Homburg Invest Inc. announces third quarter 2009 results
(Thomson Reuters ONE) - Property revenue and net operating income continue to grow strongly Shares issued: Class A - 16,618,819 Class B - 3,148,538Halifax, Nova Scotia, November 16, 2009 (TSX: HII.A & HII.B andAEX:HII ) - Homburg Invest Inc. ("Homburg Invest" or the "Company")announced today its financial results for the third quarter endingSeptember 30, 2009, prepared under both Canadian Generally AcceptedAccounting Principles ("GAAP") and International Financial ReportingStandards ("IFRS").IFRS Highlights:(Nine months ended September 30, 2009) * Property revenue increased 6.2% to $242.7 million compared to $228.6 million for the same period in 2008.. * Funds from operations [note] ("FFO"), a non-IFRS measure widely used to evaluate real estate performance, net of the development pipeline, was $34.4 million for the nine month period, compared to $36.1 million for the same period last year. * The Company recorded a $62.7 million non-cash mark-to-market write-down of its investment properties for the nine months ended September 30, 2009, as required under IFRS. Under IFRS, the investment properties must be carried at fair value. In the current economic environment, property values are decreasing despite stable cash flows as the result of increasing capitalization rates. GAAP, the standard which all Canadian public real estate entities report under, currently does not adjust to fair value, but rather does an impairment test based on non-discounted cash flows. The Company had no impairment of investment properties under GAAP. * Shareholders' equity decreased from $606.8 million at December 31, 2008 to $589.3 million at September 30, 2009. * Net asset value per share [note] at September 30, 2009, is $28.40.GAAP Highlights:(Nine months ended September 30, 2009) * Property revenue increased 5.0% to $238.4 million compared to $227.0 million for the nine month period ended September 30, 2008. * Total revenues for the nine month period ended September 30, 2009 were $310.2 million compared to $415.9 million in the same period last year. The decrease in total revenues is due to $127.8 million less revenue from sales of properties developed for resale in the Canadian market. * Funds from operations a non-GAAP measure widely used by investors to evaluate real estate performance, net of the development pipeline were $36.2 million compared to $36.1 million in the same period last year. The basic underlying operations of the Company therefore generated stable FFO. * Shareholders' equity increased from $513.7 million at December 31, 2008, to $521.3 million at September 30, 2009."Property revenues are up in all geographical markets. Net operatingincome from our investment properties is also up in most geographicalmarkets" said Richard Homburg, Chairman and Chief Executive Officerof Homburg Invest. "As should be expected in difficult economictimes, our property development business has slowed and sales ofproperties held for development were less robust than this time lastyear. Fewer property sales, and the PennWest Towers in Calgarynearing completion are the principle sources of the decline inearnings and funds from operations, and does not reflect theunderlying strength and stability of our income-generating investmentproperty business."Table 1 - Property Revenues and Net Operating Income by GeographicalSegment(IFRS: thousands of CDN$, nine months ended September 30) 2009 2008 % ChangeGermany Property Revenues 69.0 61.0 Net Operating income 65.4 60.0The Netherlands Property Revenues 33.0 33.4 Net Operating income 28.6 29.9The Baltics Property Revenues 16.8 14.3 Net Operating income 11.7 10.5Canada Property Revenues 110.0 107.7 Net Operating income 55.1 58.7United States Property Revenues 14.0 12.2 Net Operating income 9.8 8.8Total* Property Revenues 242.7 228.6 6.2% Net Operating income 170.6 168.0 1.5%"We are in the process of reducing our debt and strengthening HomburgInvest's balance sheet through the sale of selected assets," Mr.Homburg continued. "As real estate and financial markets improve, wewant to be in a strong position to take advantage of newopportunities, and we are optimistic about the future. Strengtheningour balance sheet and reducing our debt levels is a key element ofour strategy as the world comes out of the recession and liquiditycrisis."Additional financial information is included at the bottom of thisnews release.About Homburg InvestHomburg Invest, with its head office in Halifax, Nova Scotia, ownsand develops a diversified portfolio of quality real estate includingoffice, retail, industrial and residential apartment and townhouseproperties throughout Canada, the United States and Europe. -30-For further information, please contact:Mr. Richard Homburg,Chairman and CEOHomburg Invest Inc.902-468-3395orJ. Richard StollePresident and COOHomburg Invest Inc.31-20-573-3855This news release may contain statements which by their nature areforward looking and express the Company's beliefs, expectations orintentions regarding future performance, future events or trends.Forward looking statements are made by the Company in good faith,given management's expectations or intentions however, they aresubject to market conditions, acquisitions, occupancy rates, capitalrequirements, sources of funds, expense levels, operating performanceand other matters. Therefore, forward looking statements containassumptions which are subject to various factors including: unknownrisks and uncertainties: general economic conditions; local marketfactors; performance of other third parties; environmental concerns;and interest rates, any of which may cause actual results to differfrom the Company's good faith beliefs, expectations or intentionswhich have been expressed in or may be implied from this newsrelease. Therefore, forward looking statements are not guarantees offuture performance and are subject to known and unknown risks.Information and statements in this document, other than historicalinformation, should be considered forward-looking and reflectmanagement's current views of future events and financial performancethat involve a number of risks and uncertainties. Factors that couldcause actual results to differ materially include, but are notlimited to, the following: general economic conditions anddevelopments within the real estate industry, competition and themanagement of growth. The Toronto Stock Exchange has neither approvednor disapproved of the information contained herein.Additional Financial InformationThe complete nine-month period financial results and MD&A can beviewed and downloaded from the corporation's web site atwww.homburg.com. Additional highlights for the third quarter can befound below.The Company prepares its quarterly and annual statements under bothGAAP and IFRS. This reflects the Board's view that the IFRSpresentation most accurately reflects the financial position of areal estate investment company, while at the same time the Companycontinues to comply with requirements to produce its results underGAAP. This also reflects the Company's desire to provide itsshareholders with as much information as possible in today'senvironment of continuing concerns with respect to financialdisclosure in the marketplace.The most significant differences between the IFRS and GAAP statementsare that while the IFRS statements reflect the investment propertiesat fair value and are without depreciation charges, the GAAPstatements record the fixed assets at historical cost lessaccumulated depreciation. In addition, deferred charges relating toleasing fees have been recorded as an asset in the GAAP financialstatements and will be charged to expense over the period of therelated lease. These charges are written off in the period incurredunder IFRS.Financial Highlights - IFRSThird quarter ended September 30, 2009(000's) Nine Months Nine Months Ended Ended September 30 September 30 2009 2008 IncreaseProperty revenue $242,685 $228,572 6.2%Property net operating income $170,624 $167,969 1.6%Net adjustment for fair value of investment properties ($62,719) ($29,414)Net earnings (loss) ($39,260) $25,412Funds from operations net of development pipeline $34,423 $36,072Funds from operations per share - basic and diluted [note] $1.73/$1.73 $1.83/$1.78 Three Months Three Months Ended Ended September 30 September 30 2009 2008 IncreaseProperty revenue $77,328 $76,469 1.1%Net operating income $54,666 $55,757 (2.0%)Unrealized valuation changes ($10,733) ($25,403)Net earnings (loss) ($16,604) ($9,151)Funds from operations, net of development pipeline $11,317 $10,081Funds from operations per share -net of development pipeline basic and $0.57/$0.57 $0.50/$0.50dilutedFinancial Highlights - GAAPThird quarter ended September 30, 2009(000's) Nine Months Nine Months Ended Ended September 30 September 30 2009 2008 IncreaseProperty revenue $238,395 $226,981 5.0%Net operating income $167,734 $166,378 0.8%Net earnings (loss) ($25,693) $22,850Funds from operations, net of development pipeline $36,177 $36,074Funds from operations per share -net of development pipeline basic and $1.82/$1.82 $1.83/$1.78diluted Three Months Three Months Ended Ended September 30 September 30 2009 2008 IncreaseProperty revenue $76,131 $75,740 0.5%Net operating income $53,688 $55,028 (2.4%)Net earnings (loss) ($20,922) $4,307Funds from operations, net of development pipeline $11,893 $10,079Funds from operations per share -net of development pipeline basic and $0.60/$0.60 $0.50/$0.49dilutedNoteNon GAAP and Non IFRS Financial Measures This news release includes measures widelyaccepted within the real estate industry which are not defined underGAAP or IFRS. These measures include Funds from Operations, Fundsfrom Operations per share, Property Net Operating Income, and NetAsset Value per share. As these are not defined measures under GAAPor IFRS, other issuers' may have different calculations from thoseused by the Company. The Company considers these amounts to bemeasures 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 depreciation and amortization, non-recurring stock based compensation, deferred and capital income taxes, unrealized and realized valuation changes, gain (loss) on financial instruments and derivatives, and unrealized foreign exchange gains(losses); divided by the weighted average number of shares outstanding b) Property Net operating income ("N0I") is presented by the Company as Property Revenue less Property Operating Expenses c) Net Asset Value per share is presented by the Company as Shareholders' Equity less the priority claim for the equity component of Homburg Capital Securities A divided by the number of shares outstanding at period end.http://hugin.info/138798/R/1355452/329013.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 17.11.2009 - 01:53 Uhr
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