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CROMBIE REIT ANNOUNCES FOURTH QUARTER AND FISCAL 2010 RESULTS

^{Published on 2011-02-24 05:20:37 - Market Wire}
 

 - Property occupancy reached an all-time high for Crombie of 95.8% at December 31, 2010 compared with 95.5% at September 30, 2010, and 94.7% at December 31, 2009. - Average net rent per square foot from leasing activity for the year increased to $14.13 compared to average expiring net rent per square foot of $13.44, an increase of 5.1%. - Crombie completed leasing activity on 743,000 square feet of GLA during the year ended December 31, 2010, which represents approximately 96.0% of its 2010 expiring leases. - Crombie completed the accretive acquisition of 20 retail properties during the year ended December 31, 2010 in the amount of $173.8 million, adding approximately 867,000 square feet of GLA. - Property revenue for the year ended December 31, 2010 of $217.0 million; an increase of $9.7 million, or 4.7% over the $207.3 million for the year ended December 31, 2009. - Same-asset cash net operating income ("NOI") for the year ended December 31, 2010 of $119.2 million; an increase of $2.5 million or 2.1%, compared to $116.7 million for the year ended December 31, 2009. - Funds from operations ("FFO") payout ratio for the year ended December 31, 2010 was 81.7% compared to 76.8% for the same period in 2009. - Adjusted funds from operations ("AFFO") payout ratio for the year ended December 31, 2010 was 105.5%. 

 ------------------------------------------------------------------------- Three Three months months Year Year ended ended ended ended (In millions of dollars, Dec. 31, Dec. 31, Dec. 31, Dec. 31, except per unit amounts) 2010 2009 2010 2009 ------------------------------------------------------------------------- Property revenue $57.546 $52.378 $216.996 $207.254 Property expenses 21.670 19.948 79.300 75.762 ------------------------------------------------------------------------- Property NOI 35.876 32.430 137.696 131.492 ------------------------------------------------------------------------- NOI margin percentage 62.3% 61.9% 63.5% 63.4% ------------------------------------------------------------------------- Expenses: General and administrative 2.426 2.102 10.579 9.274 Interest 15.616 12.722 58.789 46.319 Depreciation and amortization 10.687 11.705 43.367 46.031 ------------------------------------------------------------------------- 28.729 26.529 112.735 101.624 ------------------------------------------------------------------------- Income before other items, income taxes and non-controlling interest 7.147 5.901 24.961 29.868 Other income (expenses) -- 0.500 0.347 (9.389) ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 7.147 6.401 25.308 20.479 Income taxes expense (recovery) - Future (0.800) (0.300) (2.500) (0.100) ------------------------------------------------------------------------- Income before non-controlling interest 7.947 6.701 27.808 20.579 Non-controlling interest 3.719 3.178 13.145 9.831 ------------------------------------------------------------------------- Net income $4.228 $3.523 $14.663 $10.748 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted net income per unit $0.12 $0.11 $0.44 $0.36 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three Three months months Year Year ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, (In millions of dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Property NOI $35.876 $32.430 $137.696 $131.492 Straight-line rent and above-market and below-market lease amortization (1.459) (1.364) (6.415) (8.257) ------------------------------------------------------------------------- Property cash NOI 34.417 31.066 131.281 123.235 Acquisition and redevelopment property cash NOI 4.557 1.527 12.061 6.492 ------------------------------------------------------------------------- Same-asset property cash NOI $29.860 $29.539 $119.220 $116.743 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three Three months months Year Year ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, (In millions of dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Same-asset property revenue $50.858 $49.268 $197.076 $194.631 Same-asset property expenses 19.663 18.502 72.188 70.135 ------------------------------------------------------------------------- Same-asset property NOI $31.195 $30.766 $124.888 $124.496 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Same-asset NOI margin % 61.3% 62.4% 63.4% 64.0% ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three Three months months Year Year ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, (In millions of dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Acquisition and redevelopment property revenue $6.688 $3.110 $19.920 $12.623 Acquisition and redevelopment property expenses 2.007 1.446 7.112 5.627 ------------------------------------------------------------------------- Acquisition and redevelopment property NOI $4.681 $1.664 $12.808 $6.996 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Acquisition and redevelopment NOI margin % 70.0% 53.5% 64.3% 55.4% ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three Three months months Year Year ended ended ended ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, (In millions of dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Same-asset interest expense $11.889 $10.518 $47.610 $39.563 Acquisition and redevelopment interest expense 1.859 0.573 4.593 2.300 Amortization of effective swaps and deferred financing charges 1.868 1.631 6.586 4.456 ------------------------------------------------------------------------- Interest expense $15.616 $12.722 $58.789 $46.319 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Quarter ended Dec. 31, Variance ------------------------------------------------ (In millions of dollars, except per unit amounts) 2010 2009 $ % ------------------------------------------------------------------------- FFO $17.834 $18.106 $(0.272) (1.5)% FFO Per Unit - basic $0.27 $0.30 $(0.03) (10.0)% FFO Per Unit - diluted $0.26 $0.28 $(0.02) (7.1)% FFO Payout ratio 82.4% 74.9% (7.5)% ------------------------------------------------------------------------- AFFO $15.198 $(7.511) $22.709 N/A% AFFO Per Unit - basic $0.23 $(0.12) $0.35 N/A% AFFO Per Unit - diluted $0.22 $(0.12) $0.34 N/A% AFFO Payout ratio 96.7% N/A% N/A% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Year ended Dec. 31, Variance ------------------------------------------------ (In millions of dollars, except per unit amounts) 2010 2009 $ % ------------------------------------------------------------------------- FFO $68.675 $66.510 $2.165 3.3% FFO Per Unit - basic $1.09 $1.17 $(0.08) (6.8)% FFO Per Unit - diluted $1.04 $1.14 $(0.10) (8.8)% FFO Payout ratio 81.7% 76.8% (4.9)% ------------------------------------------------------------------------- AFFO $53.175 $18.260 $34.915 191.2% AFFO Per Unit - basic $0.85 $0.32 $0.53 165.6% AFFO Per Unit - diluted $0.83 $0.32 $0.51 159.4% AFFO Payout ratio 105.5% 279.7% 174.2% ------------------------------------------------------------------------- 

 - Property NOI is property revenue less property expenses. - Property Cash NOI is Property NOI adjusted to remove non-cash straight-line rent and below-market and above-market lease amortization. - 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 effective interest rate swap agreements.