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.