TORONTO, Aug. 3, 2012 /CNW/ - Morguard North American
Residential REIT (the "REIT") (TSX: MRG.UN) announced that
the REIT has filed on SEDAR an amended and restated Management's
Discussion and Analysis (the "Amended and Restated MD&A") for
the financial period ended June 30,
2012 due to the discovery of errors in its calculation of
adjusted funds from operations ("AFFO") found in the Management's
Discussion and Analysis (the "Filed MD&A) previously filed on
August 2, 2012 and included in the
interim financial statement filing for the period ended on
June 30, 2012 filed on August 2, 2012 . This restatement does not
impact the unaudited interim consolidated financial statements and
accompanying notes for the period ended June
30, 2012.
The REIT's calculation of its AFFO as disclosed
in the Filed MD&A, included an adjustment for actual
maintenance capital expenditures which was added to FFO. The
adjustment should have been calculated based on a stabilized
estimate of maintenance capital expenditures and subtracted from
AFFO which results in a restated annual AFFO. The stabilized
estimate of maintenance capital expenditures is based on an
annualized estimate of $450 per suite
multiplied by the number of residential suites owned during the
period. The REIT has revised all references to three months AFFO
and six months AFFO in its Amended and Restated MD&A for the
three and six month periods ended June 30,
2012 and June 30, 2011.
The table below presents the revised amounts.
| |
|
Three
months
ended June 30, |
|
Six months
ended June 30, |
| (in thousands of dollars, except per unit
amounts) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Revised
Summary of Financial Information |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Interest coverage(1) |
|
2.24 |
|
2.08 |
|
2.17 |
|
2.06 |
| Debt coverage ratio(2) |
|
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 (3) |
|
$0.21 |
|
$0.17 |
|
$0.37 |
|
$0.34 |
| Adjusted Funds from Operations (AFFO) |
|
$5,018 |
|
$4,189 |
|
$9,072 |
|
$8,186 |
| AFFO per unit(3) |
|
$0.20 |
|
$0.16 |
|
$0.36 |
|
$0.32 |
| Distributions per unit
(annualized)(3) |
|
$0.60 |
|
$0.60 |
|
$0.60 |
|
$0.60 |
| FFO payout ratio(3) |
|
71.43% |
|
88.23% |
|
81.08% |
|
88.24% |
| AFFO payout ratio(3) |
|
75.00% |
|
93.75% |
|
83.33% |
|
93.75% |
| |
|
|
|
|
|
|
|
|
| Weighted average number of units outstanding
during period (000's)(3) |
|
25,473 |
|
25,473 |
|
25,473 |
|
25,473 |
AFFO for the three months ended June 30, 2012 was adjusted for maintenance
capital expenditures in the amount of $922 (June 30, 2011
$1,072), which resulted in a revised
AFFO of $5,018 (June 30, 2011 $4,189).
AFFO for the six months ended June 30, 2012 was adjusted for maintenance
capital expenditures in the amount of $2,531 (June 30,
2011 $1,830), which resulted
in a revised AFFO of $9,072
(June 30, 2011 $8,186).
The table below presents the previous
amounts.
| |
|
Three months
ended June 30, |
|
Six months
ended June 30, |
| (in thousands of dollars, except per unit
amounts) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Previous
Summary of Financial Information |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Interest coverage(1) |
|
2.24 |
|
2.08 |
|
2.17 |
|
2.06 |
| Debt coverage ratio(2) |
|
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 (3) |
|
$0.21 |
|
$0.17 |
|
$0.37 |
|
$0.34 |
| Adjusted Funds from Operations (AFFO) |
|
$5,940 |
|
$5,261 |
|
$11,603 |
|
$10,016 |
| AFFO per unit(3) |
|
$0.23 |
|
$0.21 |
|
$0.46 |
|
$0.39 |
| Distributions per unit
(annualized)(3) |
|
$0.60 |
|
$0.60 |
|
$0.60 |
|
$0.60 |
| FFO payout ratio(3) |
|
71.43% |
|
88.23% |
|
124.29% |
|
113.33% |
| AFFO payout ratio(3) |
|
65.22% |
|
71.43% |
|
65.21% |
|
130.00% |
| |
|
|
|
|
|
|
|
|
| Weighted average number of units outstanding
during period (000's)(3) |
|
25,473 |
|
25,473 |
|
25,473 |
|
25,473 |
| (1) |
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 |
| (2) |
Represents contractual payments on mortgages payable
and Class C LP Units |
| (3) |
Measured as the sum of the Units and Class B
LP Units as if they were outstanding through the entire operating
period |
The REIT's Q2 2012 Consolidated Financial Statement and Amended
and Restated MD&A 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 of
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