Cominar completed $2.6 billion worth of strategic acquisitions and raised $1.1
billion in new capital in 2012
QUÉBEC CITY, March 14, 2013 /CNW Telbec/ - Cominar Real Estate Investment
Trust ("Cominar" or the "REIT") (TSX: CUF.UN) announced today the results for
the fourth quarter and for fiscal year 2012.
Highlights for fiscal year ended December 31, 2012
-- Increased operating revenues by 77.7%
-- Increased net income by 92.8%
-- Increased total assets by 103.1%, totalling $5.6 billion
-- Invested $2.6 billion in acquisitions
-- Obtained BBB (low) credit rating from DBRS
-- Raised $1.1 billion in new capital
-- Reduced debt ratio to 50.0%
Subsequent Event after December 31, 2012
-- $149.8 million acquisition (18 industrial properties and one
office building in the Montréal area).
"Fiscal 2012 will always go down in Cominar's history as a year of phenomenal
asset growth and the successful execution of our strategic plan. Our challenge
was daunting: prioritize the reduction of our debt ratio while maintaining a
slight increase in per-unit results and a strong acquisition strategy that
allowed us to expand the geographic and segment diversification of our
portfolio. The results are in and they are conclusive. We must remember that
when we began our debt reduction efforts in the fall of 2011, our debt ratio
was 54.6%, compared to 50.0% as at December 31, 2012," said Michel Dallaire,
President and Chief Executive Officer of Cominar.
"We are taking on 2013 with enthusiasm and vigour, and we are better
positioned today than ever before. We have considerably expanded our reach and
created a critical mass of resources to serve our customers at the local and
national levels. We are determined to stay focused and manage our operations
with transparency, caution, efficiency, integrity and rigour, to stay attuned
to our clientele and to value the investments of those who have placed their
trust in us," concluded Mr. Dallaire.
PRESENTATION OF FINANCIAL RESULTS
For the year ended December 31, 2012, Cominar's operating income totalled
$564.5million, up 77.7 %. This increase is mainly due to the contribution of
the acquisitions made in 2011 and 2012.
Net operating income reached $317.8 million, up 72.1% over fiscal 2011.
Net income grew to $342.2 million, an increase of 92.8% over fiscal 2011.
Recurring net distributable income per unit (fully diluted) was $1.53,
compared to $1.52 in 2011.
Recurring funds from operations totalled $200.5 million, up 79.1%.
Recurring funds from operations per unit (fully diluted) totalled $1.78,
compared to $1.65 in 2011, up 7.9%. Recurring adjusted funds from operations
per unit (fully diluted), after taking into account the impact of the
reduction in debt ratio achieved by Cominar in 2012, amounted to $1.56, up
$0.06 or 4%, compared to 2011.
In 2012, distributions to unitholders totalled $164.0 million, compared to
$95.6 million in 2011, representing an increase of 71.6%. The distribution per
unit remained stable at $1.44.
As at December 31, 2012, Cominar had a debt ratio of 50.0%. The interest
coverage ratio remained conservative at 2.74:1, and the weighted average
interest rate of long-term debt was 4.93%, compared to 5.54% as at December
As at December 31, 2012, the average occupancy rate of our properties stood at
93.9%, compared to 93.6% in 2011. Cominar renewed 74.2% of leases maturing in
2012 and signed new leases representing a total leasable area of 1.2 million
Acquired Canmarc Real Estate Investment Trust for $1.9 billion, increasing
leasable area by 44% and allowing Cominar to penetrate the Western Canada
market, namely in Calgary, to support future growth.
Acquired three fully rented income properties in Manitoba, Nova Scotia and
Quebec at a cost of $11.6 million, at a capitalization rate of 8.6%, which
added 0.1 million sq. ft. to the industrial property portfolio.
Acquired a portfolio of 67 income properties from GE Capital Real Estate for
$697 million, increasing leasable area by 14.1% and adding a platform in
Acquired a fully rented income property located in Brockville, Ontario, at a
cost of $4.4 million, and at a capitalization rate of 9.1%.
-- Improved Cominar's position and obtained a BBB (low) credit
rating from DBRS
-- Completed three issues of unsecured debentures for a total of
$450 million, whose net proceeds were allocated to the
repayment of existing debt, replacing short-term debt with
-- Redeemed Series A and B convertible debentures outstanding for
$86 million, which led to a non-recurring charge of $981,000
due to the write-off of capitalized financing costs
-- Issued 28,088,750 units for gross proceeds of over $661 million
ADDITIONAL FINANCIAL INFORMATION
Cominar's consolidated financial statements and management's discussion and
analysis for the year ended December 31, 2012, will be filed with SEDAR at
www.sedar.com and will be available on Cominar's website at www.cominar.com.
MARCH 14, 2013, CONFERENCE CALL
On Thursday, March 14, 2013, at 11:00 a.m. (EST), Cominar's management will
hold a conference call to present the results for fiscal 2012. Anyone who is
interested may take part in this call by dialing 1.888.231.8191. A
presentation regarding these results will be available before the conference
call on the REIT's website at www.cominar.com, under the Conference Call
header. In addition, a taped re-broadcast of the conference call will be
available from Thursday, March 14, 2013, at 2:00 p.m. to Thursday, March 21,
2013, at 11:59 p.m., by dialing 1.855.859.2056 followed by this code:
DISTRIBUTION REINVESTMENT PLAN
Cominar offers unitholders the opportunity to participate in its Unitholder
Distribution Reinvestment Plan, which allows them to reinvest their monthly
distributions in additional Cominar units. Participants will be entitled to
receive an additional distribution equal to 5% of the distributions
reinvested, which will be reinvested in additional units. For more information
and to obtain a participation form, please visit Cominar's website at
PROFILE AS AT MARCH 14, 2013
Cominar Real Estate Investment Trust is the third largest diversified real
estate investment trust in Canada and currently remains the largest commercial
property owner in the Province of Québec. The REIT owns a real estate
portfolio of 499 high-quality properties in three different market segments,
that is, office buildings, retail buildings and industrial and mixed-use
buildings. Cominar's portfolio totals 36.8 million square feet spread out
across Québec, Ontario, the Atlantic Provinces and Western Canada. Cominar's
objectives are to pay growing cash distributions to unitholders and to
maximize unitholder value by way of integrated, proactive management and the
expansion of its portfolio.
This press release may contain forward-looking statements with respect to
Cominar and its operations, strategy, financial performance and financial
condition. These statements generally can be identified by the use of
forward-looking words such as "may", "will", "expect", "estimate",
"anticipate", "intend", "believe" or "continue" or the negative thereof or
similar variations. The actual results and performance of Cominar discussed
herein could differ materially from those expressed or implied by such
statements. Such statements are qualified in their entirety by the inherent
risks and uncertainties surrounding future expectations. Some important
factors that could cause actual results to differ materially from expectations
include, among other things, general economic and market factors, competition,
changes in government regulation and the factors described under "Risk
Factors" in the Annual Information Form of Cominar. The cautionary statements
qualify all forward-looking statements attributable to Cominar and persons
acting on its behalf. Unless otherwise stated, all forward-looking statements
speak only as of the date of this press release.
Net operating income, Adjusted Net income, recurring distributable income
(DI), recurring funds from operations (FFO) and recurring adjusted funds from
operations (AFFO) are not measures recognized by International Financial
Reporting Standards ("IFRS") and do not have standardized meanings prescribed
by IFRS. Such measures may differ from similar computations as reported by
similar entities and, accordingly, may not be comparable to similar measures
reported by such other entities. The following table shows the reconciliation
of DI, FFO and AFFO with the most similar IFRS measures:
Periods ended 2012 2011 Δ% 2012 2011 Δ%
Recurring DI 48,717 26,738 82.2 169,905 100,885 68.4
Distributions 45,287 26,429 71.4 164,021 95,567 71.6
Recurring FFO 57,071 29,666 92.4 200,450 111,927 79.1
Recurring 47,025 26,216 79.4 166,412 99,090 67.9
Michel Dallaire, Eng., President and Chief Executive Officer Michel Berthelot,
CPA, CA, Executive Vice-President and Chief Financial Officer Tel.: (418)
681-8151 firstname.lastname@example.org email@example.com
SOURCE: COMINAR REAL ESTATE INVESTMENT TRUST
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