Calloway Real Estate Investment Trust Releases Third Quarter Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 11/07/12 -- Calloway Real Estate Investment Trust (TSX: CWT.UN) is pleased to report strong results for the third quarter ended September 30, 2012.
Highlights during the quarter:
Subsequent to the quarter end:
Al Mawani, President & CEO of Calloway Real Estate Investment Trust (the "Trust"), said, "Our portfolio of 120 mostly Walmart anchored retail centres continues to deliver reliable performance and steady growth. As of September 30, 2012, Calloway completed approximately 760,000 square feet of renewals, achieving an average uplift of approximately 7% with almost no inducement payments. Demand for new stores from existing tenants and new tenants required the addition of about 56,000 square feet of new space during the quarter and 275,000 square feet during the nine month period - equivalent to acquiring a new shopping centre at a 7.7% yield."
The following table summarizes the Trust's portfolio information:
Developments completed during the quarter are as follows:
During the quarter, the Trust issued $150.0 million in unsecured debentures with an eight-year term and 4.05% interest rate. The funds were used for the acquisition of investment properties and repayment of maturing debt. The Trust also obtained $119.0 million in new mortgages with an average term of 10.0 years and weighted average interest rate of 3.65%.
In addition, the Trust completed the acquisitions of two income properties totalling 400,358 square feet for $102.7 million, which consisted of 152,633 square feet in Dartmouth, Nova Scotia for a purchase price of $26.5 million and 247,725 square feet in Duncan, British Columbia for a purchase price of $76.2 million.
The Trust maintained its debt to gross book value at 49.6% at September 30, 2012, which is below the Trust's target range. The Trust also maintained an interest coverage ratio of 2.3x which is one measure of leverage used by credit rating agencies. In addition, properties with an aggregate appraised value of $962.3 million are unencumbered or debt-free. This will provide flexibility to the Trust to address its committed obligations and to grow its portfolio.
The following table summarizes the Trust's key financial highlights:
Net income for the quarter was $121.5 million compared to $105.3 million in the same quarter 2011. Excluding the impact of fair value adjustments, loss on dispositions, and income tax provisions, net income increased by $3.8 million in the current quarter compared to the same period last year mainly due to an increase in net operating income of $4.8 million offset by an increase in interest expense of $1.4 million.
The high occupancy level of 99.0%, as well as the Trust's acquisition and development program, generated rental revenue of $133.0 million during the quarter. NOI of $89.9 million increased by 5.6% over the previous year including a 1.2% increase on a same properties basis.
Subsequent to quarter end, the Trust announced an agreement with SmartCentres to jointly develop up to 6 million square feet in the Vaughan Metropolitan Centre ("VMC"). Al Mawani, President & CEO of the Trust, said, "The newly formed 50:50 joint venture with SmartCentres to develop VMC will increase Calloway's growth pipeline to 7 million square feet of mixed use development opportunities. The Vaughan subway station together with the new regional bus terminal will connect the 905 to downtown Toronto and downtown Toronto to the 905. Also, the close proximity to the major roads and highway infrastructure, namely Highways 400, 407 and 7, makes our property a uniquely attractive location for corporate offices, retail and new residential development."
In addition, the government tabled proposed amendments to SIFT legislation that introduces the previously announced amendments. Once substantively enacted, the Trust will comply with the REIT Exemption effective January 1, 2011 and provisions for current ($34.1 million) and deferred ($625.1 million) income taxes totalling $659.2 million will be reversed. The Trust has not been required to pay any current tax during the intervening period.
The non-IFRS measures used in this Press Release, including AFFO, FFO, NOI, debt to gross book value, payout ratio and interest coverage ratio do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and are therefore unlikely to be comparable to similar measures presented by other issuers. These non-IFRS measures are more fully defined and discussed in the management discussion and analysis of the Trust for the three and nine months ended September 30, 2012, available on SEDAR website at .
Full reports of the financial results of the Trust for the year ended December 31, 2011 are outlined in the audited financial statements and the related management discussion and analysis of the Trust, available on the SEDAR website at . In addition, supplemental information is available on the Trust's website at .
The Trust will hold a conference call on Thursday November 8, 2012 at 10:00 a.m. (ET). Participating in the call will be members of the Trust's senior management.
Investors are invited to access the call by dialing 1-877-974-0446. You will be required to identify yourself and the organization on whose behalf you are participating. A recording of this call will be made available Thursday November 8, 2012 beginning at 11:00 a.m. (ET) through to 11:59 p.m. (ET) on Thursday November 15, 2012. To access the recording, please call 1-877-289-8525 and use the reservation number 4568902#.
Certain statements in this Press Release are "forward-looking statements" that reflect management's expectations regarding the Trust's future growth, results of operations, performance and business prospects and opportunities as outlined under the headings "Business Overview and Strategic Direction" and "Outlook". More specifically, certain statements contained in this Press Release, including statements related to the Trust's maintenance of productive capacity, estimated future development plans and costs, view of term mortgage renewals including rates and upfinancing amounts, timing of future payments of obligations, intentions to secure additional financing and potential financing sources, and vacancy and leasing assumptions, and statements that contain words such as "could", "should", "can", "anticipate", "expect", "believe", "will", "may" and similar expressions and statements relating to matters that are not historical facts, constitute "forward-looking statements". These forward-looking statements are presented for the purpose of assisting the Trust's Unitholders and financial analysts in understanding the Trust's operating environment, and may not be appropriate for other purposes. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. However, such forward-looking statements involve significant risks and uncertainties, including those discussed under the heading "Risks and Uncertainties" and elsewhere in the Trust's Management's Discussion & Analysis for the year ended December 31, 2011 and under the heading "Risk Factors" in its Annual Information Form for the year ended December 31, 2011. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Although the forward-looking statements contained in this Press Release are based on what management believes to be reasonable assumptions, the Trust cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. These forward-looking statements are made as at the date of this Press Release and the Trust assumes no obligation to update or revise them to reflect new events or circumstances unless otherwise required by applicable securities legislation.
The Toronto Stock Exchange neither approves nor disapproves of the contents of this Press Release.
Contacts:
Calloway Real Estate Investment Trust
Al Mawani
President and Chief Executive Officer
(905) 326-6400 ext. 7649
Calloway Real Estate Investment Trust
Bart Munn
Chief Financial Officer
(905) 326-6400 ext. 7631
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Datum: 07.11.2012 - 16:33 Uhr
Sprache: Deutsch
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