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Canadian Real Estate Investment Trust Announces Fourth Quarter and 2011 Annual Results

Canadian Real Estate Investment Trust Announces Fourth Quarter and 2011 Annual Results

 

TORONTO, ONTARIO, Feb 10, 2012 (MARKETWIRE via COMTEX) -- Canadian Real Estate Investment Trust ("CREIT") CA:REF.UN -2.12% today announced results for the fourth quarter and for the year ended December 31, 2011.

For the three months ended December 31, 2011, CREIT reported Funds from Operations (FFO) of $0.62 per Unit compared to $0.58 per Unit for the same period in 2010, an increase of 7%. For the year ended December 31, 2011, CREIT reported FFO of $2.36 per Unit compared to $2.33 per Unit in 2010 representing an increase of 1%.

Stephen Johnson, President and Chief Executive Officer, said, "CREIT's financial performance for the year was very solid. At a macro level, there were three significant highlights in 2011.

First, and most importantly, our existing real estate portfolio performed well and continued again to provide reliable and strong financial results.

Second, we added $273.4 million of high-quality income producing real estate to our portfolio, through selective property acquisitions and the successful completion of several development projects.

And third, we have gained significant traction in our development program. We currently have a planned investment of $321.8 million in this program; $125.9 million of which is already invested or required to complete vertical construction already underway. In either case, these projects are not yet income producing. The balance of $195.9 million will be invested in future development phases on land that we now own. This is an exciting program that will add, over time, high-quality income producing assets to our portfolio, as developments are completed."

For the three months ended December 31, 2011 and 2010, FFO was as follows:

        
                                               Three months ended December 31
                                        --------------------------------------------
                                                                         Change
                                                                    ----------------
        ($ thousands, except per Unit
         amounts)                              2011          2010          ($)   (%)
        ----------------------------------------------------------------------------
        FFO                             $    41,628   $    38,408   $    3,220    8%
        FFO per Unit                    $      0.62   $      0.58   $     0.04    7%
        ----------------------------------------------------------------------------
        ----------------------------------------------------------------------------
        
        


The increase in FFO for the three months ended December 31, 2011 over the three months ended December 31, 2010 is a result of transaction activities, improvements in same-asset performance and a lower cost of debt.

For the year ended December 31, 2011 and 2010, FFO was as follows:

        
                                                 Year ended December 31
                                     -----------------------------------------------
                                                                        Change
                                                                   -----------------
        ($ thousands, except per Unit
         amounts)                            2011           2010         ($)    (%)
        ----------------------------------------------------------------------------
        FFO                          $    158,226   $     66,400   $  91,826    N/A
        Distribution expense                    -         39,062     (39,062)   N/A
        Unrealized fair value loss on
         future distribution
         liability                              -         49,283     (49,283)   N/A
        ----------------------------------------------------------------------------
        FFO adjusted(1)              $    158,226   $    154,745   $   3,481      2%
        FFO adjusted per Unit        $       2.36   $       2.33   $    0.03      1%
        ----------------------------------------------------------------------------
        ----------------------------------------------------------------------------
        (1) Prior to May 20, 2010, the mandatory requirement to distribute taxable
        income under CREIT's Declaration of Trust constituted a contractual
        obligation.
        At the Annual and Special Meeting of Unitholders held on May 20, 2010,
        Unitholders voted to eliminate the mandatory distribution and leave
        distributions to the discretion of the Board of Trustees. After May 20,
        2010, the Trust's Units were reflected as equity and CREIT ceased recording
        unrealized fair value gain or loss on future distributions and distribution
        expense.
        
        


The transition to IFRS results in some abnormal comparisons for the annual comparative periods. Readers are directed to the Consolidated Financial Statements and Management's Discussion and Analysis of Operations and Financial Condition (MD&A) for a description of the technical reasons for these variances.

The charts below provide a summary of net income results under IFRS for the three months and the year ended December 31, 2011 and 2010. Included in net income during 2010 is the reversal of the Specified Investment Flow Through (SIFT) deferred tax expense as a result of CREIT becoming a qualified REIT (three months ended December 31, 2010 - $424,578; year ended December 31, 2010 - $232,383).

        
                                                   Three months ended December 31
                                                                             Change
        ($ thousands, except per Unit                                 --------------
         amounts)                               2011           2010             ($)
        ----------------------------------------------------------------------------
        Income before gain on disposition
         of investment properties,
         property acquisition costs,
         foreign currency translation and
         income tax                       $   13,330   $      8,739   $       4,591
        ----------------------------------------------------------------------------
        Net income                        $   11,967   $    434,053   $    (422,086)
        ----------------------------------------------------------------------------
        Net Income per Unit               $     0.18   $       6.51   $       (6.33)
        ----------------------------------------------------------------------------
        ----------------------------------------------------------------------------
                                                    Year ended December 31
                                                                              Change
        ($ thousands, except per Unit                                 --------------
         amounts)                               2011           2010             ($)
        ----------------------------------------------------------------------------
        Income before gain on disposition
         of investment properties,
         property acquisition costs,
         distribution expense, unrealized
         fair value loss on future
         distribution liability, foreign
         currency translation and income
         tax                              $   49,673   $     39,960   $       9,713
        ----------------------------------------------------------------------------
        Net income                        $   45,802   $    184,943   $    (139,141)
        ----------------------------------------------------------------------------
        Net Income per Unit               $     0.68   $       2.78   $       (2.10)
        ----------------------------------------------------------------------------
        ----------------------------------------------------------------------------
        
        


FFO is a generally accepted supplemental measure of operating performance for real estate entities; however, it is not a measure defined by IFRS. Readers are directed to MD&A for a description of the measure and its reconciliation to Net Income.

CREIT's Consolidated Financial Statements and MD&A for the year ended December 31, 2011 are posted on CREIT's website at www.creit.ca . Readers are directed to these documents for financial details and a fulsome discussion on CREIT's results.

Cautionary Statements Regarding Forward-looking Statements

This news release contains forward-looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. We undertake no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except as required by law.

        
        Contacts:
        Canadian Real Estate Investment Trust
        Stephen Johnson
        President & Chief Executive Officer
        416-628-7878
        sjohnson@creit.ca
        
        Canadian Real Estate Investment Trust
        Tim McSorley
        Vice President & Chief Financial Officer
        416-628-7790
        tmcsorley@creit.ca
 
www.creit.ca            
        
        


SOURCE: Canadian Real Estate Investment Trust