Melcor REIT Announces Third Quarter Results Exceeding Forecast
01 Novembre 2013 - 11:02PM
Marketwired Canada
Melcor REIT (TSX:MR.UN) announced results for the three and nine months ended
September 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 third
quarter results that exceeded forecast. The successful acquisition of the Coast
Home retail property in the third quarter demonstrates our commitment to
acquiring immediately accretive third party assets to grow our portfolio. With
the Right of First Offer granted on all properties developed by Melcor
Developments, our growth outlook is strong."
Rayburn continued: "We also continue to improve existing assets, which, combined
with our focus on exceptional customer care, led to increased occupancy in the
quarter. We remain confident in our ability to grow a strong and balanced
portfolio that will provide consistent returns to unitholders."
Highlights for the quarter include:
-- Strong growth in revenue during the third quarter, increasing $0.60
million or 7% over Q3 2012, and $0.40 million or 4% over our Q3 2013
financial forecast. Revenue growth was driven by improved occupancy and
weighted average base rent; in addition to higher other revenues and
straight-line rent adjustment.
-- Positive growth in FFO and AFFO: FFO and AFFO per unit for the third
quarter were 10% and 6% higher than forecast respectively as a result of
higher NOI. Timing of operating expenditures; in conjunction with higher
revenues, were the primary drivers behind increased NOI.
-- Distributions of $0.05625 per trust unit were paid in July, August and
September, providing Unitholders an effective holding period return of
2.81% since our IPO on May 1, 2013. These distributions were inline with
forecast.
-- Fair value gains of $7.47 million year-to-date resulted in a 2% increase
in the fair value of our portfolio over December 31, 2012.
-- Weighted average interest rate on our mortgages and Class C LP Units
decreased by 50 basis points or 10% as a result of lower average
interest rates on the Class C LP Units achieved through refinancing
prior to the IPO.
-- Completed the acquisition of Coast Home Centre, a retail centre in
Edmonton, Alberta for $12.45 million.
Selected Financial Information
Financial Highlights
Three-months Nine-months Financial
ended ended Forecast(i)
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($000s) Q3 - 2013 2013 Q3 - 2013
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Non-Standard Key Performance
Indicators(ii)
Rental revenue 9,794 29,255 9,390
Net operating income (NOI) 6,343 19,064 6,007
Same asset NOI 5,738 17,285 n/a
Funds from Operations (FFO) 4,076 12,180 3,713
Adjusted Funds from Operations
(AFFO) 3,577 11,079 3,298
Per unit metrics(1)
FFO 0.22 0.65 0.20
AFFO 0.19 0.59 0.18
Distributions 0.169 0.281 0.169
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(i)Financial forecast is for the three-months ended September 30, 2013.
(ii)Refer to the following section, Non-IFRS supplemental measures, for
metric information.
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30-Sept-13 31-Dec-12
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Total assets ($000s) 425,320 396,845
Debt ($000s)(2) 194,587 180,002
Debt to GBV ratio 47% 46%
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Operational Highlights
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30-Sept-13 31-Dec-12
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Number of properties 28 27
Gross Leasable Area (GLA) (sq. ft.) 1,628,603 1,571,474
Occupancy % (weighted GLA) 91.6% 91.0%
Weighted average base rent (per sq. ft.) $ 16.57 $ 16.35
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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 amount drawn on revolving credit
facility, 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 nine-months ended September 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, November 4, 2013 at 9:00
AM ET. Call 416-340-8530 in the Toronto area; 800-769-8320 toll free.
The call will be webcast at http://www.gowebcasting.com/5002. 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 28
properties representing approximately 1.63 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 September 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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