Morguard Real Estate Investment Trust Announces 2019 Second Quarter Results

MISSISSAUGA, ON, July 31, 2019 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today is pleased to announce its financial results for the three and six month periods ended June 30, 2019.  These results have been prepared in accordance with International Financial Reporting Standards ("IFRS").

 

Revenue from real estate properties includes contracted rent from tenants along with recoveries of property expenses. Revenue for the three months ended June 30, 2019, decreased 1.5% to $67.0 million from $68.0 million for the same period in 2018.  This decrease is primarily due to reduced recoveries of property taxes.

Property operating expenses for the three months ended June 30, 2019, remained relatively flat as compared to the same period in 2018.

Property tax expense for the three months ended June 30, 2019, decreased 8.5% to $11.7 million from $12.8 million for the same period in 2018.  This is due to reduced property taxes for the Trust's properties in Calgary resulting from reductions processed by the city.

Interest expense for the three months ended June 30, 2019, increased 6.8% to $14.7 million from $13.7 million for the same period in 2018 due to $0.2 million in interest expense incurred on lease liabilities from the new IFRS 16 "Leases" guidance, as well as higher short-term variable rates on a year-over-year basis.

During the quarter, the Trust commenced the redevelopment of the former Sears premises at Pine Centre Mall in Prince George, British Columbia.  The new wing will consist of approximately 76,000 square feet of redeveloped GLA and will be anchored by a Winners/HomeSense slated to open in 2020.  It will also feature an additional large retailer, complemented by small bay CRU situated along a common area mall corridor.  Approximately 61% of the space under redevelopment is committed. 

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. 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 Q2 2019 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:

 

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 8.7 million square feet of leasable space.

SOURCE Morguard Real Estate Investment Trust