RioCan Real Estate Investment Trust Announces Record Operating Funds from Operations of $1.68 Per Unit in 2014
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 02/13/15 -- RioCan Real Estate Investment Trust (TSX: REI.UN) -
RioCan''s HIGHLIGHTS for the year ended December 31, 2014 were:
RioCan Real Estate Investment Trust ("RioCan") today announced its financial results for the year ended December 31, 2014.
"Our 2014 results once again demonstrate the strength and stability of RioCan. In the past year, RioCan has generated more Funds From Operations than any year in its history. RioCan''s growth is provided from multiple facets, including acquisitions, the one million square feet of development that was transferred into the income property portfolio during the year, and the more than four million square feet of renewal leasing which contributed to the solid same store growth of 2% in Canada and 3% in the U.S." said Edward Sonshine, Chief Executive Officer of RioCan. "The current year is shaping up as one that will not be without its challenges. However, the strength of the Trust''s management team, the quality of its portfolio, and the opportunities that are generated as a result of our strategic relationships will provide the foundation for continued growth again in 2015."
Financial Highlights
All figures in Canadian dollars unless otherwise noted. RioCan''s results are prepared in accordance with International Financial Reporting Standards ("IFRS"). Consistent with RioCan''s management framework, management uses certain financial measures to assess RioCan''s financial performance, which are not generally accepted accounting principles (GAAP) under IFRS. For a full definition of these measures, please refer to the "Use of Non-GAAP Measures" in RioCan''s fourth quarter 2014 Management Discussion and Analysis.
Operating FFO at RioCan''s interest for the year ended December 31, 2014 was $517 million or $1.68 per Unit, compared to $492 million or $1.63 per Unit for the same period in 2013, representing an increase of $25 million or 5.1%. On a per Unit basis, Operating FFO increased by $0.05 per Unit or 3.1%.
The $25 million increase in Operating FFO at RioCan''s interest for the year ended December 31, 2014 as compared to the same period in 2013 is primarily due to the following:
Highlights
Target Canada
On January 15, 2015, Target Corporation (Target) announced plans to discontinue its Canadian operations through its indirect wholly-owned subsidiary, Target Canada, and that it was utilizing the Companies'' Creditors Arrangement Act (Canada) ("CCAA") to wind down its operations. As at December 31, 2014, RioCan has 26 locations under lease with Target Canada representing approximately 1.9% of RioCan''s total annualized rental revenue with an average remaining lease term of approximately 12.7 years. All but one of these leases are guaranteed through an indemnity arrangement with Target, generally for the lesser of (i) the remaining term of each lease and (ii) ten years. The one lease that is not covered by the Target indemnity is guaranteed by Walmart Canada.
Portfolio Activity and Acquisition Pipeline
During the fourth quarter, RioCan completed acquisitions of interests in three income properties aggregating to $62 million representing RioCan''s share of the purchase price with a weighted average capitalization rate of 5.7%.
Acquisitions Completed in the Fourth Quarter
Canada
Acquisitions Completed Subsequent to the Year End
Acquisitions Under Contract
RioCan does not have any income property acquisitions under firm or conditional contract.
Pipeline Acquisitions
RioCan is currently in negotiations, including with respect to potential joint venture arrangements, regarding various income property acquisitions in Canada that, if completed, would represent approximately $445 million of additional acquisitions at RioCan''s interest. These transactions are in various stages of negotiations and while efforts will be made to complete these negotiations, no assurance can be given with respect to the completion of the arrangements or acquisitions.
Property Dispositions
During the fourth quarter RioCan did not complete any property dispositions. Subsequent to December 31, 2014, RioCan completed the dispositions of five income properties in Canada totalling $120 million, representing a weighted average capitalization rate of 6.8%. The Trust''s mortgage obligation related to these properties was approximately $21 million.
Property Dispositions Under Contract and Being Marketed
Income property dispositions
RioCan no longer has any income property dispositions under conditional contracts, but is in the process of marketing for sale an income property with a fair value as at December 31, 2014 calculated in accordance with IFRS of approximately $11 million, at RioCan''s interest. This income property is free and clear of financing. RioCan is under no obligation to proceed with the proposed disposition which, if completed, will be done to facilitate its objective of paring its portfolio and focusing on major markets.
RioCan is also currently in negotiations, including with respect to potential joint venture arrangements, regarding various income property dispositions in Canada that, if completed, would represent dispositions of approximately $297 million at RioCan''s interest. These transactions are in negotiations and while efforts will be made to complete the negotiations, no assurance can be given with respect to the completion of these dispositions.
Land dispositions
RioCan has dispositions of land parcels under conditional contracts where conditions have not yet been waived for approximately $18 million, at RioCan''s interest. These land parcels are free and clear of financing.
RioCan is also in the process of marketing for sale land parcels with an aggregate fair value as at December 31, 2014 calculated in accordance with IFRS of approximately $41 million, at RioCan''s interest. These land parcels are free and clear of financing. RioCan is under no obligation to proceed with the proposed dispositions which, if completed, will be done to facilitate its objective of paring its portfolio and focusing on major markets.
Development Portfolio
As at December 31, 2014, RioCan had ownership interests in 15 development projects that will, upon completion, comprise about 7.0 million square feet (3.9 million square feet at RioCan''s interest). In addition to its development projects, RioCan continued its urban intensification activities, primarily in the Toronto, Ontario and Calgary, Alberta markets.
During the fourth quarter, RioCan transferred from properties under development to income producing properties $33 million in costs pertaining to 6 thousand square feet of completed greenfield development or expansion and redevelopment projects. For the year ended December 31, 2014, RioCan transferred $363 million in costs pertaining to one million square feet.
Residential Development
RioCan is committed to ensuring that the individual properties in its portfolio are utilized to their highest and best use. While there are numerous ways to utilize its existing properties beyond their current use of conventional retail centres, RioCan has focused on mixed use projects containing predominantly multi-residential rental buildings. RioCan has identified 50 properties that it deems to be strong intensification opportunities. These are in the six major urban markets and are typically located in the vicinity of substantive transit infrastructure. RioCan''s objective is to develop approximately 19,000 apartment units over the course of the next ten years. Given the early stage of the evolution of this strategy, there can be no assurance that any of these developments will be undertaken, and if they are, on what terms.
There are numerous attributes that attracted RioCan to the multi-unit residential sector. The addition of a residential component will enhance the value of the underlying retail element of the property. It is a sector that allows a steady and continuous income stream with a growth profile that will serve as a hedge against inflation. The residential rental sector serves as a healthy diversification to RioCan''s retail portfolio. Given the extent of this initiative, RioCan will possess a scale that will result in numerous efficiencies going forward. RioCan owns the underlying land, often at irreplaceable locations, thus giving it the unique opportunity to create a tremendous amount of value. Finally, residential rental will typically attract favourable financing terms based on the availability of CMHC insurance.
RioCan has established a team to carry forward the residential rental initiative, drawing from its existing areas of expertise. The team is comprised of existing RioCan executives as well as third-party consultants. As the initiative continues to grow, additional resources will be added to the platform to facilitate such growth.
To date, RioCan has filed applications for rezoning eight projects which, upon completion, should comprise a total of 5.8 million square feet, of which 2.7 million square feet will be residential rental units held for long-term rental income, 1.0 million square feet will be condominiums for sale and 2.1 million square feet will be incremental commercial gross leasable area. This would permit RioCan to have an interest in approximately 3,369 residential units. The majority of these properties are located directly on, or in close proximity, to major transit lines such as the existing Toronto Transit Commissions'' subway lines or The Crosstown Eglinton LRT line, which is currently under construction. The ability to intensify its existing retail properties into transit-oriented mixed use developments is indicative of both the locational attributes of RioCan''s land holdings and the strength of its management platform. The figures in the chart below and those noted herein are at 100% interest and as at February 12, 2015. In some cases, RioCan has partners and, therefore, does not hold a 100% interest.
RioCan intends to file applications to rezone 17 additional properties by the end of 2015. These proposed redevelopments are expected to produce approximately 8.6 million square feet, of which 6.2 million square feet is expected to be residential. This would permit RioCan to have an interest in an additional 8,713 residential units. As these projects are in preliminary stages, there can be no assurance that any of these developments will be undertaken and if so, on what terms.
Development Acquisitions Completed During the Fourth Quarter
Development Acquisitions Completed Subsequent to the Year-end
On February 6, 2015, RioCan completed the acquisition of an 81.25% interest in a 5.8 acre land parcel at RioCan Centre Vaughan, located in Vaughan, Ontario, at a purchase price of $4 million ($3 million at RioCan''s interest). Trinity acquired the remaining 18.75% interest and the property was acquired free and clear of financing. The land parcel acquired is adjacent to RioCan''s existing shopping centre at RioCan Centre Vaughan.
Development Property Acquisitions Under Contract
RioCan does not have any development property acquisitions under contract.
Liquidity and Capital
Financing Highlights for the Fourth Quarter
Unencumbered Assets
As at December 31, 2014, RioCan''s unencumbered asset pool was comprised of 100 assets with an aggregate fair value of $2.8 billion.
Credit Facilities
At December 31, 2014, RioCan has five revolving lines of credit in place having an aggregate capacity of $718 million with $565 million available to be drawn.
Term Financing
Canada
U.S.
Trust Units
During the fourth quarter, RioCan completed the offering of 4.8 million Trust units at $26.25 per Unit for gross proceeds of $126 million.
RioCan''s Consolidated Financial Statements, Management''s Discussion and Analysis for the three months and year ended December 31, 2014 is available on RioCan''s website at .
Conference Call and Webcast
Interested parties are invited to participate in a conference call with management on Friday, February 13, 2015 at 10:00 a.m. eastern time. You will be required to identify yourself and the organization on whose behalf you are participating.
In order to participate, please dial 416-340-2216 or 1-800-355-4959. If you cannot participate in the live mode, a replay will be available until March 13, 2015. To access the replay, please dial 905-694-9451 or 1-800-408-3053 and enter passcode 5177814#.
Scheduled speakers include Edward Sonshine, O.Ont. Q.C., Chief Executive Officer, and Rags Davloor, President and Chief Operating Officer and Interim Chief Financial Officer. Management''s presentation will be followed by a question and answer period. To ask a question, press "star 1" on a touch-tone phone. The conference call operator will be notified of all requests in the order in which they are made, and will introduce each questioner.
Alternatively, to access the simultaneous webcast, go to the following link on RioCan''s website and click on the link for the webcast. The webcast will be archived 24 hours after the end of the conference call and can be accessed for 120 days.
About RioCan
RioCan is Canada''s largest real estate investment trust with a total capitalization of approximately $15.1 billion as at December 31, 2014. It owns and manages Canada''s largest portfolio of shopping centres with ownership interests in a portfolio of 340 retail properties containing more than 79 million square feet, including 48 grocery anchored and new format retail centres containing 13 million square feet in the United States as at December 31, 2014. RioCan''s portfolio also includes 15 properties under development in Canada. For further information, please refer to RioCan''s website at .
Non-GAAP Measures
RioCan''s consolidated financial statements are prepared in accordance with IFRS. Consistent with RioCan''s management framework, management uses certain financial measures to assess RioCan''s financial performance, which are not generally accepted accounting principles (GAAP) under IFRS. The following measures, RioCan''s
Interest, Funds From Operations ("FFO"), Operating Funds From Operations ("Operating FFO"), Adjusted Funds From Operations ("AFFO"), and Adjusted Earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), Operating EBITDA, Net Debt to Operating EBITDA, Net Operating Income ("NOI"), Same Store NOI, Same Property NOI, and Total Enterprise Value as well as other measures discussed elsewhere in this release, do not have a standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting issuers. RioCan uses these measures to better assess the Trust''s underlying performance and provides these additional measures so that investors may do the same. Non GAAP measures should not be considered as alternatives to net earnings or comparable metrics determined in accordance with IFRS as indicators of RioCan''s performance, liquidity, cash flow, and profitability. For a full definition of these measures, please refer to the "Use of Non-GAAP Measures" in RioCan''s fourth quarter 2014 Management Discussion and Analysis.
Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements made in this News Release (including the sections entitled "Highlights for the year ended December 31, 2014", "Financial Highlights", "Leasing and Operational Highlights", "Portfolio Activity and Acquisition Pipeline", "Liquidity and Capital", and "Development Portfolio"), and other statements concerning RioCan''s objectives, its strategies to achieve those objectives, as well as statements with respect to management''s beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan", "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management''s current beliefs and are based on information currently available to management. All forward-looking statements in this News Release are qualified by these cautionary statements.
These forward-looking statements are not guarantees of future events or performance and, by their nature, are based on RioCan''s current estimates and assumptions, which are subject to risks and uncertainties, including those described under "Risks and Uncertainties" in RioCan''s Management''s Discussion and Analysis for the year ended December 31, 2014, which could cause actual events or results to differ materially from the forward-looking statements contained in this News Release. Those risks and uncertainties include, but are not limited to, those related to: liquidity and general market conditions; tenant concentrations and related risk of bankruptcy, occupancy levels and defaults; lease renewals and rental increases; retailer competition; access to debt and equity capital; interest rate and financing risk; joint ventures and partnerships; the relative illiquidity of real property; unexpected costs or liabilities related to acquisitions and dispositions; development risk associated with construction commitments, project costs and related approvals; environmental matters; litigation; reliance on key personnel; management information systems; unitholder liability; income and indirect taxes; U.S. investments, property management and foreign currency risk; and credit ratings. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a stable retail environment; relatively low and stable interest costs; a continuing trend toward land use intensification in high growth markets; access to equity and debt capital markets to fund, at acceptable costs, the future growth program to enable the Trust to refinance debts as they mature; and the availability of purchase opportunities for growth in Canada and the U.S.. Although the forward- looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Certain statements included in this News Release may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this News Release.
The Income Tax Act (Canada) contains provisions which potentially impose tax on publicly traded trusts (the "SIFT Provisions"). However, the SIFT Provisions do not impose tax on a publicly traded trust which qualifies as a real estate investment trust ("REIT"). RioCan currently qualifies as a REIT and intends to continue to qualify for future years. Should this not occur, certain statements contained in this News Release may need to be modified.
Except as required by applicable law, RioCan under takes no obligation to publicly update or revise any forward- looking statement, whether as a result of new information, future events or otherwise.
Contacts:
RioCan Real Estate Investment Trust
Rags Davloor
President, COO & Interim CFO
(416) 642-3554
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 13.02.2015 - 06:30 Uhr
Sprache: Deutsch
News-ID 1337220
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
TORONTO, ONTARIO
Phone:
Kategorie:
Personal Finance
Anmerkungen:
Diese Pressemitteilung wurde bisher 220 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"RioCan Real Estate Investment Trust Announces Record Operating Funds from Operations of $1.68 Per Unit in 2014
"
steht unter der journalistisch-redaktionellen Verantwortung von
RioCan Real Estate Investment Trust (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
