Canadian Apartment Properties Real Estate Investment Trust
TSX : CAR.UN

Canadian Apartment Properties Real Estate Investment Trust

February 24, 2010 18:08 ET

CAPREIT Announces Solid Fourth Quarter 2009 Results

TORONTO, ONTARIO--(Marketwire - Feb. 24, 2010) - Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) announced today its operating and financial results for the three months and year ended December 31, 2009.



2009 HIGHLIGHTS
Three Months
Ended Year Ended
December 31 December 31
2009 2008 2009 2008
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Operating Revenues (000s) $83,827 $82,616 $ 331,032 $ 320,418
Net Operating Income ("NOI") (000s) (1) $44,826 $43,567 $ 178,924 $ 172,933
NOI Margin (%) (1) 53.5 52.7 54.1 54.0
Normalized Funds From Operations
("NFFO") Per Unit - Basic (1) $ 0.305 $ 0.293 $ 1.263 $ 1.238
NFFO Payout Ratio (%) (1) 91.9 95.0 88.5 89.8
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(1) NOI, NFFO and NFFO per Unit are measures used by management in
evaluating operating performance. Please refer to the cautionary
statements under the heading "Non-GAAP Financial Measures" and the
reconciliations provided in this press release.


Portfolio Performance

- Fourth quarter and annual operating revenues increased 1.5% and 3.3%,
respectively, due to acquisitions, higher average monthly rents and
stable occupancies
- Average monthly rents rose 1.0% as at December 31, 2009, with steady
increases in all markets except Alberta, despite a slight decrease in
occupancy to 98.0% from 98.5% last year
- Fourth quarter and year-end NOI increased 2.9% (3.2% on a stabilized
portfolio basis) and 3.5% (1.4% on a stabilized portfolio basis),
respectively
- NOI margin, occupancy levels and bad debt levels remained stable despite
the soft economic environment
- Generated sixteenth consecutive quarter of stable or improved year-over-
year NOI growth for stabilized properties

Operating Performance

- Fourth quarter NFFO increased by 5.1% and on a per Unit basis increased
by 4.1% to $0.305 per Unit
- Fourth quarter NFFO payout ratio improved to 91.9% from 95.0% in the
prior comparable period
- NFFO for the year ended December 31, 2009 increased 2.9% to $83.4
million ($1.263 per Unit) compared to $81.0 million ($1.238 per Unit)
last year, generating an improved NFFO payout ratio of 88.5% compared to
89.8% in 2008

Liquidity and Leverage

- Total debt to gross book value remains conservative at 62.75% and
improved compared to 62.97% at Q3 2009
- Achieved debt refinancing and mortgage renewal targets for 2009
- 2009 mortgage refinancings of $304.6 million, consisting of renewals of
existing mortgages of $182.0 million and additional top up financings of
$122.6 million, completed for a weighted average term of 7.1 years and
at a weighted average interest rate of 3.95%, which is significantly
below the weighted average interest rate for the mortgages that matured
in 2009 of 5.22%
- Stable interest coverage and debt coverage ratios of 2.06 and 1.28,
respectively, for 2009


PORTFOLIO OPERATING RESULTS
Three Months
Ended Year Ended
December 31 December 31
2009 2008 2009 2008
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Overall Portfolio Occupancy (%)(1) 98.0 98.5
Overall Portfolio Average Monthly
Rents (2) $ 943 $ 934
Operating Revenues (000s) $ 83,827 $ 82,616 $ 331,032 $ 320,418
Operating Expenses (000s) $ 39,001 $ 39,049 $ 152,108 $ 147,485
NOI (000s) $ 44,826 $ 43,567 $ 178,924 $ 172,933
NOI Margin (%) 53.5 52.7 54.1 54.0
Number of Suites and Sites Acquired(3) - 153 24 1,019
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(1) As at December 31.
(2) Average monthly rents are defined as actual residential rents, net of
vacancies, divided by the total number of suites in the portfolio and do
not include revenues from parking, laundry or other sources.
(3) CAPREIT'S share only.


Operating Revenues

For the three months and year ended December 31, 2009, total operating revenues increased by 1.5% and 3.3%, respectively, compared to the same periods last year primarily due to acquisitions completed in 2008 as well as increased average monthly rents and relatively stable occupancies.

Average monthly rents increased in all sectors and geographic regions of the portfolio, with the exception of Alberta, resulting in a 1.0% increase in overall average monthly rents as at December 31, 2009 to $943, compared to $934 as at December 31, 2008. Despite a slight decline from the prior year, overall occupancy at December 31, 2009 remained strong at 98.0%. The increases in average monthly rents were due to successful sales and marketing strategies and, despite the recent economic slowdown, continued strength in the residential rental sector in the majority of CAPREIT's regional markets.

For the year ended December 31, 2009, average increases of $20.5 or 2.1% per suite per month were achieved on lease renewals which represent 76.7% of total suites while marginal reductions of $5.3 or 0.5% per suite per month were experienced on suite turnovers, which represent 34.7% of total suites. The decline on suite turnovers was due primarily to the effect of aggressive rent discounting in the Alberta market. Excluding the Alberta portfolio, residential suite turnovers would have resulted in an average monthly rent increase of $5.00 or 0.5%. For the three months ended December 31, 2009, average rent increases of $18.8 or 1.9% per suite per month were achieved on lease renewals, which represent 16.9% of total suites, while marginal rent reductions of $0.4 or 0.1% per suite per month were experienced on suite turnovers, which represent 7.6% of total suites, due primarily to the effect of aggressive rent discounting in the Alberta market.

Operating Expenses

For the three months and year ended December 31, 2009, operating expenses as a percentage of operating revenues were down to 46.5% and 45.9%, respectively, compared to 47.3% and 46.0% for the same periods in 2008. The nominal increase in operating expenses through the year ended December 31, 2009, was primarily due to the increase in the size of the property portfolio resulting from acquisitions completed during 2008 as well as inflationary increases in costs. Increased repairs and maintenance costs, which include the costs of a new garbage levy introduced in the City of Toronto in late 2008 as well as implementation costs for waste recycling programs, also contributed to the increase in overall operating costs. These increases were partially offset by lower realty taxes and utility costs as a percentage of operating revenues.

Net Operating Income

Overall NOI improved in the fourth quarter by $1.3 million or 2.9% and the NOI margin improved marginally to 53.5% as compared to 52.7% in the prior year. In spite of the increase in operating costs for the year ended December 31, 2009, the increase in overall NOI for the year was $6.0 million or 3.5% while the NOI margin remained relatively stable at 54.1% as compared to the prior year.

As of December 31, 2009, CAPREIT has generated 16 consecutive quarters of stable or improved year-over-year NOI growth for stabilized properties. For the three months and year ended December 31, 2009, operating revenues for stabilized suites and sites increased 1.0% and 1.1%, respectively, and operating costs fell 1.3% and increased 0.9%, respectively. As a result, stabilized NOI increased by 3.2% and 1.4%, respectively, for the three months and year ended December 31, 2009.

"Despite the slow Canadian economy, we achieved record performance in 2009, a testament to the success of our proven operating and financial management strategies," commented Thomas Schwartz, President and Chief Executive Officer. "Looking ahead, we are well positioned with the right people and one of the country's highest quality residential property portfolios to generate further increases in revenues and cash flow as the economy recovers."



NON-GAAP FINANCIAL MEASURES
Three Months
Ended Year Ended
December 31 December 31
2009 2008 2009 2008
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NFFO (000s)(1) $ 20,178 19,200 $ 83,380 $ 80,993
NFFO Per Unit - Basic(1) $ 0.305 $ 0.293 $ 1.263 $ 1.238
Cash Distributions Per Unit $ 0.270 $ 0.270 $ 1.080 $ 1.080
NFFO Payout Ratio (%) 91.9 95.0 88.5 89.8
NFFO Effective Payout Ratio (%) 81.8 79.7 78.9 74.2
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(1) NOI, NFFO and NFFO per Unit are measures used by management in
evaluating operating performance. Please refer to the cautionary
statements under the heading "Non-GAAP Financial Measures" and the
reconciliations provided in this press release.


Normalized Funds From Operations

NFFO is not a financial measure determined by Canadian generally accepted accounting principles ("GAAP"), however, it is used by CAPREIT to assess overall operating performance. NFFO, which excludes the effect of changes in the fair value of hedging instruments and certain other non-recurring expenses, increased by 5.1% and 2.9%, respectively, for the three months and year ended December 31, 2009, compared to the same periods last year primarily due to acquisitions completed during 2008, strong progress in managing operating costs, higher average monthly rents and stable occupancy levels resulting from Management's sales and marketing programs. NFFO per Unit increased by 4.1% for the three months ended December 31, 2009 compared to the prior year period and increased 2.0% during the year ended December 31, 2009 compared to the prior year.

The payout ratio of distributions declared to NFFO improved for the three months ended December 31, 2009 to 91.9%, compared to 95.0% for the same period last year. For the year ended December 31, 2009, the payout ratio improved to 88.5% compared to 89.8% last year.

The effective NFFO payout ratio, which compares net distributions paid to Unitholders to NFFO, increased to 81.8% from 79.7%, and to 78.9% from 74.2%, respectively, for the three months and year ended December 31, 2009, primarily due to the reduction of reinvestments of distributions under the DRIP. The average DRIP participation rate decreased for the year ended December 31, 2009 to 11.6% as compared to 17.9% in the prior year.



LIQUIDITY AND LEVERAGE

As at December 31, 2009 2008
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Mortgage Debt to Gross Book Value 57.30% 57.12%
Total Debt to Gross Book Value 62.75% 61.82%
Total Debt to Total Capitalization 63.61% 59.96%

Debt Coverage Ratio (times)(1) 1.28 1.30
Interest Coverage Ratio (times)(1) 2.06 2.06

Weighted Average Mortgage Interest Rate(2) 5.07% 5.30%
Weighted Average Mortgage Term to Maturity (years) 5.1 5.0
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(1) For the year ended December 31.
(2) Effective weighted average interest rate including deferred financing
costs and fair value adjustments but excluding CMHC premiums.
Additionally, including the amortization of the realized component of
the loss on settlement of $9.9 million included in AOCL, the effective
portfolio weighted average interest rate at December 31, 2009 would be
5.15%.


Financial Strength

CAPREIT's strong balance sheet and financial position has enabled Management to take advantage of the current low interest rate environment through the combination of refinancings as well as modest increases in overall leverage.

CAPREIT is achieving its financing plan goals as demonstrated by the following key indicators:



- The ratio of total debt to gross book value as at December 31, 2009
remains conservative and increased modestly to 62.75% as compared to
61.82% last year
- At December 31, 2009, 96.2% (December 31, 2008 - 95.0%) of CAPREIT's
mortgage portfolio is CMHC-insured (excluding the mortgages on CAPREIT's
manufactured home community land lease sites)
- The effective portfolio weighted average interest rate on mortgages has
steadily declined from 5.30% as at December 31, 2008, to 5.07% as at
December 31, 2009, which will result in significant interest rate
savings in future years
- The available borrowing capacity under the Acquisition and Operating
Facility as at December 31, 2009 was $94.4 million in addition to the
Land Lease Facility capacity of $7.8 million
- During the year ended December 31, 2009, total mortgage refinancings of
$304.6 million, consisting of renewals of existing mortgages of $182.0
million and additional top up financings of $122.6 million, for a
weighted average term of 7.1 years, were completed at a weighted average
interest rate of 3.95%, which is significantly below the weighted
average interest rate of the mortgages that matured in 2009 of 5.22%


Management does not anticipate any material difficulties in renewing approximately $161.8 million of maturing mortgages and refinancing approximately $46.3 million in principal repayments through 2010, which combined have a weighted average effective interest rate of approximately 4.89%, with new mortgages at lower interest rates. Based on current interest rates for CMHC-insured mortgages, Management expects to realize interest rate savings for mortgages maturing in 2010 that will benefit CAPREIT over the long term. Management believes it will be in a position to achieve its overall 2010 mortgage renewal and refinancing plan of approximately $285 million to $300 million.

"CAPREIT possesses one of the strongest balance sheets in its industry, providing the financial resources and flexibility to capitalize on growth opportunities over both the short and the long terms," Mr. Schwartz added.

Property Capital Investment Plan

During the year ended December 31, 2009, CAPREIT invested $90.0 million in its properties as compared to $50.0 million in 2008. Property capital investments were higher compared to last year due to the acceleration of building improvement programs and completion of a greater number of suite interiors. In addition, CAPREIT continues to invest capital on environment-friendly and energy-saving initiatives, including high-efficiency heating boilers, energy-efficient lighting systems, water savings and garbage recycling programs, which have allowed CAPREIT to mitigate potentially higher increases in utility costs and have improved overall portfolio NOI.

Additional Information

More detailed information and analysis is included in CAPREIT's audited consolidated annual financial statements and Management's discussion and analysis ("MD&A") for the year ended December 31, 2009, which have been filed on SEDAR and can be viewed at www.sedar.com under CAPREIT's profile or on CAPREIT's website on the investor relations page at www.capreit.net. Additionally, supplemental information can be viewed at www.sedar.com under CAPREIT's profile and at www.capreit.net, and should be read in conjunction with the audited consolidated annual financial statements and MD&A for the year ended December 31, 2009.

Conference Call

A conference call hosted by Thomas Schwartz, President and Chief Executive Officer and Richard J. Smith, Chief Financial Officer, will be held Thursday, February 25, 2010 at 10.00 am ET. The telephone numbers for the conference call are: Local: (416) 340-8018, North American Toll Free: (800) 769-8320.

A slide presentation to accompany Management's comments during the conference call will be available one hour and a half prior to the conference call. To view the slides, access the CAPREIT web site at www.capreit.net, click on "Investor Relations" and follow the link at the top of the page. Please log on at least 15 minutes before the call commences.

The telephone numbers to listen to the call after it is completed (Instant Replay) are local (416) 695-5800 or toll free (800) 408-3053. The Passcode for the Instant Replay is 3148585#. The Instant Replay will be available until midnight, March 4, 2010. The call and accompanying slides will also be archived on the CAPREIT web site at www.capreit.net. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.capreit.net.

About CAPREIT

As one of Canada's largest residential landlords, CAPREIT (TSX:CAR.UN) is a growth-oriented investment trust owning interests in 27,614 residential suites and two manufactured home communities comprising 1,302 land lease sites located in or near major urban centres from coast to coast. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.capreit.net and our public disclosure which can be found under our profile at www.sedar.com.

Non-GAAP Financial Measures

CAPREIT prepares and releases unaudited quarterly and audited consolidated annual financial statements prepared in accordance with Canadian generally accepted accounting principles ("GAAP"). In this and other earnings releases and investor conference calls, as a complement to results provided in accordance with GAAP, CAPREIT also discloses and discusses certain non-GAAP financial measures, including NOI, FFO, NFFO and applicable per Unit amounts and payout ratios. These non-GAAP measures are further defined and discussed in the February 24, 2010 MD&A, which should be read in conjunction with this news release. Since NOI, FFO and NFFO are not determined by GAAP, they may not be comparable to similar measures reported by other issuers. CAPREIT has presented such non-GAAP measures as Management believes these non-GAAP measures are relevant measures of the ability of CAPREIT to earn and distribute cash returns to Unitholders and to evaluate CAPREIT's performance. A reconciliation of Net Income and such non-GAAP measures and Adjusted Funds From Operations ("AFFO") is included in this press release. These non-GAAP measures should not be construed as alternatives to net income (loss) or cash flow from operating activities determined in accordance with GAAP as an indicator of CAPREIT's performance.

Cautionary Statements Regarding Forward-Looking Statements

Certain statements contained, or contained in documents incorporated by reference, in this press release constitute forward- looking information within the meaning of securities laws. Forward-looking information may relate to CAPREIT's future outlook and anticipated events or results and may include statements regarding the future financial position, business strategy, budgets, litigation, projected costs, capital investments, financial results, taxes, plans and objectives of or involving CAPREIT. Particularly, statements regarding CAPREIT's future results, performance, achievements, prospects, costs, opportunities, financial outlook, including respecting capital investments, statements respecting CAPREIT's acquisition and capital investment strategy, and relating to the real estate industry generally are forward-looking statements. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative thereof or other similar expressions concerning matters that are not historical facts. Forward-looking statements are based on certain factors and assumptions regarding expected growth, results of operations, performance and business prospects and opportunities. In addition, certain specific assumptions were made in preparing forward-looking information, including that the Canadian economy will generally experience slow growth with geographic specific areas of weakness, that inflation will remain at historically low rates, that interest rates will remain stable in 2010, that Canada Mortgage and Housing Corporation ("CMHC") mortgage insurance will continue to be available and that a sufficient number of lenders will participate in the CMHC-insured mortgage program to ensure competitive rates, that conditions within the real estate market, including competition for acquisitions, will be consistent with the current climate, that the Canadian capital markets will continue to provide CAPREIT with access to equity and/or debt at reasonable rates, that vacancy rates for CAPREIT properties will be consistent with historical norms, that rental rates will grow at levels similar to the rate of inflation on renewal, that rental rates on turnovers will remain stable, that CAPREIT will effectively manage price pressures relating to its energy usage and, with respect to CAPREIT's financial outlook regarding capital investments, assumptions respecting projected costs of construction and materials, availability of trades, the cost and availability of financing, CAPREIT's investment priorities, the properties in which investments will be made, the composition of the property portfolio and the projected return on investment in respect of specific capital investments.
Although the forward-looking statements contained in this press release are based on assumptions Management believes are reasonable as of the date hereof, there can be no assurance actual results will be consistent with these forward-looking statements; they may prove to be incorrect. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond CAPREIT's control, that may cause CAPREIT or the industry's actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risks related to: real property ownership, leasehold interests, co-ownerships, investment restrictions, operating risk, energy costs, environmental, insurance, capital investments, indebtedness, interest rate hedging, taxation, harmonization of federal goods and services tax and provincial sales tax, government regulations, controls over financial accounting, International Financial Accounting Standards, legal and regulatory, the nature of units of CAPREIT ("Trust Units") and of CAPREIT's general partner, CAPLP ("CAPLP Units") (collectively, the "Units"), unitholder liability, liquidity and price fluctuation of units, dilution, distributions, participation in CAPREIT's distribution reinvestment plan, potential conflicts of interest, dependence on key personnel, general economic conditions, competition for residents, competition for real property investments, continued growth and risks related to acquisitions. There can be no assurance that the expectations of Management of CAPREIT will prove to be correct. These risks and uncertainties are more fully described in regulatory filings, including CAPREIT's Annual Information Form, which can be obtained on SEDAR at www.sedar.com, under CAPREIT's profile, as well as the MD&A accompanying the December 31, 2009 audited consolidated annual financial statements and other SEDAR filings made by CAPREIT. The information in this press release is based on information available to Management as of February 24, 2010. Subject to applicable law, CAPREIT does not undertake any obligation to publicly update or revise any forward-looking information.



SELECTED UNAUDITED FINANCIAL INFORMATION

Condensed Balance Sheets

As at December 31, 2009 2008
($ Thousands)
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Income properties $ 2,207,806 $ 2,192,945
Total assets 2,279,779 2,243,294
Mortgages payable 1,545,315 1,472,822
Bank indebtedness 146,891 121,029
Total liabilities 1,822,595 1,757,361
Unitholders' Equity 457,184 485,933
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Condensed Statements of Income (Loss) and Comprehensive Income (Loss)


Three Months Ended Year Ended
($ Thousands, except per Unit December 31, December 31,
amounts) 2009 2008 2009 2008
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Operating Revenues $ 83,827 $ 82,616 $ 331,032 $ 320,418
Operating Expenses 39,001 39,049 152,108 147,485
Depreciation and Amortization 21,297 19,320 82,176 74,989
Trust Expenses 3,664 4,180 16,834 13,155
Total Interest Expense 20,589 19,770 78,571 77,061
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Income (Loss) From Continuing
Operations Before Other Costs,
Gains (Losses) and Income Taxes (724) 297 1,343 7,728
Reorganization Costs - - - (1,599)
Unrealized Gain (Loss) on
Derivative Financial Instruments 742 (17,627) 742 (17,627)
Realized Gain on Derivative
Financial Instruments - - 4,063 -
Recovery of (Provision for) Future
Income Taxes 10,174 (8,891) 9,568 (9,134)
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Income (Loss) From Continuing
Operations 10,192 (26,221) 15,716 (20,632)
Income From Discontinued
Operations - - - 17,155
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Net Income (Loss) $ 10,192 $(26,221) $ 15,716 $ (3,477)
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Other Comprehensive Income (Loss) $ 6,143 $(11,352) $ 16,046 $ (29,046)
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Comprehensive Income (Loss) $ 16,335 $(37,573) $ 31,762 $ (32,523)
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Basic Net Income (Loss) Per Unit
Continuing Operations $ 0.154 $ (0.400) $ 0.238 $ (0.315)
Discontinued Operations $ - $ - $ - $ 0.262
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Basic Net Income (Loss) Per Unit $ 0.154 $ (0.400) $ 0.238 $ (0.053)
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Diluted Net Income (Loss) Per Unit
Continuing Operations $ 0.153 $ (0.400) $ 0.238 $ (0.315)
Discontinued Operations $ - $ - $ - $ 0.262
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Diluted Net Income (Loss) Per Unit $ 0.153 $ (0.400) $ 0.238 $ (0.053)
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Weighted Average Number
of Units (000s) - Basic 66,262 65,572 66,016 65,412
Weighted Average Number
of Units (000s) - Diluted 66,416 65,643 66,122 65,617
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Condensed Statements of Cash Flows
Three Months Year
Ended Ended
December 31, December 31,
($ Thousands) 2009 2008 2009 2008
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Cash Provided By Operating Activities:
Net Income (Loss) $10,192 $(26,221) $15,716 $(3,477)
Items in Net Income Not Affecting Cash:
Depreciation and Amortization 21,577 19,257 82,648 74,569
(Recovery of) Provision for Future
Income Taxes (10,174) 8,891 (9,568) 9,134
Other (448) 17,971 (2,882) 2,105
Changes in Non-cash Operating Assets
and Liabilities 7,734 9,780 (9,866) 3,722
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Cash Provided By Operating Activities 28,881 29,678 76,048 86,053
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Cash Used In Investing Activities (26,407) (22,377) (87,693) (81,899)
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Cash Provided By (Used In) Financing
Activities
Mortgages and Other Liabilities 13,071 9,322 73,880 63,170
Distributions, Net of DRIP and Other
Equity Issuances (15,545) (16,623) (62,235) (67,324)
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Cash Provided By (Used In) Financing
Activities (2,474) (7,301) 11,645 (4,154)
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Changes in Cash and Cash Equivalents
During the Year - - - -
Cash and Cash Equivalents, Beginning of
Year - - - -
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Cash and Cash Equivalents, End of Year $ - $ - $ - $ -
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Reconciliation of Net Income to Funds From Operations ("FFO") and to NFFO

Three Months
Ended Year Ended
December 31 December 31
($ Thousands, except per Unit amounts) 2009 2008 2009 2008
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Net Income (Loss) $10,192 $(26,221) $15,716 $(3,477)
Adjustments:
(Recovery of) Provision for Future
Income Taxes (10,174) 8,891 (9,568) 9,134
Reorganization Costs(1) - - - 1,599
Depreciation 20,380 18,583 78,648 72,007
Amortization of Tenant Improvements 69 74 294 287
Amortization of Intangible Assets 173 309 981 1,282
Amortization of Above and Below
Market Leases (1) (63) (120) (420)
Gain on Sale of Assets - - - (17,046)
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FFO $20,639 $ 1,573 $85,951 $63,366
Adjustments:
Unrealized (Gain) Loss on Derivative
Financial Instruments (742) 17,627 (742) 17,627
Realized Gain on Derivative Financial
Instruments - - (4,063) -
Retiring Allowance (2) - - 1,642 -
Amortization of Loss on Derivative
Financial Instruments included in
Mortgage Interest 281 - 592 -
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NFFO $20,178 $19,200 $83,380 $80,993
NFFO - Continuing Operations $20,178 $19,200 $83,380 $80,884
NFFO - Discontinued Operations $ - $ - $ - $ 109
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NFFO per Unit - Basic $ 0.305 $ 0.293 $ 1.263 $ 1.238
NFFO per Unit - Diluted $ 0.304 $ 0.292 $ 1.261 $ 1.234
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Distributions Declared (3) $18,547 $18,238 $73,805 $72,754
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NFFO Payout Ratio (4) 91.9% 95.0% 88.5% 89.8%
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Net Distributions Paid (5) $16,498 $15,303 $65,782 $60,107
Excess NFFO over Net Distributions
Paid $ 3,680 $ 3,897 $17,598 $20,886
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Effective NFFO Payout Ratio (6) 81.8% 79.7% 78.9% 74.2%
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(1) See Reorganization Costs under the Net Income (Loss) section in the MD&A
for year ended December 31, 2009.
(2) See Trust Expenses under the Net Income (Loss) section in the MD&A for
year ended December 31, 2009. Amount includes $122 of non-cash
compensation costs related to the accelerated vesting of LTIP and SELTIP
Units previously awarded.
(3) Based on all outstanding Units excluding Units under the Deferred Unit
Plan ("DUP").
(4) The payout ratio compares distributions declared to NFFO.
(5) Distributions declared less cash reinvested through the DRIP.
(6) The effective payout ratio compares net distributions paid to NFFO.


Reconciliation of NFFO to AFFO
Three Months
Ended Year Ended
December 31 December 31
($ Thousands, except per Unit amounts) 2009 2008 2009 2008
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NFFO $20,178 $19,200 $83,380 $80,993
Adjustments:
Maintenance Capital Investment
Provision (1) (2,977) (2,925) (11,907) (11,700)
Non-Cash Compensation for LTIP,
SELTIP and DUP 339 315 1,709 1,551
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AFFO $17,540 $16,590 $73,182 $70,844
AFFO per Unit - Basic $ 0.265 $ 0.253 $ 1.109 $ 1.083
AFFO per Unit - Diluted $ 0.264 $ 0.253 $ 1.107 $ 1.080
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Distributions Declared (2) $18,547 $18,238 $73,805 $72,754
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AFFO Payout Ratio (3) 105.7% 109.9% 100.9% 102.7%
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Net Distributions Paid (4) $16,498 $15,303 $65,782 $60,107
Excess AFFO over Net Distributions
Paid $ 1,042 $ 1,287 $ 7,400 $10,737
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Effective AFFO Payout Ratio (5) 94.1% 92.2% 89.9% 84.8%
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(1) An industry based estimate (see the Non-GAAP Measures section in the
MD&A for year ended December 31, 2009).
(2) Based on all outstanding Units excluding Units under the DUP.
(3) The payout ratio compares distributions declared to AFFO.
(4) Distributions declared less cash reinvested through the DRIP.
(5) The effective payout ratio compares net distributions paid to AFFO.


Contact Information

  • CAPREIT
    Mr. Michael Stein
    Chairman
    (416) 861-5788
    or
    CAPREIT
    Mr. Thomas Schwartz
    President & CEO
    (416) 861-9404
    or
    CAPREIT
    Mr. Richard J. Smith
    Chief Financial Officer
    (416) 861-5771