Morguard Corporation Announces 2009 Third Quarter Results and Regular Dividend

MISSISSAUGA, ON, Nov. 3 /CNW/ - Morguard Corporation (TSX: MRC) announced its financial results for the three months ended September 30, 2009.

 Q3 2009 HIGHLIGHTS - Total revenues for the three months ended September 30, 2009, were $87.1 million compared to $87.2 million for the same period in 2008; - Net operating income increased to $38.0 million compared to $36.9 million in the third quarter of 2008, with foreign exchange rate changes causing $0.5 million of the increase; - Net income from continuing operations totalled $5.8 million compared to $7.3 million in the same period in 2008; - Funds from operations in Q3 2009 increased to $28.2 million, or $2.01 per share, compared to $27.4 million, or $1.96 per share in 2008; - Three multi-unit residential properties were refinanced resulting in $82.9 million of gross proceeds at a weighted average interest rate of 4.1%. FINANCIAL HIGHLIGHTS ------------------------------------------------------------------------- Three months ended Nine months ended September 30 September 30 (in thousands of dollars) 2009 2008 2009 2008 ------------------------------------------------------------------------- Income from real estate properties $69,628 $67,837 $211,806 $198,696 Management and advisory fee revenue 16,185 17,330 45,540 47,186 Sales of product and land 1,328 1,987 3,867 5,102 ------------------------------------------------------------------------- Total revenues $87,141 $87,154 $261,213 $250,984 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income from real estate properties $69,628 $67,837 $211,806 $198,696 Property operating expense (31,637) (30,912) (97,981) (89,811) ------------------------------------------------------------------------- Net operating income $37,991 $36,925 $113,825 $108,885 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Funds from operations $28,192 $27,364 $84,431 $79,899 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net income from continuing operations $5,828 $7,325 $17,380 $42,677 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net income for the period $5,828 $9,667 $17,380 $47,315 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income per share Basic - continuing operations $0.42 $0.52 $1.24 $3.06 Diluted - continuing operations $0.42 $0.52 $1.24 $3.03 Basic - net income $0.42 $0.69 $1.24 $3.39 Diluted - net income $0.42 $0.69 $1.24 $3.36 

 NET OPERATING INCOME ("NOI") ------------------------------------------------------------------------- Three months ended Nine months ended September 30 September 30 (in thousands of dollars) 2009 2008 2009 2008 ------------------------------------------------------------------------- Multi-unit residential - Canada $13,443 $13,394 $36,116 $37,257 Multi-unit residential - U.S. 4,128 4,225 13,697 11,390 Retail - Canada 6,262 5,824 20,106 18,253 Retail - U.S. 5,253 4,687 17,611 15,441 Office/Industrial 8,905 8,795 26,295 26,544 ------------------------------------------------------------------------- Net operating income $37,991 $36,925 $113,825 $108,885 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 FUNDS FROM OPERATIONS ("FFO") FFO was calculated as follows: ------------------------------------------------------------------------- Three months ended Nine months ended September 30 September 30 (in thousands of dollars) 2009 2008 2009 2008 ------------------------------------------------------------------------- Net earnings from continuing operations $5,828 $7,325 $17,380 $42,677 Items not affecting cash: Amortization 16,463 15,213 50,154 45,608 Future income taxes 2,042 1,254 3,899 14,176 Non-controlling interest (25) (430) (25) (690) Equity income from Morguard REIT - continuing operations (1,717) (4,062) (9,120) (26,177) Morguard REIT's equity accounted FFO - continuing 5,601 8,064 21,765 23,746 Gain on pension valuation allowance - - - (19,441) Gain on sale of property - - (72) - Other - - 450 - ------------------------------------------------------------------------- Funds from operations $28,192 $27,364 $84,431 $79,899 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Per share amount - basic $2.01 $1.96 $6.01 $5.73 Per share amounts - diluted $2.01 $1.94 $6.01 $5.68