Dream Office REIT Reports Second Quarter Results, Executes on the Strategic Plan and Updates Values to Reflect Continuing Weakness in the Alberta Office Market
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 08/10/16 -- DREAM OFFICE REIT (TSX: D.UN) or (the "Trust" or "we") today announced its financial results for the three and six months ended June 30, 2016 and provided an update to its three-year strategic plan (the "Strategic Plan"). Management will host a conference call to discuss the results on August 11, 2016 at 8:00 a.m. (ET).
In February, we announced that we were looking at Dream Office REIT with a view to maximizing net asset value. We created three segments of our assets: Core, Private Markets, and Value Add. Our Core Assets are performing well. Our Private Market Assets are performing in line with expectations and the pace of our disposition program is ahead of plan. Our Value Add Assets, which are mainly in Alberta, continue to face challenging leasing conditions. Based on our leasing experiences and external market data, we decided to significantly write-down our Alberta assets in the second quarter of 2016 to reflect a slower and more prolonged recovery for the Alberta office market.
Since July of 2014, the oil and gas industry has realized significant financial deterioration. We previously recognized that our assets in Alberta relied on a recovery in market fundamentals in order to improve their leasing profile and/or liquidity in the private markets. However, as at June 30, 2016, economic conditions in Alberta have remained soft and independent industry data and our recent experience indicate that the recovery for demand in office space and rental rates may be delayed. We now expect that the economic uncertainty and weakness in the Alberta office sector may be prolonged. Based on this information, the Trust reassessed all key assumptions used in valuing its Alberta portfolio including market rents, discount rates, terminal capitalization rates, leasing costs and vacancy reserves. As a result, the Trust has recorded a fair value loss of $675.3 million and $748.4 million respectively, for the three and six months ended June 30, 2016.
Until more visibility can be obtained on economic and related office market fundamentals, the Trust anticipates challenges for the Alberta portfolio and will continue to strategically manage those assets to identify, and where possible, mitigate risks to the Trust.
UPDATE ON STRATEGIC PLAN
Core Assets
Private Market Assets
OPERATIONAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
PORTFOLIO ACTIVITY
CAPITAL HIGHLIGHTS
CALL
Management will host a conference call to discuss the results tomorrow, August 11, 2016 at 8:00 a.m. (ET). To access the conference call, please dial 1-888-465-5079 in Canada and the United States or 416-416-4169 elsewhere and use passcode 9835 735#. To access the conference call via webcast, please go to Dream Office REIT''s website at and click on the link for News & Events, then click on Calendar of Events. A taped replay of the conference call and the webcast will be archived for 90 days.
OTHER INFORMATION
Information appearing in this news release is a select summary of results. The condensed consolidated financial statements and management''s discussion and analysis of the Trust are available at and on .
Dream Office REIT is an unincorporated, open-ended real estate investment trust. Dream Office REIT is focused on owning, acquiring, leasing and managing well-located, high-quality central business district and suburban office properties. Its portfolio currently comprises approximately 20.9 million square feet of gross leasable area in major urban centres across Canada. Dream Office REIT''s portfolio is well diversified by geographic location and tenant mix. For more information, please visit our website at .
FOOTNOTES
Non-GAAP Measures
The Trust''s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). In this press release, as a complement to results provided in accordance with IFRS, the Trust discloses and discusses certain non-GAAP financial measures, FFO, net asset value, comparative properties Net Operating Income ("NOI"), NOI, interest coverage ratio, net debt-to-adjusted EBITDFV, net debt-to-gross book value, and net secured debt-to-gross book value as well as other measures discussed elsewhere in this release. These non-GAAP measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. The Trust has presented such non-GAAP measures as Management believes they are relevant measures of the Trust''s underlying operating performance and debt management. Non-GAAP measures should not be considered as alternatives to net income, cash generated from (utilized in) operating activities or comparable metrics determined in accordance with IFRS as indicators of the Trust''s performance, liquidity, cash flow, and profitability. For a full description of these measures and, where applicable, a reconciliation to the most directly comparable measure calculated in accordance with IFRS, please refer to the "Non-GAAP Measures and Other Disclosures" in Dream Office REIT''s Management''s Discussion and Analysis for the three and six months ended June 30, 2016.
Forward looking information
This press release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dream Office REIT''s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and currency rate functions. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. Dream Office REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise. Additional information about these assumptions and risks and uncertainties is contained in Dream Office REIT''s filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dream Office REIT''s website at .
Contacts:
P. Jane Gavan
Chief Executive Officer
(416) 365-6572
Rajeev Siwanathan
Chief Financial Officer
(416) 365-8959
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Datum: 10.08.2016 - 15:08 Uhr
Sprache: Deutsch
News-ID 1451939
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