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QUÉBEC CITY, Aug. 4, 2011 /CNW/ --
-- Increase of 7.3% in net income
-- Increase of 13.3% in operating revenues and 12.2% in net
operating income
TSX - CUF.UN
QUÉBEC CITY, Aug. 4, 2011 /CNW Telbec/ - Cominar Real Estate Investment
Trust ("Cominar" or the "REIT") (TSX: CUF.UN) continued to grow and
expand during the second quarter ended June 30, 2011. "We are satisfied
with our financial performance, which is in line with our growth track
record. In addition, we further expanded in the Atlantic Provinces,
where we acquired two properties for a $5.2 million investment in the
second quarter, and three other acquisitions were completed in July for
a $13.2 million investment at an 8.4% average capitalization rate.
Furthermore, we maintained our distributions at $0.36 per unit. We
remain in a healthy and solid financial position to pursue our business
strategy," indicated Michel Dallaire, President and Chief Executive
Officer of Cominar.
For the second quarter of 2011, operating revenues totaled $82.1 million, up 13.3%. This increase is due mainly to the
property acquisitions completed in 2010 and 2011 plus the progressive
contribution of Complexe Jules-Dallaire.
Net operating income grew to $47.1 million, up 12.2% over the second quarter of 2010.
Net income amounted to $28.2 million, up 7.3% over the second quarter of 2010. Net income per fully diluted unit was $0.44, a 2.3% increase compared to the same period of 2010.
Recurring distributable income improved to $24.6 million, up 5.8% over the second quarter of 2010. Recurring distributable income per fully diluted unit amounted to $0.38, compared with $0.37 for the corresponding quarter of
2010, an increase of 2.7%.
Recurring funds from operations totaled $27.9 million, an increase of 4.6% that reflects the
contribution of the acquisitions and developments completed within the
previous months.
Recurring adjusted funds from operations per fully diluted unit amounted to $0.38, compared with $0.37 for the second quarter of 2010,
an increase of 2.7%.
In the second quarter of 2011, Cominar paid distributions of $23.1 million to unitholders, compared with $22.2 million for the
corresponding quarter of 2010, an increase of 4.0%. Distributions per unit amounted to $0.36, remaining stable compared with the second quarter of
2010.
Financial Position
As at June 30, 2011, Cominar's overall debt ratio was 54.3%, and the interest coverage ratio was 2.84:1 as at June 30, 2011, which compares favourably with that of
its peers.
Property Occupancy Rate
As at June 30, 2011, the overall occupancy rate of Cominar's leased
properties was stable at 93.7%,. The leasing teams are pursuing their
intensive efforts, especially in the industrial and mixed-use sector in
the Montréal region where occupancy rates are turning around. Thus,
during the first six months, Cominar already renewed 57.8% of all
leases expiring in 2011. In addition, new leases were signed covering
an area of 1.2 million square feet during this same period.
Acquisitions Completed in the Second quarter of 2011
On April 29, 2011, Cominar acquired a 15,000-square-foot office property
and a 27,000-square-foot retail property, both located in Moncton, New
Brunswick. Acquired at a cost of $5.2 million, of which $1.4 million by
the assumption of a mortgage payable and $3.8 million paid cash, these
two properties are fully occupied. The capitalization rate of this
transaction is 8.8%.
Subsequent Events
In July 2011, Cominar completed the following three acquisitions:
-- an industrial and mixed-use property in the Greater Moncton
Area, New Brunswick, representing an area of 11,000 square
feet, for a cash consideration of $1.2 million. Its occupancy
rate is 100% and the capitalization rate of this transaction is
9.0%; and
-- an office property in Saint John, New Brunswick, representing
an area of 41,000 square feet, for a consideration of
$6.5 million, of which $5.0 million by the assumption of a
mortgage payable and $1.5 million paid cash. Leased on a
long-term basis to a government client, this property is fully
occupied. The capitalization rate of this transaction is 8.2%;
and
-- a commercial property in Halifax, Nova Scotia, representing an
area of 41,000 square feet for a cash consideration of
$5.5 million. Its occupancy rate is 100% and the capitalization
rate of this transaction is 8.5%.
Cominar also announces the departure of Scott Armour McCrea, who was
Executive Vice-President, Atlantic Provinces. Mr. McCrea has decided to
leave his position for family reasons. We thank him for his exceptional
contribution to Cominar's development in the Maritimes. Mr. Todd
Bechard, who held the position of Vice-President, Finance, Atlantic
Provinces, will be promoted to Executive Vice-President, Atlantic
Provinces, replacing Mr. McCrea.
Distribution Reinvestment Plan
Cominar has a dividend reinvestment plan for its unitholders that allows
participants to reinvest their monthly distributions in additional
Trust units. Participants receive an effective discount of 5% of
distributions in the form of additional units. Information and
enrolment forms are available at www.cominar.com.
Additional Financial Information
Cominar's interim consolidated financial statements, prepared in
accordance with International Financial Reporting Standards (IFRS), and
the interim management's discussion and analysis for the second quarter
ended June 30, 2011 will be filed on SEDAR at www.sedar.com and are available on Cominar's website at www.cominar.com.
August 4, 2011 Conference Call
On Thursday, August 4, 2011 at 11:00 a.m. (EDT), Cominar's management
will hold a conference call to discuss the results for the second
quarter of 2011. Anyone who is interested may take part in this call by
dialing 1-877-974-0445. To ensure your participation, please dial in
five minutes before the start of the call. For those unable to
participate, a taped re-broadcast will be available from Thursday,
August 4, 2011 at 2:00 p.m. to Thursday, August 11, 2011 at 11:59 p.m.
by dialing 1-877-289-8525 followed by the code 4452160#.
PROFILE as at August 4, 2011
Cominar is the largest commercial property owner in the Province of
Québec. The REIT owns a real estate portfolio of 268 high-quality
properties, consisting of 53 office, 55 retail and 160 industrial and
mixed-use buildings that cover a total area of 20.9 million square feet
in the Greater Québec City, Montréal and Ottawa-Gatineau areas as well
as in the Atlantic Provinces. Cominar's objectives are to deliver
growing cash distributions to its unitholders and to maximize
unitholder value through proactive management and the growth of its
portfolio.
Forward-Looking Statements
This press release may contain forward-looking statements with respect
to Cominar and its operations, strategy, financial performance and
financial condition. These statements generally can be identified by
the use of forward-looking words such as "may", "will", "expect",
"estimate", "anticipate", "intend", "believe" or "continue" or the
negative thereof or similar variations. The actual results and
performance of Cominar discussed herein could differ materially from
those expressed or implied by such statements. Such statements are
qualified in their entirety by the inherent risks and uncertainties surrounding
future expectations. Some important factors that could cause actual
results to differ materially from expectations include, among other
things, general economic and market factors, competition, changes in
government regulation and the factors described under "Risk Factors" in
the Annual Information Form of Cominar. The cautionary statements
qualify all forward-looking statements attributable to Cominar and
persons acting on its behalf. Unless otherwise stated, all
forward-looking statements speak only as of the date of this press
release.
Non-IFRS Measures
Net operating income, distributable income (DI), funds from operations
(FFO) and adjusted funds from operations (AFFO) are not measures
recognized by International Financial Reporting Standards ("IFRS") and
do not have standardized meanings prescribed by IFRS. These measures may differ from similar computations reported by other
similar organizations and, accordingly, may not be comparable to
similar measures reported by such organizations. The following table
shows the reconciliation of DI, FFO and AFFO with the most similar IFRS
measures:
Quarters closed 2011 2010
June 30
DI FFO AFFO DI FFO AFFO
Net income 28,221 28,221 28,221 26,311 26,311 26,311
(IFRS)
+ Compensation
expenses
related to
unit option
plan 271 — 271 220 — 220
+ Accretion of
liability
component of
convertible
debentures 60 — — 57 — —
- Rental income
-
straight-line
accounting
for leases (459) — (459) (717) — (717)
- Amortization
of fair value
adjustments
on assumed
mortgages
payable (399) — — (133) — —
- Capital
expenditures-
maintenance
of ability to
generate
rental income — — (262) — — (595)
+ Differed
income tax
expense 565 565 565 196 196 196
- Provision for
leasing costs (2,802) — (2,802) (2,865) — (2,865)
+ Transaction
costs -
business
combinations — — — 151 151 151
25,457 28,786 25,534 23,220 26,658 22,701
Six-month
periods closed 2011 2010
June 30
DI FFO AFFO DI FFO AFFO
Net income 53,840 53,840 53,840 48,398 48,398 48,398
(IFRS)
+ Compensation
expenses
related to
unit option
plan 542 — 542 443 — 443
+ Accretion of
liability
component of
convertible
debentures 118 — — 113 — —
- Rental income
-
straight-line
accounting
for leases (1,555) — (1,555) (1,267) — (1,267)
- Amortization
of fair value
adjustments
on assumed
mortgages
payable (555) — — (163) — —
- Capital
expenditures-
maintenance
of ability to
generate
rental income — — (780) — — (733)
+ Differed
income tax
expense 697 697 697 196 196 196
- Provision for
leasing costs (5,672) — (5,672) (5,446) — (5,446)
+ Transaction
costs -
business
combinations — — — 651 651 651
47,415 54,537 47,072 42,925 49,245 42,242
Condensed interim consolidated financial statements, including
accompanying notes, are available on Cominar's website at www.cominar.com under "Investor Relations" - Interim Reports".
To view this news release in HTML formatting, please use the following URL: http://www.cnw.ca/en/releases/archive/August2011/04/c9240.html
p bMichel Dallaire, Eng.,/b President and Chief Executive Officerbr/ bMichel Berthelot, CA, /bExecutive Vice-President and Chief Financial Officerbr/ bTel: (418) 681-8151/bbr/ a href="mailto:mdallaire@cominar.com"mdallaire@cominar.com/abr/ a href="mailto:mberthelot@cominar.com" cr="true"mberthelot@cominar.com/a /p