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CROMBIE REIT ANNOUNCES THIRD QUARTER 2010 RESULTS

^{Published on 2010-11-08 11:11:52 - Market Wire}
 

 - Average net rent per square foot from year to date leasing activity increased to $14.75 compared to average expiring net rent per square foot of $13.44, an increase of 9.7%. - Crombie completed leasing activity on 571,000 square feet of gross leaseable area ("GLA") during the first nine months of 2010, representing 73.8% of its 2010 expiring leases. - Property occupancy was 95.5% at September 30, 2010 compared with 95.5% at June 30, 2010, and 94.2% at September 30, 2009. - Property revenue for the quarter ended September 30, 2010 of $53.4 million; an increase of $2.4 million, or 4.8% over the $51.0 million for the quarter ended September 30, 2009. - Same-asset cash net operating income ("NOI") for the quarter ended September 30, 2010 of $29.9 million; an increase of $1.1 million, or 3.8%, compared to $28.8 million for the quarter ended September 30, 2009. - The funds from operations ("FFO") payout ratio for the quarter ended September 30, 2010 was 82.8% compared to 151.6% for the same period in 2009. - The adjusted funds from operations ("AFFO") payout ratio for the quarter ended September 30, 2010 was 117.6% compared to the annual target AFFO payout ratio of 95%. 

 ------------------------------------------------------------------------- Three Three Nine Nine months months months months (In millions of ended ended ended ended dollars, except per Sep. 30, Sep. 30, Sep. 30, Sep. 30, unit amounts) 2010 2009 2010 2009 ------------------------------------------------------------------------- Property revenue $53.418 $50.991 $159.450 $154.876 Property expenses 18.936 18.585 57.630 55.814 ------------------------------------------------------------------------- Property NOI 34.482 32.406 101.820 99.062 ------------------------------------------------------------------------- NOI margin percentage 64.6% 63.6% 63.9% 64.0% ------------------------------------------------------------------------- Expenses: General and administrative 2.627 1.882 8.153 7.172 Interest 14.801 11.595 43.173 33.597 Depreciation and amortization 10.563 11.032 32.680 34.326 ------------------------------------------------------------------------- 27.991 24.509 84.006 75.095 ------------------------------------------------------------------------- Income before other items, income taxes and non-controlling interest 6.491 7.897 17.814 23.967 Other income (expenses) 0.162 (9.981) 0.347 (9.889) ------------------------------------------------------------------------- Income (loss) before income taxes and non-controlling interest 6.653 (2.084) 18.161 14.078 Income taxes expense (recovery) - Future (0.200) -- (1.700) 0.200 ------------------------------------------------------------------------- Income (loss) before non-controlling interest 6.853 (2.084) 19.861 13.878 Non-controlling interest 3.238 (0.989) 9.426 6.653 ------------------------------------------------------------------------- Net income (loss) $3.615 $(1.095) $10.435 $7.225 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted net income (loss) per unit $0.11 $(0.03) $0.32 $0.25 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three Three Nine Nine months months months months ended ended ended ended Sep. 30, Sep. 30, Sep. 30, Sep. 30, (In millions of dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Property NOI $34.482 $32.406 $101.820 $99.062 Straight-line rent and above-market and below-market lease amortization (1.555) (2.020) (4.956) (6.893) ------------------------------------------------------------------------- Property cash NOI 32.927 30.386 96.864 92.169 Acquisition and redevelopment property cash NOI 3.013 1.555 7.504 4.961 ------------------------------------------------------------------------- Same-asset property cash NOI $29.914 $28.831 $89.360 $87.208 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three Three Nine Nine months months months months ended ended ended ended Sep. 30, Sep. 30, Sep. 30, Sep. 30, (In millions of dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Same-asset property revenue $48.414 $48.012 $146.218 $145.363 Same-asset property expenses 17.283 17.258 52.524 51.629 ------------------------------------------------------------------------- Same-asset property NOI $31.131 $30.754 $93.694 $93.734 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Same-asset NOI margin % 64.3% 64.1% 64.1% 64.5% ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three Three Nine Nine months months months months ended ended ended ended Sep. 30, Sep. 30, Sep. 30, Sep. 30, (In millions of dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Acquisition and redevelopment property revenue $5.004 $2.979 $13.232 $9.513 Acquisition and redevelopment property expenses 1.653 1.327 5.106 4.185 ------------------------------------------------------------------------- Acquisition and redevelopment property NOI $3.351 $1.652 $8.126 $5.328 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Acquisition and redevelopment NOI margin % 67.0% 55.5% 61.4% 56.0% ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three Three Nine Nine months months months months ended ended ended ended Sep. 30, Sep. 30, Sep. 30, Sep. 30, (In millions of dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Same-asset interest expense $12.066 $9.852 $35.721 $29.044 Acquisition and redevelopment interest expense 1.069 0.577 2.734 1.728 Amortization of effective swaps and deferred financing charges 1.666 1.166 4.718 2.825 ------------------------------------------------------------------------- Interest expense $14.801 $11.595 $43.173 $33.597 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- (In millions of Quarter ended Sep. 30, Variance dollars, except ----------------------------------------------------- per unit amounts) 2010 2009 $ % ------------------------------------------------------------------------- FFO $17.216 $8.948 $8.268 92.4% FFO Per Unit - basic $0.27 $0.15 $0.12 80.0% FFO Per Unit - diluted $0.26 $0.15 $0.11 73.3% FFO Payout ratio 82.8% 151.6% 68.8% ------------------------------------------------------------------------- AFFO $12.123 $(0.451) $12.574 N/A% AFFO Per Unit - basic $0.19 $(0.01) $0.20 N/A% AFFO Per Unit - diluted $0.19 $(0.01) $0.20 N/A% AFFO Payout ratio 117.6% N/A N/A% ------------------------------------------------------------------------- ------------------------------------------------------------------------- (In millions of Nine months ended Sep. 30, Variance dollars, except ----------------------------------------------------- per unit amounts) 2010 2009 $ % ------------------------------------------------------------------------- FFO $50.841 $48.404 $2.437 5.0% FFO Per Unit - basic $0.82 $0.88 $(0.06) (6.8)% FFO Per Unit - diluted $0.78 $0.87 $(0.09) (10.3)% FFO Payout ratio 81.4% 77.5% (3.9)% ------------------------------------------------------------------------- AFFO $37.977 $25.771 $12.206 47.4% AFFO Per Unit - basic $0.61 $0.47 $0.14 29.8% AFFO Per Unit - diluted $0.60 $0.46 $0.14 30.4% AFFO Payout ratio 109.0% 145.5% 36.5% ------------------------------------------------------------------------- 

 - 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.