N@N

CROMBIE REIT REPORTS IMPROVED FIRST QUARTER 2011 RESULTS

^{Published on 2011-05-04 15:45:55 - Market Wire}
 

 2011 Highlights - Property revenue for the quarter ended March 31, 2011 of $56.3 million an increase of $50.0 million, or 9.7% over the $51.3 million for the quarter ended March 31, 2010. - Same-asset cash net operating income ("NOI") for the quarter ended March 31, 2011 of $30.3 million; an increase of $0.8 million or 2.9%, compared to $29.5 million for the quarter ended March 31, 2010. - Property occupancy was 95.3% at March 31, 2011 compared with 95.8% at December 31, 2010, and 95.0% at March 31, 2010. - Average net rent per square foot from leasing activity for the quarter increased to $16.69 compared to average expiring net rent per square foot of $14.15, an increase of 18.0%. - Crombie completed leasing activity on 456,000 square feet of GLA during the quarter ended March 31, 2011, which represents approximately 41.8% of its 2011 expiring leases. - Funds from operations ("FFO") for the quarter ended March 31, 2011 was $0.26 per unit (payout ratio 86.9%)compared to $0.25 per unit (payout ratio 88.7%)for the same period in 2010. - Adjusted funds from operations ("AFFO") for the quarter ended March 31, 2011 was $0.23 per unit (payout ratio 96.7%)compared to $0.22 per unit (payout ratio 103.7%) for the same period in 2010. 

 ------------------------------------------------------------------------- Three months Three months (In millions of CAD dollars, except ended ended per unit amounts) Mar. 31, 2011 Mar. 31, 2010 ------------------------------------------------------------------------- Property revenue $56.318 $51.358 Property expenses 21.424 20.008 ------------------------------------------------------------------------- Property NOI 34.894 31.350 ------------------------------------------------------------------------- NOI margin percentage 62.0% 61.0% ------------------------------------------------------------------------- Expenses: Depreciation and amortization (7.757) (8.122) General and administrative (2.500) (2.523) ------------------------------------------------------------------------- Operating income before financing costs and income taxes 24.637 20.705 Finance costs - operations (15.411) (13.530) ------------------------------------------------------------------------- Operating income before income taxes 9.226 7.175 Income taxes - deferred 0.100 -- ------------------------------------------------------------------------- Operating income attributable to Unitholders 9.326 7.175 Finance costs - distributions to Unitholders (14.751) (13.568) ------------------------------------------------------------------------- Increase (decrease) in net assets attributable to Unitholders $(5.425) $(6.393) ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating income attributable to Unitholders, Basic and diluted $0.14 $0.12 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three months Three months ended ended (In millions of CAD dollars) Mar. 31, 2011 Mar. 31, 2010 ------------------------------------------------------------------------- Property NOI $34.894 $31.350 Non-cash tenant incentive amortization 1.346 1.026 Non-cash straight-line rent (0.828) (0.958) ------------------------------------------------------------------------- Property cash NOI 35.412 31.418 Acquisition and redevelopment property cash NOI 5.086 1.954 ------------------------------------------------------------------------- Same-asset property cash NOI $30.326 $29.464 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three months Three months ended ended (In millions of CAD dollars) Mar. 31, 2011 Mar. 31, 2010 ------------------------------------------------------------------------- Same-asset property revenue $48.974 $47.764 Same-asset property expenses 19.119 18.334 ------------------------------------------------------------------------- Same-asset property NOI $29.855 $29.430 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Same-asset NOI margin % 61.0% 61.6% ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three months Three months ended ended (In millions of CAD dollars) Mar. 31, 2011 Mar. 31, 2010 ------------------------------------------------------------------------- Acquisition and redevelopment property revenue $7.344 $3.594 Acquisition and redevelopment property expenses 2.305 1.674 ------------------------------------------------------------------------- Acquisition and redevelopment property NOI $5.039 $1.920 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Acquisition and redevelopment NOI margin % 68.6% 53.4% ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Three months Three months ended ended (In millions of CAD dollars) Mar. 31, 2011 Mar. 31, 2010 ------------------------------------------------------------------------- Same-asset finance costs - operations $11.659 $11.471 Acquisition and redevelopment finance costs - operations 2.013 0.675 Amortization of effective swaps and deferred financing charges 1.739 1.384 ------------------------------------------------------------------------- Interest expense $15.411 $13.530 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- Quarter ended Mar. 31, Variance (In millions of CAD dollars, ------------------------------------------- except per unit amounts) 2011 2010 $ % ------------------------------------------------------------------------- FFO $16.983 $15.297 $1.686 11.0% FFO Per Unit - basic $0.26 $0.25 $0.01 4.0% FFO Per Unit - diluted $0.25 $0.24 $0.01 4.2% FFO Payout ratio 86.9% 88.7% 1.8% ------------------------------------------------------------------------- AFFO $15.259 $13.087 $2.172 16.6% AFFO Per Unit - basic $0.23 $0.22 $0.01 4.5% AFFO Per Unit - diluted $0.22 $0.21 $0.01 4.8% AFFO Payout ratio 96.7% 103.7% 7.0% ------------------------------------------------------------------------- 

 ------------------------------------------------------------------------- (In millions of CAD dollars, Quarter ended Quarter ended except per unit amounts) Mar. 31, 2011 Mar. 31, 2010 ------------------------------------------------------------------------- $ Per $ Per $ Unit $ Unit ------------------------------------------------------------------------- FFO IFRS $16.983 $0.26 $15.297 $0.25 Tenant improvement amortization 1.346 0.02 1.026 0.02 Above- and below- market amortization (pre - IFRS) 0.725 0.01 0.838 0.01 Accretion of notes receivable (0.081) - (0.105) - ------------------------------------------------------------------------- FFO pre-IFRS $18.973 $0.29 $17.056 $0.28 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- (In millions of CAD dollars, Quarter ended Quarter ended except per unit amounts) Mar. 31, 2011 Mar. 31, 2010 -------------------------------------- $ Per $ Per $ Unit $ Unit ------------------------------------------------------------------------- AFFO IFRS $15.259 $0.23 $13.087 $0.22 Accretion of notes receivable (0.081) - (0.105) - ------------------------------------------------------------------------- AFFO pre-IFRS $15.178 $0.23 $12.982 $0.22 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 

 - Property NOI is property revenue less property expenses. - Property Cash NOI is Property NOI adjusted to remove non-cash straight- line rent and tenant improvement 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 deferred financing charges, 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 deferred 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 tenant improvements, less property expenses and general and administrative expenses. - FFO is calculated as Increase (decrease) in net assets attributable to Unitholders (computed in accordance with IFRS), excluding gains (or losses) from sales of depreciable real estate and extraordinary items, plus depreciation and amortization expense, deferred income taxes, finance costs - distributions to Unitholders and after adjustments for equity accounted entities and non-controlling interests. - AFFO is defined as FFO adjusted for non-cash amounts affecting revenue, less maintenance capital expenditures, maintenance tenant improvements and leasing costs, and the settlement of effective interest rate swap agreements.