the following retail
development projects have been completed in 2018:
Property
|
Portfolio
|
New
GLA
|
Redeveloped
GLA
|
Project
Cost
|
|
Comments
|
Shoppers
Mall
|
Enclosed regional
centres
|
13,000
|
—
|
$4,891
|
|
Construction of new
freestanding pad
space for Cara brand restaurants
|
|
|
|
|
|
|
|
Market
Square
|
Community strip
centres
|
9,700
|
—
|
4,753
|
|
Construction of new
freestanding pad
space
|
|
|
|
|
|
|
|
Cambridge
Centre
|
Enclosed regional
centres
|
—
|
126,800
|
24,740
|
|
Anchor tenant
remerchandising of
former Target space for Marshalls,
Kingpin Cambridge, Sport Check, and
Indigo (excludes $3.8 million cost to
complete for 18,400 GLA)
|
|
|
|
|
|
|
|
Shoppers
Mall
|
Enclosed regional
centres
|
—
|
34,000
|
10,749
|
|
Anchor tenant
remerchandising of
remaining former Target space for
Shoppers Drug Mart and Ardene
|
|
|
22,700
|
160,800
|
$45,133
|
|
|
Annual net operating income has decreased 3.2% to $152.1 million in 2018 as compared to
$157.0 million in 2017. This decrease
is due to the closure of three anchor premises formerly leased to
Sears which closed in late 2017/early 2018 and is offset by
incremental net operating income from either new or redeveloped GLA
in the amount of 474,000 square feet which has come on stream in
either 2017 or 2018.
Fair value losses have decreased 40.8% to $18.6 million in 2018 as compared to $31.2 million in 2017.
Interest expense has increased 1.0% to $55.6 million in 2018 from $55.1 in 2017 due to higher short-term interest
rates in 2018.
Net income has increased to $73.0
million in 2018 ($1.20 per
unit) as compared to $67.3 million in
2017 ($1.11 per unit).
Funds from operations has decreased to $95.0 million in 2018 ($1.56 per unit in 2018) as compared to
$100.8 million in 2017 ($1.66 per unit).
Cash distributions per unit remain unchanged at $0.96 per unit in both 2018 and 2017.
Net operating income for the three months ended December 31, 2018 has decreased to $40.4 million in 2018 as compared to $41.6 million in 2017 due to a decrease of
$0.9 million in lease cancellation
fees.
The Trust expects a further 161,500 in either new or redeveloped
GLA to be completed in the first half of 2019 at three locations -
Pine Centre Mall, Parkland Mall and The Centre.
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 Q4 2018 Consolidated Financial Statements and
Management's Discussion and Analysis will be made 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, February
14, 2019 at 4:00 p.m. (ET)
|
Conference Call
#:
|
416-764-8688 or
1-888-390-0546
|
Conference ID
#:
|
82114761
|
About Morguard Real Estate Investment Trust
The Trust is a closed-end real estate investment trust, which
owns a diversified portfolio of 49 retail, office and industrial
income producing properties in Canada with a book value of $3.0 billion and approximately 8.6 million square
feet of leasable space.
SOURCE Morguard Real Estate Investment Trust