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Morguard Real Estate Investment Trust Announces 2018 Annual Results

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MISSISSAUGA, ON, Feb. 13, 2019 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX:MRT) today is pleased to announce its 2018 annual results.  These results have been prepared in accordance with International Financial Reporting Standards ("IFRS").

FOR THE YEAR ENDED DECEMBER 31

In thousands of dollars, except per unit amounts

2018


2017


Revenue from real estate properties

$276,473


$278,754


Net operating income

152,078


157,025


Fair value (losses)/gains on real estate properties

(18,602)


(31,225)


Net income

73,015


67,306


Funds from operations

94,992


100,766


Amounts presented on a per unit basis





Net income





Basic

$1.20


$1.11


Diluted

$1.12


$1.05


Funds from operations





Basic

$1.56


$1.66


Diluted

$1.48


$1.57


Cash distributions per unit

$0.96


$0.96


 

The Trust is pleased to report that the following retail development projects have been completed in 2018:

Property

Portfolio

New GLA

Redeveloped
GLA

Project Cost


Comments

Shoppers Mall

Enclosed regional
centres

13,000

$4,891


Construction of new freestanding pad
space for Cara brand restaurants








Market Square

Community strip
centres

9,700

4,753


Construction of new freestanding pad
space








Cambridge
Centre

Enclosed regional
centres

126,800

24,740


Anchor tenant remerchandising of
former Target space for Marshalls,
Kingpin Cambridge, Sport Check, and
Indigo (excludes $3.8 million cost to
complete for 18,400 GLA)








Shoppers Mall

Enclosed regional
centres

34,000

10,749


Anchor tenant remerchandising of
remaining former Target space for
Shoppers Drug Mart and Ardene



22,700

160,800

$45,133



 

Annual net operating income has decreased 3.2% to $152.1 million in 2018 as compared to $157.0 million in 2017. This decrease is due to the closure of three anchor premises formerly leased to Sears which closed in late 2017/early 2018 and is offset by incremental net operating income from either new or redeveloped GLA in the amount of 474,000 square feet which has come on stream in either 2017 or 2018.

Fair value losses have decreased 40.8% to $18.6 million in 2018 as compared to $31.2 million in 2017.

Interest expense has increased 1.0% to $55.6 million in 2018 from $55.1 in 2017 due to higher short-term interest rates in 2018.

Net income has increased to $73.0 million in 2018 ($1.20 per unit) as compared to $67.3 million in 2017 ($1.11 per unit).

Funds from operations has decreased to $95.0 million in 2018 ($1.56 per unit in 2018) as compared to $100.8 million in 2017 ($1.66 per unit).

Cash distributions per unit remain unchanged at $0.96 per unit in both 2018 and 2017.

Net operating income for the three months ended December 31, 2018 has decreased to $40.4 million in 2018 as compared to $41.6 million in 2017 due to a decrease of $0.9 million in lease cancellation fees.

The Trust expects a further 161,500 in either new or redeveloped GLA to be completed in the first half of 2019 at three locations - Pine Centre Mall, Parkland Mall and The Centre.

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).  The Trust presents FFO in accordance with the Real Property Association of Canada white paper on funds from operations and adjusted funds from operations for IFRS issued February 2018.  FFO is a non-GAAP measure that is widely accepted as a supplemental measure of financial performance for real estate entities.  In accordance with such white paper, the Trust defines FFO as net income adjusted for fair value changes on real estate properties and gains/(losses) on the sale of real estate properties.

Financial Statements and Management's Discussion and Analysis

The Trust's Q4 2018 Consolidated Financial Statements and Management's Discussion and Analysis will be made available on the Trust's website at www.morguard.com and have been filed with SEDAR at www.sedar.com

Conference Call Details:

Date:

Thursday, February 14, 2019 at 4:00 p.m. (ET)

Conference Call #:

416-764-8688 or 1-888-390-0546

Conference ID #:

82114761

 

About Morguard Real Estate Investment Trust

The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 49 retail, office and industrial income producing properties in Canada with a book value of $3.0 billion and approximately 8.6 million square feet of leasable space.

SOURCE Morguard Real Estate Investment Trust

View original content: http://www.newswire.ca/en/releases/archive/February2019/13/c8782.html

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