Retrocom Real Estate Investment Trust

TSX : RMM.UN


Retrocom Real Estate Investment Trust

March 06, 2014 18:29 ET

Retrocom REIT Announces 2013 Results

TORONTO, ONTARIO--(Marketwired - March 6, 2014) -

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

Retrocom Real Estate Investment Trust (TSX:RMM.UN) (the "REIT") today announced results for the fourth quarter and year ended December 31, 2013.

Highlights

  • During 2013, the REIT acquired investment properties totalling $255 million and surpassed a billion dollar asset base.
  • The REIT entered into lease agreements for a 20,000 square foot HomeSense and for a 22,000 square foot Sport Chek in the former Zellers space at Orangeville Mall with an anticipated opening for both stores in Fall 2014.
  • The REIT settled all outstanding disputes with Zellers and terminated all Zellers leases (the "Zellers Agreement") which in aggregate contributed $6.1 million and $7.6 million to FFO, adjusted for the three months and for the year ended December 31, 2013, respectively.
  • Funds from Operations, adjusted ("FFO, adjusted") was $0.208 per unit for the three months ended December 31, 2013, and was $0.557 per unit for the year ending December 31, 2013, including the impact of the Zellers Agreement.
  • FFO, adjusted was $14.8 million for the three months ended December 31, 2013, and was $36.6 million for the year ending December 31, 2013, including the impact of the Zellers Agreement.
  • On March 5, 2014, the REIT increased its operating line of credit to $50 million, maturing on March 31, 2016.
  • Weighted average term to maturity of mortgage loans at December 31, 2013 was 5.2 years.
  • During 2013, the REIT completed the offering of $65.0 million of Units at $5.25 per unit and $36.25 million of convertible debentures which carry a coupon of 5.50% and mature on June 30, 2020.
  • During 2013, the REIT obtained $85.0 million in new mortgage loans with an average term to maturity of 9.2 years and weighted average interest rate of 4.55%.

Richard Michaeloff, President and CEO of the REIT, said, "I am very pleased with Retrocom's 2013 results. The transformation of Retrocom maintained its momentum and during 2013 we surpassed one billion dollars of assets, a milestone set by management three years ago. We will continue the repositioning of Retrocom and remain focused on increasing our occupancy and further improving the quality of our portfolio."

Financial Highlights
(all amounts in $000's, except per unit amounts and ratios)
Three months ended December 31 Year ended
2013 2012 2013 2012
Rental revenue and other income 32,993 20,586 104,083 80,258
Property operating expenses 10,497 10,227 41,445 37,177
Property operating income 22,496 10,359 62,638 43,081
Share of joint venture net operating income 425 317 1,374 1,048
Net operating income (1) 22,921 10,676 64,012 44,129
Trust expenses 972 1,023 4,480 4,055
Transaction costs - - 1,502 -
Finance costs - joint venture operations 140 66 319 177
Finance costs - operations 7,027 4,440 23,773 18,647
Finance costs - subscription receipts - - 411 -
Finance costs - distributions on Class B Units 1,098 1,025 4,221 4,100
Income before fair value gains (losses) and other income 13,684 4,122 29,306 17,150
Fair value gains (losses) associated with financial instrument 6,281 2,975 19,018 (7,301 )
Fair value gain (losses) on investment property (7,642 ) 38,886 (16,311 ) 57,605
Fair value gains (losses) on participant's rights under LTIP 15 40 144 6
Fair value gains on joint venture property 646 18 1,865 647
Loss from sale of investment property - - (293 ) (105 )
Other income - - 1,048 1,090
Income for the period 12,984 46,041 34,777 69,092
FFO, adjusted (2)(3) 14,809 5,174 36,603 22,450
FFO, adjusted per unit (3) $ 0.208 $ 0.095 $ 0.557 $ 0.446

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.rmmreit.com).

(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, adjusted are included in the REIT's MD&A.
(3) Includes the impact of the Zellers Agreement.

The REIT's management considers Net Operating Income, Funds from Operations, Funds from Operations, adjusted, 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

Retrocom REIT will hold a conference call on Friday, March 7, 2014 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 416-644-3415 or 1-877-974-0445. A recording of this call will be made available Friday, March 7, 2014 beginning at 2:00 pm (ET) through to Friday, March 21, 2014. To access the recording, please call 416-640-1917 or 1-877-289-8525 and use the reservation number 4663701#.

About Retrocom REIT

Retrocom REIT 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 may contain forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", and by discussions of strategies that involve risks and uncertainties. The forward- looking statements are based on certain key expectations and assumptions made by the REIT. 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 Retrocom REIT 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.

Contact Information