Cagim Real Estate Corporation
TSX VENTURE : CIM

Cagim Real Estate Corporation

April 30, 2010 09:00 ET

Cagim Announces Increase in Results for Fiscal Year 2009

QUEBEC, CANADA--(Marketwire - April 30, 2010) - Cagim Real Estate Corporation (TSX VENTURE:CIM), a real estate management and acquisition corporation (the "Corporation"), is pleased to announce its financial results for the fiscal year 2009 ended December 31, 2009.

Highlights:

  • Growth in operating revenues of 2.4 % or 15.6 %, excluding non-recurring income for 2008.
  • Increase in net operating income of 0.8 % or 25.8 %, excluding non-recurring income for 2008.
  • Income from real estate operations rose by 45 %, excluding non-recurring income for 2008.
  • Continued construction of Complexe Lebourgneuf, a building of over 232,000 square feet. As at December 31, 2009, this project represented an investment of $3,136,873 for the Corporation. Cagim owns 50% of this project through one of its subsidiaries. The property will be included in the results for the first quarter 2010.
  • Acquisition of 100 % of the shares of Société Immobilière Albatros Inc., which holds as its principal asset a commercial building located in St-Augustin-de-Desmaures, Quebec. The building has a single AAA quality tenant for a term covering the next 15 years.
  • The Corporation became co-owner of commercial land located in Quebec City's Lebourgneuf district (adjacent to the Complexe Lebourgneuf property currently under development) for the purposes of future development.

Subsequent major event:

On March 31, 2010, BTB Real Estate Investment Trust ("BTB") submitted an offer to purchase all issued and outstanding Class "A" shares of the Corporation for $1.05 per share in cash. The offer represents a 40% premium over the Corporation's closing price on the TSX-V, which was at $0.75 on the last market day prior to the Corporation's announcement of BTB's decision to make the offer, and a premium of about 43% over the Corporation's closing price on the TSX-V over the course of the 20 business days preceding the offer.

Cagim's Board of Directors unanimously recommends that its shareholders accept the offer and tender their common shares in response.

Selected Financial Information:

For fiscal year ended December 31, 2009 2009   2008   Variation %  
Operating revenues (2) $4,236,566   $4,139,001   2.4  
Net operating income (NOI)(1) (4) $2,304,840   $2,286,718   0.8  
Net loss (3) ($215,334 ) ($43,054 ) N/A  
Basic and diluted net loss per outstanding share ($0.015 ) ($0.003 ) N/A  
Dividend per share nil   $0.15   N/A  
Occupancy rate of income properties 89.0 % 89.1 % (0.1 )
(1) Net operating income (NOI) is not a measure of performance in compliance with Canadian GAAP, but is a measure commonly used in the real estate sector.
(2) In 2008, operating revenues included non-recurring revenues of $475,000 related to a lease buy back.
(3) In 2008, results included non-recurring income of $263,941 related to a lease buy back.
(4) In 2008, results included non-recurring NOI of $453,625

A fiscal year marked by continued growth lead to a higher occupancy rate at Place d'Affaires Lebourgneuf, Phase 2 and the acquisition of Société Immobilière Albatros Inc. Both events account in large part for the increase that offset the non-recurring income of 2008. The Corporation continued its development by investing $10,602,134 in the Complexe Lebourgneuf property, acquiring land for future development and the acquisition of 100 % of the shares of Société Immobilière Albatros Inc. 

Management Discussion and Analysis of Financial Position and Results of Operations

Operating revenues

During the fiscal year ended December 31, 2009, operating revenues from continuing operations totalled $4,236,566, compared to $4,139,001 in 2008, representing a 2.4% increase or 15.6%, excluding the non-recurrent revenue of 2008. The higher occupancy rate at Place d'Affaires Lebourgneuf, Phase 2 and the acquisition of Société Immobilière Albatros Inc. in 2009 explain much of the increase which offset the non-recurring revenue of 2008.

Net operating income (NOI)

Net operating income was $2,304,840 for the fiscal year ended December 31, 2009, compared to $2,286,718 in 2008. This represents a 0.8% increase over the 2008 fiscal year. Excluding the non-recurring NOI of $453,625 recorded in 2008, the increase is of 25.8% which is due to a number of factors. This increase is primarily related to a higher occupancy rate at Place d'Affaires Lebourgneuf, Phase 2 and the acquisition of Société Immobilière Albatros Inc. in 2009.

Net loss

The Corporation posted a net loss of $215,344 or $0.15 per share for fiscal year 2009, compared to a net loss of $43,504 or $0.003 per share in 2007. Results in 2008 included non-recurring income of $263,941 due to a lease buy back. If this income is excluded, the results improve by $92,111, despite the fact that interest income was down 71% or $90,973 due to a drop in interest rates on fixed-term deposits observed on all financial markets following the global financial crisis that began in fall 2008.

Occupancy Rate

The occupancy rate was 89.0% as at December 31, 2009, compared to 89.1% as at December 31, 2008. The occupancy rate would have been 90.8% had it not been for the 7,995 square foot expansion of one building in 2009, which had not yet been leased as at December 31, 2009. 

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. and Société Immobilière Albatros Inc.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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