Primaris Retail REIT Announces Third Quarter Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 11/08/11 -- Primaris Retail REIT (TSX: PMZ.UN) is pleased to report positive operating results for the third quarter of 2011. These results have been prepared in accordance with International Financial Reporting Standards ("IFRS"). Prior year's results have been restated to conform to this change.
President and CEO, John Morrison, commented "The financial results for third quarter of 2011 are positive in terms of growth in net operating income and funds from operations. Our occupancy level has increased over the second quarter as we continue to re-merchandise vacancies created both by tenant insolvency proceedings and our decision to take space off the market as a result of our redevelopment projects. Retail sales in our shopping centres continue to hold steady notwithstanding the increase in global negative news. We are very pleased with the investment and integration of the five assets acquired in June and the quality of people who recently joined our Primaris team. The new assets are performing as expected."
Highlights
Funds from Operations
Net Operating Income
Same Properties - Net Operating Income
Net Income
Operations
Liquidity
Financial Results
Funds from operations for the third quarter ended September 30, 2011 were $29.3 million, up $5.5 million from the $23.8 million reported for the third quarter of 2010 as restated. On a per unit diluted basis, funds from operations for the third quarter of 2011 were $0.349, up $0.009 from the $0.340 reported for the third quarter of 2010.
Net income for the three months ended September 30, 2011 was $29.2 million. This compares to a net loss of $11.0 million earned during the three months ended September 30, 2010. The increase is principally due to the volatility in the fair value adjustments on investment properties, convertible debentures, exchangeable units and unit-based compensation.
The distribution payout ratio for the third quarter of 2011, calculated on a diluted basis, was 87.4% as compared to an 89.6% payout ratio for the third quarter of 2010 and 100.3% for the previous quarter June 30, 2011.
At September 30, 2011, Primaris' total enterprise value was approximately $3.4 billion (based on the market closing price of Primaris' units on September 30, 2011 plus total debt outstanding). At September 30, 2011 Primaris had $1,689.1 million of outstanding debt, equating to a debt to total enterprise value ratio of 50.0%. Primaris' debt consisted of $1,440.4 million of fixed-rate senior debt with a weighted average interest rate of 5.4% and a weighted average term to maturity of 6.0 years, $7.0 million drawn on the operating line of credit, $3.2 million of 6.75% fixed-rate convertible debentures, $93.5 million of 5.85% fixed-rate convertible debentures, $70.0 million of 6.30% fixed-rate convertible debentures and $75.0 million of 5.40% fixed-rate convertible debentures. During the three months ended September 30, 2011, Primaris had an interest coverage ratio of 2.2 times as expressed by EBITDA divided by interest expense on mortgages, convertible debentures and bank indebtedness. Primaris defines EBITDA as net income increased by depreciation, finance costs, income tax expense and amortization of leasing costs and straight-line rent. EBITDA is not a term defined under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other Trusts. See below under "Non-IFRS/GAAP Measures".
The same-property comparison consists of the 26 properties that were owned throughout both the current and comparative three month periods. Net operating income, on a same-property basis, increased $0.05 million, or 0.1%, in relation to the comparable three month period.
Liquidity
At the end of the quarter, Primaris had $1.1 million of cash on hand and $7.0 drawn on its $130.0 million credit facility.
Tenant Sales
For the 15 reporting properties owned throughout both the twelve month periods ended August 31, 2011 and 2010, sales per square foot, on a same-tenant basis, have decreased slightly to $453 from $455 per square foot. For the same 15 properties the tenant total sales volume has increased 0.1%.
The tenants' sales decreased 0.3% per square foot, while the national average tenant sales as reported by the International Council of Shopping Centers ("ICSC") for the 12- month period ended August 31, 2011, increased 3.0%. Primaris' sales productivity of $453 is lower than the ICSC average of $579, largely because the ICSC includes sales from super regional malls that have the highest sales per square foot in the country.
Leasing Activity
Primaris Retail REIT's property portfolio remains well leased.
The portfolio occupancy rate is relatively stable. It was 96.5% at September 30, 2011, compared to 95.7% at June 30, 2011, and 97.0% at September 30, 2010. These percentages include space for which signed leases are in place but where the tenant may not yet be in occupancy.
Primaris renewed or leased 397,229 square feet of space during the third quarter of 2011. Approximately 56.4% of the leased spaces during the third quarter of 2011 consisted of the renewal of existing tenants. The weighted average new rent in these leases, on a cash basis, represented a 4.8% increase over the previous rent.
At September 30, 2011, Primaris had a weighted average term to maturity of leases of 5.5 years.
Development Activity
During 2009, Primaris completed phase one of a three phase redevelopment at Lambton Mall in Sarnia, Ontario. Although this first phase created a vacant anchor store location, it provided an opportunity to not only add a food court where none existed previously, but also provided an opportunity to backfill the anchor store with a new large tenant.
Construction commenced in June 2011 on a second phase that will introduce a food court to improve the centre's amenities. This improvement will significantly reinforce the mall's market presence. The food court is on budget and is forecasted to cost approximately $4.75 million and in on target to be completed in late November 2011. Negotiations have advanced with regard to replacements for the vacant anchor space.
A redevelopment project at Orchard Park Shopping Centre in Kelowna, British Columbia started in the summer of 2010. This project includes the construction of approximately 25,000 square feet of new retail space and the redevelopment of about 10,000 square feet of existing area. The project, scheduled to be open by mid-November 2011, will bring Best Buy, a dynamic first-to-market tenant, to the centre. The project is on budget, is forecast to cost $7.7 million, and is expected to increase the centre's market share.
A re-development project is underway at Grant Park Shopping Centre in Winnipeg, Manitoba to accommodate an expanded and repositioned Manitoba Liquor Control Commission ("MLCC") store, and relocated retail tenants. This project also includes the realignment and upgrade of almost 11,500 square feet of common area with new floor and ceiling finishes which will revitalize the west end of the shopping centre. A portion of the exterior of the building and the west mall entrance will also be renovated to provide a marquee entry to the new redevelopment inside. Construction activities commenced in June 2011 with relocated retail tenants opened for October 2011, and a targeted April 2012 opening date for the MLCC expansion. The project is on budget and is expected to cost $6.5 million. This phased redevelopment has already created an additional consumer draw to the centre and increased the cross shopping opportunities.
Funds from Operations, which is not a defined term within IFRS, has been calculated by management, using International Financial Reporting Standards, in accordance with REALpac's White Paper on Funds from Operations. The White Paper adds back to net income items that do not arise from operating activities, such as amortization of tenant improvements, deferred income taxes and fair value adjustments. Funds from Operations may not be comparable to similar measures used by other entities. See below under "Non-IFRS/GAAP Measures".
Funds from operations for the quarter ended September 30, 2011 were $5.5 million ($0.009 per unit diluted) greater than the comparative period.
International Financial Reporting Standards ("IFRS")
In February 2008, the Canadian Accounting Standards Board confirmed that IFRS would replace Canadian generally accepted accounting principles ("GAAP"), for Canadian publically accountable profit-oriented enterprises, effective for fiscal periods beginning on or after January 1, 2011. The September 30, 2011 unaudited condensed interim consolidated financial statements and related disclosures include 2010 comparative results restated to IFRS and reconciliations to the previously reported Canadian GAAP statements.
Supplemental Information
Primaris' unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis ("MD&A") for the three-month periods ended September 30, 2011 and 2010 are available on Primaris' website at .
Forward-Looking Information
The MD&A contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, Primaris' operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "anticipate," "believe," "expect," "plan" or similar words suggesting future outcomes. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements.
In particular, certain statements in this document discuss Primaris' anticipated outlook of future events. These statements include, but are not limited to:
Although the forward-looking statements contained in this document are based on what management of Primaris believes are reasonable assumptions, forward-looking statements involve significant risks and uncertainties. They should not be read as guarantees of future performance or results and will not necessarily be an accurate indicator of whether or not such results will be achieved. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results to differ from targets, expectations or estimates expressed in the forward-looking statements. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include: a less robust retail environment than has been seen for the last several years; relatively stable interest costs; access to equity and debt capital markets to fund, at acceptable costs, the future growth program and to enable the Trust to refinance debts as they mature, and the availability of purchase opportunities for growth.
Except as required by applicable law, Primaris undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-IFRS/GAAP Measures
Funds from operations ("FFO"), net operating income ("NOI") and earnings before interest, taxes, depreciation and amortization ("EBITDA") are widely used supplemental measures of a Canadian real estate investment trust's performance and are not defined under IFRS. Management uses these measures when comparing itself to industry data or others in the marketplace. Primaris' MD&A describes FFO, NOI and EBITDA and provides reconciliations to net income as defined under IFRS. Reconciliations of FFO and NOI to net income, as defined by IFRS, also appear at the end of the press release. FFO, NOI and EBITDA should not be considered alternatives to net income or other measures that have been calculated in accordance with IFRS and may not be comparable to measures presented by other issuers.
Conference Call
Primaris invites you to participate in the conference call that will be held on Wednesday, November 9, 2011 at 9am EST to discuss these results. Senior management will speak to the results and provide a brief corporate update. The telephone numbers for the conference call are: 416-340-8530 (within Toronto), and 1-877-240-9772 (within North America).
Audio replays of the conference call will be available for 24 hours immediately following the completion of the conference call, by dialling 905-694-9451 or 1-800-408-3053 and using pass code 1208535. The audio replay will also be available for download at .
Primaris is a TSX listed real estate investment trust (TSX: PMZ.UN). Primaris owns 32 income-producing properties comprising approximately 13.5 million square feet located in Canada. As of October 31, 2011, Primaris had 82,621,276 units issued and outstanding (including exchangeable units).
Funds from Operations, which is not a defined term within IFRS, has been calculated by management, using International Financial Reporting Standards, in accordance with REALpac's White Paper on Funds from Operations. The White Paper adds back to net income items that do not arise from operating activities, such as amortization of tenant improvements, deferred income taxes and certain fair value adjustments. Funds from Operations may not be comparable to similar measures used by other entities.
Contacts:
Primaris Retail REIT
John R. Morrison
President & Chief Executive Officer
(416) 642-7860
Primaris Retail REIT
Louis M. Forbes
Executive Vice President & Chief Financial Officer
(416) 642-7810
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 08.11.2011 - 21:00 Uhr
Sprache: Deutsch
News-ID 85480
Anzahl Zeichen: 0
contact information:
Town:
TORONTO, ONTARIO
Kategorie:
Investment Opinion
Diese Pressemitteilung wurde bisher 189 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Primaris Retail REIT Announces Third Quarter Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Primaris Retail REIT (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
