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Press release from CNW Group

Morguard Real Estate Investment Trust announces 2012 third quarter results

Thursday, November 01, 2012

Morguard Real Estate Investment Trust announces 2012 third quarter results18:01 EDT Thursday, November 01, 2012TSX: MRT.UNMISSISSAUGA, ON, Nov. 1, 2012 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today announced its financial results for the three and nine months ended September 30, 2012 ("Q3").Net income for the three and nine months ended September 30, 2012 was $53.0 million and $143.9 million, respectively, as compared to $45.3 million and $109.9 million, respectively, for the same periods in 2011.Net income per unit for the three and nine months ended September 30, 2012 was $0.89 per unit ($0.85 per unit diluted) and $2.47 per unit ($2.40 per unit diluted), respectively, as compared to $0.79 per unit ($0.74 per unit diluted) and $1.93 per unit ($1.82 per unit diluted), respectively, for the same periods in 2011.Funds from operations for the three and nine months ended September 30, 2012 was $20.7 million and $60.7 million, respectively, as compared to $19.4 million and $58.1 million, respectively, for the same periods in 2011.Funds from operations per unit for the three and nine months ended September 30, 2012 was $0.35 per unit ($0.35 per unit diluted) and $1.04 per unit ($1.04 per unit diluted), as compared to $0.34 per unit ($0.33 per unit diluted) and $1.02 per unit ($0.98 per unit diluted), respectively, for the same periods in 2011.Net operating income for the three and nine months ended September 30, 2012 was $35.0 million and $103.1 million, respectively, as compared to $32.9 million and $ 98.8 million, respectively, for the same periods in 2011.NET OPERATING INCOME, FUNDS FROM OPERATIONSThis 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).  Funds from operations is defined as net income prior to extraordinary items, valuation adjustments, and certain other non-cash items, if any.FINANCIAL STATEMENTS AND MORGUARD'S DISCUSSION AND ANALYSISMorguard REIT's Q3 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.morguard.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 SheetAs at September 30, December 31,(in thousands of Canadian dollars) 2012 2011       Assets    Real estate properties$2,223,942$2,119,084Amounts receivable 9,080 8,851Other assets 10,382 1,321Cash and cash equivalents 9,416 8,134 $2,252,820$2,137,390     Liabilities     Mortgages and bonds payable$784,490$799,672Convertible debentures payable 42,586 86,457Accounts payable and other liabilities 45,618 34,496Notes payable 25,000 —Bank indebtedness  34,464 43,852  932,158 964,477     Unitholders' Equity 1,320,662 1,172,913 $2,252,820$2,137,390Consolidated Statements of Income and Comprehensive Income         Three monthsendedNine months ended(in thousands of Canadian dollars,except per-unit amounts) September 30,2012  September 30,2011 September 30,2012 September 30,2011         Revenue from real estate properties$61,267$57,983$183,662$175,020Property operating expenses 24,220 23,270 74,526 70,559Property management fees 2,008 1,851 5,987 5,640Net operating income 35,039 32,862 103,149 98,821         Interest expense 11,400 12,686 37,521 38,047General and administrative 1,269 1,177 3,798 3,678Amortization expense 11 13 33 37Other income (6) (15) (45) (9)Income before fair value gains on real estate properties 22,365 19,001 61,842 57,068         Fair value gains on real estate properties 30,649 26,269 82,038 52,861Net income for the period$53,014$45,270$143,880$109,929         Amortization - cash flow hedge 244 238 727 711Comprehensive income$53,258$45,508$144,607$110,640         Net income per unit               Basic$0.89$0.79$2.47$1.93      Diluted$0.85$0.74$2.40$1.82Reconciliation of Net Income to Funds from Operations Three months endedNine months ended(in thousands of Canadian dollars,except per-unit amounts) September 30,2012   September 30,2011  September 30,2012   September 30,2011         Net income for the period $53,014$45,270$143,880$109,929         Add/(deduct) :          Accretion of convertible debentures (1,622) 367 (1,143) 1,041  Fair value gains on real estate properties        (30,649) (26,269) (82,038) (52,861)Funds from operations$20,743$19,368$60,699$58,109         Funds from operations per unit:           Basic $0.35 $0.34 $1.04 $1.02   Diluted $0.35 $0.33 $1.04 $0.98  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