Smart Real Estate Investment Trust Releases Second Quarter Results for 2016
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 08/04/16 -- Smart Real Estate Investment Trust ("SmartREIT" or "the Trust") (TSX: SRU.UN) is pleased to report positive results for the second quarter ended June 30, 2016.
Highlights for the quarter ended June 30, 2016:
Subsequent to quarter end:
Huw Thomas, CEO of SmartREIT said, "We are very pleased with the level of final settlement we reached on the two properties formerly leased to Target Canada. The amount received gives us multiple years flexibility in releasing space to new vibrant tenants at both locations and our core shopping centre portfolio continues to perform well despite a very competitive market, providing the Trust with a steady cash flow stream. Looking to the future, the suite of growth initiatives we have created continues to build momentum, including the VMC and the Premium Outlet portfolio as well as our various mixed use and residential opportunities," added Thomas.
The following table summarizes SmartREIT''s portfolio information:
Developments completed during the quarter are as follows:
The following table summarizes SmartREIT''s key financial highlights for the three months ended June 30 (including the Trust''s share of investment in associates):
Rentals from investment properties for the three months ended June 30, 2016, totalled $187.3 million, a $26.6 million or 16.6% increase over the three months ended June 30, 2015. Net base rent increased by $10.7 million or 10.1%, primarily due to rent increases from new and renewing tenants, acquisitions including the Transaction that closed on May 28, 2015, Earnouts and completed developments that occurred during 2015 and 2016. Property operating costs recovered increased by $4.5 million or 8.7% due to the related increases in recoverable costs with the growth in the portfolio.
The Trust recovered 97.4% of total recoverable expenses during the three months ended June 30, 2016, compared to 98.5% in the same quarter last year. Non-recovery of most of the remaining costs results from fixed recovery rates for some tenants and restrictions contained in certain anchor tenant leases in addition to adjustments made in 2015 for prior years.
In comparison to the same quarter in 2015, NOI increased by $20.9 million or 19.7% in 2016, primarily as a result of: a) the growth of the portfolio mainly due to the Transaction that closed on May 28, 2015, resulting in an increase to NOI of $9.3 million, and b) the increase to miscellaneous revenue, which was primarily due to $9.7 million of net settlement proceeds associated with the Target lease terminations.
For the three months ended June 30, 2016, FFO excluding adjustments increased by $19.5 million or 26.4% to $93.7 million and by 15.4% to $0.60 on a per Unit basis compared to the same quarter of 2015. The increase in FFO was primarily due to a $20.9 million increase in NOI as discussed above.
The non-IFRS measures used in this Press Release, including AFFO, FFO, NOI and payout 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'' (MD&A) of the Trust for the three and six months ended June 30, 2016, available on SEDAR at .
Full reports of the financial results of the Trust for the three and six months ended June 30, 2016 are outlined in the unaudited interim condensed consolidated financial statements and the related MD&A of the Trust, which are available on SEDAR at . In addition, supplemental information is available on the Trust''s website at .
SmartREIT will hold a conference call on Friday, August 5, 2016 at 9:00 a.m. (ET). Participating on the call will be members of SmartREIT''s senior management.
Investors are invited to access the call by dialing 1-866-530-1553. 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 Friday, August 5, 2016 beginning at 12:00 p.m. (ET) through to 12:00 p.m. (ET) on Friday, August 12, 2016. To access the recording, please call 1-888-203-1112 and enter the Replay Passcode 9024057#.
About SmartREIT
SmartREIT is one of Canada''s largest real estate investment trusts with total assets in excess of $8.6 billion. It owns and manages in excess of 31 million square feet in value-oriented, principally Walmart-anchored retail centres, having the strongest national and regional retailers as well as strong neighbourhood merchants. In addition, SmartREIT is a joint-venture partner in the Toronto and Montreal Premium Outlets with Simon Property Group. SmartREIT''s core vision is to provide a value-oriented shopping experience in all forms to Canadian consumers and over time create high quality mixed use developments in urban settings.
With SmartREIT''s 2015 acquisition of SmartCentres, SmartREIT has transformed into a fully integrated real estate provider. SmartREIT and SmartCentres have had a long and successful alliance, helping to provide Canadians with value-focused retail shopping centres across the country. Now, our alliance has grown even stronger, the result is a fully integrated real estate provider with expertise in planning, development, leasing, operations, and construction - all under one roof. Our name is a reflection of our combined capabilities: SmartREIT. For more information on SmartREIT, visit .
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 three months ended June 30, 2016 and under the heading "Risk Factors" in its Annual Information Form for the year ended December 31, 2015. 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:
Smart Real Estate Investment Trust
Huw Thomas
Chief Executive Officer
(905) 326-6400 ext. 7649
Smart Real Estate Investment Trust
Peter Sweeney
Chief Financial Officer
(905) 326-6400 ext. 7865
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Datum: 04.08.2016 - 16:30 Uhr
Sprache: Deutsch
News-ID 1450996
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