Charter Real Estate Investment Trust
TSX VENTURE : CRH.UN

Charter Real Estate Investment Trust

August 05, 2009 17:30 ET

Charter Real Estate Investment Trust (TSX-V: CRH.UN) Announces Second Quarter 2009 Financial Results

TORONTO, ONTARIO--(Marketwire - Aug. 5, 2009) - Charter Real Estate Investment Trust ("Charter REIT")(TSX VENTURE:CRH.UN) is pleased to announce its financial results for the quarter ended June 30, 2009.

Highlights

During the first six months of 2009, Charter REIT:

- early renewed and extended its operating and acquisition facility for a two-year term;

- has a balance sheet that remains strong, with a debt-to-gross book value ratio of 63.3%;

- finalized leases representing 78,838 square feet, equating to 88% of its total 2009 lease expiries, at rates approximately 10% higher than the rates on the expiring leases, including the replacement of a 15,000 square foot cinema tenant with a Pharmaprix store (Shoppers Drug Mart Corporation) in its Chateauguay property and the replacement of a 34,000 square foot tenant in its Mega Centre property for a one-year term;

- maintained strong portfolio occupancy at 95.9%, with approximately 74% of the portfolio leased to national tenants and an additional 17% to regional tenants; and

- had a funds from operations ("FFO") payout ratio of approximately 62% based on the current distribution level of $0.04 per quarter.

Financial highlights

- Charter REIT recorded an 18.1% increase in net operating income ("NOI") for the quarter ended June 30, 2009 compared to the quarter ended June 30, 2008, and a 27.2% increase in NOI for the six months ended June 30, 2009 compared to the six months ended June 30, 2008, both mainly relating to acquisitions that have taken place since then.

- For the quarter ended June 30, 2009, Charter REIT recorded NOI and same-property NOI of $2,671,111, compared to $2,794,806 recorded for the quarter ended March 31, 2009, with the decrease mainly relating to a one-time accounting adjustment recorded in the first quarter of 2009.

- Charter REIT recorded same-property NOI of $2,088,489 and $4,299,994 for the quarter ended and six months ended June 30, 2009, respectively, compared to $2,262,172 and $4,393,081 for the quarter ended and six months ended June 30, 2008, respectively.

- Charter REIT recorded FFO of $1,082,186 or $0.06 per unit basic and diluted for the quarter ended June 30, 2009 and $2,296,605 or $0.13 per unit basic and diluted for the six months ended June 30, 2009, an increase of 5.8% and 32.5% from the quarter ended and six months ended June 30, 2008, respectively, with the increase mainly due to the acquisitions that have taken place since then (net of financing costs on those acquisitions).

- For the quarter ended June 30, 2009, Charter REIT recorded a decrease in FFO of 10.9% compared to the quarter ended March 31, 2009 of $1,214,419 or $0.07 per unit basic and diluted, mainly relating to the decrease in NOI from the one-time accounting adjustment highlighted above.

- Charter REIT had a net loss of $664,561 or $0.04 per unit basic and diluted for the quarter ended June 30, 2009 and a net loss of $859,276 or $0.05 per unit basic and diluted for the six months ended June 30, 2009 (for the quarter ended March 31, 2009 - net loss of $194,715 or $0.01 per unit basic and diluted, for the quarter ended June 30, 2008 - net loss of $196,440 or $0.01 per unit basic and diluted and for the six months ended June 30, 2008 - net loss of $658,561 or $0.04 per unit basic and diluted).

2009 Q2 financial results

For the complete second quarter 2009 Management's Discussion and Analysis and Financial Statements, please visit www.sedar.com or www.charterreit.com.

Charter REIT

Charter Real Estate Investment Trust is an open-ended real estate investment trust established under the laws of the Province of Ontario. Charter REIT is focused on acquiring and managing a portfolio of retail and mixed-use retail community and neighbourhood centres, generally in the mid-market deal size range of $10 to $40 million, comprised of stable cash flow and value-add properties from both primary and secondary markets throughout Canada. Charter REIT's principal goal is to generate a reliable and growing yield for investors. Charter REIT currently owns ten retail properties located in Ontario and Quebec.

This press release contains forward-looking statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, local real estate conditions, including the development of properties in close proximity to Charter REIT's properties, competition, changes in government regulation, dependence on tenants, financial conditions, interest rates, the availability of equity and debt financing, environmental and tax-related matters, reliance on the Manager, potential conflicts of interest and reliance on key personnel. The cautionary statements qualify all forward-looking statements attributable to Charter REIT and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release.



Charter Real Estate Investment Trust
The Exchange Tower
130 King Street West
Suite 2810, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 364-5705
Fax: (416) 861-8166


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

Contact Information

  • Charter Real Estate Investment Trust
    Floriana Cipollone
    Chief Financial Officer
    (416) 364-5705
    (416) 861-8166 (FAX)
    www.charterreit.com