TORONTO, ONTARIO--(Marketwire - Aug. 11, 2011) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY NON-CANADIAN SOURCE
Retrocom Mid-Market Real Estate Investment Trust (the "REIT") (TSX:RMM.UN) announced today its financial results for the second quarter ended June 30, 2011.
Operational & Financial Summary
Richard Michaeloff, President and CEO of the REIT, said, "In this second quarter of 2011, the REIT's active pace continued. We completed the closing of the acquisition of four properties from Calloway REIT in early May, thereby benefiting from two months of related operating results. We improved our liquidity position with the issuance of $40 million of convertible debentures at a competitive interest rate and conversion premium. With the redemption of the $20 million 7.50% convertible debentures shortly thereafter, the REIT not only addressed the maturity of the debentures that were due in 2012 at a opportune time in the capital markets, but the REIT will also benefit from substantial interest expense savings in the next year. In addition, shortly after the quarter end, we acquired a 30% interest in a GTA joint venture development project which will include the redevelopment of the REIT's 1480 Dundas Street East property. This represents our fifth redevelopment project now underway. Going forward, we will look to build on this positive momentum."
|June 30||June 30||June 30||June 30|
|(all amounts in $000's, except per unit amounts and ratios)||2011(1)||2010(1)||2011(1)||2010(1)|
|Rental revenue and other income||19,114||15,187||37,851||30,127|
|Property operating expenses||8,876||6,740||18,211||13,971|
|Net operating income(2)||10,238||8,447||19,640||16,156|
|Finance costs-distributions on Class B Units||1,025||1,025||2,050||2,050|
|Income before income taxes and fair value gains (losses)||1,209||2,829||3,242||5,025|
|Fair value gains (losses) associated with finance costs||(1,047||)||2,174||(8,515||)||(6,331||)|
|Fair value gains (losses) on investment property||(3,158||)||490||(3,412||)||606|
|Fair value losses on participant's rights under LTIP||33||55||(23||)||(48||)|
|Future income tax loss||-||(4,944||)||-||(3,492||)|
|Income (loss) for the period||(2,963||)||604||(8,708||)||(4,240||)|
|Funds From Operations, adjusted (FFO)(3)||4,258||3,912||7,283||7,032|
|FFO, adjusted per unit|
|FFO, adjusted payout ratio, accrual basis||1.04||0.79||1.13||0.88|
|FFO, adjusted payout ratio, cash basis||1.03||0.79||1.08||0.88|
|Distributions to unitholders-accrual basis(4)||4,421||3,109||8,228||6,217|
|Distributions to unitholders-cash basis(4)||4,406||3,109||7,881||6,217|
|(1)||Based on financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standard Board ("IASB"). Results of 2010 have been restated to conform to IFRS.|
|(2)||A non-IFRS measurement, calculated by the REIT as rental revenue (net rents, property tax and operating cost recoveries, as well as other miscellaneous income from tenant) less operating expenses from rental properties.|
|(3)||The reconciliations from net income (lo) to Funds From Operations, adjusted are included in the REIT's MD&A.|
|(4)||Distributions are net of the distribution reinvestment plan ("DRIP").|
The REIT's management considers Net Operating Income, Funds From Operations and Funds From Operations, adjusted, to be indicative measures in evaluating the REIT's performance. The table above includes non-IFRS information that should not be construed as an alternative to net earnings or cash flows from operations and may not be comparable to similar measures presented by other issuers as there is no standardized meaning prescribed by IFRS.
About Retrocom Mid-Market REIT
Retrocom Mid-Market REIT is an Ontario unincorporated, open-end real estate investment trust which focuses on owning and acquiring community-based commercial properties in primary and secondary markets across Canada with the objective of producing a geographically diversified portfolio of properties with stable and growing cash flows.
This document may contain forward-looking statements, which although based on Management's best estimates as well as the current operating environment are subject to risks and uncertainties. As such, terms such as "anticipate", "believe", "expect", "plan" or other similar words should be taken as forward-looking statements. As a result of these potential uncertainties, any future results could differ materially from the predictions listed herein. Although Retrocom makes every effort to meet our predictions as listed in this document, we are unable to control certain circumstances such as economic, competitive or commercial real estate conditions.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the Retrocom Mid-Market REIT have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.