QUÉBEC, Nov. 5, 2015 /CNW Telbec/
- Cominar Real Estate Investment Trust ("Cominar" or the
"REIT") (TSX: CUF.UN) announced today its results for the
third quarter of fiscal year 2015.
Highlights for the Quarter Ended September 30, 2015
- Increased net operating income(1) of 25.6%
- Disposition of income properties for a purchase price of
$98.0M
- Decreased debt ratio to 53.8%
- Redemption of convertible debentures totalling $186.0M and bearing interest at 6.15%
"The important acquisitions completed during 2014 continue to
contribute to the significant growth of our results for the third
quarter of 2015. In addition, we completed the sale of two office
properties and one industrial and mixed-use property for a total
purchase price of $98.0 million. The
proceeds from the sale of these properties were used to reduce our
debt ratio to 53.8%, in line with our related strategy," said
Michel Dallaire, President and Chief
Executive Officer of Cominar.
"During the quarter, we redeemed early all of our two remaining
series of convertible debentures totalling $186.0 million and bearing interest at a weighted
average rate of 6.15%. These redemptions will result in significant
interest savings in the future and in the removal of the dilution
arising from these convertible debentures, the full effect of which
will be felt in the coming quarters," said Gilles Hamel, Executive Vice President and
Chief Financial Officer of Cominar.
PRESENTATION OF RESULTS
For the quarter ended September 30,
2015, operating revenues increased to $217.9 million, up 27.3% over the comparable
period in 2014 when operating revenues were $171.3 million.
Net operating income(1) reached $122.9 million, up 25.6% compared to net
operating income in the third quarter of 2014.
Net income for the quarter increased to $74.0 million compared to $39.0 million in the third quarter of
2014.
Cash flows provided by operating activities reached
$100.6 million in the third
quarter of 2015 compared to $48.4 million in 2014.
Recurring distributable income(1) reached
$67.2 million, up 25.5% over the
third quarter of 2014. The basic recurring distributable income
per unit(1) amounted to $0.40 for the third quarter of 2015.
Recurring funds from operations(1) for the
third quarter of 2015 reached $75.9
million, up 23.0% compared to the third quarter of 2014.
Recurring funds from operations per unit fully
diluted(1) amounted to $0.45 in the third quarter of 2015.
Recurring adjusted funds from operations(1)
for the third quarter of 2015 reached $65.4
million, up 25.0% compared to the same quarter of 2014.
Fully diluted per unit, they amounted to $0.39 in the third quarter of 2015.
FINANCIAL SITUATION
As at September 30, 2015,
Cominar's debt ratio decreased to 53.8%, down from 56.1% as
at December 31, 2014. At the end of
the third quarter of 2015, total assets reached $8.2 billion.
DISPOSITIONS
On September 30, 2015, Cominar
announced that it completed the sale of one industrial and
mixed-used property and two office properties located in Montréal,
for a total purchase price of $98.0
million.
SUBSEQUENT EVENT AFTER SEPTEMBER 30,
2015
On October 9, 2015, Cominar
redeemed at maturity the floating interest rate senior unsecured
debentures $250,0 million Series 5
using the unsecured revolving operating and acquisition credit
facility.
RESULTS OF
OPERATIONS
|
|
|
Quarter
|
Year-to-date (nine
months)
|
For the periods
ended September 30
|
2015
|
2014
|
% Δ
|
2015
|
2014
|
% Δ
|
|
($000)
|
($000)
|
|
($000)
|
($000)
|
|
|
|
|
|
|
|
|
Operating
revenues
|
217,946
|
171,262
|
27.3
|
672,126
|
522,392
|
28.7
|
Operating
expenses
|
95,092
|
73,470
|
29.4
|
307,413
|
236,548
|
30.0
|
Net operating income
(1)
|
122,854
|
97,792
|
25.6
|
364,713
|
285,844
|
27.6
|
Finance
charges
|
(45,420)
|
(34,949)
|
30.0
|
(134,556)
|
(102,983)
|
30.7
|
Trust administrative
expenses
|
(3,919)
|
(2,888)
|
35.7
|
(12,246)
|
(9,254)
|
32.3
|
Transaction costs –
business combination
|
—
|
(21,524)
|
(100.0)
|
—
|
(21,524)
|
(100.0)
|
Share of joint
ventures' net income
|
572
|
707
|
(19.1)
|
1,826
|
1,995
|
(8.5)
|
Income
taxes
|
(92)
|
(141)
|
(34.8)
|
(303)
|
(452)
|
(33.0)
|
Net income
|
73,995
|
38,997
|
89.7
|
219,434
|
153,626
|
42.8
|
NON-IFRS FINANCIAL MEASURES
Net operating income, recurring distributable income (DI),
recurring funds from operations (FFO), recurring adjusted funds
from operations (AFFO) and investments in joint ventures
adjustments are not measures recognized by International Financial
Reporting Standards ("IFRS") and do not have standardized meanings
prescribed by IFRS. Such measures may differ from similar
computations as reported by similar entities and, accordingly, may
not be comparable to similar measures reported by such other
entities.
|
|
|
|
|
|
|
For the quarters
ended September 30
|
2015
|
2014
|
% Δ
|
2015
|
2014
|
% Δ
|
|
($000)
|
($000)
|
|
($ per
unit)
|
($ per
unit)
|
|
|
|
|
|
|
|
|
Net operating income
(1)
|
122,854
|
97,792
|
25.6
|
|
|
|
Recurring
distributable income (1)
|
67,229
|
53,579
|
25.5
|
0.40(2)
|
0.41(2)
|
(2.4)
|
Recurring funds from
operations (1)
|
75,900
|
61,713
|
23.0
|
0.45(3)
|
0.47(3)
|
(4.3)
|
Recurring adjusted
funds from operations (1)
|
65,429
|
52,331
|
25.0
|
0.39(3)
|
0.40(3)
|
(2.5)
|
|
|
|
|
|
|
|
(2)
basic
|
|
|
|
|
|
|
(3) fully
diluted
|
|
|
|
|
|
|
The following table presents a reconciliation of cash flows
provided by operating activities to recurring distributable income
and recurring adjusted funds from operations:
|
|
|
|
Quarter
|
Year-to-date (nine
months)
|
For the periods
ended September 30
|
2015
|
2014
|
2015
|
2014
|
|
($000)
|
($000)
|
($000)
|
($000)
|
|
|
|
|
|
Cash flows
provided by operating activities as shown in the condensed interim
consolidated financial statements
|
100,635
|
48 436
|
156,263
|
118 764
|
+
|
Adjustments -
investments in joint ventures
|
590
|
177
|
1,574
|
1,114
|
-
|
Amortization of other
assets
|
(213)
|
(229)
|
(675)
|
(641)
|
+
|
Transaction costs –
business combination
|
—
|
21,524
|
—
|
21,524
|
-
|
Provision for leasing
costs
|
(5,800)
|
(4,850)
|
(17,200)
|
(14,050)
|
+
|
Initial and
re-leasing salary costs
|
711
|
550
|
2,102
|
1,618
|
+
|
Change in non-cash
working capital items
|
(28,694)
|
(12,029)
|
56,316
|
26,310
|
Recurring
distributable income (1)
|
67,229
|
53,579
|
198,380
|
154,639
|
-
|
Capital expenditures
– maintenance of rental income generating capacity
|
(1,800)
|
(1,248)
|
(4,724)
|
(2,817)
|
Recurring adjusted
funds from operations (1)
|
65,429
|
52,331
|
193,656
|
151,822
|
The following table presents a reconciliation of the cash
flows from operating activities with funds from recurring
operations:
|
|
Quarter
|
Year-to-date (nine
months)
|
For the periods
ended September 30
|
2015
|
2014
|
2015
|
2014
|
|
($000)
|
($000)
|
($000)
|
($000)
|
|
|
|
|
|
Cash flows
provided by operating activities as shown in the condensed interim
consolidated financial statements
|
100,635
|
48,436
|
156,263
|
118,764
|
-
|
Adjustments –
investments in joint ventures
|
(1)
|
(40)
|
(77)
|
(146)
|
+
|
Amortization
|
163
|
1,336
|
1,399
|
5,135
|
-
|
Compensation expense
related to long-term incentive plan
|
(491)
|
(299)
|
(1,484)
|
(1,037)
|
+
|
Recognition of leases
on straight-line basis
|
1,903
|
1,502
|
5,694
|
3,782
|
+
|
Excess of
proportionate share of net income over distributions received from
the joint ventures
|
572
|
232
|
1,626
|
1,270
|
+
|
Transaction costs –
business combination
|
—
|
21,524
|
—
|
21,524
|
+
|
Write-off of deferred
financing costs
|
1,102
|
501
|
2,232
|
501
|
+
|
Initial and
re-leasing salary costs
|
711
|
550
|
2,102
|
1,618
|
+
|
Change in non-cash
working capital items
|
(28,694)
|
(12,029)
|
56,316
|
26,310
|
Recurring funds
from operations (1)
|
75,900
|
61,713
|
224,071
|
177,721
|
ADDITIONAL FINANCIAL INFORMATION
Cominar's condensed interim consolidated financial statements
and interim management's discussion and analysis for the third
quarter ended September 30, 2015,
will be filed with SEDAR at www.sedar.com and will be available on
Cominar's website at www.cominar.com.
CONFERENCE CALL ON NOVEMBER 5,
2015
On Thursday, November 5, 2015
at 11 a.m. (ET), Cominar's management will hold a conference
call to present the results for the third quarter of 2015. Anyone
who is interested may take part in this call by dialing 1
888 390-0605. A presentation regarding these results
will be available before the conference call on the REIT's website
at www.cominar.com, under the Conference Call header. In addition,
a taped rebroadcast of the conference call will be available from
Thursday, November 5, 2015 at
2 p.m. to Thursday, November 12, 2015 at 11:59 p.m., by dialing 1 888 390-0541
followed by this code: 432732 #.
DISTRIBUTION REINVESTMENT PLAN
Cominar offers unitholders the opportunity to participate in its
Unitholder Distribution Reinvestment Plan, which allows them to
receive their monthly cash distributions as additional Cominar
units. Participants will be entitled to receive an additional
distribution equal to 3% of the distributions reinvested, which
will be reinvested in additional units. For more information and to
obtain a participation form, please visit Cominar's website at
www.cominar.com.
PROFILE AS AT NOVEMBER 5,
2015
Cominar is the third largest diversified real estate investment
trust in Canada and currently
remains the largest commercial property owner in the Province of
Quebec. The REIT owns a real
estate portfolio of 564 properties in three different market
segments, that is, office properties, retail properties and
industrial and mixed-use properties. Cominar's portfolio totals
45.3 million square feet spread out across Quebec, Ontario, the Atlantic Provinces and
Western Canada. Cominar's
objectives are to pay growing cash distributions to unitholders and
to maximize unitholder value through proactive management and the
expansion of its portfolio.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements
with respect to Cominar and its operations, strategy, financial
performance and financial condition. These statements generally can
be identified by the use of forward-looking words such as "may",
"will", "expect", "estimate", "anticipate", "intend", "believe" or
"continue" or the negative thereof or similar variations. The
actual results and performance of Cominar discussed herein could
differ materially from those expressed or implied by such
statements. Such statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations.
Some important factors that could cause actual results to differ
materially from expectations include, among other things, general
economic and market factors, competition, changes in government
regulation and the factors described under "Risk Factors" in
Cominar's Annual Information Form. The cautionary statements
qualify all forward-looking statements attributable to Cominar and
persons acting on its behalf. Unless otherwise stated, all
forward-looking statements speak only as of the date of this press
release. Cominar does not assume any obligation to update the
aforementioned forward-looking statements, except as required by
applicable laws.
(1) Non-IFRS financial measure. See relevant section for
definition and reconciliation to closest IFRS measure.
SOURCE COMINAR REAL ESTATE INVESTMENT TRUST