Homburg Invest reports improved net income from continuing operations for 2010 third quarter and year to date
(Thomson Reuters ONE) -
Shares issued: Class A - 17,072,589 Class B - 3,125,138
HALIFAX, Nova Scotia. November 15, 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") announced today that
Homburg Invest has released its financial results for the third quarter ended
September 30, 2010. This is the second quarter the Company will provide
International Financial Reporting Standards ("IFRS") financial statements only.
The Company has received the necessary regulatory approvals to no longer file
Canadian Generally Accepted Accounting Principles financial statements.
The financial results for the quarter ended September 30, 2010 are Homburg
Invest's second financial results following the completion on May 25, 2010 of
the initial public offering of the Homburg Canada Real Estate Investment Trust
("Homburg Canada REIT" or the "REIT"), of which the Company is a major
unitholder, and the sale of all of the Company's Canadian income-producing
properties to Homburg Canada REIT. Proceeds from the transaction were primarily
used to reduce the Company's long-term debt.
"We are pleased to have generated a turnaround in earnings in the third quarter
in such a challenging environment. We are starting to see an improvement in the
real estate markets with an improvement of fair market value," said Richard
Homburg, Chairman and Chief Executive Officer of Homburg Invest. "While
currencies certainly remained an issue, we saw some improvements in Europe" he
added.
"The spinoff of our Canadian income-producing property portfolio into the
publicly traded Homburg Canada REIT has been a success," added Richard Stolle,
President and Chief Operating Officer. "The market value of our investment in
the REIT has increased since the initial public offering was completed
successfully last May."
Financial Results (Quarter ended September 30, 2010)
To allow comparisons with financial results for previous periods, the financial
results for 2009 presented in this news release have been restated to reflect
the sale on May 25, 2010, of the Company's Canadian operating portfolio to
Homburg Canada REIT.
Key Financial Results from Continuing Operations for the Quarter Ended September
30, 2010
(millions of CDN |Three Months |Nine Months |Three Months |Nine Months
$, except per |Ended |Ended |Ended |Ended
share items) |September |September |September |September
|30, 2010 |30, 2010 |30, 2009 |30, 2009
------------------+---------------+--------------+--------------+--------------
Property revenue |27.4 |94.2 |41.3 |132.7
------------------+---------------+--------------+--------------+--------------
Sale of |2.5 |13.2 |8.8 |48.6
properties | | | |
developed for | | | |
resale | | | |
------------------+---------------+--------------+--------------+--------------
Total revenues |30.8 |131.1 |42.0 |143.7
and other gains | | | |
------------------+---------------+--------------+--------------+--------------
Net operating |21.3 |78.2 |35.3 |113.0
income | | | |
------------------+---------------+--------------+--------------+--------------
Net income (from |1.3 |8.0 |(21.6) |(47.0)
continuing ops) | | | |
------------------+---------------+--------------+--------------+--------------
Basic and diluted|0.02 |0.29 |(1.11) |(2.40)
earnings (loss) | | | |
per share | | | |
------------------+---------------+--------------+--------------+--------------
Funds from |(2.5) |(2.1) |2.9 |10.3
operations, net | | | |
of the sale of | | | |
properties | | | |
developed for | | | |
resale | | | |
------------------+---------------+--------------+--------------+--------------
Funds from |(0.12) |(0.10) |0.15 |0.52
operations per | | | |
share | | | |
For complete IFRS financial statements, along with the Management's Discussion
and Analysis of Results as at September 30, 2010 and for the three months then
ended, please refer to the Company's website at www.homburginvest.com or
www.sedar.com.
Property revenues from continuing operations were $27.4 million during the third
quarter ended September 30, 2010, compared to restated $41.3 million for the
same quarter in 2009. The change is due to primarily to a ?6.1 million decrease
in property revenues in the European portfolio, due to the loss of a tenant that
declared bankruptcy and vacated an industrial property in Germany on December
31, 2009; and other current vacancies in the European portfolio. Property
revenues were also impacted by $13.9 million resulting from a 14.5% decrease in
the average value of the Euro against the Canadian dollar in the third quarter
of 2010 compared to the same quarter last year.
For the nine-month period, HII recorded net income from continuing operations of
$8.0 million compared to a net loss of $47.0 million for the first nine months
of 2009. The significant reduction in the net loss from continuing operations
during the quarter and for the first nine months is due primarily to an
improvement in the fair value loss on investments compared to the same quarter
last year. The fair value (non-cash) gain for the quarter was $13.5 million
compared to a fair value loss of $10.4 million for the same period last year.
The improvement in fair value loss demonstrates the strength of the Company's
key assets and a return to relative stability in global real estate markets. Net
earnings from continuing operations for the quarter ended September 30, 2010
improved to $1.3 million compared to a net loss of $21.6 million for the same
quarter last year.
Net loss of $94.8 million for the nine months ended September 30, 2010, compares
to a net loss of $39.3 million for the same nine month period in 2009.
Funds from operations (FFO) from continuing operations, net of the sale of
properties developed for resale, was a negative $2.1 million for the nine-month
period ended September 30, 2010, compared to restated $10.3 million in the same
period in 2009. This $12.4 million difference is the result of the $34.8 million
decrease in net operating income, offset by a reduction in the loss on the sale
of properties developed for resale of $24.1 million.
Net asset value as defined by the Company is $4.98
Strategic Review
"Eleven 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. "We are very satisfied with the progress to date."
On May 25, 2010, Homburg Canada REIT completed an initial public offering and
was listed on the Toronto Stock Exchange.
On October 27, subsequent to the end of the third quarter, Homburg Canada REIT
also completed a public offering of Units on a bought deal basis. The
underwriters partially exercised their over-allotment option, resulting in a
total of 7,772,100 units being issued. This issue will bring Homburg Invest's
ownership in the REIT from 41.2% to 33.7%.
The Company also announced on September 28, 2010 that it has engaged TD
Securities Inc. as the Company's exclusive agent to market its 80% interest in
8 joint ventures in Pennsylvania, and 1 in Massachusetts with Cedar Shopping
Centers. The properties are all grocery anchored retail centers.
About Homburg Invest
Homburg Invest Inc. owns and develops a diversified portfolio of quality
commercial real estate including office, retail, industrial and development
properties throughout Europe and the United States, as well as 33.7% of the
units of Homburg Canada Real Estate Investment Trust. 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-
Note
Non-IFRS Financial Measures
This news release includes measures widely accepted within the real estate
industry which are not defined under IFRS. These measures include funds from
operations, funds from operations per share, property net operating income, and
net asset value per share. As these are not defined measures under IFRS, other
issuers' may have different calculations from those used by the Company.
The Company considers these amounts to be measures of operating and financial
performance.
a) Funds from operations ("FFO") and FFO per share are presented by
the Company as net income (loss) from continuing operations adjusted for
amortization, deferred and capital income taxes (recovery), unrealized and
realized valuation changes, fair value change in financial instruments, loss
(gain) on derivative instruments, goodwill impairment loss, impairment loss on
development properties, foreign exchange loss (gain), and changes in
provisions.; divided by the weighted average number of shares outstanding.
b) Property net operating income ("NOI") is presented by the Company
as property revenue less property operating expenses.
c) Net asset value per share is presented as total equity divided by
the number of shares outstanding.
For further information, please contact:
Mr. Richard Homburg
Chairman and CEO
Homburg Invest Inc.
(902) 468-3395
or
J. Richard Stolle
President and COO
Homburg Invest Inc.
31-20-573-3855
[HUG#1462826]
PDF version of the press release:
http://hugin.info/138798/R/1462826/401735.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Homburg Invest Inc. via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 16.11.2010 - 00:13 Uhr
Sprache: Deutsch
News-ID 48799
Anzahl Zeichen: 14241
contact information:
Town:
Halifax
Kategorie:
Business News
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