Melcor REIT Announces Second Quarter Results Exceeding Forecast
10 Août 2013 - 12:21AM
Marketwired Canada
Melcor REIT (TSX:MR.UN) announced results for the three and six months ended
June 30, 2013. For the twelve-month period ending March 31, 2014 we will be
comparing our results to the financial forecast disclosed in our prospectus
dated April 19, 2013, which is available on SEDAR at www.sedar.com.
Darin Rayburn, CEO of Melcor REIT commented: "We are pleased to report second
quarter results ahead of our forecast on all significant key performance
indicators, including revenue, NOI, AFFO and occupancy. Our growth strategy is
simple: acquire and improve. We have a proven track record of doing both."
Rayburn continued: "Our focus continues to be on providing signature customer
care, maximizing occupancy and controlling expenses while paying attention to
real estate fundamentals. Coupled with a disciplined approach to executing our
growth strategy, we are confident in our ability to grow a strong and balanced
portfolio and provide consistent returns to our unitholders."
Highlights for the quarter include:
-- Strong growth in revenue up $0.77 million or 9% over the same period in
the prior year as a result of higher base rent and higher average
occupancy for the period. Revenue growth contributed to increased NOI,
with growth over the same period in the prior year of $0.42 million or
7%.
-- FFO and AFFO per unit exceeded forecast by 10% and 13% respectively.
-- Distributions of $0.05625 per trust unit in May and June provided
unitholders an effective holding period return of 2.13%. These
distributions were inline with forecast.
-- Fair value gains of $4.39 million year-to-date contributed to a 2%
increase in portfolio fair value compared to year-end. This increase is
a result of continued investment in asset enhancement projects and
increased leasing activity.
-- Weighted average interest rate on our mortgages and Class C LP Units
decreased by 10% as a result of lower average interest rates achieved
through refinancing prior to the IPO.
Selected Financial Information
Financial Highlights
Three-months Six-months Financial
ended ended Forecast(i)
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($000s) Q2 - 2013 2013 Q2 - 2013
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Non-Standard KPIs
Rental revenue 9,773 19,461 9,598
Net operating income (NOI) 6,379 12,721 5,996
Same asset NOI 5,812 11,547 -
Funds from Operations (FFO) 4,109 8,104 3,629
Adjusted Funds from Operations (AFFO) 3,589 6,961 3,213
Per unit metrics(1)
FFO 0.22 0.43 0.20
AFFO 0.19 0.37 0.17
Distributions 0.112 0.112 0.112
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(i)Financial forecast is for the three-months ended June 30, 2013.
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30-Jun-13 31-Dec-12
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Total assets ($000s) 414,769 396,845
Debt ($000s)(2) 187,886 180,002
Debt to GBV ratio 0.47 0.46
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Operational Highlights
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30-Jun-13 31-Dec-12
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Number of properties 27 27
Gross Leasable Area (GLA) (sq. ft.) 1,569,215 1,571,474
Occupancy % (weighted by GLA) 90.4% 91.0%
Weighted average base rent (per sq.
ft.) $ 16.85 $ 16.70
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(1) Calculated as if the trust units and Class B LP Units were outstanding
during the entire current and comparative periods.
(2) Calculated as the sum of total mortgages payable and Class C LP Units.
MD&A and Financial Statements
Melcor REIT's consolidated financial statements and management's discussion and
analysis for the three- and six-months ended June 30, 2013 can be found on the
REIT's website at www.MelcorREIT.ca or on SEDAR (www.sedar.com).
Conference Call & Webcast
Unitholders and interested parties are invited to join CEO Darin Rayburn and CFO
Jonathan Chia on a conference call to be held Monday, August 12, 2013 at 9:00 AM
ET. Call 416-340-8018 in the Toronto area; 866-223-7781 toll free.
The call will be webcast at www.gowebcasting.com/4486. A replay of the call will
be available shortly after the call is concluded at the same address.
About Melcor REIT
Melcor REIT is an unincorporated, open-ended real estate investment trust.
Melcor REIT owns, acquires, manages and leases quality retail, office and
industrial income-generating properties with exposure to high growth western
Canadian markets. Its portfolio is currently made up of interests in 27
properties representing approximately 1.57 million square feet of gross leasable
area located in and around Edmonton, Calgary, and Lethbridge, Alberta; Regina,
Saskatchewan; and Kelowna, British Columbia. For more information, please visit
www.MelcorREIT.ca.
Non-IFRS supplemental measures
NOI, FFO and AFFO are key measures of performance used by real estate operating
companies; however, they are not defined by International Financial Reporting
Standards ("IFRS"), do not have standard meanings and may not be comparable with
other industries or income trusts. These Non-IFRS measures are more fully
defined and discussed in the REIT's Management Discussion and Analysis for the
period ended June 30, 2013, which is available on SEDAR at www.sedar.com.
Forward-Looking Statements:
This press release may contain forward-looking information within the meaning of
applicable securities legislation, which reflects the REIT's current
expectations regarding future events. Forward-looking information is based on a
number of assumptions and is subject to a number of risks and uncertainties,
many of which are beyond the REIT's control, that could cause actual results and
events to differ materially from those that are disclosed in or implied by such
forward-looking information. Such risks and uncertainties include, but are not
limited to, general and local economic and business conditions; the financial
condition of tenants; the REIT's ability to refinance maturing debt; leasing
risks, including those associated with the ability to lease vacant space; and
interest rate fluctuations. The REIT's objectives and forward-looking statements
are based on certain assumptions, including that the general economy remains
stable, interest rates remain stable, conditions within the real estate market
remain consistent, competition for acquisitions remains consistent with the
current climate and that the capital markets continue to provide ready access to
equity and/or debt. All forward-looking information in this press release speaks
as of the date of this press release. The REIT does not undertake to update any
such forward-looking information whether as a result of new information, future
events or otherwise. Additional information about these assumptions and risks
and uncertainties is contained in the REIT's filings with securities regulators.
FOR FURTHER INFORMATION PLEASE CONTACT:
Business Contact: Melcor REIT
Darin Rayburn
Chief Executive Officer
780.423.6931
info@melcorREIT.ca
Investor Relations: Melcor REIT
Jonathan Chia, CA
Chief Financial Officer
780.423.6931
ir@melcorREIT.ca
www.MelcorREIT.ca
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