Cagim Real Estate Corporation
TSX VENTURE : CIM

Cagim Real Estate Corporation

November 28, 2008 10:51 ET

CORRECTION FROM SOURCE: Cagim Announces Increase in Results for Third Quarter of 2008

A correction from source is issued with respect to the press release issued this morning at 8:00 ET. In the title and in the first paragraph, it should have read "...results for the third quarter of 2008..." instead of "...results for the second quarter..." The complete and corrected version follows.

QUEBEC, CANADA--(Marketwire - Nov. 27, 2008) - Cagim Real Estate Corporation (TSX VENTURE:CIM) Cagim, a real estate management and acquisition corporation (the "Corporation"), is pleased to announce today its financial results for the third quarter ended September 30, 2008.

Highlights:

- Rental revenue from operations increased by 46.5% to $838 392 and increase by 52.0% for the first nine months of the year.

- Profit from real estate activities increased 63.6% to $239 783 (2007 - $146 531) for the current quarter and 88.8% for the first nine months of the year.

- The occupancy rate of buildings with multiple purposes, representing 4 of the 5 buildings in the real estate portfolio, reached 91.0% compared to 85.4% at the beginning of the year, this in spite of the North-American economic situation and the global economic crisis.

- Commencement of construction on the Complexe Lebourgneuf project and conclusion of a conditional temporary financing of $18.95 million. Cagim owns 50% of this project through its subsidiaries. The project consists of 212 000 square feet, situated in the region of Lebourgneuf in Quebec City.

- Secured permanent financing of $9.3 million to reimburse the bridge financing related to the Place d'Affaires Lebourgneuf phase 2 building. The new financing is subject to a more advantageous interest rate of 4.8%, over a period of 5 years. Cagim owns 50% of this project through its subsidiaries.

- More than 65 000 square feet of signed rental agreements for the Complex Lebourgneuf Complex, as of today's date,

-The liquid assets available as at September 30, 2008 were above $2.7 million.




Selected Financial Information:
For the three month period
ended September 30, 2008 Varia-
2008 2007 tion%
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Revenues (3) 838 392 572 103 46.5
Income from real estate activities
(NOI)(1)(3) 239 783 146 531 63.6
Net loss (3) (16 178) (35 543) N/A
Income from operations (FFO) (2) (3) 176 188 107 832 63.3
Liquid assets 2 715 690 162 199 1674
Shareholders' equity 4 580 232 2 995 675 52.8
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(1)Income from real estate activities (NOI) is not a measure of
performance in compliance with Canadian GAAP but is a measure commonly
used in the real estate sector.

(2)Income from operations (FFO) is not a measure of performance in
compliance with Canadian GAAP but is a measure commonly used in the
real estate sector.

(3)For purposes of comparison, the 2007 figures only take into account
those operations and therefore do not include activities related to
buildings sold in 2007


A third quarter marked by significant growth, related primarily to the commencement of the Place d'Affaires Lebourgneuf phase 2, which was under construction during the same period of last year. The remainder of the growth was due to the increase in the occupancy rate at existing buildings and from the management contract obtained on a building sold in 2007.

Management's Discussion and Analysis of Financial Position and Results of Operations

Revenues

During the quarter ended September 30, 2008, revenues from rental operations stood at $838 392 compared to $572 103 in 2007, representing an increase of 46.5% . The change in revenue between periods is mainly attributable to the Place d'Affaires Lebourgneuf phase 2 building, that contributed the amount of $192 285 (2007 - $0). The remainder of the increase resulted from internal growth, more specifically from buildings already owned by the Corporation in the first quarter of 2007 and from the management contract obtained for the Place d'Affaires Lebourgneuf phase 1 building that was sold in 2007.

Income from real estate activities

For the quarter ended September 30, 2008, income from real estate activities from continuing operations increased 63.6% to $239 783 compared to $146 531. This increase is mainly due to the Place d'Affaires Lebourgneuf phase 2 building and due to internal growth.

Capital

Shareholders' equity per share is up 49.1% compared with the first quarter of 2007 to reach $0.328 per share as at September 30 2008. Furthermore, this value does not take into consideration the potential increase in value on properties from the difference between market value and book value of properties.

Liquid assets

Liquid assets stood at $2.7 million, which is over $0.195 per category A share as of September 30, 2008.

About Cagim Real Estate Corporation

The Corporation is listed on the TSX Venture Exchange and operates property management and acquisition activities. The Corporation operates its activities through its subsidiaries ADG Immobilier Inc., Complexe Lebourgneuf Inc.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING INFORMATION - This press release contains forward-looking statements reflecting Cagim objectives, estimates, expectations and the impact of acquisitions on Cagim's financial performance. These statements are identified by the use of verbs such as "believe", "anticipate", "estimate", and "expect" as well as by the use of future or conditional tenses. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from Cagim's projections or expectations.


Contact Information

  • Cagim Real Estate Corporation
    Mr. Denis Lepine
    Chief Financial Officer
    418-622-6644
    or
    Cagim Real Estate Corporation
    Mr. Guy Boutin
    Leasing and Development Officer
    418-622-6644