Canadian Real Estate Investment Trust
TSX : REF.UN

Canadian Real Estate Investment Trust

November 09, 2007 10:41 ET

Canadian Real Estate Investment Trust Announces Third Quarter 2007 Results

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2007) - Canadian Real Estate Investment Trust ("CREIT") (TSX:REF.UN) today announced results for the three- and nine-month periods ended September 30, 2007. CREIT recorded Funds from Operations (FFO) growth of 9% per Unit for the third quarter of 2007 over the third quarter of 2006, and 10% growth per Unit for the nine-month comparable periods.

Stephen Johnson, President and Chief Executive Officer of CREIT, said, "We are very pleased with our performance for the third quarter and for the year-to-date in 2007. Our results reflect an active and productive period with contributions continuing to come from our acquisition activities, our mezzanine financing program, and our property management and leasing activities. We remain confident about the future prospects and the operating performance of CREIT."

For the three and nine months ended September 30, 2007 FFO and Net Income were as follows:



THREE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, 2007 SEPTEMBER 30, 2006 CHANGE
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$ (%)
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Total FFO (millions) $ 32.8 $ 28.5 $ 4.3 15%
Per Unit Diluted $ 0.542 $ 0.495 $ 0.047 9%
Per Unit annualized $ 2.168 $ 1.980 $ 0.188 9%
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NINE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, 2007 SEPTEMBER 30, 2006 CHANGE
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$ (%)
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Total FFO (millions) $ 93.1 $ 82.9 $ 10.2 12%
Per Unit Diluted $ 1.585 $ 1.442 $ 0.143 10%
Per Unit annualized $ 2.113 $ 1.923 $ 0.190 10%
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THREE MONTHS ENDED SEPTEMBER 30
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(millions) 2007 2006 CHANGE
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Income before income tax expense
and discontinued operations $ 19.4 $ 16.1 $ 3.3
Income tax expense (including future
income tax expense) 2.2 0.1 2.1
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Income (loss) from continuing operations 17.2 16.0 1.2
Discontinued operations - 3.3 (3.3)
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Net Income (loss) $ 17.2 $ 19.3 ($ 2.1)
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NINE MONTHS ENDED SEPTEMBER 30
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(millions) 2007 2006 CHANGE
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Income before income tax expense
and discontinued operations $ 65.4 $ 46.4 $ 19.0
Income tax expense (including future
income tax expense) 61.1 0.5 60.6
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Income (loss) from continuing operations 4.3 45.9 (41.6)
Discontinued operations - 3.9 (3.9)
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Net Income (loss) $ 4.3 $ 49.8 ($ 45.5)
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The recent Federal Budget contained provisions which substantially alter the taxation of some income trusts. It was stated that the new taxation regime was intended to exempt REITs. Certain technical requirements are imposed to qualify for this exemption. We are satisfied that we can qualify for the exemption although we have not yet taken the necessary steps for this purpose as our expectation is that changes will be made in the technical requirements relating to a REIT and that certain actions, if taken now to qualify, might thereafter be unnecessary.

Because we have not yet taken these steps, GAAP requires us to prepare our accounts on the basis that the new rules will apply to us. This gives rise to a $60.5 million future income tax expense, which we believe, upon taking the necessary steps, would be reversed. This book entry has no cash or other economic impact on the Trust, its distributions or distribution policy.

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

The Consolidated Financial Statements of the Trust for the three and the nine months ended September 30, 2007 and the MD&A are posted on CREIT's website at www.creit.ca.

CREIT is a public real estate investment trust (REIT) trading on the Toronto Stock Exchange under the symbol REF.UN.

CREIT owns a real estate portfolio in excess of 140 retail, industrial and office properties. CREIT's primary business objective is to deliver the benefits of real estate ownership to its investors.

With a disciplined approach, CREIT has consistently delivered steady growth in earnings. CREIT has provided reliable monthly distributions to investors and attractive long-term returns.

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 future 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.

Contact Information

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