Morguard Real Estate Investment Trust announces 2013 annual results - kotanow.com- Scottsbluff Area News, Sports, and Weather

Morguard Real Estate Investment Trust announces 2013 annual results

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SOURCE Morguard Real Estate Investment Trust

TSX: MRT.UN

MISSISSAUGA, ON, Feb. 26, 2014 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today is pleased to report 2013 annual operating results. These results have been prepared in accordance with International Financial Reporting Standards ("IFRS").

Highlights

Funds from Operations (FFO)

  • Funds from operations for the year ended December 31, 2013 was $100.8 million, up 14.8 million from the $86.0 million reported for the prior year. On a per unit diluted basis, funds from operations for the year 2013 was $1.55, as compared to $1.44 reported for the prior year. The increase in FFO was primarily the result of modest growth achieved in Trust's core portfolio and a significant contribution from an acquisition completed by the Trust in October 2012.
  • Funds from operations is not a term defined under IFRS and may not be comparable to similar measures used by other Trusts. A reconciliation of net income to funds from operations is included.

Net Operating Income (NOI)

  • Net operating income for the year ended December 31, 2013 was $161.3 million, up $24.3 million from the $137.0 million recorded in 2012.
  • Net operating income is an additional GAAP measure, but not a term defined under IFRS and may not be comparable to similar measures used by other Trusts. A calculation of net operating income is included.

Net Income

  • Net income for the year ended December 31, 2013 was $212.4 million, compared to $228.4 million reported in 2012. The decrease in net income was the result of lower fair value gains on real estate properties recorded in 2013, offset by strong earnings performance from the Trust's portfolio.

Operations

  • The portfolio occupancy remained stable and was 95% at December 31, 2013, 95% at September 30, 2013 and 96% at December 31, 2012.

At December 31, 2013, the Trust's total enterprise value was approximately $2.4 billion (based on the market closing price of the Trust's units on December 31, 2013 plus total debt outstanding). At December 31, 2013, the Trust had $1.3 billion of outstanding debt, equating to debt to total value ratio of 56.8%. The Trust's debt consisted of $1.2 billion of fixed-rate debt with weighted average interest rate of 4.43% and weighted average term to maturity of 5.84 years, $145.5 million of 4.85% fixed-rate convertible debentures and $5.0 million utilization of the operating line of credit. The Trust has a debt to total assets ratio of 45.7%.

NET OPERATING INCOME, FUNDS FROM OPERATIONS
This press release and accompanying financial information make reference to net operating income and funds from operations on a total and per unit basis.  Net operating income is defined as income from property operations after operating expenses have been deducted, but prior to deducting interest expense, general and administrative expenses and fair value gains (losses).  Funds from operations is defined as net income prior to extraordinary items, valuation adjustments, and certain other non-cash items, if any.

FINANCIAL STATEMENTS AND MORGUARD'S DISCUSSION AND ANALYSIS
Morguard REIT's Q4 2013 Consolidated Financial Statement and Management's Discussion and Analysis along with its 2012 Annual Report are available on Morguard REIT's website at www.morguard.com and have been filed with SEDAR at www.sedar.com

ABOUT MORGUARD REAL ESTATE INVESTMENT TRUST
Morguard REIT is a closed-end real estate investment trust, which owns a diversified portfolio of 55 retail, office and mixed-use properties in Canada with a book value of $3.0 billion and approximately 9.6 million square feet of leaseable space.

Consolidated Balance Sheet                                
                                 
(In thousands of Canadian dollars)                                
As at December 31                     2013         2012
                                   
Assets                                
Real estate properties                 $   2,869,358     $   2,592,740
Equity accounted investments                     44,857         41,249
Amounts receivable                     14,505         14,177
Other assets                     920         1,531
Cash and cash equivalents                     13,159         13,624
                  $   2,942,799     $   2,663,321
                                 
Liabilities                                
Mortgages and bonds payable                 $   1,194,682     $   956,069
Convertible debentures payable                     145,460         144,356
Accounts payable and other liabilities                     44,919         46,650
Notes payable                     -         30,610
Bank indebtedness                      5,000         54,853
                      1,390,061         1,232,538
                                 
Unitholders' Equity                     1,552,738         1,430,783
                  $   2,942,799     $   2,663,321
                             
                       
Consolidated Statements of Income and Comprehensive Income                      
                       
(In thousands of Canadian dollars)                      
For the years ended December 31           2013         2012
                       
Revenue from real estate properties       $   279,651     $   244,876
Property operating expenses           109,626         99,882
Property management fees           8,689         8,030
Net operating income           161,336         136,964
                       
Interest expense           59,672         49,750
General and administrative           4,555         5,120
Amortization expense           38         43
Other income           (9)         (52)
Income before fair value gains, gain on sale of real estate
properties and net income from equity accounted investments
          97,080         82,103
                       
Fair value gains on real estate properties           107,641         142,683
Gain on sale of real estate properties           2,058         -
Net income from equity accounted investments           5,602         3,660
Net income for the year       $   212,381     $   228,446
                       
Other comprehensive income                      
Amortization - cash flow hedge           991         972
Comprehensive income       $   213,372     $   229,418
           
                       
Reconciliation of Net Income to Funds from Operations                      
                       
(In thousands of Canadian dollars, except per-unit amounts)           2013         2012
                       
Net income for the year       $   212,381     $   228,446
                       
Add/(deduct) :                      
Fair value gains on real estate properties(1)                   (109,560)         (142,464)
Gain on sale of real estate properties           (2,058)         -
Funds from operations       $   100,763     $   85,982
                       
Interest expense on convertible debentures           7,275         5,401
Diluted FFO       $   108,038     $   91,383
                       
Funds from operations per unit:                      
    Basic           $1.59         $1.44
    Diluted(2)           $1.55         $1.44
                       
Weighted average units outstanding (in thousands)                      
    Basic           63,456         59,778
    Diluted(2)           69,554         60,811


(1) Includes fair value gains from equity accounted investments
(2) Includes dilutive impact of convertible debentures

 

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