Allied Properties Real Estate Investment Trust Announces First-Quarter Results With Continuing Growth in FFO and AFFO Per Unit
06 Mai 2014 - 10:38PM
Marketwired Canada
Allied Properties REIT (TSX:AP.UN) today announced results for its first quarter
ended March 31, 2014. "Our momentum continued into 2014," said Michael Emory,
President and CEO. "In the first quarter, we delivered FFO and AFFO per unit
growth of 13% and 28%, pushing our FFO and AFFO pay-out ratios down to 69% and
76%. In addition to completing $102 million in acquisitions, considerably more
than anticipated, we finalized several major lease transactions, moving our
value-creation activity forward in a big way."
The results for the first quarter are summarized below and compared to the same
quarter in 2013:
(In thousands except for per unit
and % amounts) Q1 2014 Q1 2013 Change % CHANGE
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Net income 31,327 26,849 4,478 16.7%
Same-asset net operating income
("NOI") 43,151 39,139 4,012 10.3%
Funds from operations ("FFO") 35,010 29,582 5,428 18.3%
FFO per unit (diluted) $0.51 $0.45 $0.06 13.3%
FFO pay-out ratio 69.4% 75.2% (5.8%)
Adjusted FFO ("AFFO") 31,864 23,948 7,916 33.1%
AFFO per unit (diluted) $0.46 $0.36 $0.10 27.8%
AFFO pay-out ratio 76.2% 92.9% (16.7%)
Total debt as a % of fair value of
investment properties 36.3% 34.6% 1.7%
Net debt as a multiple of
annualized Q1 EBITDA 6.5:1 6.4:1 0.1:1
Operating interest-coverage ratio 3.7:1 3.7:1 0:1
Total interest-coverage ratio 3.0:1 2.9:1 0.1:1
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Allied's financial performance measures for the quarter were up from the
comparable quarter in 2013. This is a result of portfolio-wide rental growth,
accretion from recent acquisitions and increased NOI as a result of recent and
ongoing value-creation activity.
Allied's operating performance measures were also strong. Having leased over
half a million square feet of space in the quarter, it finished the quarter with
its rental portfolio 91% leased, 94.1% leased if upgrade properties are
excluded. Allied renewed or replaced leases for 80.1% of the GLA that matured in
the first quarter and 57.6% of the GLA scheduled to mature in 2014. This
resulted in an overall increase of 6% in net rental income per square foot from
the affected space.
Allied's balance sheet continued to grow and strengthen. At the end of the
quarter, the fair value of its assets was $3.5 billion, up 13% from the end of
the same quarter last year through a combination of acquisitions ($128 million)
and value appreciation ($277 million), offset somewhat by dispositions of
$725,000. Allied's total debt was 36% of fair value and comprised entirely of
first mortgages with a weighted average term of six years and a weighted average
interest rate of 4.8% Its immediate liquidity was $102 million, and it had
approximately $400 million in unencumbered properties, affording it very
considerable near-term liquidity.
FFO, AFFO and EBITDA, total debt and net debt are not financial measures defined
by International Financial Reporting Standards ("IFRS"). Please see Allied's
MD&A for a description of these measures and their reconciliation to financial
measures defined by IFRS, as presented in Allied's condensed interim
consolidated financial statements for the quarter ended March 31, 2014. These
statements, together with accompanying notes and MD&A, have been filed with
SEDAR, www.sedar.com, and are also available on Allied's web-site,
www.alliedreit.com.
NOI is not a measure recognized under IFRS and does not have any standardized
meaning prescribed by IFRS. NOI is presented in this press release because
management of Allied believes that this non-IFRS measure is an important
financial performance indicator. NOI, as computed by Allied, may differ from
similar computations as reported by other similar organizations and,
accordingly, may not be comparable to NOI reported by such organizations.
This press release may contain forward-looking statements with respect to
Allied, its operations, strategy, financial performance and condition. These
statements generally can be identified by use of forward looking words such as
"may", "will", "expect", "estimate", "anticipate", intends", "believe" or
"continue" or the negative thereof or similar variations. Allied's actual
results and performance 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. 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 regulations and the factors
described under "Risk Factors" in the Allied's Annual Information Form which is
available at www. sedar.com. The cautionary statements qualify all
forward-looking statements attributable to Allied and persons acting on its
behalf. Unless otherwise stated, all forward-looking statements speak only as of
the date of this press release, and Allied has no obligation to update such
statements.
Allied Properties REIT is a leading owner, manager and developer of urban office
environments that enrich experience and enhance profitability for business
tenants operating in Canada's major cities. Its objectives are to provide stable
and growing cash distributions to unitholders and to maximize unitholder value
through effective management and accretive portfolio growth.
FOR FURTHER INFORMATION PLEASE CONTACT:
Allied Properties REIT
Michael R. Emory
President & Chief Executive Officer
416.977.9002
memory@alliedreit.com
www.alliedreit.com
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