QUEBEC CITY,
May 8, 2014
/CNW/ - Cominar Real Estate Investment
Trust ("Cominar" or the "REIT") (TSX: CUF.UN) announced
today its results for the first quarter of fiscal year
2014.
Highlights for the First Quarter Ended March 31, 2014
- Increased net operating income by 2.3%
- Increased recurring adjusted funds from operations by
2.0%
- Increased recurring distributable income (basic) per unit
by 2.6%
- Invested $257 million in
acquisitions of investment properties (+ 1.3 million sq.
ft.)
Subsequent Event
- Acquired 14 primarily industrial and mixed-use properties
for $100.7 million (+ 1.2 million sq.
ft.) in the Greater Toronto with a
capitalization rate of 7.1%
"For the quarter ended March 31,
2014 our operating revenues increased by 3.7% and our
recurring adjusted funds from operations by 2.0%" compared to the
same quarter last year, said Michel
Dallaire, President and Chief Executive Officer of
Cominar.
"We keep our eyes open for acquisition opportunities that
would allow us to improve our geographical diversification with
profitability and value creation for our unitholders as our main
objective. Since January 1st 2014, we
realized $358 million in strategic
acquisitions, with approximately 75% of the net operating income
coming from the Toronto real
estate market. We are confident that these acquisitions, as well as
those made in prior periods, will contribute well to our results as
well as the daily efforts being made to promote organic growth in
each of our markets", added Michel Dallaire.
PRESENTATION OF RESULTS
For the first quarter ended March
31, 2014, operating revenues increased to
$175.8 million, up 3.7%
over the corresponding period in 2013 when
operating revenues were $169.6 million.
Net operating income reached
$92.0 million, up 2.3% compared
to net operating income in the first quarter of 2013.
Recurring distributable income reached
$49.0 million, up 2.4% over the first
quarter of 2013. The basic recurring distributable income per
unit amounted to $0.39 for the
quarter ended March 31, 2014, up 2.6%
compared to the same period of 2013.
Recurring funds from operations for
the first quarter of 2014 reached $55.7
million, at a comparable level to the first quarter
of 2013. Recurring adjusted funds from operations per unit
fully diluted amounted to $0.44
in the first quarters of 2014 and 2013.
Recurring adjusted funds from operations
for the first quarter of 2014 reached $48.3 million, up 2.0% compared to
2013. Fully diluted per unit, they reached $0.38 in 2014 and
2013.
FINANCIAL SITUATION
As at March 31, 2014,
Cominar had a debt ratio (excluding convertible debentures)
of 49.8%. The annualized interest coverage ratio
stood at 2.68:1. At the end of the first quarter of 2014, total
assets reached $6,279.0 million, up 4.7% over December 31, 2013.
ACQUISITION ACTIVITIES
Completed $257.0 million in
strategic acquisitions of 16 new investment properties totalling
1.3 million square feet at a weighted average capitalization rate
of 7.0%.
SUBSEQUENT EVENT AFTER MARCH 31,
2014
On May 1st,
2014, Cominar acquired a portfolio of 14 primarily
industrial and mixed-use properties in the Greater Toronto Area, comprising a total of
approximately 1,184,000 square feet in leasable area, for a
purchase price of $100.7 million;
$63.2 million paid in cash and
$37.5 million by assuming
mortgages payable. The capitalisation rate of this transaction is
7.1%.
ADDITIONAL FINANCIAL INFORMATION
Cominar's condensed interim consolidated financial
statements and management's discussion and analysis for the first
quarter 2014, will be filed with SEDAR at www.sedar.com and will be
available on Cominar's website at www.cominar.com.
CONFERENCE CALL ON MAY 8,
2014
On Thursday, May 8, 2014
at 11 a.m. (ET), Cominar's management will hold a conference
call to present the results for first quarter 2014. Anyone who is
interested may take part in this call by dialing
1.888.231.8191. A presentation regarding these results will
be available before the conference call on the REIT's website at
www.cominar.com, under the Conference Call header. In addition, a
taped rebroadcast of the conference call will be available from
Thursday, May 8, 2014 at 2 p.m. to Thursday, May
15, 2014 at 11:59 p.m., by
dialing 1.855.859.2056 followed by this code:
29987536.
DISTRIBUTION REINVESTMENT PLAN
Cominar offers unitholders the opportunity to participate
in its Unitholder Distribution Reinvestment Plan, which allows them
to receive their monthly cash distributions as additional Cominar
units. Participants will be entitled to receive an additional
distribution equal to 5% of the distributions reinvested, which
will be reinvested in additional units. For more information and to
obtain a participation form, please visit Cominar's website
at
www.cominar.com.
PROFILE AS AT MAY 8,
2014
Cominar is the third largest diversified real estate
investment trust in Canada and
currently remains the largest commercial property owner in the
Province of Quebec. The REIT owns
a real estate portfolio of 527 properties in three different market
segments, that is, office properties, retail properties and
industrial and mixed-use properties. Cominar's portfolio totals
39.5 million square feet spread out across Quebec, Ontario, the Atlantic Provinces and
Western Canada. Cominar's
objectives are to pay growing cash distributions to unitholders and
to maximize unitholder value through proactive management and the
expansion of its portfolio.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking
statements with respect to Cominar and its operations, strategy,
financial performance and financial condition. These statements
generally can be identified by the use of forward-looking words
such as "may", "will", "expect", "estimate", "anticipate",
"intend", "believe" or "continue" or the negative thereof or
similar variations. The actual results and performance of Cominar
discussed herein could differ materially from those expressed or
implied by such statements. Such statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations. Some important factors that could cause actual
results to differ materially from expectations include, among other
things, general economic and market factors, competition, changes
in government regulation and the factors described under "Risk
Factors" in Cominar's Annual Information Form. The cautionary
statements qualify all forward-looking statements attributable to
Cominar and persons acting on its behalf. Unless otherwise stated,
all forward-looking statements speak only as of the date of this
press release. Cominar does not assume any obligation to update the
aforementioned forward-looking statements, except as required by
applicable laws.
NON-IFRS MEASURES
Net operating income, recurring distributable income
(DI), recurring funds from operations (FFO) and recurring adjusted
funds from operations (AFFO) are not measures recognized by
International Financial Reporting Standards ("IFRS") and do not
have standardized meanings prescribed by IFRS. Such measures may
differ from similar computations as reported by similar entities
and, accordingly, may not be comparable to similar measures
reported by such other entities. Cominar's Management Discussion
and Analysis for the first quarter ended March 31, 2014, presents the reconciliation of
DI, FFO and AFFO with the most similar IFRS
measures:
|
NON-IFRS MEASURES
|
|
|
|
|
|
|
|
|
Quarters ended March 31
|
2014
|
2013
|
Δ%
|
2014
|
2013
|
Δ%
|
|
($000)
|
($000)
|
|
($ per unit)
|
($ per unit)
|
|
|
Net operating income
|
91,993
|
89,922
|
2.3
|
|
|
|
|
Recurring distributable income
|
49,009
|
47,869
|
2.4
|
0.39(1)
|
0.38(1)
|
2,6
|
|
Distributions
|
46,277
|
45,155
|
2.5
|
0.36
|
0.36
|
-
|
|
Recurring funds from operations
|
55,700
|
55,390
|
0.6
|
0.44(2)
|
0.44(2)
|
-
|
|
Recurring adjusted funds from
operations
|
48,319
|
47,374
|
2.0
|
0.38(2)
|
0.38(2)
|
-
|
|
(1) basic
(2) fully diluted
|
SOURCE COMINAR REAL ESTATE INVESTMENT TRUST