Business
Inovalis Real Estate Investment Trust Reports Financial Results for the Third Quarter of 2014
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About this update from Inovalis Reit
[{"type":"text","content":"\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n\n\n\nTORONTO, Nov. 11, 2014 /CNW/ - Inovalis Real Estate Investment Trust (the \"REIT\") (TSX: INO.UN) today reported its financial results for the third quarter of 2014. Inovalis REIT's management team will be holding a conference call on Thursday November 13, 2014 at 11:00 am EST to discuss the results. The dial-in numbers for the conference call are: in Toronto 1-416-764-8688; outside Toronto (toll free, within North America) 1-888-390-0546.\n\n\nHIGHLIGHTS\n\n\nFunds from Operations (FFO) of $2.6 million (or $0.20 per unit) for the 3-month period ended September 30, 2014 and of $8.3 million (or $0.65 per unit) for the 9-month period ended September 30, 2014 \nAdjusted Funds from Operations (AFFO) of $2.8 million (or $0.22 per unit) for the 3-month period ended September 30, 2014 and of $8.9 million (or $0.70 per unit) for the 9-month period ended September 30, 2014 \nAFFO cash payout ratio is 93.7% for the 3-month period ended September 2014 and 88.2% for the 9-month period ended September 30, 2014. The increase in the cash payout ratio in comparison to the quarter ended June 30, 2014 of 88.9% is due to the fact that the REIT has $19.8 million of cash available for future acquisitions. The payout ratio will decrease when additional cash is generated by these acquisitions \nOverall occupancy rate of 92.8% with a weighted average lease term of 6.9 years and diversified tenant base with over 85% of the leases being signed with French public agencies, being guaranteed by large German or international banks or being signed with an affiliate of an investment grade corporate \nDuring the quarter, the REIT completed the acquisition of a 217,431 square feet property located in Duisburg (Germany) on a 50-50 co-ownership arrangement basis with a strategic, global institutional investor that has a long-standing relationship with Inovalis SA (closed on July 11, 2014). During the quarter, this investment generated $375 thousand of interest income and increased in value by $82 thousand. This investment is reflected in the financial statements using the equity method of accounting \nAs of September 30, 2014, the debt to book value stands at 56.5%, slightly higher than our long-term targeted range of 50 to 55% but net of the $19.8 million of th...