MISSISSAUGA, ON, Feb. 13,
2020 /CNW/ - Morguard Real Estate Investment Trust ("the
Trust") (TSX: MRT.UN) today is pleased to announce its 2019 Annual
Results. These results have been prepared in accordance with
International Financial Reporting Standards ("IFRS").
|
Three Months
Ended December 31
|
Year Ended December
31
|
|
In thousands of
dollars, except per-unit
amounts
|
2019
|
2018
|
2019
|
2018
|
|
Revenue from real
estate properties
|
$69,249
|
$71,926
|
$273,074
|
$276,473
|
|
Net operating
income
|
38,757
|
40,370
|
149,961
|
152,078
|
|
Fair value losses
on real estate properties
|
(28,640)
|
(17,800)
|
(73,850)
|
(18,602)
|
|
Net
(loss)/income
|
(3,628)
|
6,992
|
14,840
|
73,015
|
|
Funds from
operations
|
24,088
|
25,758
|
90,894
|
94,992
|
|
Adjusted funds
from operations
|
17,570
|
19,540
|
66,063
|
69,394
|
|
Amounts presented
on a per unit basis
|
|
|
|
|
|
Net (loss)/income –
basic
|
($0.06)
|
$0.11
|
$0.24
|
$1.20
|
|
Net (loss)/income –
diluted
|
($0.06)
|
$0.13
|
$0.24
|
$1.12
|
|
Funds from operations
– basic
|
$0.40
|
$0.42
|
$1.50
|
$1.56
|
|
Funds from operations
– diluted
|
$0.38
|
$0.40
|
$1.43
|
$1.48
|
|
Adjusted funds from
operations – basic
|
$0.29
|
$0.32
|
$1.09
|
$1.14
|
|
Adjusted funds from
operations – diluted
|
$0.28
|
$0.32
|
$1.07
|
$1.12
|
|
Cash distributions
per unit
|
$0.24
|
$0.24
|
$0.96
|
$0.96
|
Revenue from real estate properties includes contracted rent
from tenants along with recoveries of property expenses. Revenue
for the year ended December 31, 2019,
decreased 1.2% to $273.1 million from
$276.5 million for the same period in
2018. This decrease is primarily due to reduced recoveries of
property taxes for the Trust's properties in Calgary.
Property operating expenses for the year ended December 31, 2019, increased 4.2% to $66.8 million from $64.1
million for the same period in 2018. This increase is
primarily due to expenses related to new GLA from the completion of
development projects in the Trust's enclosed regional centres over
2018 and 2019.
Net operating income for the year ended December 31, 2019, declined 1.4% as compared to
2018. This decline was from two of the three properties which lost
their Sears tenancy late in 2017.
Interest expense for the year ended December 31, 2019, increased 4.2% to $58.0 million from $55.6
million for the same period in 2018 due to $0.7 million in interest expense incurred on
lease liabilities from the new IFRS 16 "Leases" guidance, as well
as a decline of $0.5 million in
capitalized interest due to fewer development projects ongoing.
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 Q4 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:
|
Friday February 14,
2020 4:00 p.m. (ET)
|
|
Conference Call #:
|
416-764-8688
or 1-888-390-0546
|
|
Conference ID
#:
|
00403016
|
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 8.5 million square
feet of leasable space.
SOURCE Morguard Real Estate Investment Trust