Charter Real Estate Investment Trust
TSX VENTURE : CRH.UN

Charter Real Estate Investment Trust

August 06, 2008 16:42 ET

Charter Real Estate Investment Trust (TSX VENTURE:CRH.UN) Announces Q2 2008 Financial Results

TORONTO, ONTARIO--(Marketwire - Aug. 6, 2008) - Charter Real Estate Investment Trust ("Charter REIT") (TSX VENTURE:CRH.UN) is pleased to announce its financial results for the quarter ended June 30, 2008.

Highlights

During the second quarter and the first six months of 2008, Charter REIT:

- acquired its seventh property - Place Val Est in Sudbury, a 110,313 square foot grocery-anchored retail strip centre for an aggregate purchase price of $14,720,000, bringing total assets acquired to approximately $112,000,000 since January 1, 2007;

- has a balance sheet that remains strong, with a debt-to-gross book value of 54.6%;

- currently has $10,775,000 available under its acquisition facility, for remaining acquisition capacity of between $27,000,000 and $31,000,000, while a further $14,000,000 bridge facility from C.A. Bancorp Inc. remains undrawn;

- established a Distribution Reinvestment and Optional Unit Purchase Plan, which currently has approximately 26% participation by existing unitholders, saving Charter REIT significant cash in terms of its monthly distributions; and

- had an average occupancy rate for the portfolio of 97.8%, slightly higher than 97.5% at the end of the first quarter.

Financial highlights

- As of June 30, 2008, Charter REIT's total assets increased to $112,908,227 (December 31, 2007 - $99,576,433), reflecting the Place Val Est acquisition in January 2008.

- For the quarter ended June 30, 2008, Charter REIT recorded net operating income from its properties of $2,262,172, representing an 11% increase from the quarter ended March 31, 2008 of $2,034,971 and a 181% increase from the quarter ended June 30, 2007 of $804,802.

- Same property net operating income for the quarter ended June 30, 2008 was 6.2% higher at $2,262,172, compared to $2,130,909 for the quarter ended March 31, 2008.

- For the quarter ended June 30, 2008, Charter REIT had a net loss of $230,240 or $0.01 per unit basic and diluted (for the quarter ended March 31, 2008, net loss was $468,977 or $0.03 per unit basic and diluted and for the quarter ended June 30, 2007, net loss was $1,145,407 or $0.52 per unit basic and diluted).

- For the quarter ended June 30, 2008, Charter REIT's funds from operations ("FFO") were $988,711 or $0.06 per unit basic and diluted, an increase of 41% from the quarter ended March 31, 2008 of $703,490 or $0.04 per unit basic and diluted and an increase of $1,611,468 from the quarter ended June 30, 2007 of $(622,757) or $(0.28) per unit basic and diluted.

2008 Q2 financial results

For the complete Q2 2008 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 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 seven 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 and Charter REIT has no obligation to update such statements except as required by law.



The Exchange Tower
130 King Street West
Suite 2240, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 364-5705
Fax: (416) 364-2410

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) 364-2410 (FAX)
    Website: www.charterreit.com