Allied Properties Real Estate Investment Trust Announces Second-Quarter Results
15 Août 2011 - 11:20PM
Marketwired
Allied Properties REIT (TSX: AP.UN) today announced results for its
second quarter ended June, 2011. They are summarized below and
compared to the same quarter in 2010:
(In thousands except for per
unit and % amounts) Q2 2011 Q2 2010 Change %Change
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Net income 12,550 14,624 (2,074) (14.2%)
Funds from operations ("FFO") 14,683 15,446 (763) (4.9%)
FFO per unit (diluted) $ 0.32 $ 0.39 $ (0.07) (17.9%)
FFO pay-out ratio 104.2% 83.4% 20.8%
Adjusted FFO ("AFFO") 10,822 11,839 (1,017) (8.6%)
AFFO per unit (diluted) $ 0.23 $ 0.30 $ (0.07) (23.3%)
AFFO pay-out ratio 141.3% 108.8% 32.5%
Debt ratio (% of fair value) 43.4% 48.0% (4.6%)
Interest coverage ratio 2.7:1 3.0:1 (0.3:1)
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Allied's key financial performance measures were down
quarter-over-quarter due to an unusually large amount of turnover
vacancy at Cite Multimedia in Montreal. This is a temporary
situation, as most of the affected space has now been re-leased to
high-quality tenants for 10-year terms. The re-leasing will have a
positive financial impact on the second half of the year and full
financial impact from the beginning of 2012 onward.
Allied leased over one million square feet of space in the first
half of 2011 and finished the second quarter with leased area of
93.7% (excluding upgrade properties), up 2.3% from year-end 2010.
By the end of the second quarter, it had renewed or replaced 60% of
the leases maturing in 2011, in most cases at net rental rates
equal to or above in-place rents, resulting in a an overall
increase of 11% in net rental income per square foot from the
affected space. Allied expects this leasing activity to have
significant positive impact on AFFO per unit in 2012 and
beyond.
Thus far in 2011, Allied has completed or announced the
acquisition of 19 properties for $350 million. 13 of the properties
are in Western Canada, five in Toronto and one in Montreal.
Consistent with past practice, Allied has financed these
acquisitions with a combination of equity and first mortgages. With
a view to locking-in the currently favourable cost of debt for as
long as possible, Allied has arranged longer-term mortgage
financing in most cases, the only exceptions being where it expects
to create significant value and boost mortgage financing potential
in the near-term. Allied expects its acquisitions in 2011 to have
significant positive impact on AFFO per unit in 2012 and
beyond.
Allied continues to accelerate its value-creation activity with
a view to building a value-creation pipeline that, in time, will
make a recurring, annual contribution to the growth of its
business. Allied expects two of its current value-creation
projects, 645 Wellington Street in Montreal and 905 King Street
West in Toronto to have significant positive impact on AFFO per
unit in 2012 and beyond.
"Over the past 18 months, we've been very successful in
establishing the foundation for increasing and strengthening our
AFFO per unit," said Mr. Emory. "We expect growth next year to be
driven by a significant increase in same-asset NOI, full accretion
from this year's acquisitions and a very significant increase in
NOI on completion of the upgrade of 645 Wellington and the
redevelopment 905 King West."
FFO and AFFO are not financial measures defined by International
Financial Reporting Standards ("IFRS"). Please see Allied's
MD&A for a description of these measures and their
reconciliation to net income and comprehensive income under IFRS,
as presented in Allied's condensed interim consolidated financial
statements for the quarter ended June 30, 2011. These statements,
together with accompanying notes and MD&A, have been filed with
SEDAR, www.sedar.com, and are also available on Allied's web-site,
www.alliedpropertiesreit.com.
Net operating income ("NOI") is not a measure recognized under
IFRS and does not have any standardized meaning prescribed by IFRS.
NOI is presented in this press release because management of Allied
believes that this non-IFRS measure is an important financial
performance indicator. NOI, as computed by Allied, may differ from
similar computations as reported by other similar organizations
and, accordingly, may not be comparable to NOI reported by such
organizations.
This press release may contain forward-looking statements with
respect to Allied, its operations, strategy, financial performance
and condition. These statements generally can be identified by use
of forward looking words such as "may", "will", "expect",
"estimate", "anticipate", intends", "believe" or "continue" or the
negative thereof or similar variations. Allied's actual results and
performance discussed herein could differ materially from those
expressed or implied by such statements. Such statements are
qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Important factors that could cause
actual results to differ materially from expectations include,
among other things, general economic and market factors,
competition, changes in government regulations and the factors
described under "Risk Factors" in the Allied's Annual Information
Form which is available at www.sedar.com. The cautionary statements
qualify all forward-looking statements attributable to Allied and
persons acting on its behalf. Unless otherwise stated, all
forward-looking statements speak only as of the date of this press
release, and Allied has no obligation to update such
statements.
Allied Properties REIT is a leading owner, manager and developer
of urban office environments that enrich experience and enhance
profitability for business tenants operating in Canada's major
cities. Its objectives are to provide stable and growing cash
distributions to unitholders and to maximize unitholder value
through effective management and accretive portfolio growth.
Contacts: Allied Properties REIT Michael R. Emory President and
Chief Executive Officer (416) 977-9002
memory@alliedpropertiesreit.com
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