Morguard Real Estate Investment Trust Announces 2009 First Quarter Results
May 6, 2009
MISSISSAUGA, ON, May 6 /CNW/ - Morguard Real Estate Investment Trust
("Morguard REIT") (TSX: MRT.UN) today announced its financial results for the
three-month period ended March 31, 2009.
Morguard REIT's Q1 2009 Financial Statements, and Management's Discussion
and Analysis along with its 2008 Annual Report are available on Morguard
REIT's website at www.morguardreit.com and have been filed with SEDAR at
www.sedar.com.HIGHLIGHTS
- Net operating income for Q1 2009 decreased to $27.9 million from
$28.6 million for the same period in 2008;
- Net income for Q1 2009 totaled $7.7 million or $0.13 per unit
compared to $45.4 million or $0.77 per unit for the same period in
2008. Included in net income for Q1 2008 was a gain on sale of real
estate properties of $37.0 million;
- Recurring distributable income for Q1 2009 decreased to $14.7 million
or $0.25 per unit compared to $17.2 million or $0.29 per unit for the
same period in 2008;
- Funds from operations ("FFO") for Q1 2009 decreased to $17.2 million
or $0.30 per unit compared to $19.3 million or $0.33 per unit for the
same period in 2008;
- Overall occupancy levels for 2009 remain high at 97% compared with
95% in Q1 2008.
FINANCIAL HIGHLIGHTS
Net Income
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(In thousands of dollars except per unit amounts)
Three-month period ended March 31, 2009 2008
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Income from real estate properties $ 51,290 $ 50,774
Property operating income $ 27,916 $ 28,605
Net income for the period from continuing
operations $ 7,686 $ 45,919
Loss for the period from discontinued operations - (563)
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Net income for the period $ 7,686 $ 45,356
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Net income/(loss) per unit
Continuing operations $ 0.13 $ 0.78
Discontinued operations - (0.01)
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$ 0.13 $ 0.77
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Distributable Income
--------------------The Trust distributes a portion of its net income after adjusting for
amortization of buildings and intangible assets and providing for any reserve
that the Trustees, in their discretion, consider reasonable. The adjusted net
income is referred to as distributable income and is computed as income, in
accordance with Canadian GAAP, before deduction for amortization of buildings
and intangible assets, less any reserves, provisions and allowances
established by the Trustees, plus any amount the Trustees, in their
discretion, determine to be appropriate.
Recurring distributable income is distributable income excluding gain on
sales, unusual or non-recurring items and provisions for a diminution in value
of real estate properties.
The following table outlines the Trust's distributable income, recurring
distributable income and payout ratios for the three-month periods ended March
31, 2009 and 2008.(In thousands of dollars except per-unit amounts and percentages)
Three-month period ended March 31, 2009 2008
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Net income for the period $ 7,686 $ 45,356
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Add/(deduct)
Amortization - buildings 6,488 6,205
Amortization - intangibles 948 2,021
Amortization - above/(below) market rate leases, net (235) (286)
Amortization - stepped rents (152) (113)
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Distributable income 14,735 53,183
Gain on sale of real estate properties - (36,408)
Provision for diminution in value of real estate
properties - 400
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Recurring distributable income $ 14,735 $ 17,175
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---------------------
Distributed income $ 13,087 $ 13,286
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Payout ratio:
Recurring distributable income 88.8% 77.4%
Recurring distributable income - basic and diluted $ 0.25 $ 0.29
Weighted average number of units - basic and diluted
(in thousands) 57,996 59,044
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---------------------
Funds from Operations
---------------------The real estate industry has adopted a measure of funds from operations
("FFO") to supplement net income as an operating performance measurement. The
Trust's calculation of FFO is consistent with the definition provided by the
Real Property Association of Canada ("REALPac").
FFO is defined as net income adjusted for amortization of buildings,
deferred leasing costs, intangible items and any gain or loss on sale of real
estate properties and any provisions against capital. FFO per unit is
calculated by dividing FFO attributable to unitholders by the weighted average
number of units outstanding for the period.FFO was calculated as follows:
Three-month
period ended, March 31, 2009 March 31, 2008
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(In thousands
of dollars Dis- Dis-
except per Continuing continued Continuing continued
unit amounts) Operations Operations Total Operations Operations Total
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Net income/
(loss) $ 7,686 $ - $ 7,686 $ 45,919 $ (563) $ 45,356
Add/(deduct)
items not
affecting
cash:
(Gain)/loss
on sale of
real estate
properties - - - (37,023) 615 (36,408)
Provision for
diminution in
value of real
estate
properties - - - - 400 400
Amortization -
buildings 6,488 - 6,488 6,205 - 6,205
Amortization -
leasehold
improvements 1,533 - 1,533 1,325 - 1,325
Amortization -
intangibles 948 - 948 2,021 - 2,021
Amortization -
deferred
leasing costs 545 - 545 450 - 450
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Funds from
operations $ 17,200 $ - $ 17,200 $ 18,897 $ 452 $ 19,349
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Funds from
operations
per unit:
Basic and
diluted $ 0.30 $ - $ 0.30 $ 0.32 $ 0.01 $ 0.33
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Readers are cautioned that although the terms "Operating Income", "Funds
from Operations", "Distributable Income" and "Recurring Distributable Income"
are commonly used to measure, compare and explain the operating and financial
performance of Canadian real estate investment trusts and such terms are
defined in the Management's Discussion and Analysis, such terms are not
recognized terms under Canadian generally accepted accounting principles. Such
terms do not necessarily have a standardized meaning and may not be comparable
to similarly titled measures presented by the other publicly traded entities.
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Morguard is a closed-end real estate investment trust, which owns a
diversified portfolio of 50 retail, office, and mixed-use properties in
Canada with a book value of $1.2 billion and approximately 7.7 million
square feet of leasable space. For more information, visit the Trust's
website at www.morguardreit.com.
-------------------------------------------------------------------------For further information:
For further information: Rai Sahi, President and Chief Executive Officer, Tel: (905) 281-4800, or; Tim Walker, Vice President and Chief Financial Officer, Tel: (905) 281-4800