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Press release from CNW Group

Morguard Real Estate Investment Trust Announces 2011 Second Quarter Results

Monday, August 08, 2011

Morguard Real Estate Investment Trust Announces 2011 Second Quarter Results17:35 EDT Monday, August 08, 2011MISSISSAUGA, ON, Aug. 8, 2011 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today announced its financial results for the three months ended June 30, 2011 ("Q2").Morguard REIT's Q2 2011 Consolidated Financial Statements and Management's Discussion and Analysis along with its 2010 Annual Report are available on Morguard REIT's website at www.morguardreit.com and have been filed with SEDAR at www.sedar.com.HIGHLIGHTSThe Trusts' financial statements for the three months ended June 30, 2011 have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").  Results previously reported under Canadian GAAP have been restated under IFRS for comparative purposes.  A reconciliation of the IFRS results as reported to a Canadian GAAP equivalent has been included in the financial statements.Net operating income for Q2 2011, increased to $32.8 million from $28.9 million for the same period in 2010.Net income for Q2 2011 totalled $41.3 million or $0.73 per-unit (basic) and $0.68 per-unit (diluted) compared to $45.2 million or $0.80 per-unit (basic) and $0.74 per-unit (diluted) for the same period in 2010.  In Q2 2011, net income included $22.6 million in fair value gains on real estate properties compared with $29.2 million in fair value gains on real estate properties included in net income in Q2 2010.Funds from operations ("FFO") increased to $19.1 million or $0.34 per-unit (basic) and $0.33 per-unit (diluted) compared to $16.6 million or $0.29 per-unit (basic) and $0.28 per-unit (diluted) for the same period in 2010.Overall portfolio occupancy levels were at 95%Net Income (In thousands of dollars, except per-unit amounts)For the three months ended June 30, 20112010   Revenue from real estate properties$   57,970     $   52,362Net operating income32,79528,943Income before fair value changes on real estate properties and loss on sale of real estate properties 18,77916,273Fair value gains on real estate properties22,55329,236Loss on sale of real estate properties—(275)Net income for the period$   41,332$   45,234   Net income per-unit   Basic$ 0.73$ 0.80 Diluted$ 0.68$ 0.74Funds From OperationsThe real estate industry has adopted a measure of FFO to supplement net income as an operating performance measurement.  The Trust's calculation of FFO is consistent with the definition provided by the Real Property Association of Canada ("REALPac").FFO is defined as net income adjusted for fair value gains or losses on real estate properties and accretion of convertible debentures.  FFO per-unit is calculated by dividing FFO attributable to unitholders by the weighted average number of units outstanding for the period.FFO was calculated as follows:(In thousands of dollars, except per-unit amounts)For the three months ended June 30,20112010   Net income for the period $   41,332     $   45,234   Add/(deduct) items not affecting cash:   Accretion of convertible debentures325 329Fair value gains on real estate properties(22,553)(29,236)Loss on sale of real estate properties— 275Funds from operations $   19,104$   16,602   Funds from operations per-unit    Basic$0.34$ 0.29 Diluted$0.33$ 0.28Readers are cautioned that although the terms "Net Operating Income" and "Funds from Operations" are commonly used to measure, compare and explain the operating and financial performance of Canadian real estate investment trusts and such terms are defined in the Management's Discussion and Analysis, such terms are not recognized terms under IFRS.  Such terms do not necessarily have a standardized meaning and may not be comparable to similarly titled measures presented by the other publicly traded entities.Morguard is a closed-end real estate investment trust, which owns a diversified portfolio of 51 retail, office, and mixed-use properties in Canada with a book value of $2.0 billion and approximately 8.3 million square feet of leasable space.  For more information, visit the Trust's website at www.morguardreit.com. For further information: Rai Sahi, President and Chief Executive Officer, Tel: 905.281.4800, or; Tim Walker, Vice President and Chief Financial Officer, Tel: 905.281.4800