Cagim Real Estate Corporation

Cagim Real Estate Corporation

April 30, 2008 09:19 ET

Cagim Announces Strong Year End Results

MONTREAL, QUEBEC--(Marketwire - April 30, 2008) - Cagim Real Estate Corporation (TSX VENTURE:CIM) (Cagim), a real estate management and acquisition corporation, is pleased to announce today its financial results for the fiscal year ended December 31, 2008.


- Revenues from operations increased 8.2% to $2,381,711

- Net income reached $ 0.34 per share following the sale of certain properties in the real estate portfolio.

- The book value per share reached $ 0.49 per share on December 31 2007 compared with $0.15 in 2006

Selected Financial Information:

For the fiscal year ended
December 31, 2007 2007 2006 Change%
Revenues 2,381,711 2,201,734 8,2
Gross profit 1,336,391 1,308,784 2,1
Net income for the period 4,635,375 37,014 12523,3
Basic net income per share 0,342 0,003 12095,2
EBITDA(1) 1,018,326 1,002,715 1,6
Basic EBITDA(1) per share 0,076 0,077 -1,3
Liquid assets 5,766,475 85,911 6712,1
Shareholders' equity 6,586,387 1,936,732 340,1
(1) EBITDA (earnings before interest, income taxes, depreciation and
amortization) is not an accepted performance measure as per Canadian GAAP.

Fiscal 2007 has been a positive year from all points of view. Signing of 3 partnerships that have resulted in:

- The acquisition of two properties totalling 86,901 square feet

- Construction and completion of a property of 109,534 square feet, which should generate positive inflow of funds in 2008.

- The acquisition of land for the construction of a property of over 220,000 square feet, which should be built in 2008.

In addition, the sale of 3 properties has strengthened the balance sheet and has given more financial flexibility to the Corporation and has more than tripled the book value per share from $0.15 last year to $0.49 as at 31 December 2007. Following these transactions the Corporation had, at December 31, 2007 more than $ 5.7 million in cash which puts it in an enviable position to continue its growth and opportunities of acquisition or development.

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


Revenues for the year ended December 31, 2007 ("fiscal 2007") rose to $2,381,711 from $2,201,734 in the previous year, an increase of $179,977 or 8.2%. The increase in revenues is generated by the acquisition of a 50% stake in Lombard limited partnership. It should be noted that this acquisition has contributed to the results for only 7 months in 2007. Had it not been for a non-recurring income of $ 100,000 included in income from 2006, the increase would have been 13.3%.

Net income for the year

Net income for the year was $4,635,375 ($0.342 basic per share) for fiscal 2007, compared with $37,014 ($0.003 basic per share) for 2007, an increase of $4,598,361 ($0.339 basic per share).


Shareholders' equity per share is up 340% to $0.49 per share as at 31 December 2007. Furthermore, this value does not include potential increase in value on properties from the difference between market value and book value of properties.

Liquid assets

There is a sharp increase of liquid assets to over $0.42 per share as at 31 December 2007 following the sale of certain properties.

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 Palim Inc.

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.

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

Contact Information

  • Cagim Real Estate Corporation
    Mr. Denis Lepine
    Chief Financial Officer
    Cagim Real Estate Corporation
    Mr. Guy Boutin
    Leasing and Development Officer