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Morguard Real Estate Investment Trust Announces 2009 Third Quarter Results

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  Published in Business and Finance on Tuesday, November 3rd 2009 at 15:20 GMT by Market Wire
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 HIGHLIGHTS FOR Q3 2009 - On September 22, 2009, the Trust issued $90.0 million principal amount of 6.50% convertible unsecured subordinated debentures ("2009 Debentures"), maturing on September 30, 2014 with an Underwriters' over-allotment option for additional issuance of debentures of $13.5 million. On September 29, 2009, the full amount of the Underwriters' over-allotment option was exercised. - Net operating income decreased to $27.6 million from $29.3 million for the same period in 2008; - Net income totaled $3.5 million or $0.06 per unit compared to $15.9 million or $0.28 per unit for the same period in 2008. Net income for Q3 2009 was affected by a charge of $4.1 million for the issuance of the 2009 Debentures and net income for Q3 2008 included a gain on sale of real estate properties of $6.2 million; - Recurring distributable income decreased to $14.1 million or $0.25 per unit (basic and diluted) compared to $16.2 million or $0.27 per unit (basic and diluted) for the same period in 2008; - Funds from operations ("FFO") decreased to $12.4 million or $0.22 per unit (basic and diluted) compared to $18.9 million or $0.32 per unit (basic and diluted) for the same period in 2008. FFO was significantly impacted by $4.1 million of issue costs ($0.07 per unit, basic and diluted) relating to the issuance of the 2009 Debentures; - Overall portfolio occupancy levels remained stable at 95%. FINANCIAL HIGHLIGHTS Net Income ---------- (In thousands of dollars except per unit amounts) Three-month period ended September 30, 2009 2008 ------------------------------------------------------------------------- Income from real estate properties $ 50,107 $ 50,234 Property operating income $ 27,574 $ 29,257 Net income for the period from continuing operations $ 3,527 $ 9,643 Income for the period from discontinued operations - 6,243 ------------------------------------------------------------------------- Net income for the period $ 3,527 $ 15,886 ---------------------- ---------------------- Net income per unit (basic and diluted) Continuing operations $ 0.06 $ 0.17 Discontinued operations - 0.11 ------------------------------------------------------------------------- $ 0.06 $ 0.28 ---------------------- ---------------------- Distributable Income -------------------- 

 (In thousands of dollars except per-unit amounts and percentages) Three months ended September 30, 2009 2008 ------------------------------------------------------------------------- Net income for the period $ 3,527 $ 15,886 ------------------------------------------------------------------------- Add/(deduct) Amortization - buildings 5,941 6,296 Amortization - intangibles 925 985 Amortization - above/(below) market rate leases, net (213) (239) Amortization - stepped rents (237) (522) Accretion of convertible debentures 23 - Issue costs - convertible debentures 4,145 - ------------------------------------------------------------------------- Distributable income 14,111 22,406 Gain on sale of real estate properties - (6,178) ------------------------------------------------------------------------- Recurring distributable income $ 14,111 $ 16,228 ---------------------- ---------------------- Distributed income $ 12,936 $ 13,288 ---------------------- ---------------------- Payout ratio: Recurring distributable income 91.7% 81.9% Recurring distributable income - per unit (basic and diluted) $ 0.25 $ 0.27 Weighted average number of units - (in thousands) (basic and diluted) 57,498 59,061 ---------------------- ---------------------- Funds from Operations --------------------- 

 Three months ended, September 30, 2009 ----------------------------------- (In thousands of dollars Continuing Discontinued except per unit amounts) Operations Operations Total ------------------------------------------------------------------------- Net income for the period $ 3,527 $ - $ 3,527 Add/(deduct) items not affecting cash: Gain on sale of real estate properties - - - Amortization - buildings 5,941 - 5,941 Amortization - intangibles 925 - 925 Amortization - leasehold improvements 1,471 - 1,471 Amortization - deferred leasing costs 558 - 558 Accretion of convertible debentures 23 23 ------------------------------------------------------------------------- Funds from operations $ 12,445 $ - $ 12,445 ----------------------------------- ----------------------------------- Funds from operations per unit (basic and diluted) $ 0.22 $ - $ 0.22 ----------------------------------- ----------------------------------- Three months ended, September 30, 2008 ----------------------------------- (In thousands of dollars Continuing Discontinued except per unit amounts) Operations Operations Total ------------------------------------------------------------------------- Net income for the period $ 9,643 $ 6,243 $ 15,886 Add/(deduct) items not affecting cash: Gain on sale of real estate properties - (6,178) (6,178) Amortization - buildings 6,296 - 6,296 Amortization - intangibles 985 - 985 Amortization - leasehold improvements 1,406 - 1,406 Amortization - deferred leasing costs 514 - 514 Accretion of convertible debentures - - - ------------------------------------------------------------------------- Funds from operations $ 18,844 $ 65 $ 18,909 ----------------------------------- ----------------------------------- Funds from operations per unit (basic and diluted) $ 0.32 $ - $ 0.32 ----------------------------------- -----------------------------------