TORONTO, ON--(Marketwired - November 05, 2015) - - Canadian Real Estate Investment Trust ("CREIT") (TSX: REF.UN) today announced results for the three and nine months ended September 30, 2015.
For the three months ended September 30, 2015, CREIT reported Funds from Operations (FFO) of $0.76 per Unit compared to $0.74 per Unit for the same period in 2014, an increase of 2.7%.
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Three months ended September 30 |
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| Change |
|
| ($ thousands, except per-Unit amounts) |
| 2015 |
| 2014 |
| ($) |
(%) |
|
| FFO |
$ | 55,566 |
$ | 51,174 |
$ | 4,392 |
8.6 |
% |
| FFO per Unit |
$ | 0.76 |
$ | 0.74 |
$ | 0.02 |
2.7 |
% |
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For the nine months ended September 30, 2015, CREIT reported FFO of $2.27 per Unit compared to $2.21 per Unit for the same period in 2014, an increase of 2.7%.
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Nine months ended September 30 |
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| Change |
|
| ($ thousands, except per-Unit amounts) |
| 2015 |
| 2014 |
| ($) |
(%) |
|
| FFO |
$ | 165,406 |
$ | 152,480 |
$ | 12,926 |
8.5 |
% |
| FFO per Unit |
$ | 2.27 |
$ | 2.21 |
$ | 0.06 |
2.7 |
% |
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Stephen Johnson, Chief Executive Officer, said, "We are pleased with our operational performance, generating FFO growth for both the quarter and year-to-date that meet our business model expectations." Mr. Johnson added, "Our diversified portfolio, strong balance sheet, low payout ratio and ongoing investment in value-add opportunities should provide stability in an otherwise uncertain economy."
FFO for the three months ended September 30, 2015 was $55.6 million, an increase of 8.6% or $4.4 million over the prior year. This increase was driven primarily by a full quarter of NOI contribution from approximately $100 million of new developments completed in the last twelve months, higher interest income from approximately $130 million in incremental mezzanine loan advances (net) over the prior year, and lower interest costs arising from mortgage financings completed since the third quarter of last year at interest cost savings of approximately 2%.
The charts below provide summaries of net income results for the three and nine months ended September 30, 2015 and 2014.
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Three months ended September 30 |
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| ($ thousands, except per-Unit amounts) |
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Change |
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| | 2015 |
| 2014 |
| ($) |
|
| Net income excluding fair value gains (losses), property acquisition costs, foreign currency gain and income taxes |
$ | 54,755 |
$ | 50,028 |
$ | 4,727 |
|
| Net income(1) |
$ | 23,670 |
$ | 33,033 |
($ | 9,363 |
) |
| Net income per Unit |
$ | 0.32 |
$ | 0.48 |
($ | 0.16 |
) |
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Nine months ended September 30 |
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| ($ thousands, except per Unit amounts) |
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|
Change |
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| | 2015 |
| 2014 |
| ($) |
|
| Net income excluding fair value gains (losses), property acquisition costs, foreign currency gain and income taxes |
$ | 162,961 |
$ | 149,055 |
$ | 13,906 |
|
| Net income(1) |
$ | 109,518 |
$ | 156,953 |
($ | 47,435 |
) |
| Net income per Unit |
$ | 1.50 |
$ | 2.27 |
($ | 0.77 |
) |
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| (1) | Effective December 31, 2014, CREIT changed its policy for the measurement of investment properties to the fair value method. Accordingly, net income fluctuates due to changes in fair value for CREIT's investment properties. Comparative amounts have been restated. |
Financial Measures and Additional Financial Information
FFO is a generally accepted supplemental measure of operating performance for real estate entities; however, it is not a measure defined by International Financial Reporting Standards. Readers are directed to CREIT's Condensed Consolidated Financial Statements and MD&A for a description of the measure and its reconciliation to net income.
CREIT's Condensed Consolidated Financial Statements and MD&A for the three and nine months ended September 30, 2015 are posted on CREIT's website at www.creit.ca. Readers are directed to these documents for financial details and a fulsome discussion on CREIT's results.
Conference Call
Interested parties are invited to discuss the financial results on a conference call with senior management. Conference call details are as follows:
Date: Friday, November 6, 2015 at 10:00 a.m. EDT
Dial-in number: (647) 788-4919 or (877) 291-4570
Conference call ID: 50921101
A taped replay of the call will be available until December 6, 2015. To access the replay, please dial (416) 621-4642 or (800) 585-8367.
Webcast:
Alternatively, to access the simultaneous webcast, please click on the following link on CREIT's website: http://www.gowebcasting.com/6944. The webcast will be archived for one year.
About CREIT
CREIT is a real estate investment trust focused on accumulating and aggressively managing a portfolio of high-quality real estate assets and delivering the benefits of real estate ownership to Unitholders. The primary benefit is a reliable and, over time, increasing monthly cash distribution. CREIT owns a diversified portfolio of retail, office and industrial properties.
Cautionary Statements Regarding Forward-looking Statements
This news release contains forward-looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. We undertake no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except as required by law.