TSX: MRG:UN
MISSISSAUGA, ON, Aug. 2, 2012 /CNW/ - Morguard North American
Residential REIT (the 'REIT") (TSX: MRG UN) today announced
its financial results for the three months ended June 30, 2012, its initial reporting period as a
publicly traded real estate investment trust. The REIT completed
its initial public offering of trust units on April 18, 2012.
FINANCIAL AND OPERATIONAL
HIGHLIGHTS
| |
|
As at
June 30,
2012 |
As at
December 31,
2011 |
As at
June 30,
2011 |
| Operational
information |
|
|
|
|
| |
|
|
|
|
| Number of properties |
|
17 |
17 |
17 |
| Total units |
|
5,439 |
5,439 |
5,439 |
| Occupancy % |
|
98.4% |
98.4% |
96.7% |
| Weighted average in-place
rent |
|
$1,189 |
$1,193 |
$1,051 |
| Summary of Financial
Information |
|
|
|
|
| Total assets |
|
$722,397 |
$679,867 |
$587,177 |
| Debt(1) |
|
355,471 |
360,605 |
346,672 |
| Debt to Total Assets |
|
52% |
53% |
59% |
| Weighted average mortgage interest
rate |
|
4.4% |
4.4% |
4.5% |
| Weighted average term to
maturity |
|
4.3 |
4.7 |
4.3 |
| |
|
|
| (in thousands of dollars,
except |
Three months
ended June 30, |
Six months
ended June 30, |
| per unit amounts) |
2012 |
2011 |
2012 |
2011 |
| |
|
|
|
|
| Summary of Financial
Information |
|
|
|
|
| |
|
|
|
|
| Interest
coverage(2) |
2.24 |
2.08 |
2.17 |
2.06 |
| Debt coverage
ratio(3) |
1.49 |
1.40 |
1.45 |
1.39 |
| Revenue |
$18,517 |
$17,748 |
$36,749 |
$35,458 |
| Net operating income |
$10,503 |
$9,027 |
$19,529 |
$17,706 |
| Income before fair value
gains/losses |
$3,425 |
$4,675 |
$8,155 |
$9,102 |
| Funds from Operations (FFO) |
$5,267 |
$4,433 |
$9,498 |
$8,632 |
| FFO per unit (4) |
$0.21 |
$0.17 |
$0.37 |
$0.34 |
| Adjusted Funds from Operations
(AFFO) |
$5,940 |
$5,261 |
$11,603 |
$10,016 |
| AFFO per unit(4) |
$0.23 |
$0.21 |
$0.46 |
$0.39 |
| Distributions per unit
(annualized) |
$0.60 |
$0.60 |
$0.60 |
$0.60 |
| FFO per payout
ratio(4) |
71.43% |
88.23% |
124.29% |
113.33% |
| AFFO per payout
ratio(4) |
65.22% |
71.43% |
65.21% |
130.00% |
| |
|
|
|
|
Weighted average number of
units
outstanding during period (000's)(4) |
25,473 |
25,473 |
25,473 |
25,473 |
| (1) |
Represents outstanding principal amount of mortgages
payable and Class C LP Units |
| (2) |
Defined as income before fair value gains/losses
plus interest expense, less interest income divided by interest
expense excluding interest on Class B LP Units |
| (3) |
Represents contractual payments on mortgages payable and
Class C LP Units |
| (4) |
Measured as the sum of the Units and Class B
LP Units as if they were outstanding through the entire operating
period |
Certain measures in the above table are not defined by generally
accepted accounting principles ("GAAP"). See "Net Operating Income,
FFO" below.
Additionally, the REIT announced the acquisition
of Village Crossing Apartments for a purchase price of US$16.3 million, satisfied through mortgage
financing of US$11.4 million and an
advance on the Morguard Facility, and Woodbine Apartments for a
purchase price of US$42.1 million,
satisfied through an advance on the Morguard Facility.
Village Crossing Apartments is a garden-style multi-unit
residential property comprising 189 units on 10.8 acres and is
located in West Palm Beach,
Florida. Woodbine Apartments is a garden-style
multi-unit residential property comprising 409 units on 19 acres
and is located in South Palm Beach County.
NET OPERATING INCOME, FFO
Net operating income ("NOI") is an additional
non-GAAP measure that is used by industry analysts, investors and
management to measure operating performance of the REIT's
properties. NOI represents income from real estate properties
less property operating costs and realty tax expense as presented
in the consolidated statement of operations. Accordingly, NOI
excludes certain expenses included in the determination of net
income such as trust expenses, interest expense, fair market value
adjustments and other indirect operating expenses. NOI is not
a recognized measure under IFRS and, accordingly, the term does not
necessarily have a standardized meaning and may not be comparable
to similarly titled measures presented by other publicly traded
entities.
FFO is an industry standard for evaluating
operating performance, but is not indicative of funds available to
meet the REIT's cash requirements. FFO is computed by the
REIT in accordance with the current definitions of the Real
Property Association of Canada
("REALpac") and is defined as net income before fair value
gains/losses real estate properties, fair value gains/losses on the
redeemable Class B LP Units classified as liabilities,
distributions on the Class B LP Units, gains/losses on the
disposition of real estate properties and deferred income taxes on
the U.S. properties.
The REIT's Q2 2012 Consolidated Financial Statement and
Management's Discussion and Analysis are available on the REIT's
website at www.morguard.com and have been filed with SEDAR at
www.sedar.com.
About Morguard North American Residential
REIT
The REIT is an unincorporated, open-ended real
estate investment trust established under the laws of the Province
of Ontario. The REIT has been
formed to own multi-unit residential properties in Canada and the
United States. Concurrently with the completion of the
initial public offering of trust units, the REIT indirectly
acquired from Morguard, through a limited partnership, interests in
a portfolio of 14 Canadian multi-unit residential properties and
three U.S. multi-unit residential properties consisting interests
in 5,439 residential suites that are located in Ontario, Alberta and Louisiana, with an IFRS value of approximately
$716 million as at June 30, 2012.
SOURCE Morguard North American Residential Real Estate
Investment Trust