The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Morguard Real Estate Investment Trust announces 2012 first quarter results

Monday, May 07, 2012

Morguard Real Estate Investment Trust announces 2012 first quarter results16:00 EDT Monday, May 07, 2012TSX: MRT.UNMISSISSAUGA, ON, May 7, 2012 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today announced its financial results for the three months ended March 31, 2012 ("Q1").Net income for Q1 2012, increased to $44.0 million or $0.76 per unit ($0.72 per unit fully diluted), compared with $23.3 million or $0.41 per unit ($0.40 per unit fully diluted) for the same period in 2011.Funds from operations ("FFO") for Q1 2012, totalled $19.6 million or $0.34 per unit ($0.33 per unit fully diluted), compared to $19.6 million or $0.35 per unit ($0.33 per unit fully diluted) for the same period in 2011.Net operating income for Q1 2012, increased to $33.8 million, compared with $33.2 million for the same period in 2011.NET OPERATING INCOME, FFOThis press release and accompanying financial information make reference to net operating income and funds from operations ("FFO") 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).  FFO is defined as net income prior to extraordinary items, valuation adjustments, and certain other non-cash items, if any.Readers 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.FINANCIAL STATEMENTS AND MORGUARD'S DISCUSSION AND ANALYSISMorguard REIT's Q1 2012 Consolidated Financial Statement and Management's Discussion and Analysis along with its 2011 Annual Report are available on Morguard REIT's website at www.morguardreit.com and have been filed with SEDAR at www.sedar.comABOUT MORGUARD REAL ESTATE INVESTMENT TRUSTMorguard REIT is a closed-end real estate investment trust, which owns a diversified portfolio of 53 retail, office and mixed-use properties in Canada with a book value of $2.1 billion and approximately 8.5 million square feet of leaseable space.Consolidated Balance SheetAs atMarch 31,December 31,(In thousands of dollars)20122011     Assets  Real estate properties$     2,149,096$     2,119,084Amounts receivable9,2518,851Other assets6,7631,321Cash and cash equivalents8,4528,134 $     2,173,562$     2,137,390   Liabilities   Mortgages and bonds payable$       797,828$       799,672Convertible debentures payable86,52986,457Accounts payable and other liabilities43,33534,496Bank indebtedness 41,43943,852 969,131964,477   Unitholders' Equity1,204,4311,172,913 $   2,173,562$   2,137,390Consolidated Statements of Income and Comprehensive Income(In thousands of Canadian dollars, except per-unit amounts)  For the three months ended March 3120122011   Revenue from real estate properties$        61,521$        59,067Property operating expenses25,73424,020Property management fees1,9981,883Net operating income33,78933,164   Interest expense13,21012,651General and administrative1,3151,216Amortization expense129Other income(38)—Fair value gains on real estate properties(24,696)(4,039)Net income for the period $        43,986$        23,327   Amortization - cash flow hedge241236Comprehensive income$        44,227$        23,563   Net income per unit         Basic$ 0.76$ 0.41      Diluted$ 0.72$ 0.40Reconciliation of Net Income to Funds from Operations(In thousands of Canadian dollars, except per-unit amounts)  For the three months ended March 3120122011   Net income for the period$      43,986$      23,327   Add/(deduct) items not affecting cash:  Accretion of convertible debentures327349Fair value gains on real estate properties       (24,696)(4,039)Funds from operations     $      19,617      $      19,637   Funds from operations per unit    Basic$0.34$0.35  Diluted$0.33$0.33   For further information: K. (Rai) Sahi, President and Chief Executive Officer, Tel: 905.281.4800, or; Tim Walker, Vice President and Chief Financial Officer, Tel: 905.281.4800