QUÉBEC CITY, Nov. 4, 2020 /CNW Telbec/ - Cominar Real
Estate Investment Trust ("Cominar" or the "REIT") (TSX: CUF.UN) is
pleased to announce its results for the quarter ended September 30, 2020.
2020 THIRD QUARTER - HIGHLIGHTS
- As announced on September 15,
2020, initiation of a formal strategic review process to
identify, review and evaluate a broad range of potential strategic
alternatives with a view to continuing to enhance unitholder
value.
- FFO1 per unit of $0.25, materially impacted by COVID-19 when
compared to $0.28 for the same period
in 2019
- Same property NOI decrease of 8.1%, including an increase of
3.0% for the office segment, a decrease of 28.3% for the retail
segment due to COVID-19, and an increase of 3.3% for the industrial
segment
- Rent collection for the quarter improved to 95.6% compared to
89.7% for the quarter ended June 30,
2020.
- Expected credit losses of $8.0 million for the quarter or 4.9% of
operating revenues, down from $18.2 million or 11.3% of operating revenues
for the quarter ended June 30,
2020.
- Decrease in the committed occupancy rate to 93.8% from 94.4%
for the same period in 2019
- 8.8% growth in the average net rent of renewed leases
(nine-month period) driven by a 20.0% increase in the industrial
segment, a 7.6% increase in the office segment and a 2.1% decrease
in the retail segment
- Available liquidity of $397.1 million, which has been partially
used to repay the $100 million debentures maturing
November 2, 2020
"Certainly, one of the most important highlights for
the quarter was the initiation mid-September of a formal strategic
review process to identify, review and evaluate a broad range of
potential strategic alternatives with a view to enhance unitholder
value" said Sylvain Cossette,
President and Chief Executive Officer of Cominar. Mr. Cossette
added, "We are conducting a rigorous process in a timely manner to
determine what is to be done to unlock the gap between our trading
price and what we believe to be the fundamental value of
Cominar."
"While still being adversely impacted by the pandemic, our
rental collection has increased to 95.6% from 89.7% in the previous
quarter. In addition, expected credit losses for the quarter
amounted to 4.9% of operating revenues compared to 11.3% in the
previous quarter" stated Antoine Tronquoy, Executive Vice-President
and Chief Financial Officer. "Despite the headwind, committed
occupancy rate remained stable quarter on quarter at 93.8% and we
recorded an 8.8% growth on the average net rent of renewed leases
for the first nine months of the year, driven by the industrial and
office segments. Last, our current liquidity position of
$397 million still provides us with healthy financial
flexibility to navigate the unknown impact and duration of the
COVID-19 pandemic."
FINANCIAL AND OPERATING HIGHLIGHTS
- Net income for the quarter ended September 30, 2020, amounted to $44.1 million compared to $47.5 million in the previous year's
comparable period. This reflects a decrease of $10.5 million in net operating income
related to the COVID-19 impact, partially offset by an increase of
$2.5 million in change in fair
value of investment properties, a decrease of $3.9 million in finance charges and a
decrease of $0.9 million in
restructuring cost. Refer to section "COVID-19 - impact analysis
and risks" of the September 30, 2020,
Management Discussion and Analysis.
- Expected credit losses, for the quarter ended September 30, 2020, were $8.0 million or 4.9% of operating revenues,
mainly due to COVID-19, of which $7.0 million is for retail, $0.9 million is for office and $0.2 million is for industrial.
- Adjusted net income1 for the quarter ended
September 30, 2020, was $44.6 million compared to $51.7 million for last year's comparable
period. The decrease is mainly due to the decrease in net operating
income related to COVID-19 and from properties sold in 2019 and
2020.
- FFO1 per unit was $0.25 for Q3 2020, compared to $0.28 per unit for Q3 2019. The decrease is
mainly due to the decrease in same property NOI related to COVID-19
and to the sale of properties during 2019 and 2020.
- AFFO1 per unit was $0.17 for Q3 2020, compared to $0.21 per unit for Q3 2019, due to the decrease
in FFO.
- AFFO payout ratio1 for Q3 2020 was 70.6%, down
from 85.7% in Q3 2019.
- Same property NOI1 for Q3 2020 was $83.1 million compared to $90.5 million for Q3 2019, resulting in a
8.1% year-over-year decrease driven by 3.0% growth in the office
portfolio and a 3.3% growth in the industrial and flex portfolio
combined with 28.3% decline in the retail portfolio. This decrease
is mainly attributable to the financial impact of COVID-19 which
impacted Cominar for the months of July, August and September 2020. Refer to section "COVID-19 -
impact analysis and risks" of the September
30, 2020, Management Discussion and Analysis.
- The growth in the average net rent on renewed leases was 8.8%
in the first nine months of 2020, compared to 2.4% for the previous
year's comparable period. Renewal rent growth was driven by a
strong 20.0% increase in the industrial and flex portfolio, a 7.6%
increase in the office portfolio partially offset by a 2.1%
decrease in the retail portfolio.
- The retention rate on expiring leases was 65.1% in Q3 2020
versus 66.0% in Q3 2019. During the first nine months of 2020, we
renewed 4.0 million square feet and signed 1.7 million
square feet of new leases representing 92.2% of 2020 expiring
leasable area.
- Committed occupancy decrease to 93.8% as at September 30, 2020, from 94.4% on September 30, 2019. In-place occupancy was 91.3%
as at September 30, 2020, up 100 bps
from 90.3% as at September 30,
2019.
- Our weighting to industrial and flex properties as a percentage
of NOI for the quarter ended September 30,
2020, is 29.6%, which has increased compared to 25.4% for
the quarter ended September 30, 2019.
The contribution of our office portfolio increased to 43.1% from
38.5% and our retail weighting decreased to 27.3% from 34.9%.
- 19.9% year-over-year increase in trust administrative expenses,
up to $4.6 million for Q3 2020
from $3.8 million in Q3 2019,
mainly due to an increase in strategic alternatives consulting fees
and salaries and other benefits.
- As at September 30, 2020, the
area previously occupied by Sears for which leases were signed or
in advanced discussions was 71%.
BALANCE SHEET AND LIQUIDITY HIGHLIGHTS
- The debt ratio was 54.4% as at September
30, 2020, up from 51.4% as at December 31, 2019, which reflects a decrease in
the fair value of investment properties of $319.5 million. The debt ratio was stable from
54.5% as at June 30, 2020.
- Debt to EBITDA1 as at September 30, 2020, was 11.4x compared to 10.6x
as at December 31, 2019.
- As at September 30, 2020, the
unencumbered asset ratio was 1.71:1, down from 1.82:1 as at
December 31, 2019. Our pool of
unencumbered properties totalled $2.0
billion as at September 30,
2020.
- Unsecured debt to total debt was 33.0% as at September 30, 2020, mainly down from 36.5% as at
December 31, 2019.
- As at September 30, 2020, Cominar
had $5.5 million of cash on hand,
$391.6 million of availability on its
$400 million unsecured renewable
credit facility.
1 Refer to section
"Non-IFRS financial measures" in this press release.
|
INVESTMENT HIGHLIGHTS
- For the nine-month period ended September 30, 2020, investments in income
properties including capital expenditures, leasing costs and
leasehold improvements totaled $87.1 million, down 8.4% from $95.2 million for last year's comparable
period. Including investments in development activities, year to
date capital expenditures totaled $102.8 million, down 11.6% from $116.4 million in 2019.
- Investment properties held for sale as at September 30, 2020, totaled $231.2 million, an increase from
$11.7 million on December 31, 2019.
COVID-19 PANDEMIC UPDATE
Rent collection
Rent Collection
Summary
|
|
Quarter ended
September 30, 2020
|
|
Quarter ended June
30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office
|
|
Retail
|
|
Industrial
|
|
Total
|
|
|
Office
|
|
Retail
|
|
Industrial
|
|
Total
|
|
Collected and
negotiated agreements
|
98.6
|
%
|
95.4
|
%
|
98.8
|
%
|
97.6
|
%
|
|
96.6
|
%
|
92.5
|
%
|
96.8
|
%
|
95.3
|
%
|
o/w Received
1
|
98.4
|
%
|
90.1
|
%
|
98.4
|
%
|
95.6
|
%
|
|
96.1
|
%
|
77
|
%
|
95.6
|
%
|
89.7
|
%
|
o/w to be
Received
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from Tenants (25%
CECRA)
|
0.1
|
%
|
0.3
|
%
|
0.3
|
%
|
0.2
|
%
|
|
0.1
|
%
|
—
|
%
|
0.3
|
%
|
0.1
|
%
|
from Tenants (other
negotiated agreements)
|
0.1
|
%
|
5.1
|
%
|
—
|
%
|
1.8
|
%
|
|
0.4
|
%
|
15.4
|
%
|
0.9
|
%
|
5.5
|
%
|
To be Received (no
agreements)2
|
1.4
|
%
|
4.6
|
%
|
1.2
|
%
|
2.4
|
%
|
|
3.4
|
%
|
7.5
|
%
|
3.2
|
%
|
4.7
|
%
|
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
Eligible for
CECRA
|
2.4
|
%
|
27.8
|
%
|
5.9
|
%
|
11.9
|
%
|
|
2.4
|
%
|
29.9
|
%
|
6
|
%
|
12.3
|
%
|
|
|
1
|
Includes payments
already received by some of the CECRA eligible tenants and the
payments received or to be received from Governments under the
CECRA program.
|
2
|
Includes tenants
that are not eligible for CECRA and those with whom no deferral or
credit/rent reduction has been granted, as such tenants are
considered to have the capacity to pay the full amount of
rent.
|
The following table highlights expected credit losses (expense)
for the quarter ended September 30,
2020:
Quarter ended
September 30, 2020
|
Office
|
|
Retail
|
|
Industrial
and flex
|
|
Total
|
|
|
|
|
|
|
Expected credit
losses on short-term rent deferrals (provision)
|
44
|
|
(427)
|
|
24
|
|
(359)
|
|
Expected credit
losses on trade receivables (provision)
|
159
|
|
4,044
|
|
(441)
|
|
3,762
|
|
|
203
|
|
3,617
|
|
(417)
|
|
3,403
|
|
Expected credit
losses - owner portion of CECRA (12.5%)
|
286
|
|
1,286
|
|
199
|
|
1,771
|
|
Expected credit
losses - rent reduction
|
386
|
|
2,078
|
|
378
|
|
2,842
|
|
Total expected credit
losses
|
875
|
|
6,981
|
|
160
|
|
8,016
|
|
Percentage of
operating revenues
|
1.3
|
%
|
11.8
|
%
|
0.4
|
%
|
4.9
|
%
|
Cominar's expected credit losses as of September 30, 2020, include estimates of
the landlord portion of the CECRA program which represents 12.5% of
the eligible tenant's rent, of the uncertainty of the
recoverability of rents related to tenants, including tenant's part
of the CECRA program, of the uncertainty of the recoverability on
short-term rent deferrals, of rent reductions provided to tenants
related to rents already recognized as a receivable when the tenant
made a request for financial assistance and of the uncertainty of
the recoverability of all other receivables.
Operating results
COVID-19 has impacted Cominar's financial results. In
particular, COVID-19 has impacted the capacity of our clients to
pay their rent in full or in part. The CECRA program requires
landlords to absorb 25% of gross rent for the months of April to
September 2020 in respect of clients
eligible for the federal program. The Québec government announced
that it will make up 50% of this loss. Cominar has also granted
several relief measures ranging from rent reductions to deferred
rent payments up to 12 months to clients ineligible for government
programs. All of these initiatives contributed to a significant
increase in rent receivable and expected credit losses of
$18.2 million for the second
quarter and $8.0 million for the
third quarter. Management estimates the portion of expected credit
losses attributable to COVID-19 at $25.2 million.
In addition, our revenues were also affected by lower revenues
from percentage leases and by decreases in temporary rentals and
parking revenues. Recoverable operating revenues also declined
significantly due to reductions in our operating expenses following
the impacts of COVID-19 and other decreases in line with our
strategic plan.
Capital expenditures and cost management
To minimize the impact on free cash flows of the pressure on
revenues resulting from the pandemic, Cominar is working to reduce
operating expenses and capital expenditures. Various initiatives
aimed at reducing or deferring operating expenses and capital
expenditures have been implemented, including reduction of tenant
incentives where feasible and capital investments, deferral of
property tax and hydro payments, temporary layoffs and reduction of
operating costs, including energy and cleaning and maintenance
service costs. These initiatives related to operations have already
reduced the same property operating expenses (excluding realty
taxes and services) for the nine-month period ended September 30, 2020, of an estimated $4.9 million when compared to budgeted
expenses. When compared to the nine-month period ended September 30, 2019, those expenses decreased by
$3.0 million. Total operating
expenses excluding the estimated COVID-19 impact and expected
credit losses decreased by $17.2 million when compared to budgeted
operating expenses for the nine-month period.
STRATEGIC REVIEW PROCESS
On September 15, 2020, we
announced the initiation of a formal strategic review process to
identify, review and evaluate a broad range of potential strategic
alternatives with a view to continuing to enhance unitholder value.
The strategic review process is overseen by a special committee of
independent trustees designated by the Board, comprised of
Luc Bachand, who acts as Chair of
the committee, Paul Campbell,
Mitchell Cohen and Karen Laflamme. Zachary
George was initially designated to be a member of the
committee. Mr. George, however, recused himself on
September 23, 2020, in light of the
potential for actual or perceived conflicts of interest. The REIT
has not established a definitive timeline to complete the strategic
review process and no decisions have been reached at this time.
There can be no assurance that this strategic review process will
result in any transaction or, if a transaction is undertaken, as to
the terms or timing of such a transaction. The REIT does not
currently intend to disclose further developments with respect to
this process, unless and until it is determined that disclosure is
necessary or appropriate.
NON-IFRS FINANCIAL MEASURES
Cominar's financial statements are prepared in accordance
with IFRS. Management uses a number of measures, which are not
standardized under IFRS and should not be construed as an
alternative to financial measures calculated in accordance with
IFRS. Cominar uses those measures to better assess its performance.
Cominar's proportionate share, same property net operating income,
funds from operations (FFO), adjusted funds from operations (AFFO),
debt ratio and debt to EBITDA 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. These non-IFRS financial measures are more
fully defined and discussed in Cominar's interim management's
discussion and analysis for the three and nine-month periods ended
September 30, 2020, available at
Cominar.com and on Sedar.com.
RESULTS OF OPERATIONS
|
Quarter
|
|
Year-to-date (nine
months)
|
Periods ended
September 30,
|
2020, ¹
|
2019 ¹
|
|
2020 ²
|
2019 ²
|
|
$
|
$
|
|
$
|
$
|
Operating
revenues
|
162,505
|
171,539
|
|
495,164
|
530,110
|
Operating
expenses
|
(81,589)
|
(80,101)
|
|
(255,933)
|
(263,004)
|
Net operating
income
|
80,916
|
91,438
|
|
239,231
|
267,106
|
Finance
charges
|
(33,575)
|
(37,486)
|
|
(109,739)
|
(110,635)
|
Trust administrative
expenses
|
(4,579)
|
(3,818)
|
|
(12,761)
|
(13,109)
|
Change in fair value
of investment properties
|
(45)
|
(2,559)
|
|
(319,468)
|
5,511
|
Share of joint
ventures' net income
|
1,588
|
1,487
|
|
(5,310)
|
4,378
|
Transaction
costs
|
(161)
|
(748)
|
|
(5,298)
|
(5,238)
|
Restructuring
costs
|
—
|
(858)
|
|
0
|
(4,774)
|
Impairment of
goodwill
|
—
|
—
|
|
(15,721)
|
—
|
Net income (loss)
before income taxes
|
44,144
|
47,456
|
|
(229,066)
|
143,239
|
|
|
|
|
|
|
Current income
taxes
|
1
|
—
|
|
66
|
—
|
Net income (loss)
and comprehensive income (loss)
|
44,145
|
47,456
|
|
(229,000)
|
143,239
|
|
|
|
|
|
|
Office
Portfolio
|
26,093
|
26,378
|
|
28,260
|
75,028
|
Retail
Portfolio
|
13,795
|
22,467
|
|
(208,960)
|
70,526
|
Industrial and Flex
Portfolio
|
20,076
|
19,063
|
|
7,117
|
64,036
|
Corporate
|
(15,819)
|
(20,452)
|
|
(55,417)
|
(66,351)
|
Net income (loss)
and comprehensive income (loss)
|
44,145
|
47,456
|
|
(229,000)
|
143,239
|
|
|
1
|
The quarter
ended September 30, 2020, includes the estimated financial impact
of COVID-19 and $0.3 million in strategic alternatives
consulting fees (includes $1.0 million from the settlement
approved by the court between Target Canada and its creditors,
$1.1 million of debenture redemption costs and
$0.9 million of restructuring costs for the quarter ended
September 30, 2019).
|
2
|
In addition to the
quarter events explained above, the nine month period ended
September 30, 2020, includes $2.5 million in yield maintenance
fees paid in connection with the debenture Series 4 redemption
and $4.6 million of penalties paid on mortgage repayments
before maturity ($3.9 million of restructuring costs and
$1.0 million in severance allowance paid following the
departure of an executive officer for the nine month period ended
September 30, 2019).
|
Net income for the third quarter of 2020 decreased by
$3.3 million compared to the
corresponding quarter of 2019. This reflects a decrease of
$10.5 million in net operating
income related to the COVID-19 impact, partially offset by an
increase of $2.5 million in
change in fair value of investment properties, a decrease of
$3.9 million in finance charges
and a decrease of $0.9 million
in restructuring cost. Refer to section "COVID-19 - impact analysis
and risks" of the September 30, 2020,
Management Discussion and Analysis.
SAME PROPERTY NET OPERATING INCOME
Same property NOI is a non-IFRS measure used by Cominar to
provide an indication of the period-over-period operating
profitability of the same property portfolio, that is, Cominar's
ability to increase revenues, manage costs, and generate organic
growth. The same property NOI includes the results of properties
owned by Cominar as at December 31,
2018, with the exception of results from the properties
sold, acquired and under development in 2019 and 2020, as well as
the rental income arising from the recognition of leases on a
straight-line basis that is a non-cash item and which, by excluding
it, will allow this measure to present the impact of actual rents
collected by Cominar.
|
Quarter
|
|
Year-to-date (nine
months)
|
Periods ended
September 30,
|
2020,
2
|
2019
|
|
2020
2
|
2019
|
|
|
$
|
$
|
% Δ
|
|
$
|
$
|
% Δ
|
Property
type
|
|
|
|
|
|
|
|
Office
|
35,817
|
34,790
|
3.0
|
|
104,553
|
101,261
|
3.3
|
Retail
|
23,095
|
32,214
|
(28.3)
|
|
70,852
|
93,107
|
(23.9)
|
Industrial and
flex
|
24,224
|
23,453
|
3.3
|
|
69,810
|
68,000
|
2.7
|
Same property NOI
— Cominar's proportionate share 1
|
83,136
|
90,457
|
(8.1)
|
|
245,215
|
262,368
|
(6.5)
|
Properties sold,
acquired and under development in 2019 and 2020
|
309
|
3,457
|
(91.1)
|
|
1,588
|
12,092
|
(86.9)
|
NOI — Cominar's
proportionate share 1
|
83,445
|
93,914
|
(11.1)
|
|
246,803
|
274,460
|
(10.1)
|
NOI — Financial
statements
|
80,916
|
91,438
|
(11.5)
|
|
239,231
|
267,106
|
(10.4)
|
NOI — Joint
ventures
|
2,529
|
2,476
|
2.1
|
|
7,572
|
7,354
|
3.0
|
|
|
1
|
Refer to section
"Non-IFRS financial measures" in this press release.
|
2
|
The quarter and
the nine-month period ended September 30, 2020, include the
estimated financial impact of COVID-19. Refer to
section "COVID-19 - impact analysis and risks" of the
September 30, 2020, Management Discussion and
Analysis.
|
Third quarter decrease of 8.1% in same property NOI according to
Cominar's proportionate share is attributable to the financial
impact of COVID-19 which impacted Cominar for the months of July,
August and September 2020. Refer to
section "COVID-19 - impact analysis and risks" of the September 30, 2020, Management Discussion and
Analysis.
FUNDS FROM OPERATIONS (FFO) AND ADJUSTED FUNDS FROM
OPERATIONS (AFFO)
FFO is a non-IFRS measure which represents a standard real
estate benchmark used to measure an entity's performance, and is
calculated by Cominar as defined by REALpac as net income
(calculated in accordance with IFRS) adjusted for, among other
things, changes in the fair value of investment properties,
deferred taxes and income taxes related to a disposition of
properties, derecognition and impairment of goodwill, initial and
re-leasing salary costs, adjustments relating to the accounting of
joint ventures and transaction costs incurred upon a business
combination or a disposition of properties. Management believes FFO
to be a useful earnings measure as it adjusts net income for items
that are not related to the trend in occupancy levels, rental rates
and property operating costs.
AFFO is a non-IFRS measure which, by excluding from the
calculation of FFO the rental income arising from the recognition
of leases on a straight-line basis, the investments needed to
maintain the property portfolio's capacity to generate rental
income and a provision for leasing costs is calculated as defined
by REALpac. Management believes AFFO provides a meaningful measure
of Cominar's capacity to generate steady profits.
The following table presents a reconciliation of net income, as
determined in accordance with IFRS, and funds from operations and
adjusted funds from operations:
|
Quarter
|
|
Year-to-date (nine
months)
|
Periods ended
September 30,
|
2020,¹
|
|
2019
|
|
2020 ¹
|
|
2019
|
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
Net income
(loss)
|
44,145
|
|
47,456
|
|
|
(229,000)
|
|
143,239
|
|
Initial and
re-leasing salary costs
|
990
|
|
879
|
|
|
2,836
|
|
2,481
|
|
Change in fair value
of investment properties 2
|
45
|
|
2,559
|
|
|
329,471
|
|
(5,511)
|
|
Capitalizable
interest on properties under development — joint
ventures
|
96
|
|
160
|
|
|
369
|
|
515
|
|
Transaction
costs
|
161
|
|
748
|
|
|
5,298
|
|
5,238
|
|
Impairment of
goodwill
|
—
|
|
—
|
|
|
15,721
|
|
—
|
|
FFO 2,
3
|
45,437
|
|
51,802
|
|
|
124,695
|
|
145,962
|
|
Provision for leasing
costs
|
(8,057)
|
|
(8,075)
|
|
|
(22,486)
|
|
(24,524)
|
|
Recognition of leases
on a straight-line basis 2
|
423
|
|
254
|
|
|
397
|
|
128
|
|
Capital expenditures
— maintenance of rental income generating capacity
|
(6,045)
|
|
(5,611)
|
|
|
(16,950)
|
|
(16,228)
|
|
AFFO 2,
3
|
31,758
|
|
38,370
|
|
|
85,656
|
|
105,338
|
|
Payout ratio of
AFFO 3, 4
|
70.6
|
%
|
85.7
|
%
|
|
102.1
|
%
|
93.1
|
%
|
|
|
|
|
|
|
FFO -
Office portfolio1
|
26,902
|
|
27,513
|
|
|
73,300
|
|
79,823
|
|
FFO - Retail
portfolio1
|
13,989
|
|
25,206
|
|
|
39,837
|
|
74,211
|
|
FFO - Industrial and
flex portfolio1
|
20,268
|
|
19,375
|
|
|
56,604
|
|
57,764
|
|
FFO -
Corporate1
|
(15,722)
|
|
(20,292)
|
|
|
(45,046)
|
|
(65,836)
|
|
FFO
|
45,437
|
|
51,802
|
|
|
124,695
|
|
145,962
|
|
|
|
|
|
|
|
AFFO - Office
portfolio1
|
19,681
|
|
29,100
|
|
|
52,809
|
|
59,303
|
|
AFFO - Retail
portfolio1
|
10,316
|
|
26,269
|
|
|
29,025
|
|
61,563
|
|
AFFO - Industrial and
flex portfolio1
|
17,450
|
|
19,443
|
|
|
48,867
|
|
50,309
|
|
AFFO -
Corporate1
|
(15,689)
|
|
(36,442)
|
|
|
(45,045)
|
|
(65,837)
|
|
AFFO
|
31,758
|
|
38,370
|
|
|
85,656
|
|
105,338
|
|
|
|
(1)
|
The quarter and
the nine-month period ended September 30, 2020, include the
estimated financial impact of COVID-19.
|
(2)
|
Including
Cominar's proportionate share in joint ventures.
|
(3)
|
Refer to section
"Non-IFRS financial measures" in this press release.
|
(4)
|
Fully
diluted.
|
FFO and AFFO for the quarter ended September 30, 2020, include, among others,
0.3 million in strategic alternatives consulting fees and the
estimated COVID-19 financial impact. Excluding strategic
alternatives consulting fees, FFO would have been $45.7 million or $0.25 per unit in 2020 compared to $52.7 million or $0.29 per unit in 2019. AFFO would have been
$32.0 million or $0.18 per unit in 2020 compared to $39.3 million or $0.22 per unit in 2019 and consequently, AFFO
adjusted payout ratio would have been 67%.
OCCUPANCY RATES
As at
|
Montreal
|
|
Québec
City
|
|
Ottawa
|
|
Total
|
September 30,
2020
|
Committed
|
In-Place
|
|
Committed
|
In-Place
|
|
Committed
|
In-Place
|
|
Committed
|
In-Place
|
Property
type
|
|
|
|
|
|
|
|
|
|
|
|
Office
|
91.4
|
%
|
90.1
|
%
|
|
97.6
|
%
|
96.8
|
%
|
|
92.6
|
%
|
91.8
|
%
|
|
93.0
|
%
|
91.9
|
%
|
Retail
|
92.1
|
%
|
88.0
|
%
|
|
89.5
|
%
|
84.7
|
%
|
|
87.5
|
%
|
59.4
|
%
|
|
90.9
|
%
|
85.6
|
%
|
Industrial and
flex
|
96.3
|
%
|
94.5
|
%
|
|
96.0
|
%
|
95.1
|
%
|
|
N/A
|
|
N/A
|
|
|
96.3
|
%
|
94.6
|
%
|
Portfolio
total
|
94.0
|
%
|
91.8
|
%
|
|
93.9
|
%
|
91.4
|
%
|
|
91.9
|
%
|
86.8
|
%
|
|
93.8
|
%
|
91.3
|
%
|
SUBSEQUENT EVENT
On November 2, 2020, Cominar
reimbursed at maturity its Series 3 senior unsecured
debentures totalling $100.0 million and bearing interest at 4.00%
using its unsecured renewable credit facility.
ADDITIONAL FINANCIAL INFORMATION
Cominar's condensed interim consolidated financial statements
and interim management's discussion and analysis for the third
quarter of 2020 are filed with SEDAR at sedar.com and are available
on Cominar's website at cominar.com.
CONFERENCE CALL ON NOVEMBER 4,
2020
On Wednesday, November 4, 2020, at 11 a.m.
(ET), Cominar's management will hold a conference call to present
the results for the third quarter of 2020. In order to participate
please dial 1 888 390-0546. A presentation will be
available before the conference call on the REIT's website at
cominar.com, under the Conference Call header. In addition, a
replay of the conference call will be available from Wednesday,
November 4, 2020, at 2 p.m. to Wednesday,
November 11, 2020, at 11:59 p.m., by dialing
1 888 390-0541 and entering
passcode: 356349#.
PROFILE AS AT NOVEMBER 4, 2020
Cominar is one of the largest diversified real estate investment
trusts in Canada and is the
largest commercial property owner in the Province of Québec. Our
portfolio consists of 314 high-quality office, retail and
industrial properties, totalling 35.8 million square feet
located in the Montreal, Québec
City and Ottawa areas. Cominar's
primary objective is to maximize total return to unitholders by way
of tax-efficient distributions and maximizing the unit value
through the proactive management of our portfolio.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements with
respect to Cominar and its operations, strategy, financial
performance and financial position. 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 and the
use of conditional and future tenses. 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.
SOURCE COMINAR REAL ESTATE INVESTMENT TRUST