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Crombie REIT announces second quarter 2010 results

^{Published on 2010-08-11 10:50:31 - Market Wire}
 

 - Average net rent per square foot from year to date leasing activity increased to $14.51 compared to average expiring rent per square foot of $13.44, an increase of 8.0%. - Crombie completed leasing activity on 389,000 square feet of GLA during the first six months of 2010, which represents 50.3% of its 2010 expiring leases. - Property occupancy was 95.5% at June 30, 2010 compared with 95.0% at March 31, 2010, and 94.1% at June 30, 2009. - Property revenue for the quarter ended June 30, 2010 of $52.8 million; an increase of $1.9 million, or 3.8% over the $50.9 million for the quarter ended June 30, 2009. - Same-asset cash net operating income ("NOI")for the quarter ended June 30, 2010 of $30.2 million; an increase of $0.7 million, or 2.5%, compared to $29.5 million for the quarter ended June 30, 2009. - The FFO payout ratio for the quarter ended June 30, 2010 was 81.7% compared to 65.7% for the same period in 2009. - The AFFO payout ratio for the quarter ended June 30, 2010 was 103.2% compared to the annual target AFFO payout ratio of 95% and 84.6% achieved for the same period in 2009. 

 ------------------------------------------------------------------------- Three Three Six Six months months months months (In millions of dollars, ended ended ended ended except where otherwise Jun. 30, Jun. 30, Jun. 30, Jun. 30, noted) 2010 2009 2010 2009 ------------------------------------------------------------------------- Property revenue $52.811 $50.893 $106.032 103.885 Property expenses 18.686 17.258 38.694 37.229 ------------------------------------------------------------------------- Property NOI 34.125 33.635 67.338 66.656 ------------------------------------------------------------------------- NOI margin percentage 64.6% 66.1% 63.5% 64.2% ------------------------------------------------------------------------- Expenses: General and administrative 3.003 3.646 5.526 5.290 Interest 14.738 11.272 28.372 22.002 Depreciation and amortization 10.838 10.803 22.117 23.294 ------------------------------------------------------------------------- 28.579 25.721 56.015 50.586 ------------------------------------------------------------------------- Income before other items, income taxes and non-controlling interest 5.546 7.914 11.323 16.070 Other income 0.185 - 0.185 0.092 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 5.731 7.914 11.508 16.162 Income taxes expense (recovery) - Future (0.400) - (1.500) 0.200 ------------------------------------------------------------------------- Income before non-controlling interest 6.131 7.914 13.008 15.962 Non-controlling interest 2.926 3.786 6.188 7.642 ------------------------------------------------------------------------- Net income $3.205 $4.128 $6.820 $8.320 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted net income per unit $0.10 $0.15 $0.21 $0.30 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three Three Six Six months months months months ended ended ended ended Jun. 30, Jun. 30, Jun. 30, Jun. 30, (In millions of dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Property NOI $34.125 $33.635 $67.338 $66.656 Straight-line rent and above- and below-market lease amortization (1.605) (2.616) (3.401) (4.873) ------------------------------------------------------------------------- Property cash NOI 32.520 31.019 63.937 61.783 Acquisition and redevelopment property cash NOI 2.537 1.769 4.492 3.406 ------------------------------------------------------------------------- Same-asset property cash NOI $29.983 $29.250 $59.445 $58.377 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three Three Six Six months months months months ended ended ended ended Jun. 30, Jun. 30, Jun. 30, Jun. 30, (In millions of dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Same-asset property revenue $48.307 $47.765 $97.804 $97.351 Same-asset property expenses 16.907 16.030 35.241 34.371 ------------------------------------------------------------------------- Same-asset property NOI $31.400 $31.735 $62.563 $62.980 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Same-asset NOI margin % 65.0% 66.4% 64.0% 64.7% ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three Three Six Six months months months months ended ended ended ended Jun. 30, Jun. 30, Jun. 30, Jun. 30, (In millions of dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Acquisition and redevelopment property revenue $4.504 $3.128 $8.228 $6.534 Acquisition and redevelopment property expenses 1.779 1.228 3.453 2.858 ------------------------------------------------------------------------- Acquisition and redevelopment property NOI $2.725 $1.900 $4.775 $3.676 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Acquisition and redevelopment NOI margin % 60.5% 60.7% 58.0% 56.3% ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three Three Six Six months months months months ended ended ended ended Jun. 30, Jun. 30, Jun. 30, Jun. 30, (In millions of dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Same-asset interest expense $12.080 $9.726 $23.655 $19.193 Acquisition and redevelopment interest expense 0.990 0.574 1.665 1.150 Amortization of effective swaps and deferred financing charges 1.668 0.972 3.052 1.659 ------------------------------------------------------------------------- Interest expense $14.738 $11.272 $28.372 $22.002 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- (In millions of Quarter ended June 30, Variance dollars, except per -------------------------------------------------- unit amounts) 2010 2009 $ % ------------------------------------------------------------------------- FFO $16.569 $18.717 $(2.148) (11.5)% FFO Per Unit - basic $0.27 $0.35 $(0.08) (22.9)% FFO Per Unit - diluted $0.26 $0.35 $(0.09) (25.7)% FFO Payout ratio 81.7% 65.7% (16.0)% ------------------------------------------------------------------------- AFFO $13.110 $14.524 $(1.414) (9.7)% AFFO Per Unit - basic $0.22 $0.27 $(0.05) (18.5)% AFFO Per Unit - diluted $0.21 $0.27 $(0.06) (22.2)% AFFO Payout ratio 103.2% 84.6% (18.6)% ------------------------------------------------------------------------- ------------------------------------------------------------------------- (In millions of Six months ended June 30, Variance dollars, except per -------------------------------------------------- unit amounts) 2010 2009 $ % ------------------------------------------------------------------------- FFO $33.625 $39.456 $(5.831) (14.8)% FFO Per Unit - basic $0.55 $0.75 $(0.20) (26.7)% FFO Per Unit - diluted $0.52 $0.73 $(0.21) (28.8)% FFO Payout ratio 80.5% 60.7% (19.8)% ------------------------------------------------------------------------- AFFO $25.854 $26.222 $(0.368) (1.4)% AFFO Per Unit - basic $0.43 $0.50 $(0.07) (14.0)% AFFO Per Unit - diluted $0.42 $0.49 $(0.07) (14.3)% AFFO Payout ratio 104.7% 91.3% (13.4)% ------------------------------------------------------------------------- 

 - Property NOI is property revenue less property expenses. - Debt is defined as bank loans plus commercial property debt and convertible debentures. - Gross book value means, at any time, the book value of the assets of Crombie and its consolidated subsidiaries plus accumulated depreciation and amortization in respect of Crombie's properties (and related intangible assets) less (i) the amount of any receivable reflecting interest rate subsidies on any debt assumed by Crombie and (ii) the amount of future income tax liability arising out of the fair value adjustment in respect of the indirect acquisitions of certain properties. - EBITDA is calculated as property revenue, adjusted to remove the impact of amortization of above-market and below-market leases, less property expenses and general and administrative expenses. - FFO is calculated as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable real estate and extraordinary items, plus depreciation and amortization, future income taxes and after adjustments for equity accounted entities and non-controlling interests. - AFFO is defined as FFO adjusted for non-cash amounts affecting revenue and discontinued operations, less maintenance capital expenditures, maintenance tenant improvements and leasing costs, and the settlement of interest rate swap agreements.