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Artis Real Estate Investment Trust Releases Second Quarter Results

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Artis Real Estate Investment Trust Releases Second Quarter Results

Canada NewsWire

WINNIPEG, August 2, 2018 /CNW/ - Today Artis Real Estate Investment Trust ("Artis" or the "REIT") issued its financial results and achievements for the three and six months ended June 30, 2018. All amounts are in thousands of Canadian dollars unless otherwise noted. Information in this press release should be read in conjunction with the REIT's consolidated financial statements and Management's Discussion and Analysis ("MD&A") for the period ended June 30, 2018.

Artis Real Estate Investment Trust (CNW Group/Artis Real Estate Investment Trust)

SECOND QUARTER HIGHLIGHTS

  • Disposed of two office properties in Calgary, Alberta, and one office property in the Greater Vancouver Area, British Columbia, for an aggregate sale price $130.0 million. The net IFRS gain on these properties was $11.1 million.

  • Acquired industrial development land in the Greater Denver Area, Colorado, for a purchase price of US$2.9 million and office development land in Madison, Wisconsin, for a purchase price of US$1.4 million.

  • Increased NAV per unit to $15.39 at June 30, 2018, from $14.86 at December 31, 2017.

  • Reported FFO per unit of $0.32 for the quarter ended June 30, 2018, compared to $0.36 for the quarter ended June 30, 2017. The change was primarily due to the disposition of properties and the impact of foreign exchange.

  • Increased total comprehensive income to $103.2 million for the quarter ended June 30, 2018, compared to $8.5 million for the quarter ended June 30, 2017. The change was primarily due to the impact of changes in foreign currency translations and fair values on investment properties.

  • Stabilized Same Property NOI in Canadian dollars increased 1.3% for the quarter ended June 30, 2018. Same Property NOI for the total portfolio including the Calgary office segment and properties planned for disposition and re-purposing decreased 0.4% in Canadian dollars or increased 1.3% in functional currency for the quarter ended June 30, 2018.

  • Weighted-average rental rate on renewals that commenced during the quarter ended June 30, 2018, increased 5.0%, excluding the Calgary office segment, and unchanged at 5.0% including the Calgary office segment.

  • Reported a Proportionate Share EBITDA interest coverage ratio of 3.02 for the quarter ended June 30, 2018, compared to 3.30 for the quarter ended June 30, 2017.

  • Decreased Proportionate Share total debt to GBV to 49.0% at June 30, 2018, compared to 49.3% at December 31, 2017, and reported Proportionate Share total debt to normalized EBITDA of 8.8 at June 30, 2018, compared to 8.4 at December 31, 2017.

  • Reported unencumbered assets of $1.6 billion at June 30, 2018, compared to $1.7 billion at December 31, 2017. The change is primarily due to the disposition of Production Court during the quarter ended June 30, 2018.

  • Occupancy remained strong at 91.4% (93.5% including commitments) at June 30, 2018, compared to 90.6% at March 31, 2018.

  • Preliminary site work began at four new industrial development projects in Denver, Colorado and Houston, Texas, expected to total 1.4 million square feet (Artis' interest) of leasable area upon completion. An unconditional long-term lease has been negotiated for 519,000 square feet and a conditional lease is near completion for 36,000 square feet.

  • Improved Calgary office occupancy to 79.7% (82.7% including commitments) at June 30, 2018, compared to 72.5% at March 31, 2018.

SELECTED FINANCIAL INFORMATION







Three months ended June 30,


$000's, except per unit amounts


2018

2017

% Change






Revenue


$

126,140

$

129,507

(2.6)%

Property NOI


75,888

78,700

(3.6)%

Net income


74,975

38,553

94.5%

Total comprehensive income


103,235

8,519

1,111.8%

Distributions per common unit


0.27

0.27

—%






FFO (1)


$

48,807

$

54,442

(10.4)%

FFO per unit (1)


0.32

0.36

(11.1)%

FFO payout ratio (1)


84.4%

75.0%

9.4%






AFFO (1)


$

36,304

$

40,134

(9.5)%

AFFO per unit (1)


0.24

0.27

(11.1)%

AFFO payout ratio (1)


112.5%

100.0%

12.5%












Six months ended June 30,


$000's, except per unit amounts


2018

2017

% Change






Revenue


$

251,909

$

263,064

(4.2)%

Property NOI


150,853

158,978

(5.1)%

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