TORONTO, Aug. 9 /CNW/ - Allied Properties REIT (TSX:AP.UN) today
announced results for the second quarter ended June 30, 2006. "We're making
steady progress in building our business as a focused and profitable provider
of office space in Canada," said Michael Emory, President and CEO. "Our
financial results for the second quarter and year-to-date clearly reflect this
progress."
Highlights
In the first half of 2006, the REIT
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- increased Distributable Income ("DI" ) to $11.34 million, up 29.2%
from the comparable half in 2005, resulting in DI per unit (diluted)
of $0.704, up 6.8% from the comparable half in 2005,
- increased Funds From Operations ("FFO") to $12.05 million, up 22.6%
from the comparable half in 2005, resulting in FFO per unit (diluted)
of $0.748, up 1.4% from the comparable half in 2005,
- increased monthly distributions (effective March of 2006) to $0.10167
per unit ($1.22 per unit annualized), up 3.4% from $0.09833 per unit
($1.18 per unit annualized),
- achieved a DI pay-out ratio of 85.2% and an FFO pay-out ratio of
80.1%,
- completed the acquisition of 4436-4450 Saint-Laurent Boulevard and
adjacent land in Montreal,
- completed the acquisition of 257 Adelaide Street West, a property
under development in Toronto,
- announced the acquisition of 400 Atlantic Avenue in Montreal, which
closed on July 14, 2006,
- completed the refinancing of the first mortgage on 425-439 and 445-455
King Street West, Toronto, resulting in a new first mortgage having a
term of 10-years, bearing interest at 5.86% per annum and generating
upward refinancing proceeds of approximately $7.9 million,
- leased 31,153 square feet of gross leasable area ("GLA") at the
Balfour Building in Montreal (3575 Saint-Laurent Boulevard) to a
single tenant for a term of 10 years commencing September 1, 2006,
- leased 19,045 square feet of GLA at 905 King Street West, Toronto, to
a single tenant for a term of five years commencing May 1, 2006, and
- increased the leased area of its portfolio to 98.3% from 97.0% at the
end of 2005 (not including properties under development).
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Following the end of the first half, the REIT announced the acquisition
of a portfolio of predominantly Class I office properties in Quebec City and
the concurrent issue to the public, on a bought deal basis, of 1.9 million
units from treasury at a price of $17.00 per unit for gross proceeds of
$32.3 million, both of which are scheduled to close on or about September 5,
2006.
Financial Results
The REIT's financial results for the half-year period ended June 30,
2006, are summarized below and compared to the same period in 2005:
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(In thousands except for
per unit and % amounts) H1 2006 H1 2005 Change % Change
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DI 11,340 8,778 2,562 29.2%
DI per unit (basic) $0.716 $0.671 $0.045 6.7%
DI per unit (diluted) $0.704 $0.659 $0.045 6.8%
DI pay-out ratio 85.2% 89.6% (4.4%)
FFO 12,052 9,831 2,221 22.6%
FFO per unit (basic) $0.761 $0.751 $0.010 1.3%
FFO per unit (diluted) $0.748 $0.738 $0.010 1.4%
FFO pay-out ratio 80.1% 80.0% 0.1%
Leased GLA 98.3% 97.9% 0.4%
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The REIT's financial results for the second quarter ended June 30, 2006,
are summarized below and compared to the same quarter in 2005:
(In thousands except for
per unit and % amounts) Q2 2006 Q2 2005 Change % Change
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DI 5,945 4,481 1,464 32.67%
DI per unit (basic) $0.375 $0.319 $0.056 17.5%
DI per unit (diluted) $0.368 $0.314 $0.054 17.3%
DI pay-out ratio 82.3% 95.8% (13.5%)
FFO 6,139 5,045 1,094 21.7%
FFO per unit (basic) $0.387 $0.359 $0.028 7.8%
FFO per unit (diluted) $0.380 $0.353 $0.027 7.5%
FFO pay-out ratio 79.7% 85.1% (5.4%)
Leased GLA 98.3% 97.9% 0.4%
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DI and FFO are not financial measures defined by Canadian GAAP. Please
see the REIT's MD&A for a description of these measures and their
reconciliation to net income.
Outlook
Demand for office space in the REIT's principal target markets is
strengthening. This is particularly pronounced in the REIT's Toronto target
market, where overall occupancy levels and rent levels are expected to rise
over the remainder of 2006. The state of the REIT's target markets, the
quality of the REIT's portfolio and the capabilities of the REIT's personnel
afford Management a reasonable basis for confidence in the REIT's near-term
performance. The REIT intends to continue the acquisition of Class I and other
office properties in its target markets.
Additional Financial Information
The consolidated financial statements of the REIT for the period ended
June 30, 2006, together with accompanying notes and MD&A, have been filed with
SEDAR, www.sedar.com, and are available on the REIT's web-site,
www.alliedpropertiesreit.com.
The REIT also announced that it expects to file shortly a final
prospectus in connection with its previously announced bought deal offering
and in connection therewith has refiled its annual MD&A for the year ended
December 31, 2005. The refiled MD&A contains additional disclosure regarding
the REIT's disclosure controls and procedures, which was inadvertently omitted
from the originally filed MD&A.
Cautionary Statements
This press release may contain forward-looking statements with respect to
the REIT, 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. The actual results
and performance of the REIT 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 Annual Information Form of the REIT
which is available at www.sedar.com. The cautionary statements qualify all
forward-looking statements attributable to the REIT and persons acting on its
behalf. Unless otherwise stated, all forward-looking statements speak only as
of the date of this press release, and the parties undertake no obligation to
update such statements.
Allied Properties REIT is a leading owner and manager of Class I office
properties in Canada, with portfolio assets in the urban areas of Montreal,
Toronto and Winnipeg. The objectives of the REIT are to provide stable and
growing cash distributions to unitholders and to maximize unitholder value
through effective management and accretive portfolio growth.
