SOURCE: Canadian Real Estate Investment Trust

Canadian Real Estate Investment Trust

February 09, 2017 17:00 ET

Canadian Real Estate Investment Trust Announces Fourth Quarter and 2016 Annual Results

TORONTO, ON--(Marketwired - February 09, 2017) - Canadian Real Estate Investment Trust ("CREIT") (TSX: REF.UN) today announced results for the fourth quarter and the year ended December 31, 2016.

For the three months ended December 31, 2016, CREIT reported Funds from Operations ("FFO") of $0.84 per Unit compared to $0.76 per Unit for the same period in 2015, an increase of 10.5%. The results include lease termination income of $1.1 million earned during the three months ended December 31, 2016 ($0.1 million for the three months ended December 31, 2015). Excluding the impact of lease termination income in both quarters, FFO for the current quarter increased by 7.9% ($0.82 per Unit in the fourth quarter of 2016, up from $0.76 per Unit in the same period of 2015).

Stephen Johnson, Chief Executive Officer, stated "We are very pleased with our strong performance in 2016. We delivered solid FFO growth in the fourth quarter and for the year, driven by a combination of strong leasing activity and incremental income through our acquisitions and development initiatives. This FFO growth was achieved in spite of a meaningful decline in net operating income from our Calgary office portfolio."

For the year ended December 31, 2016, CREIT reported FFO of $3.28 per Unit compared to $3.03 per Unit in 2015, an increase of 8.3%. The results include lease termination income of $9.1 million earned during the year ended December 31, 2016 and $0.3 million earned in 2015. Excluding the impact of lease termination income in both years, FFO for 2016 increased by 4.0% ($3.15 per Unit in 2016, up from $3.03 per Unit in 2015).

For the three months ended December 31, 2016 and 2015, FFO was as follows:

  Three months ended December 31
        Change
($ thousands, except per-Unit amounts) 2016  2015  ($)  (%)
FFO $61,488  $55,213  $6,275  11.4%
FFO per Unit $0.84  $0.76  $0.08  10.5%

For the year ended December 31, 2016 and 2015, FFO was as follows:

  Year ended December 31
        Change
($ thousands, except per-Unit amounts) 2016  2015  ($)  (%)
FFO $239,753  $220,619  $19,134  8.7%
FFO per Unit $3.28  $3.03  $0.25  8.3%

The charts below provide a summary of net income for the three months and year ended December 31, 2016 and 2015.

  Three months ended December 31
($ thousands, except per Unit amounts)       Change
2016  2015  ($)
Net income excluding fair value gains (losses), property acquisition costs and income taxes $60,438  $54,346  $6,092
Net income $19,708  $89,068  $(69,360)
Net income per Unit $0.27  $1.22  $(0.95)
  Year ended December 31
($ thousands, except per Unit amounts)       Change
2016  2015  ($)
Net income excluding fair value gains (losses), property acquisition costs and income taxes $235,834  $217,307  $18,527
Net income $135,598  $198,586  $(62,988)
Net income per Unit $1.85  $2.73  $(0.88)

Financial Measures and Additional Financial Information
FFO is a generally accepted supplemental measure of operating performance for real estate entities; however, it is not a measure defined by International Financial Reporting Standards. Readers are directed to CREIT's Consolidated Financial Statements and MD&A for a description of the measure and its reconciliation to net income.

CREIT's Consolidated Financial Statements and MD&A for the year ended December 31, 2016 are posted on CREIT's website at www.creit.ca. Readers are directed to these documents for financial details and a fulsome discussion on CREIT's results.

Conference Call
Interested parties are invited to discuss the financial results on a conference call with senior management. Conference call details are as follows:

Date: Friday, February 10, 2017 at 11:00 a.m. EST

Dial-in number: (647) 427-2311 or (866) 521-4909

Conference call ID: 52837919

A taped replay of the call will be available until March 10, 2017. To access the replay, please dial (416) 621-4642 or (800) 585-8367.

Webcast:

Alternatively, to access the simultaneous webcast, please click on the following link on CREIT's website: http://www.creitwebcast20170210.com/. The webcast will be archived for one year.

About CREIT
CREIT is a real estate investment trust focused on accumulating and aggressively managing a portfolio of high-quality real estate assets and delivering the benefits of real estate ownership to Unitholders. The primary benefit is a reliable and, over time, increasing monthly cash distribution. CREIT owns a diversified portfolio of retail, industrial and office properties.

Cautionary Statements Regarding Forward-looking Statements
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 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, except as required by law.

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