C2C Industrial Properties Inc. Reports First Quarter 2013 Results

C2C Industrial Properties Inc. Reports First Quarter 2013 Results 
TORONTO, ONTARIO -- (Marketwired) -- 05/02/13 -- C2C Industrial
Properties Inc. ("C2C" or the "Company") (TSX VENTURE:CCH) announced
today strong growth and solid operating performance for the three
months ended March 31, 2013.  
FIRST QUARTER 2013 HIGHLIGHTS: 


 
--  2012 acquisitions make significant contribution to first quarter
    financial results 
--  NOI more than doubles to $3.4 million compared to prior year's first
    quarter 
--  AFFO rises to $1.7 million or $0.08 per diluted common share 
--  Total assets increase to $221.7 million from $113.8 million at March 31,
    2012 
--  Balance sheet remains strong with 59.1% debt ratio 

 
"The increase in the size and scale of our property portfolio in
2012, combined with our proven property management program, continued
in the first quarter of 2013 generating solid and accretive growth in
all our key performance benchmarks," commented Chris Ross, President. 
Strong Operating and Financial Performance 
Primarily as a result of acquisitions over the last twelve months,
rental income for the three months ending March 31, 2013 increased to
$5.7 million from $2.5 million in the first quarter of the prior year
while NOI increased to $3.4 million from $1.5 million over the same
quarter of the prior year. Occupancy remained stable at March 31,
2013 with the prior year's first quarter at 95.8%. In-place rental
rates rose to $6.48 per square foot at March 31, 2013 from $6.45 per
square foot at March 31, 2012. 
Funds from Operations ("FFO") for the three months ended March 31,
2013 were $1.8 million or $0.09 per diluted common share, up from
$52,000 or $0.02 per diluted common share in the prior year. Adjusted
Funds from Operations ("AFFO") for the first quarter of 2013 were
$1.7 million or $0.08 per diluted common share, up from $16,000 or
$0.00 per diluted common share in the prior year's first quarter. The
weighted average diluted number of shares outstanding increased to
21.0 million in the first quarter of 2013 compared to 3.5 million in
the same period last year. 
The Company maintained a conservative debt to gross book value ratio
of 59.1% at March 31, 2013 compared to 59.4% at December 31, 2012,
with a weighted average effective interest rate for its mortgage
debts of 4.2%, consistent with the prior year end. The Company
continues to proactively manage its mortgage portfolio to diversify
its lender base and spread out maturities between five-year and
ten-year terms. 
2013 Recent Events 
On April 22, the Company announced that dividends of $0.0265 per
common share will be paid on May 18, 2013 to shareholders of record
as at May 10, 2013. 
On April 19, 2013, the Company acquired an industrial property
located in Longueuil, Quebec, totaling 222,464 square feet of gross
leasable area. The purchase price was $7.5 million, excluding closing
costs, and was paid in cash.  
On March 19, 2013, Dundee Industrial REIT ("DIR") and C2C jointly
announced that they have entered into a support agreement pursuant to
which Dundee Industrial REIT has agreed to make an offer to acquire
all of the issued and outstanding shares (the "C2C Shares ") of C2C
Industrial Properties Inc. in exchange for units of Dundee Industrial
REIT (the "Offer"). C2C Shareholders will receive 0.4485 Dundee
Industrial REIT units for each C2C Share, representing an Offer price
of $4.85 per C2C Share based on the volume-weighted average trading
price of the Dundee Industrial REIT units on the TSX over the 10
trading days ended March 18, 2013. Details regarding the support
agreement between Dundee Industrial REIT and C2C are set out in the
definitive support agreement dated March 19, 2013, which is available
on SEDAR at www.sedar.com. Dundee Industrial REIT's take-over bid
circular describing the terms of the Offer to C2C Shareholders was
mailed to beneficial holders concurrently with C2C's Directors'
Circular on April 8, 2013. 
On February 19, 2013 the Company acquired an industrial property
located in Toronto, Ontario, totaling 177,562 square feet of gross
leasable area. The purchase price of $11.1 million, excluding closing
costs, was financed through the assumption of a first mortgage with a
principal balance of $5.1 million with the balance in cash.  
On February 8, 2013, the Company completed the acquisition of
approximately 5 acres of development land in Halifax, Nova Scotia.
The purchase price of $1.0 million was paid in cash. 
FINANCIAL AND OPERATING HIGHLIGHTS  


 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
CDN $ Thousands except per share      March 31,   December 31,     March 31,
 amounts                                   2013           2012          2012
Operations Information                                                      
Number of properties                         24             22            14
Gross leasable area (square feet)     2,307,386      2,129,824     1,210,464
Portfolio occupancy                       95.8%          95.2%         95.8%
In-place rental rates (per sq.                                              
 ft.)                              $       6.48   $       6.56  $       6.45
                                                                            
Financial Information                                                       
Investment properties              $    208,260   $    193,690  $    102,310
Development Land                   $      1,228   $          -  $          -
Total assets                       $    221,707   $    212,673  $    113,827
Mortgages payable                  $    113,433   $    109,135  $     62,036
Convertible Debentures - liability                                          
 amount                                  17,633         17,176             -
Average effective interest rate -                                           
 mortgages                                 4.2%           4.1%          5.2%
Debt to gross book value                  59.1%          59.4%         54.5%
Shareholders' equity               $     84,437   $     80,900  $     49,409
Shares outstanding(1)                17,386,620     17,386,620    12,292,980
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                                    3 months        3 months
                                                ending March    ending March
$CDN Thousands except per share amounts             31, 2013        31, 2012
----------------------------------------------------------------------------
Results of Operations                                                       
Rental revenue                                 $       5,674   $       2,491
Net operating income (2)                       $       3,375   $       1,504
Net income                                     $       3,529   $         874
Basic income per share                         $        0.20   $        0.27
Diluted income (loss) per share(3)             $        0.19   $        0.25
Funds from operations ("FFO")(4)               $       1,790   $          52
FFO per share - basic                          $        0.10   $        0.02
FFO per share - diluted                        $        0.09   $        0.02
Adjusted funds from operations ("AFFO")        $       1,674   $          16
AFFO per share - basic                         $        0.10   $        0.00
AFFO per share - diluted                       $        0.08   $        0.00
Weighted average basic common shares              17,386,620       3,257,894
Weighted average diluted common shares            21,025,268       3,537,828
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) On April 11, 2012, C2C did a 25 to 1 share consolidation.               
(2) Net operating income is property rental revenue, less property operating
    costs, property taxes and property management fees.                     
(3) Diluted income per share includes the impact of the conversion of       
    convertible debentures to common shares.                                
(4) The Company has revised its definition of FFO to add back the           
    amortization of mortgage transaction and debt settlement costs,         
    previously treated as an add back to AFFO. The FFO values for the prior 
    periods have been restated for this change.                             

 
Forward Looking Statements 
This document contains forward-looking statements relating to C2C and
the industry in which it operates and its strategy, action plans and
investments, which may involve estimates, forecasts and projections.
These statements are not guarantees of future performance and involve
risks and uncertainties that are difficult to predict and/or are
beyond C2C's control. Consequently, readers should not place any
undue reliance on such forward-looking statements. These
forward-looking statements are made as of the date of this press
release. C2C is under no obligation to update any forward-looking
statements contained herein should material facts change due to new
information, future events or other factors, unless otherwise
required to do so by applicable law. All forward-looking statements
attributable to C2C are expressly qualified by these cautionary
statements.  
About C2C Industrial Properties Inc. 
C2C is a real estate investment corporation specializing in the
acquisition, ownership and operation of light industrial properties
across Canada. C2C currently owns 25 industrial assets totalling
approximately 2.5 million square feet of gross leaseable area. More
information about C2C (TSX VENTURE:CCH) is available at
www.c2cindustrialproperties.com.  
The TSX Venture Exchange has neither approved nor disapproved the
contents of this press release. Neither the TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this press release. 
Contacts:
C2C Industrial Properties Inc.
Christopher Ross
President
(416) 646-7353
cross@c2cip.com
www.c2cindustrialproperties.com
 
 
Press spacebar to pause and continue. Press esc to stop.