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Morguard Real Estate Investment Trust announces 2012 third quarter results

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TSX: MRT.UN

MISSISSAUGA, 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 OPERATIONS

This 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 ANALYSIS

Morguard 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.com

ABOUT MORGUARD REAL ESTATE INVESTMENT TRUST

Morguard 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 at   September 30,   December 31,
(in thousands of Canadian dollars)   2012   2011
           
Assets        
Real estate properties $ 2,223,942 $ 2,119,084
Amounts receivable   9,080   8,851
Other assets   10,382   1,321
Cash and cash equivalents   9,416   8,134
  $ 2,252,820 $ 2,137,390
         
Liabilities        
Mortgages and bonds payable $ 784,490 $ 799,672
Convertible debentures payable   42,586   86,457
Accounts payable and other liabilities   45,618   34,496
Notes payable   25,000  
Bank indebtedness    34,464   43,852
    932,158   964,477
         
Unitholders' Equity   1,320,662   1,172,913
  $ 2,252,820 $ 2,137,390

Consolidated Statements of Income and Comprehensive Income



          Three months ended Nine 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 $ 175,020
Property operating expenses   24,220   23,270   74,526   70,559
Property management fees   2,008   1,851   5,987   5,640
Net operating income   35,039   32,862   103,149   98,821
                 
Interest expense   11,400   12,686   37,521   38,047
General and administrative   1,269   1,177   3,798   3,678
Amortization expense   11   13   33   37
Other 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   52,861



Net income for the period $ 53,014 $ 45,270 $ 143,880 $ 109,929
 

               
Amortization - cash flow hedge   244   238   727   711
Comprehensive 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 $ 1.82

Reconciliation of Net Income to Funds from Operations



  Three months ended Nine 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 Trust

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