Business & Finance
Business and Finance
Business and Finance
Thu, June 30, 2011
Wed, June 29, 2011 INVESTUS REAL ESTATE INC. DISCLOSES FINANCIAL RESULTS FOR THE QUARTER ENDED MARCH 31, 2011
QUEBEC CITY, QC, June 29, 2011 /CNW Telbec/ - Investus Real Estate Inc. (TSXV: IVT), a real estate company investing in industrial properties in primary and secondary markets, mainly in Eastern Canada, announces its unaudited interim consolidated financial results for the quarter ended March 31, 2011.
| Operating Results | |||
| Quarters ended March 31 | 2011 | 2010 | |
| Operating revenues | 455,429 | 429,106 | |
| Net operating income(1) | 354,716 | 356,993 | |
| Financial expense | 155,306 | 162,242 | |
| Administrative expenses | 57,277 | 55,278 | |
| Net income | 142,141 | 133,786 | |
| Net income per share (basic and diluted) | 0.005 | 0.005 | |
| (1) Non-IFRS financial measure. See the relevant section of the MD&A. |
Operating revenues totalled $455,429 for the three-month period ended March 31, 2011, compared with $429,106 for the corresponding period of the previous year, an increase of 6.1% attributable to the recovery of realty taxes.
First-quarter net operating income amounted to $354,716, down from $356,993 for the corresponding period of 2010.
The financial expense for the first quarter of 2011 stood at $155,306, compared with $162,242 for the corresponding period of 2010, a slight reduction of 4.3% attributable to the repayment of principal.
Administrative expenses amounted to $57,277, compared with $55,278 for the same period of fiscal 2010, an increase of 3.6%.
Net income for the first quarter of 2011 totalled $142,141 or $0.005 per share, compared with $133,786 or $0.005 per share for the corresponding period of the previous year.
Subsequent Event
On June 1, 2011, SDA, a company controlled by directors of Investus, tendered a takeover bid to acquire all the outstanding common shares of Investus for consideration of $0.20 per share. This transaction is valued at approximately $5,900,000. If it is approved by at least 66 2/3% of Investus shareholders, the transaction is expected to close no later than June 30, 2011.
Forward-Looking Statements
This press release may contain forward-looking statements with respect to Investus and its operations, strategy, financial performance and financial condition. These statements generally can be identified by the use of terms such as "may", "expect", "plan", ""anticipate", "estimate", "intend", "believe" or "continue" or the negative thereof or similar variations, as well as the use of the conditional and future tense. The actual performance and results of Investus discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some of the risk factors that could affect future results and cause actual results to differ materially from those expressed in the forward-looking statements contained herein include the impact of economic conditions, industry conditions, government legislation, environmental risks, competition from other industry players, stock market volatility and the ability to access sufficient capital from internal and external sources. A full description of these risk factors can be found in the Initial Public Offering Final Prospectus of Investus Real Estate Inc. (formerly Capital Wapiti Inc.) dated April 5, 2007 and the Filing Statement dated October 15, 2007, which are available electronically at [ www.sedar.com ] under Investus Real Estate Inc. The cautionary statements qualify all forward-looking statements attributable to Investus and the persons acting on its behalf. Unless otherwise indicated, all forward-looking statements speak only as of the date of this press release.
Additional Financial Information
The Company's interim consolidated financial statements, which are prepared for the first time in accordance with International Financial Reporting Standards (IFRS), and the Interim Management's Discussion and Analysis ("MD&A") for the first quarter ended March 31, 2011, will be filed on SEDAR at [ www.sedar.com ] and are available on the Company's website at [ www.investus.ca ].
About Investus Real Estate Inc.
Investus is a Canadian corporation that invests exclusively in industrial properties in primary and secondary markets, mainly in Eastern Canada. The Company owns four properties covering an area of slightly over 199,000 square feet and purchased for a total of $17.2 million.
