Canadian Real Estate Investment Trust
TSX : REF.UN

Canadian Real Estate Investment Trust

November 04, 2011 06:16 ET

Canadian Real Estate Investment Trust Announces Third Quarter 2011 Results

TORONTO, ONTARIO--(Marketwire - Nov. 4, 2011) - Canadian Real Estate Investment Trust (TSX:REF.UN) ("CREIT") today announced results for the three and nine months ended September 30, 2011.

Stephen Johnson, President and Chief Executive Officer, said, "Our financial performance for the quarter was very solid and generally in line with our expectations. Our existing real estate portfolio continues to produce strong results. As well, we have added $264.5 million of high quality assets to our portfolio since January 1, 2011, through selective property acquisitions and through our property development program. This total includes the acquisition of an industrial portfolio in the Greater Toronto Area, which closed subsequent to the September 30th quarter end."

For the three months ended September 30, 2011, CREIT reported Funds from Operations (FFO) of $0.60 per Unit compared to $0.57 per Unit for the same period in 2010, an increase of 5%. For the nine months ended September 30, 2011, CREIT reported FFO of $1.74 per Unit compared to $1.75 per Unit for the same period in 2010 representing a slight decline of less than 1%.

For the three months ended September 30, 2011 and 2010, FFO was as follows:

Three months ended September 30
Change
($ thousands, except per Unit amounts) 2011 2010 ($) (%)
FFO $ 40,172 $ 37,613 $ 2,559 7%
FFO per Unit $ 0.60 $ 0.57 $ 0.03 5%

The increase in FFO for the three months ended September 30, 2011 over the three months ended September 30, 2010 is a result of transaction activities, improvements in same-asset performance and a lower cost of debt.

For the nine months ended September 30, 2011 and 2010, FFO was as follows:

Nine months ended September 30
Change
($ thousands, except per Unit amounts) 2011 2010 ($) (%)
FFO $ 116,598 $ 24,287 $ 92,311 N/A
Distribution expense 38,175 (38,175 ) N/A
Unrealized fair value loss on future distribution liability 53,875 (53,875 ) N/A
FFO adjusted (see charts and comments below) $ 116,598 $ 116,337 $ (261 ) —%
FFO adjusted per Unit $ 1.74 $ 1.75 $ (0.01 ) (1% )

The charts below provide a summary of the three and nine months ended September 30, 2011 and 2010 net income results under IFRS. The transition to IFRS results in some abnormal comparisons for the nine-month comparative periods. The technical reasons for these variances are explained below the chart.

Three months ended September 30
Change
($ thousands, except per Unit amounts) 2011 2010 ($)
Income before gain on disposition, foreign currency translation and income tax $ 11,857 $ 9,416 $ 2,441
Net income $ 11,335 $ 10,262 $ 1,073
Net Income per Unit $ 0.17 $ 0.15 $ 0.02
Nine months ended September 30
Change
($ thousands, except per Unit amounts) 2011 2010 ($)
Income before gain on disposition, distribution expense, unrealized fair value loss on future distribution liability, foreign currency translation and income tax $ 33,534 $ 31,221 $ 2,313
Net income(1) $ 33,835 ($ 252,815 ) $ 286,650
Net Income per Unit $ 0.50 ($ 7.74 ) $ 8.24
(1) Prior to May 20, 2010, the mandatory requirement to distribute taxable income under CREIT's Declaration of Trust constituted a contractual obligation.
At the Annual and Special Meeting of Unitholders held on May 20, 2010, Unitholders voted to eliminate the mandatory distribution and leave distributions to the discretion of the Board of Trustees. After May 20, 2010, the Trust's Units were reflected as equity and CREIT ceased recording unrealized fair value gain or loss on future distributions and distribution expense.

FFO is a generally accepted supplemental measure of operating performance for real estate entities; however, it is not a measure defined by IFRS. Readers are directed to Management's Discussion and Analysis of Results of Operations and Financial Condition (MD&A) for a description of the measure and its reconciliation to Net Income.

CREIT's Consolidated Financial Statements and MD&A for the three and nine months ended September 30, 2011 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.

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.

Contact Information

  • Canadian Real Estate Investment Trust
    Stephen Johnson
    President & Chief Executive Officer
    416-628-7878
    sjohnson@creit.ca

    Canadian Real Estate Investment Trust
    Tim McSorley
    Vice President & Chief Financial Officer
    416-628-7790
    tmcsorley@creit.ca
    www.creit.ca