CAPREIT Reports Continued Growth and Strong Operating Performance in First Quarter of 2016
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 05/06/16 -- Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX: CAR.UN) announced today record portfolio growth and strong operating and financial results for the three months ended March 31, 2016.
Q1 2016 HIGHLIGHTS:
"Following another record year in 2015, our growth and strong operating performance continued in the first quarter of 2016," commented Thomas Schwartz, President and Chief Executive Officer. "Looking ahead, with a full year''s contribution from the significant number of acquisitions completed in 2015, and continued industry-leading organic growth, we expect 2016 will be another year of stable, consistent and sustainable growth."
PORTFOLIO OPERATING RESULTS
Operating Revenues
For the three months ended March 31, 2016, total operating revenues increased by 12.9% compared to the same period last year due primarily to the contribution from acquisitions, increased average monthly rents on stabilized properties, and continuing high stable occupancies. Ancillary revenues, such as parking, laundry and antenna income, increased 13% for the three months ended March 31, 2016 compared to the same period last year due to Management''s continued focus on maximizing the revenue potential of its property portfolio.
CAPREIT''s annualized net rental revenue run-rate, based on the average monthly rents in place and CAPREIT''s share of residential suites and sites as at March 31, 2016, increased to $557.4 million, up 13.1% from $492.7 million as of March 31, 2015 largely due to acquisitions and organic NOI growth. Net rental revenue net of dispositions for the twelve months ended March 31, 2016 was $521.0 million (2015 - $478.2 million).
Overall average monthly rents for the stabilized residential suite portfolio (properties owned prior to March 31, 2015) increased 1.7% to $1,106 at March 31, 2016 from $1,088 at March 31, 2015. Excluding Alberta, average monthly rents for the stabilized residential suite portfolio increased a solid 2.2% to $987 at March 31, 2016 from $966 at March 31, 2015. This was due primarily to a combination of ongoing successful sales and marketing strategies, above guideline rent increases, and continued strength in the residential rental sector in the majority of CAPREIT''s regional markets. Occupancy for the stabilized residential suite portfolio remained strong at 98.2% as at March 31, 2016 compared to 98.5% for the same period last year. While occupancies remained stable for the total portfolio, average monthly rents declined marginally due to acquisitions completed late in 2015 in lower-rent markets.
For suite turnovers in the residential suite portfolio (excluding co-ownerships and the Alberta and Saskatchewan regions) during the three months ended March 31, 2016, average monthly rents increased strongly by approximately $34 or 3.2% compared to an increase of $17 or 1.6% for the same period last year, primarily due to the strong rental markets of British Columbia and Ontario.
Overall, suite turnovers in the residential suite portfolio (excluding co-ownerships) during the three months ended March 31, 2016, resulted in average monthly rents decreasing by approximately $24 or 2.1%, compared to an increase of approximately $12 or 1.1% for the same period last year primarily due to strategically reduced rents in the Alberta and Saskatchewan rental markets to increase occupancy and higher unit turnover than in previous years, offset by the strong rental markets of British Columbia and Ontario.
The rate of growth in average monthly rents on lease renewals during the period remained stable primarily due to the increased guideline increases for 2016 (Ontario - 2.0%, British Columbia - 2.9%), which compare more favourably to the permitted guideline increases in 2015 (Ontario - 1.6%, British Columbia - 2.5%) and by above guideline increases ("AGI") applied, offset by weakness in the Alberta market. Management''s continues to believe that its well-diversified portfolio serves to mitigate weakness in any specific geographic region. Management continues to pursue applications for AGIs where it believes increases are supported by market conditions above the annual guideline to raise average monthly rents on lease renewals.
Operating Expenses
Overall operating expenses increased in the three months ended March 31, 2016, compared to the same period last year, due primarily to the increased size of the portfolio. Total operating expenses as a percentage of operating revenues remained stable at 42.1% for the three months ended March 31, 2016 compared to 42.0% in the same period last year.
Net Operating Income
Overall NOI rose by 12.8% in the first quarter of 2016 and the NOI margin remained stable at 57.9% compared to 58.0% for the same period last year.
For the three months ended March 31, 2016, operating revenues for stabilized suites and sites increased 2.1% while operating costs increased by 1.4% compared to the same period last year. As a result, stabilized NOI increased by 2.6% for the three months ended March 31, 2016.
Trust Expenses
Trust expenses increased to $11.1 million in the first quarter of 2016 from $6.5 million in the prior year''s first quarter due to costs of $5.5 million related to transactions that were not completed.
NON-IFRS FINANCIAL MEASURES
For the three months ended March 31, 2016, basic NFFO per Unit increased by 4.1% compared to the same period last year despite the approximate 15% increase in the weighted average number of Units outstanding due to the two successful equity offerings completed in March 2015 and October 2015.
LIQUIDITY AND LEVERAGE
Financial Strength
Management believes CAPREIT''s strong balance sheet and liquidity position will enable it to continue to take advantage of acquisition and property capital investment opportunities over the long term.
CAPREIT is achieving its financing goals as demonstrated by the following key indicators:
Property Capital Investments
During the three months ended March 31, 2016, CAPREIT made property capital investments (excluding disposed properties, head office assets, tenant improvements and signage) of $30.5 million as compared to $24.9 million in the same period last year. For the full 2016 year, CAPREIT expects to complete property capital investments of approximately $170 million to $180 million, including approximately $92 million targeted at acquisitions completed since January 1, 2011, and approximately $21 million in high-efficiency boilers and other energy-saving initiatives.
Property capital investments include suite improvements, common areas and equipment, which generally tend to increase NOI more quickly. CAPREIT also continues to invest in energy-saving initiatives, including boilers, energy-efficient lighting systems, and water-saving programs, which permit CAPREIT to mitigate potentially higher increases in utility and R&M costs and significantly improve overall portfolio NOI.
Subsequent Events
On April 12, 2016, CAPREIT completed the acquisition of a property located in Charlottetown, Prince Edward Island totaling 12 residential suites. The purchase price (excluding transaction costs) of approximately $1.2 million was funded with cash from CAPREIT''s Acquisition and Operating credit facility.
On April 26, 2016, CAPREIT completed the acquisition of a property located in Markham, Ontario totaling 71 residential townhome suites. The purchase price (excluding transaction costs) of approximately $16.4 million was funded with cash from CAPREIT''s Acquisition and Operating credit facility.
Additional Information
More detailed information and analysis is included in CAPREIT''s unaudited condensed consolidated interim financial statements and MD&A for the three months ended March 31, 2016, which have been filed on SEDAR and can be viewed at under CAPREIT''s profile or on CAPREIT''s website on the investor relations page at or .
Conference Call
A conference call hosted by Thomas Schwartz, President and CEO and the CAPREIT Management Team, will be held Monday, May 9, 2016 at 10:00 am EST. The telephone numbers for the conference call are: Local/International: (416) 340-2216, North American Toll Free: (866) 225-0198.
A slide presentation to accompany Management''s comments during the conference call will be available one hour and a half prior to the conference call. To view the slides, access the CAPREIT website at or , click on "Investor Relations" and follow the link at the top of the page. Please log on at least 15 minutes before the call commences.
The telephone numbers to listen to the call after it is completed (Instant Replay) are local/international (905) 694-9451 or North American toll free (800) 408-3053. The Passcode for the Instant Replay is 5687860#. The Instant Replay will be available until midnight, May 16, 2016. The call and accompanying slides will also be archived on the CAPREIT website at or . For more information about CAPREIT, its business and its investment highlights, please refer to our website at or .
About CAPREIT
CAPREIT owns interests in multi-unit residential rental properties, including apartments, townhomes and manufactured home communities primarily located in and near major urban centres across Canada. As at March 31, 2016, CAPREIT had owning interests in 47,476 residential units, comprised of 41,177 residential suites and 30 manufactured home communities ("MHC") comprising 6,299 land lease sites. For more information about CAPREIT, its business and its investment highlights, please refer to our website at or and our public disclosure which can be found under our profile at .
Non-IFRS Financial Measures
CAPREIT prepares and releases unaudited quarterly and audited consolidated annual financial statements prepared in accordance with IFRS. In this and other earnings releases and investor conference calls, as a complement to results provided in accordance with IFRS, CAPREIT also discloses and discusses certain non-IFRS financial measures, including Net Rental Revenue Run-Rate, NOI, FFO, NFFO and applicable per Unit amounts and payout ratios. These non-IFRS measures are further defined and discussed in the MD&A released on May 6, 2016, which should be read in conjunction with this press release. Since Net Rental Revenue Run-Rate, NOI, FFO and NFFO are not determined by IFRS, they may not be comparable to similar measures reported by other issuers. CAPREIT has presented such non-IFRS measures as Management believes these non-IFRS measures are relevant measures of the ability of CAPREIT to earn and distribute cash returns to Unitholders and to evaluate CAPREIT''s performance. A reconciliation of Net Income and such non-IFRS measures including Adjusted Funds From Operations ("AFFO") is included in this press release. These non-IFRS measures should not be construed as alternatives to net income (loss) or cash flow from operating activities determined in accordance with IFRS as an indicator of CAPREIT''s performance.
Cautionary Statements Regarding Forward-Looking Statements
Certain statements contained, or contained in documents incorporated by reference, in this press release constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to CAPREIT''s future outlook and anticipated events or results and may include statements regarding the future financial position, business strategy, budgets, litigation, projected costs, capital investments, financial results, taxes, plans and objectives of or involving CAPREIT. Particularly, statements regarding CAPREIT''s future results, performance, achievements, prospects, costs, opportunities and financial outlook, including those relating to acquisition and capital investment strategy and the real estate industry generally, are forward-looking statements. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative thereof or other similar expressions concerning matters that are not historical facts. Forward-looking statements are based on certain factors and assumptions regarding expected growth, results of operations, performance and business prospects and opportunities. In addition, certain specific assumptions were made in preparing forward-looking information, including: that the Canadian and Irish economies will generally experience growth, however, may be adversely impacted by the global economy; that inflation will remain low; that interest rates will remain low in the medium term; that Canada Mortgage and Housing Corporation ("CMHC") mortgage insurance will continue to be available and that a sufficient number of lenders will participate in the CMHC-insured mortgage program to ensure competitive rates; that the Canadian capital markets will continue to provide CAPREIT with access to equity and/or debt at reasonable rates; that vacancy rates for CAPREIT properties will be consistent with historical norms; that rental rates will grow at levels similar to the rate of inflation on renewal; that rental rates on turnovers will remain stable; that CAPREIT will effectively manage price pressures relating to its energy usage; and, with respect to CAPREIT''s financial outlook regarding capital investments, assumptions respecting projected costs of construction and materials, availability of trades, the cost and availability of financing, CAPREIT''s investment priorities, the properties in which investments will be made, the composition of the property portfolio and the projected return on investment in respect of specific capital investments.
Although the forward-looking statements contained in this press release are based on assumptions, Management believes they are reasonable as of the date hereof, there can be no assurance actual results will be consistent with these forward-looking statements; they may prove to be incorrect. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond CAPREIT''s control, that may cause CAPREIT or the industry''s actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risks related to: reporting investment properties at fair value, real property ownership, leasehold interests, co-ownerships, investment restrictions, operating risk, energy costs and hedging, environmental matters, insurance, capital investments, indebtedness, interest rate hedging, foreign operation and currency risks, taxation, harmonization of federal goods and services tax and provincial sales tax, government regulations, controls over financial accounting, legal and regulatory concerns, the nature of units of CAPREIT ("Trust Units") and of CAPREIT''s subsidiary, CAPREIT Limited Partnership ("Exchangeable Units") (collectively, the "Units"), unitholder liability, liquidity and price fluctuation of Units, dilution, distributions, participation in CAPREIT''s distribution reinvestment plan, potential conflicts of interest, dependence on key personnel, general economic conditions, competition for residents, competition for real property investments, continued growth and risks related to acquisitions. There can be no assurance the expectations of CAPREIT''s Management will prove to be correct. These risks and uncertainties are more fully described in regulatory filings, including CAPREIT''s Annual Information Form, which can be obtained on SEDAR at , under CAPREIT''s profile, as well as under Risks and Uncertainties section of the MD&A released on May 6, 2016. The information in this press release is based on information available to Management as of May 6, 2016. Subject to applicable law, CAPREIT does not undertake any obligation to publicly update or revise any forward-looking information.
SOURCE: Canadian Apartment Properties Real Estate Investment Trust
Contacts:
CAPREIT
Mr. Michael Stein
Chairman
(416) 861-5788
CAPREIT
Mr. Thomas Schwartz
President & CEO
(416) 861-9404
CAPREIT
Mr. Scott Cryer
Chief Financial Officer
(416) 861-5771
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 06.05.2016 - 15:05 Uhr
Sprache: Deutsch
News-ID 1433314
Anzahl Zeichen: 3470
contact information:
Contact person:
Town:
TORONTO, ONTARIO
Phone:
Kategorie:
Commercial Real Estate
Typ of Press Release:
type of sending:
Date of sending:
Anmerkungen:
Diese Pressemitteilung wurde bisher 334 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"CAPREIT Reports Continued Growth and Strong Operating Performance in First Quarter of 2016
"
steht unter der journalistisch-redaktionellen Verantwortung von
Canadian Apartment Properties Real Estate Investment Trust (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
