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Press release from Marketwire

Canadian Real Estate Investment Trust Announces Third Quarter 2010 Results

Tuesday, November 02, 2010

Canadian Real Estate Investment Trust Announces Third Quarter 2010 Results07:46 EDT Tuesday, November 02, 2010TORONTO, ONTARIO--(Marketwire - Nov. 2, 2010) - Canadian Real Estate Investment Trust ("CREIT") (TSX:REF.UN) today announced results for the third quarter ended September 30, 2010.For the three months ended September 30, 2010, CREIT reported Funds from Operations (FFO) of $0.569 per Unit. This represents a 1% improvement over the three months ended September 30, 2009.For the nine months ended September 30, 2010, CREIT reported FFO of $1.772 per Unit. This is a $0.03 per-unit increase over the nine months ended September 30, 2009 and represents a 2% improvement.Stephen Johnson, President and Chief Executive Officer of CREIT, said, "We are very satisfied with our operating performance for the third quarter of 2010. We have a strong balance sheet with significant liquidity and we continue to generate and retain meaningful cash flow from operations. We are actively looking to acquire, at appropriate pricing, high-quality real estate assets to add to our portfolio."For the three and nine months ended September 30, 2010, FFO and Net Income were as follows:Three months ended September 30Change($ millions, except per Unit amounts)20102009($)(%)FFO$37.9$37.5$0.41%FFO per Unit$0.569$0.566$0.0031%FFO per Unit annualized$2.28$2.26$0.021%Nine months ended September 30Change($ millions, except per Unit amounts)20102009($)(%)FFO$117.8$112.2$5.65%FFO per Unit$1.772$1.742$0.032%FFO per Unit annualized$2.36$2.32$0.042%Three months ended September 30($ millions, except per Unit amounts)Change20102009($)(%)Income fromContinuing operations$21.0$27.8($ 6.8)(24%)Discontinued operations0.52.7(2.2)(81)Net income$21.5$30.5($ 9.0)(30%)Income fromContinuing operations per Unit$0.31$0.42($ 0.11)(26%)Discontinued operations per Unit0.010.04(0.03)(75%)Net income per Unit$0.32$0.46($ 0.14)(30%)Nine months ended September 30($ millions, except per Unit amounts)Change20102009($)(%)Income fromContinuing operations$66.2$64.9$1.32%Discontinued operations1.715.1(13.4)(89)Net income$67.9$80.0($ 12.1)(15%)Income fromContinuing operations per Unit$1.00$1.01($ 0.01)(1%)Discontinued operations per Unit0.020.23(0.21)(91%)Net income per Unit$1.02$1.24($ 0.22)(18%)FFO is a generally accepted supplemental measure of operating performance for real estate entities; however, it is not a measure defined by Canadian Generally Accepted Accounting Principles. Readers are directed to Management's Discussion and Analysis of Results of Operations and Financial Condition (MD&A) for a description of the measure and its reconciliation to Net Income.CREIT has determined the fair value of its investment properties at January 1, 2010, for the purpose of its transition to IFRS. This will result in an increase of approximately $1.0 billion to the value of investment properties as shown on CREIT's balance sheet. One of the significant consequences of this change (driven by the transition to IFRS) will be a large increase in the dollar amount of CREIT's permitted indebtedness (under the Debt to Adjusted Assets restriction) pursuant to CREIT's Declaration of Trust, and therefore CREIT's acquisition capacity. Specifically, CREIT's acquisition capacity under IFRS on the transition date (January 1, 2010) would have been approximately $1.9 billion as compared to $0.5 billion under GAAP. Anticipating this change, CREIT introduced additional guidelines early in 2010 to manage the level of debt. In the current environment, these additional guidelines (an Interest Coverage and Leverage Ratio) would curb investment capacity to a much lower amount than permitted by a simple Debt to Adjusted Assets restriction.CREIT's Consolidated Financial Statements and MD&A for the three and nine months ended September 30, 2010 are posted on CREIT's website at Readers are directed to these documents for financial details and a fulsome discussion on CREIT's results.CREIT is a real estate investment trust focused on accumulating a portfolio of high-quality real estate assets and delivering the benefits of real estate ownership to Unitholders. The primary benefit is a reliable and, over time, increasing cash distribution.Cautionary Statements Regarding Forward-looking StatementsThis news release contains forward-looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. We undertake no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except as required by law. FOR FURTHER INFORMATION PLEASE CONTACT: Stephen JohnsonCanadian Real Estate Investment TrustPresident & Chief Executive Officer416-628-7878sjohnson@creit.caORTim McSorleyCanadian Real Estate Investment TrustVice President & Chief Financial