Calloway Real Estate Investment Trust

Calloway Real Estate Investment Trust

November 09, 2005 15:42 ET

Calloway Real Estate Investment Trust: Third Quarter Results

CALGARY, ALBERTA--(CCNMatthews - Nov. 9, 2005) -


Calloway Real Estate Investment Trust (TSX:CWT.UN) (TSX:CWT.DB)is pleased to report its results for the quarter ending September 30, 2005, another period of significant growth.

During the quarter, Calloway completed the acquisition of a $1.2 billion portfolio of high quality retail properties from First Pro Group of Companies, Wal-Mart Canada Realty Inc. and other vendors. The portfolio is comprised of 35 operating shopping centres and 10 parcels of development land. These properties include 5.4 million square feet of leased area with a further developable area of approximately 2.7 million square feet. This landmark transaction closed on July 8, 2005, resulting in a doubling of the size of Calloway.

Calloway now has over 4 million square feet of new expansion and development capacity in its portfolio of 88 operating and 10 development properties. Calloway has already commenced construction of new Wal-Mart stores on three of the 10 development properties. These stores will be opening in Welland and Napanee, Ontario and Gander, Newfoundland over the next three months. In aggregate, Calloway has pre-leased over 1 million square feet of expansions and new developments most of which will be completed by the end of 2006.

Mr. Simon Nyilassy, President and CEO of Calloway, said, "We are pleased to see concrete results so soon from our development and expansion activities. We look forward to further accretive growth in these areas."

Revenues for the three months ending September 30, 2005, were $63.6 million, 80% higher than the previous quarter and approximately 2.5 times the revenue of $25.5 million for the three months ending September 30, 2004. Net income from continuing operations decreased from $3.8 million for the three months ending September 30, 2004, to $2.3 million for the three months ending September 30, 2005, primarily due to additional non-cash amortization relating to property acquisitions and one time expenses of $2.7 million related to the transition of Calloway's business and operations to Toronto from Calgary.

Distributable income, which is a non-GAAP measure commonly used by REIT's as an estimate of cash available for distribution to unitholders, more than doubled, to $22.1 million for the three months ending September 30, 2005, from $11.0 million for the three months ending September 30, 2004. On a diluted basis, distributable income per unit increased 2% over the same period in 2004, to $0.36 per unit for the three months ending September 30, 2005 from $0.35 per unit for the three months ending September 30, 2005. Year to date, distributable income increased to $1.06 per unit from $0.97 per unit in 2004, an increase of over 9%. The annualized distribution rate increased from $1.26 at December 31, 2004 to $1.45 commencing with the August 2005 distribution, an increase of 15%.

Occupancy rates continued their upward trend, with end of period results as follows: September 30, 2005 - 99.0%; June 30, 2005 - 98.4%; March 31, 2005 - 97.2%; December 31, 2004 - 97.8%; September 30, 2004 - 98.1%

Full reports of the financial results are outlined in the financial statements and management discussion and analysis, available on SEDAR. In addition, supplemental information is available on Calloway's website at

Calloway will hold a conference call on Thursday November 10, 2005 at 10:00 a.m. Eastern Time. Participating on the call will be members of Calloway's senior management.

Investors are invited to access the call by dialing 1-888-424-1784. You will be required to identify yourself and the organization on whose behalf you are participating. A recording of this call will be made available November 10, 2005 beginning at 12:00 pm (ET) through to 11:59 pm (ET) on November 17, 2005. To access the recording please call 1-800-558-5253 and use the reservation number 21264765.

The TSX has neither approved nor disapproved of the information contained herein.

Contact Information

  • Calloway Real Estate Investment Trust
    Simon Nyilassy
    President and CEO
    (905) 326-6400
    (905) 326-0783 (FAX)
    Calloway Real Estate Investment Trust
    Mark Suchan
    Chief Financial Officer
    (403) 266-6439