Dundee REIT Reports Strong Second Quarter Results, 12.5% Growth in FFO Per Unit
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 08/08/12 -- This news release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release.
DUNDEE REIT (TSX: D.UN) today posted strong financial results for the three and six months ended June 30, 2012, evidencing the strength of its operations and the success of its acquisition strategy.
HIGHLIGHTS
"The transformation of Dundee REIT continues," said Michael Cooper, CEO. "We have become the leading office REIT in Canada, dramatically increased our AFFO per unit over the last three years, and we have improved the quality of our business and assets, as evidenced by the addition of a two-thirds interest in Scotia Plaza this quarter."
Senior management will be hosting a conference call to discuss the results tomorrow, August 9, 2012 at 9:00 a.m. (ET). To access the call, please dial: 416-340-2216 or toll free at 1-866-226-1792. A taped replay of the call will be available for 30 days by dialling 905-694-9451 or 1-800-408-3053 and using passcode 4283032. To access the conference call via webcast, please go to Dundee REIT's website at ww.dundeereit.com and click on the link for News & Events, then click on Calendar of Events. The webcast will be archived for 30 days.
FINANCIAL HIGHLIGHTS
ACQUISITION HIGHLIGHTS
During the second quarter, the Trust completed the acquisition of a two-thirds interest in Scotia Plaza as well as a 100% interest in a Windsor, Ontario Class A office property. Year-to-date, the Trust has completed $2.4 billion of acquisitions adding 9.3 million square feet of gross leasable area to its national portfolio.
OPERATIONAL HIGHLIGHTS
Portfolio occupancy remains ahead of national industry averages at 95.6% - The overall percentage of occupied and committed space across the Trust's portfolio remained strong at 95.6%. The average occupancy rate across the office portfolio remained solid at 95.2% (March 31, 2012 - 95.2%, December 31, 2011 - 95.4%), well above the national industry average of 91.8%. The average occupancy rate across the Trust's industrial was 97.1%, down quarter-over-quarter but up over year-end (March 31, 2012 - 97.4%, December 31, 2011 - 96.6%) and also ahead of the national industry average of 93.7%.
Leasing activity - The strength of Dundee REIT's leasing team and the appeal of its properties is demonstrated by their ability to renew leases and attract new tenants to their portfolio. During the quarter, leasing activity across the office portfolio included 571,700 square feet of renewals and 180,300 square feet of new leasing. Leasing activity across the industrial portfolio included 56,500 square feet of renewals and 95,800 square feet of new leasing. In addition, a total of 229,500 square feet of vacancy is committed for future occupancy.
Average in-place net rents 12% below market rents - Average in-place office and industrial rents remain approximately 13% and 2% below estimated market rents, respectively. Estimated market rents continue to rise across all regions, including in Calgary where they increased for the seventh consecutive quarter. On a total portfolio basis, the Trust's average in-place net rent was $15.16 per square foot, up from $14.07 in Q1 2012, primarily reflecting the impact of Scotia Plaza, which has in-place net rental rates of $31.45.
Update on portfolio review - Management has previously stated that, after a period of aggressively growing and changing its portfolio, it is turning its focus to a thorough portfolio analysis with a view to pruning assets that may no longer fit within its strategy and redeploying the capital into assets that offer greater potential upside. A variety of assets have been reclassified as held for sale. Currently, the Trust has one 92,600 square foot office building in Edmonton, Alberta and three retail properties totalling 101,000 square feet in Atlantic Canada under contract for sale. In addition, management is at various stages of marketing and negotiation with respect to the sale of other properties and is still in the process of reviewing its options with respect to its industrial assets.
CAPITAL INITIATIVES
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 for the Trust, as well as its Supplementary Information Package are available at and on .
Dundee REIT is an unincorporated, open-ended real estate investment trust. Dundee 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 27.6 million square feet of gross leasable area in major urban centres across Canada. Dundee REIT's portfolio is well diversified by geographic location and tenant mix. For more information, please visit .
FOOTNOTES
(1) Metrics include results and balances of equity accounted investments.
(2) NOI - net rental income, excluding net rental income from properties held for sale.
(3) FFO - net income, adjusted for items including fair value adjustments on investment properties and financial instruments, gains on sale, and amortization of equipment.
(4) AFFO - FFO adjusted for amortization of debt costs, deferred unit compensation expense, straight line rent and the Trust's estimates of normalized leasing costs and normalized non-recoverable recurring capital expenditures.
(5) Excludes development and redevelopment properties and properties held for sale.
Non-IFRS supplemental measures
NOI, FFO and AFFO are key measures of performance used by real estate operating companies; however, they are not defined by International Financial Reporting Standards ("IFRS"), do not have standard meanings and may not be comparable with other industries or income trusts.
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 Dundee REIT's control, that 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. Dundee 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 Dundee REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dundee REIT's website at .
Contacts:
Dundee REIT
Michael J. Cooper
Vice Chairman and Chief Executive Officer
(416) 365-5145
Dundee REIT
Mario Barrafato
Senior Vice-President and Chief Financial Officer
(416) 365-4132
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Datum: 08.08.2012 - 17:03 Uhr
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