Morguard Real Estate Investment Trust announces 2012 third quarter results

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