Homburg Invest delivers on value creation strategy
(Thomson Reuters ONE) -
Shares issued: Class A - 17,094,490 Class B - 3,148,538
HALIFAX, Nova Scotia. June 11, 2010 - (TSX: HII.A & HII.B and NYSE Euronext
Amsterdam: HII) -Richard Homburg, Chairman and Chief Executive Officer of
Homburg Invest Inc. ("Homburg Invest" or the "Company") told shareholders and
guests at the Company's Annual Meeting of Shareholders today that the Company
had accomplished an important milestone in its strategic direction when it
completed the initial public offering of the Homburg Canada Real Estate
Investment Trust.
"Six months ago, we announced a strategic initiative to spin off our
income-producing properties into four geographic entities and a development
company," said Mr. Homburg, following the meeting. "Since that time, we have
begun to deliver on our strategy in a big way. In May, we raised $105.4 million
from the initial public offering of Homburg Canada REIT. That spinoff not only
bolstered our balance sheet, it also created one of Canada's largest and best
quality REITs. Homburg Invest will reap a solid income stream from the REIT
while participating strongly in its growth. It is an excellent example of how
we are delivering on our strategy to highlight the intrinsic, unrecognized value
in our portfolio."
Highlights: A successful year in a difficult economic environment
Richard Stolle, President and Chief Operating Officer said: "Despite difficult
economic conditions in North America and Europe, Homburg Invest continued to
grow in 2009. Our strategy of diversification by geography and by market
segment, and our focus on providing high quality, responsive service to our
tenants, provided a strong base for our continued success."
In 2009, Homburg Invest:
* Grew property revenues by 4% to $322.8 million
* Maintained net operating profits at $222.9 million
* Grew funds from operations by 36.4% to $53.2 million
* Paid down long-term debt by $162 million or 5.5% of the previous year's
total; the Company paid down another $30 million subsequent to yearend
* Maintained occupancy rates in the office, retail and residential markets at
levels well above 95%; the industrial segment reported an 80.1% occupancy
rate
* Sold more than $110 million in development properties.
"Once markets are healthier, we will proceed with our plans to spin off our
interests in the Netherlands and Germany into a publicly traded entity; and the
same is true for our properties in the Baltic countries," continued Mr.
Homburg. "However, spinning off our assets into a public company immediately is
not our only option. We will look at whatever proposal creates the most value
and potential upside, including merger proposals for these assets, joint
ventures or a sale of assets. We will do what creates the most value, within
the context of market conditions.
"The ultimate goal of the spinoff is to ensure that each of our local companies
is fully valued by informed local investors who know the market. As a
consequence, Homburg Invest shares should trade closer to their intrinsic value.
"Our portfolio consists of high quality income-producing and development assets
that will respond quickly to strength in local economies like the Baltics and
Canada, where markets are already improving. As world real estate markets
regain their vigour, we believe strongly that the market value of our portfolio
on our balance sheet will recover rapidly, creating strong shareholder value,"
Mr. Homburg concluded.
About Homburg Invest
Homburg Invest Inc. owns and develops a diversified portfolio of quality real
estate including office, retail, industrial and residential apartment and
townhouse properties throughout Canada, the United States and Europe. The head
office of the Company is located in Halifax, Nova Scotia.
Forward-looking Statements
This news release may contain statements which by their nature are
forward-looking and express the Company's beliefs, expectations or intentions
regarding future performance, future events or trends. Forward looking
statements are made by the Company in good faith, given management's
expectations or intentions, which are subject to market conditions,
acquisitions, occupancy rates, capital requirements, sources of funds, expense
levels, operating performance and other matters. Therefore, forward-looking
statements contain assumptions which are subject to various factors including:
unknown risks and uncertainties; general economic conditions; local market
factors; performance of other third parties; environmental concerns; and
interest rates, any of which may cause actual results to differ from the
Company's good faith beliefs, expectations or intentions which have been
expressed in or may be implied from this news release. Forward-looking
statements are not guarantees of future performance and are subject to known and
unknown risks. Information and statements in this document, other than
historical information, should be considered forward-looking and reflect
management's current views of future events and financial performance that
involve a number of risks and uncertainties. Factors that could cause actual
results to differ materially include, but are not limited to, the following:
general economic conditions and developments within the real estate industry,
competition and the management of growth. The Toronto Stock Exchange has neither
approved nor disapproved the information contained herein.
-30-
For further information, please contact:
Mr. Richard Homburg Paul de la Plante
Chairman and CEO NATIONAL Public Relations
Homburg Invest Inc. 514 843-2332
(902) 468-3395
or
J. Richard Stolle
President and COO
Homburg Invest Inc.
31-20-573-3855
[HUG#1423428]
PDF version of press release: http://hugin.info/138798/R/1423428/372333.pdf
Unternehmensinformation / Kurzprofil:
Datum: 11.06.2010 - 17:54 Uhr
Sprache: Deutsch
News-ID 22295
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contact information:
Town:
Halifax
Kategorie:
Business News
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