CALGARY, May 22, 2015

Transcription

CALGARY, May 22, 2015
EDGEFRONT REAL ESTATE INVESTMENT TRUST ANNOUNCES CONTINUED STRONG
RESULTS AND AN INCREASE TO THE BONUS UNDER THE DRIP PROGRAM
CALGARY, May 22, 2015 /CNW/- Edgefront Real Estate Investment Trust (the "REIT") (TSXV: ED.UN)
announced today its results for the three months ended March 31, 2015, the June 2015 Distribution and
an increase to the bonus under the DRIP plan.
First Quarter Highlights




REIT’s rental revenues derived from stable, industry leading tenants with strong earnings
Conservative AFFO payout Ratio of 77.8 and debt to total assets of 48.2%
AFFO per unit of $0.051
Distributions per unit $0.04 for the fourth quarter
Distribution Reinvestment Program
The REIT’s current distribution per unit continues to be $0.01333 per month. The REIT’s distribution
reinvestment program (“DRIP”) entitles eligible unitholders to elect to receive all, or a portion of the
cash distributions of the REIT reinvested in units of the REIT. Commencing with the June distribution,
eligible unitholders who so elect will receive a bonus distribution of units equal to 4% of each
distribution that was reinvested by them under the DRIP.
Summary of Results
Included in the table that follows and elsewhere in this news release are non-IFRS measures that
should not be construed as an alternative to net income / loss, cash from operating activities or other
measures of financial performance calculated in accordance with IFRS, and may not be comparable to
similar measures as reported by other issuers. Readers are encouraged to refer to the REIT’s MD&A
for further discussion of the non-IFRS measures presented.
Three months ended
December 31,
2014
2013
Financial Highlights
Funds from operations (FFO)
Adjusted funds from operations (AFFO)
Distributions declared (1)
Weighted average units outstanding – basic (2)
Weighted average units outstanding – diluted (2)
)(,3)
Distributions per unit (1) (2)
FFO per unit (2)
Basic
Diluted
AFFO per unit (2)
Basic
Diluted
AFFO payout ratio (1)
Debt to total assets ratio
(1)
(2)
Three months ended
March 31,
2015
2014
$
1,264,179
1,496,354
1,151,876
28,756,188
28,756,188
$
(231,435)
(231,252)
2,750,000
2,750,000
$
1,258,600
1,487,544
1,157,839
28,910,053
28,910,053
$
637,694
785,640
673,083
17,134,655
17,134,655
0.040
N/A
0.040
0.039
0.044
0.044
0.084
0.084
0.044
0.044
0.037
0.037
0.052
0.052
77.0%
48.6%
0.084
0.084
N/A
38.4%
0.051
0.051
77.8%
48.2%
0.046
0.046
85.7%
46.8%
Includes distributions payable to holders of Class B LP Units which are accounted for as interest expense in the audited consolidated financial
statements.
Weighted average number of units includes the Class B LP Units.
Three months ended
December 31,
Financial Results
Rental revenue
Net rental income
Net income (loss)
Three months ended
March 31,
2014
2013
2015
2014
$
2,717,232
2,204,509
1,278,385
$
226,698
126,677
(231,435)
$
2,714,325
2,203,093
1,270,604
$
1,528,471
1,264,439
(288,921)
Net income for the three month ended March 31, 2015 and March 31, 2014 was reduced by a fair value adjustment of
investment properties of $nil and $915,346, respectively. Excluding this item, net income for the three months ended
March 31, 2014 would have been $625,425.
“We are pleased with the continued strength of our platform of properties” stated Kelly Hanczyk CEO.
“The REIT’s properties are long-term leased, mission critical real estate which provides stability for our
investors. We are seeing a robust pipeline of acquisition opportunities and are looking forward to
announcing significant growth for 2015 in the near term.”
Revenues and Results from Operations In Line with Expectations
Rental revenue increased to $2,714,375 in the quarter as compared to $1,528,471 in the same quarter
of 2014. Net rental income grew to $2,203,093 in the quarter as compared to $1,264,439 in same
quarter of 2014.
The REIT generated FFO and AFFO of $1,258,600 and $1,487,544, respectively, in the quarter ended
March 31, 2015, with FFO and AFFO per unit of $0.044 and $0.051 respectively.
Distributions of $0.04 per unit were declared for the quarter. The AFFO payout ratio for the quarter was
77.8%.
Balance Sheet and Liquidity
The REIT’s debt to total assets ratio was 48.2% at March 31, 2015. The REIT intends to maintain a
debt to total assets ratio of less than 55%.
June 2015 Distributions
The REIT will make a cash distribution in the amount of $0.01333 per unit, representing $0.16 on an
annualized basis, payable July 15, 2015 to unitholders of record as of June 30, 2015.
About the REIT
Edgefront REIT is a growth oriented real estate investment trust focused on increasing unitholder value
through the acquisition, ownership and management of industrial properties located in primary and
secondary markets in North America. Edgefront REIT currently owns a portfolio of 15 properties
comprising approximately 748,000 square feet of rentable area.
The REIT has approximately 28,726,907 units issued and outstanding. Additionally, there are 360,000
Class B LP units of Edgefront Limited Partnership issued and outstanding.
FORWARD LOOKING STATEMENTS
Certain statements contained in this new release constitute forward-looking statements which reflect
the REIT’s current expectations and projections about future results. Often, but not always, forwardlooking statements can be identified by the use of words such as “plans”, “expects” or “does not
expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or
variations of such words and phrases or state that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of the REIT to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Actual results and
developments are likely to differ, and may differ materially, from those expressed or implied by the
forward-looking statements contained in this news release. Such forward-looking statements are based
on a number of assumptions that may prove to be incorrect.
While the REIT anticipates that subsequent events and developments may cause its views to change,
the REIT specifically disclaims any obligation to update these forward-looking statements except as
required by applicable law. These forward-looking statements should not be relied upon as
representing the REIT’s views as of any date subsequent to the date of this news release. There can
be no assurance that forward-looking statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements. The factors identified above are not intended
to represent a complete list of the factors that could affect the REIT.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Edgefront Real Estate Investment Trust
For further information:
Please contact Kelly C. Hanczyk, President and CEO at (403) 817-9497 or Rob Chiasson, CFO at
(403) 817-9496.