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Morguard Real Estate Investment Trust Announces 2010 Second Quarter Results

^{Published on 2010-08-05 08:06:04 - Market Wire}
 

 HIGHLIGHTS - Net operating income for Q2 2010 was $28.8 million compared to $29.3 million for the same period in 2009. - Net income for Q2 2010 totaled $6.6 million or $0.12 per unit compared to $9.2 million or $0.16 per unit for the same period in 2009. Included in net income for Q2 2010 was $2.0 million in interest expense for the 6.50% convertible unsecured subordinated debentures issued on September 22, 2009. - Recurring distributable income totaled to $14.6 million or $0.26 per unit (basic) and $0.25 per unit (diluted) compared to $16.9 million or $0.30 per unit (basic and diluted) for the same period in 2009. - Funds from operations ("FFO") decreased to $16.8 million or $0.29 per unit (basic) and $0.28 per unit (diluted) compared to $18.7 million or $0.32 per unit (basic and diluted) for the same period in 2009. - Overall portfolio occupancy levels were at 93%. Net Income ---------- (In thousands of dollars, except per-unit amounts) For the three months ended June 30, 2010 2009 ------------------------------------------------------------------------- Income from real estate properties $ 52,154 $ 50,978 Property operating income $ 28,753 $ 29,287 Net income for the period from continuing operations $ 6,468 $ 8,862 Income for the period from discontinued operations 145 338 ------------------------------------------------------------------------- Net income for the period $ 6,613 $ 9,200 ---------------------- ---------------------- Net income per unit (basic and diluted) Continuing operations $ 0.11 $ 0.15 Discontinued operations 0.01 0.01 ------------------------------------------------------------------------- $ 0.12 $ 0.16 ---------------------- ---------------------- Distributable Income -------------------- 

 (In thousands of dollars, except per-unit amounts and percentages) For the three months ended June 30, 2010 2009 ------------------------------------------------------------------------- Net income for the period $ 6,613 $ 9,200 ------------------------------------------------------------------------- Add/(deduct) Amortization - buildings 6,594 6,698 Amortization - intangibles 1,428 972 Amortization - above/(below) market-rate leases, net (287) (228) Amortization - stepped rents (112) 231 Accretion of convertible debentures 329 - Issue costs - convertible debentures 5 - ------------------------------------------------------------------------- Distributable income 14,570 16,873 Loss on sale of real estate properties 7 - ------------------------------------------------------------------------- Recurring distributable income $ 14,577 $ 16,873 ---------------------- ---------------------- Distributed income $ 12,790 $ 12,888 ---------------------- ---------------------- Payout ratio: Recurring distributable income 87.7% 76.4% Recurring distributable income - per unit (basic) $ 0.26 $ 0.30 Recurring distributable income - per unit (diluted) $ 0.25 $ 0.30 Weighted average number of units - (basic) (in thousands) 56,845 57,623 Weighted average number of units - (diluted) (in thousands) 64,999 57,623 ---------------------- ---------------------- Funds from Operations --------------------- 

 FFO was calculated as follows: Three months ended, June 30, 2010 June 30, 2009 (In thousands ---------------------------------------------------------- of dollars, Discon- Discon- except per- Continuing tinued Continuing tinued unit amounts) Operations Operations Total Operations Operations Total ------------------------------------------------------------------------- Net income for the period $ 6,468 $ 145 $ 6,613 $ 8,862 $ 338 $ 9,200 Add/(deduct) items not affecting cash: Loss on sale of real estate properties - 7 7 - - - Amortization - buildings 6,594 - 6,594 6,628 70 6,698 Amortization - leasehold improvements 1,320 - 1,320 1,199 4 1,203 Amortization - intangibles 1,428 - 1,428 972 - 972 Amortization - deferred leasing costs 521 - 521 644 2 646 Accretion of convertible debentures 329 - 329 - - - ------------------------------------------------------------------------- Funds from operations $ 16,660 $ 152 $ 16,812 $ 18,305 $ 414 $ 18,719 -------------------------------------------------------- -------------------------------------------------------- Funds from operations per unit (basic) $ 0.29 $ - $ 0.29 $ 0.31 $ 0.01 $ 0.32 Funds from operations per unit (diluted) $ 0.28 $ - $ 0.28 $ 0.31 $ 0.01 $ 0.32 -------------------------------------------------------- -------------------------------------------------------- 

 ------------------------------------------------------------------------- Morguard is a closed-end real estate investment trust, which owns a diversified portfolio of 50 retail, office, and mixed-use properties in Canada with a book value of $1.3 billion and approximately 7.9 million square feet of leasable space. For more information, visit the Trust's website at [ www.morguardreit.com ]. -------------------------------------------------------------------------