QUÉBEC CITY, May 9, 2013 /CNW Telbec/ - Cominar Real Estate Investment Trust
("Cominar" or the "REIT") (TSX: CUF.UN) announced today its results for the
first quarter of fiscal year 2013.
Highlights for the quarter ended March 31, 2013
-- Increased operating revenues by 34.3%
-- Increased net income by 82.4%
-- Increased total assets by 4.0%, totalling $5.8 billion (+25.1%
compared to Q1 2012)
-- Invested $177.4 million in acquisitions
o $156.9 million for the acquisition of buildings
o $20.5 million for the acquisition of lots
-- Issued $100 million in unsecured debentures
Subsequent Events after March 31, 2013
-- Appointed Mr. Gilles Hamel, CPA, CA as Vice-President,
Corporate Finance and Administration
-- Issued $100 million in unsecured debentures bearing interest at
4.0% and maturing in 2020
-- Acquired an industrial property in Montréal for $12 million
"The quarter started off strong for Cominar, with a $177.4million investment
in the strategic acquisition of 20 income properties and lots for future
development in promising sectors. Overall, results show solid growth and a
healthy financial position for the first quarter ended March 31", stated M.
Michel Dallaire, President and Chief Executive Officer of Cominar. "In
general, we are quite satisfied with our results, as they compare well with
those obtained in the first quarter of 2012".
"While remaining focused on cost control, operational synergies and
high-quality customer service, we carry on with our acquisitions, which will
continue to contribute to our distributable income in the coming quarters",
concluded Mr. Dallaire.
PRESENTATION OF FINANCIAL RESULTS
For the quarter ended March, 31, 2013, Cominar's operating income totalled
$169.6million, up 34.3% over the corresponding period in 2012, when they
totalled $126.3million. This increase is mainly due to the contribution of
the acquisitions made in 2012 and 2013.
Net operating income reached $89.9 million, up 34.5%, compared to $66.9
million in the first quarter of 2012.
Net income grew to $59.7 million, an increase of 82.4% over last year's
first-quarter result, which was $32.7million.
Recurring net distributable income per unit (fully diluted) was $0.38 at the
end of the first quarter of 2013, which is the same as last year's
first-quarter result. This demonstrates, namely, that the synergies generated
by our acquisitions have allowed us to reduce our debt ratio from 54.4% to
51.2%, without affecting our per-unit results.
Recurring funds from operations for the first quarter of 2013 reached $55.1
million, up 29.6% over the corresponding quarter in 2012, when they totalled
$42.5 million. Recurring funds from operations per unit (fully diluted) stood
at $0.43, compared to $0.45 as at March 31, 2012, representing a decrease of
Recurring adjusted funds from operations per unit (fully diluted) stood at
$0.38, the same as in the first quarter of 2012.
In the first quarter of 2013, Cominar's distributions to unitholders totalled
$45.2 million, compared to $35.6 million in the corresponding quarter in 2012,
representing an increase of 26.7%. The monthly distribution per unit remained
stable at $0.12.
As at March 31, 2013, Cominar's debt ratio stood at 51.2%, whereas its
annualized interest coverage ratio remained conservative at 2.85: 1, and the
weighted average interest rate of long-term debt stood at 4.87%, compared to
5.15% as at March 31, 2012.
As at March 31, 2013, the average occupancy rate of our properties stood at
93.9%, compared to 94.6% as at March 31, 2012. Cominar renewed 23.3% of leases
maturing in 2013, and also signed new leases representing an area of 0.7
million square feet.
-- On January 31, 2013, Cominar acquired a portfolio of 18
industrial properties primarily located on the South Shore of
Montréal and one office property located in Montréal, for a
purchase price of $149.8 million. The portfolio represents a
total of approximately 1.8 million square feet of leasable
area. As part of this transaction, Cominar also acquired a
vacant lot of 173,569 square feet located in
Saint-Bruno-de-Montarville, for $1.4 million. The
capitalization rate for this transaction is 7%.
-- On March 15, 2013, Cominar acquired approximately 508,780
square feet of vacant land located in Calgary, Alberta, which
includes a parkade structure for approximately 347 parking
spaces. Cominar paid $20.5 million in cash for these
properties. Thanks to the acquisition of these lots, Cominar is
now the sole proprietor of the Centron Park Complex.
-- On March 21, 2013, Cominar acquired an office building located
in Fredericton, New Brunswick, for $5.7 million, paid in cash;
this building represents a leasable area of 44,500 square feet.
The capitalization rate for this transaction is 8%.
-- On May 1, 2013, after quarter end, Cominar acquired an
industrial building located in Pointe-Claire, Québec, for a
purchase price of $12 million, paid in cash; this property
represents a leasable area of 199,000 square feet. The
capitalization rate for this transaction is 7.6%.
-- On February 5, 2013, Cominar re-opened its Series 2, issuing
$100.0 million in unsecured debentures bearing an interest rate
of 4.23% and maturing on December 4, 2019. Cominar allocated
the net proceeds to repaying its credit facility and to various
-- On April 29, 2013, after quarter end, Cominar issued $100
million worth of Series 3 senior unsecured debentures bearing
an interest rate of 4.0%, and maturing in November 2020.
These financing transactions are part of Cominar's strategy to take advantage
of lower interest rates by replacing short-term debt with long-term debt,
without increasing overall debt.
ADDITIONAL FINANCIAL INFORMATION
Cominar's condensed interim consolidated financial statements and management's
discussion and analysis for the quarter ended March 31, 2013, will be filed
with SEDAR at www.sedar.com and will be available on Cominar's website at
CONFERENCE CALL — MAY 9, 2013
On Thursday, May 9, 2013, at 11:00 a.m. (ET), Cominar's management will hold a
conference call to present the results for the first quarter of 2013. 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, May 9, 2013, at 2:00 p.m. to Thursday, May 16, 2013,
at 11:59 p.m., by dialing 1-855-859-2056 followed by this code: 47590240#.
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 MAY 9, 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 501 high-quality properties in three different market segments,
that is, office buildings, retail buildings and industrial and mixed-use
buildings. Cominar's portfolio totals 37.1 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 Cominar's Annual Information Form. 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, 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. Cominar's Interim Management's Discussion and Analysis for the
first quarter ended March 31, 2013, presents the reconciliation of DI, FFO and
AFFO with the most similar IFRS measures:
Quarters ended March 31, 2013 2012 Δ%
Recurring DI 47,579 35,246 35.0
Distributions 45,155 35,630 26.7
Recurring FFO 55,100 42,508 29.6
Recurring AFFO 47,084 35,022 34.4
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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