Business
Inovalis Real Estate Investment Trust reports strong financial results for the second 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, Aug. 15, 2014 /CNW/ - Inovalis Real Estate Investment Trust (the \"REIT\") (TSX: INO.UN) today reported its financial results for the second quarter of 2014. Inovalis REIT's management team will be holding a conference call on Tuesday August 18, 2014 at 3:30 pm 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\nHIGHLIGHTS\n\n\nFunds from Operations (FFO) of $2.8 million (or $0.22 per unit) for the 3-month period ended June 30, 2014 and of $5.7 million (or $0.45 per unit) for the 6-month period ended June 30, 2014 \nAdjusted Funds from Operations (AFFO) of $3.0 million (or $0.23 per unit) for the 3-month period ended June 30, 2014 and of $6.0 million (or $0.47 per unit) for the 6-month period ended June 30, 2014 \nThe AFFO payout ratio stands at 88.9% for the quarter ended June 30, 2014 and at 87.4% for the 6-month period ended June 30, 2014 \nThe REIT has an overall occupancy rate of 91.3% with a weighted average lease term of 7.3 years and a diversified tenant base with approximately 80% of the leases being signed with French public agencies or being guaranteed by large German or international banks \nThe REIT refinanced the three French properties during the quarter ended June 30, 2014 with a view to (i) optimizing our balance sheet (the debt-to-book value increased to 51.8% as at June 30, 2014 from 44.2% as at March 31, 2014) and financing new acquisitions, (ii) increasing the weighted average term to maturity (9.3 years as of June 30, 2014 vs. 4.2 years as of December 31, 2013), (iii) locking-in historically low interest rate for a longer period of time, (iv) reducing the principal repayment charge paid under the leasehold interests and (v) having the optimal financial structure if we want to share a portion of ownership of some of the REIT assets to get access to additional financial resources while offering a better portfolio diversification. The accounting loss recognized in relation to these refinancings amounted to $8.0 million, of which $3.3 million was an accelerated write-off of the unamortized discount on lease liabilities (a charge that would have been amortized in any case over time), $3....