MISSISSAUGA, ON, May 1, 2019 /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, 2019. These results
have been prepared in accordance with International Financial
Reporting Standards ("IFRS").
FOR THE THREE MONTHS ENDED MARCH
31
In thousands of
dollars, except per unit amounts
|
2019
|
|
2018
|
|
Revenue from real
estate properties
|
$70,454
|
|
$69,245
|
|
Net operating
income
|
37,860
|
|
37,646
|
|
Fair value
(losses)/gains on real estate properties
|
(5,680)
|
|
(5,995)
|
|
Net
income
|
16,915
|
|
17,611
|
|
Funds from
operations
|
23,086
|
|
23,550
|
|
Amounts presented
on a per unit basis
|
|
|
|
|
Net
income
|
|
|
|
|
Basic
|
$0.28
|
|
$0.29
|
|
Diluted
|
$0.25
|
|
$0.27
|
|
Funds from
operations
|
|
|
|
|
Basic
|
$0.38
|
|
$0.39
|
|
Diluted
|
$0.36
|
|
$0.37
|
|
Cash distributions
per unit
|
$0.24
|
|
$0.24
|
|
The Trust is pleased to report that the following retail
development projects have been completed in the first quarter of
2019:
Property
|
Portfolio
|
New
GLA
|
|
Redeveloped
GLA
|
|
Project
Cost
|
|
Comments
|
Pine
Centre
Mall
|
Enclosed regional
centres
|
6,800
|
|
-
|
|
$3,236
|
|
Construction of new
freestanding pad space
|
|
|
|
|
|
|
|
|
|
Parkland
Mall
|
Enclosed
regional
Centres
|
-
|
|
43,600
|
|
8,120
|
|
Anchor tenant
remerchandising of former Safeway space
|
|
|
|
|
|
|
|
|
|
During the quarter, the Trust activated 6,800 square feet of new
GLA at Pine Centre Mall in Prince George,
British Columbia. This free standing space includes a
restaurant and is fully leased as of April
3, 2019.
During the quarter, the Trust activated 43,600 square feet of
redeveloped GLA at Parkland Mall in Red
Deer, Alberta. This remerchandised space includes Winners
and additional units and is 54% leased.
First quarter net operating income has increased slightly to
$37.9 million in 2019 as compared to
$37.6 million in 2018. This increase
is due to the incremental net operating income from either new or
redeveloped GLA in the amount of 183,500 square feet which has come
on stream in 2018.
Fair value losses have decreased to $5.7
million in 2019 as compared to $6.0
million in 2018.
Interest expense has increased 5.1% to $14.4 million in 2019 from $13.7 in 2018 due to higher short-term interest
rates in 2019.
Net income has decreased to $16.9
million in 2019 ($0.28 per
unit) from $17.6 million in 2018
($0.29 per unit).
Funds from operations has decreased to $23.1 million in 2019 ($0.38 per unit in 2019) as compared to
$23.6 million in 2018 ($0.39 per unit).
Cash distributions per unit remain unchanged at $0.24 per unit in both 2019 and 2018.
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. 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 2019 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, May 02,
2019 at 4:00 p.m. (ET)
|
Conference Call
#:
|
416-764-8688 or
1-888-390-0546
|
Conference ID
#:
|
05019220
|
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