OneREIT
TSX : ONR.UN

OneREIT

May 06, 2016 16:05 ET

OneREIT™ Announces First Quarter 2016 Results

TORONTO, ONTARIO--(Marketwired - May 6, 2016) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY NON-CANADIAN SOURCE

OneREIT (TSX:ONR.UN) today announced results for the first quarter ended March 31, 2016.

Highlights:
FFO payout ratio for the first quarter was 71.4%.
Internalization of property management occurred on April 1, 2016.
On March 8, 2016, the REIT obtained a new ten year mortgage loan of $15.0 million bearing an interest rate of 3.63% to refinance a maturing loan of $7.7 million bearing an interest rate of 6.50% on Plaza Don Quichotte, in Ile-Perrot, Quebec.
The weighted average cost of mortgage debt decreased to 4.50% at March 31, 2016 compared to 4.83% as at March 31, 2015.
Net operating income ("NOI") was $18.4 for the three months ended March 31, 2016, a slight decrease from the same period in 2015 due to the sale of two non-core properties.
Funds from Operations ("FFO") was $9.1 million for the three months ended March 31, 2016, which was consistent with the comparative period in 2015.
Debt to gross book value ratio (excluding and including convertible debentures) as at March 31, 2016 was 52.0% and 58.1% respectively, consistent with the ratios at December 31, 2015.
Subsequent to quarter-end:
On May 2, 2015, the REIT obtained a new five year mortgage loan of $12.5 million bearing an interest rate of 3.21% to refinance a maturing loan of $5.3 million bearing an interest rate of 5.95% on McIntyre Centre, located in Thunder Bay, Ontario.

Richard Michaeloff, President and CEO of OneREIT, said "During the first quarter of 2016, we continued to improve the quality of our REIT. We finalized a 19,000 square foot store lease to Michaels at Orangeville Mall in Orangeville, Ontario and we completed the internalization of property management for the REIT's portfolio. We remain focused on our goal of enhancing the quality of our cash flow and improving the quality of our assets while driving our occupancy higher."

Financial Highlights
Three months ended March 31
(all amounts in $000's, except per unit amounts and ratios) 2016 2015
Rental revenue and other income 30,272 31,252
Property operating expenses 12,303 13,109
Property operating income 17,969 18,143
Share of joint venture net operating income 457 452
Net operating income (1) 18,426 18,595
Trust expenses 1,245 1,039
Finance costs - joint venture operations 183 198
Finance costs - operations 7,937 8,336
Finance costs - distributions on Class B Units 830 1,240
Income before fair value gains (losses) and other income 8,231 7,782
Fair value (losses) associated with financial instruments (4,457 ) (8,482 )
Fair value (losses) on investment property (1,280 ) (755 )
Fair value gains on joint venture property 315 58
Net Income (loss) for the period 2,809 (1,397 )
FFO (2) 9,089 9,051
FFO per unit $ 0.105 $ 0.106
FFO payout ratio 71.4 % 106.1 %
Full Financial Results and MD&A will be available on SEDAR (www.sedar.com) as well as the Investors Relations section of the REIT's website (www.onereit.ca).
(1) A non-IFRS measurement, calculated by the REIT as rental revenue (net rents, property tax and operating cost recoveries, as well as other miscellaneous income from tenants) less operating expenses for properties.
(2) The reconciliations from net income (loss) to Funds from Operations are included in the REIT's MD&A.

The REIT's management considers Net Operating Income, Funds from Operations and Debt to Gross Book Value ratio to be indicative measures in evaluating the REIT's performance. The table above includes non-IFRS information that should not be construed as an alternative to net income or cash flows from operations and may not be comparable to similar measures presented by other issuers as there is no standardized meaning prescribed by IFRS.

Conference Call

OneREIT will hold a conference call on Monday, May 9, 2016 at 11:00 am (ET). Participating on the call will be members of the REIT's senior management.

Investors are invited to access the call by dialling 416-204-9702 or 1-800-524-8850. A recording of this call will be made available Monday, May 9, 2016 beginning at 2:00 pm (ET) through to Monday, May 23, 2016 ending at 2:00pm (ET). To access the recording, please call 647-436-0148 or 1-888-203-1112 and use the reservation number 4223068.

About OneREIT

OneREIT is an unincorporated, open-end real estate investment trust which focuses on owning and acquiring retail properties across Canada with the goal of enhancing long-term Unitholder value.

Forward-Looking Information

This press release contains forward-looking statements, which reflect management's expectations regarding the REIT's future growth, results of operations, performance, and business prospects and opportunities. These statements relate to, but are not limited to, the REIT's expectations, intentions, plans and beliefs. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative or grammatical variations of these terms or other comparable terminology. Readers should be aware that these statements are subject to known and unknown risks, uncertainties and other factors, including, but not limited to: those discussed or referenced under the heading "Risk Factors" in the REIT's Management's Discussion and Analysis for the three months ended March 31, 2016, as well as competition within the commercial real estate sector, the effective international, national and regional economic conditions and the availability of capital to fund further investments in the REIT's business. Actual events or results may differ materially from those suggested by any forward-looking statements. Readers should not place undue reliance on any forward-looking statements contained in this press release. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of the REIT believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the REIT nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the OneREIT have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an exemption from the registration requirements of U.S. securities laws.

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