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Press release from CNW Group

Morguard Real Estate Investment Trust announces 2012 second quarter results

Thursday, August 02, 2012

Morguard Real Estate Investment Trust announces 2012 second quarter results17:59 EDT Thursday, August 02, 2012TSX: MRT.UNMISSISSAUGA, ON, Aug. 2, 2012 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today announced its financial results for the three and six months ended June 30, 2012 ("Q2").Net income for the three and six months ended June 30, 2012 was $46.9 million and $90.9 million, respectively, as compared to $41.3 million and $64.7 million, respectively, for the same periods in 2011.Net income per unit for the three and six months ended June 30, 2012 was $0.81 per unit ($0.76 per unit fully diluted) and $1.57 per unit ($1.48 per unit fully diluted), respectively, as compared to $0.73 per unit ($0.68 per unit fully diluted) and $1.14 per unit ($1.08 per unit fully diluted), respectively, for the same periods in 2011.Funds from operations ("FFO") for the three and six months ended June 30, 2012 was $20.3 million and $40.0 million, respectively, as compared to $19.1 million and $38.7 million, respectively, for the same periods in 2011.Funds from operations per unit for the three and six months ended June 30, 2012 was $0.35 per unit ($0.34 per unit fully diluted) and $0.69 per unit ($0.67 per unit fully diluted), as compared to $0.34 per unit ($0.33 per unit fully diluted) and $0.69 per unit ($0.66 per unit fully diluted), respectively, for the same periods in 2011.Net operating income for the three and six months ended June 30, 2012 was $34.3 million and $68.1 million, respectively, as compared to $32.8 million and $ 66.0 million, respectively, for the same periods 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 Q2 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 $2.2 billion and approximately 8.5 million square feet of leaseable space.Consolidated Balance Sheet As atJune 30,December 31,(in thousands of Canadian dollars)20122011     Assets  Real estate properties$     2,182,314$     2,119,084Amounts receivable10,5868,851Other assets11,3941,321Cash and cash equivalents7,2898,134 $     2,211,583$     2,137,390   Liabilities   Mortgages and bonds payable$       791,233$       799,672Convertible debentures payable82,36486,457Accounts payable and other liabilities42,74534,496Notes payable10,000—Bank indebtedness 42,75443,852 969,096964,477   Unitholders' Equity1,242,4871,172,913 $   2,211,583$   2,137,390Consolidated Statements of Income and Comprehensive Income  Three months ended June 30 Six months ended June 30(in thousands of Canadian dollars, except per-unit amounts)2012201120122011     Revenue from real estate properties$      60,874$      57,970$      122,395$      117,037Property operating expenses24,57223,26950,30647,289Property management fees1,9811,9063,9793,789Net operating income34,32132,79568,11065,959     Interest expense12,95312,71526,12125,361General and administrative1,1721,2802,5292,501Amortization expense10152224Other (income)/expenses(1)6(39)6Income before fair value gains on real estate properties20,18718,77939,47738,067     Fair value gains on real estate properties26,69322,55351,38926,592Net income for the period $      46,880$      41,332$       90,866$       64,659     Other comprehensive income    Amortization - cash flow hedge242237483473Comprehensive income$       47,122$      41,569$       91,349$       65,132     Net income per unit     Basic$0.81 $0.73$1.57 $1.14 Diluted$0.76 $0.68$1.48 $1.08Reconciliation of Net Income to Funds from Operations     Three months ended June 30              Six months ended June 30 (in thousands of Canadian dollars, except per-unit amounts)2012                   20112012                    2011     Net income for the period$      46,880$      41,332     $     90,866     $      64,659     Add/(deduct) items not affecting cash:     Accretion of convertible debentures152325479674 Fair value gains on real estate properties       (26,693)  (22,553)(51,389)  (26,592)Funds from operations     $      20,339      $      19,104     $     39,956     $      38,741     Funds from operations per unit:     Basic$0.35$0.34$0.69$0.69 Diluted$0.34$0.33$0.67$0.66 SOURCE: Morguard Real Estate Investment TrustFor 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