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Canadian Real Estate Investment Trust Announces Second Quarter 2016 Results
TORONTO, ON--(Marketwired - July 28, 2016) - Canadian Real Estate Investment Trust ("CREIT") (TSX:REF.UN) today announced results for the three and six months ended June 30, 2016.
For the three months ended June 30, 2016, CREIT reported Funds from Operations ("FFO") of $0.86 per Unit. The results include significant lease termination income earned from an industrial property. The industrial property has been re-leased for a 12-year term, with occupancy commencing in October 2016. Excluding the impact of the lease termination income, the reduction in net operating income from the tenant departure and other non-recurring items, FFO for the quarter was $0.78 per Unit. This represents an increase of 2.6% over the $0.76 per Unit reported for the same period in 2015.
For the six months ended June 30, 2016, CREIT reported FFO of $1.64 per Unit. Excluding the impact of the lease termination income, the reduction in net operating income from the tenant departure and other non-recurring items, FFO for the six months ended June 30, 2016 was $1.56 per Unit. This represents an increase of 3.3% over the $1.51 per Unit reported for the same period in 2015.
Stephen Johnson, CREIT's Chief Executive Officer, stated, "Our strong performance continued in the second quarter of 2016. With our high-quality diversified portfolio, strong operating platform and solid balance sheet, we continue to generate stable and reliable cash flows for our unitholders."
For the three months ended June 30, 2016 and 2015, FFO was as follows:
Three months ended June 30 | ||||||||||||
Change | ||||||||||||
($ thousands, except per-Unit amounts) | 2016 | 2015 | ($) | (%) | ||||||||
FFO | $ | 62,976 | $ | 55,112 | $ | 7,864 | 14.3 | % | ||||
FFO per Unit | $ | 0.86 | $ | 0.76 | $ | 0.10 | 13.2 | % | ||||
For the six months ended June 30, 2016 and 2015, FFO was as follows:
Six months ended June 30 | ||||||||||||
Change | ||||||||||||
($ thousands, except per-Unit amounts) | 2016 | 2015 | ($) | (%) | ||||||||
FFO | $ | 120,174 | $ | 109,840 | $ | 10,334 | 9.4 | % | ||||
FFO per Unit | $ | 1.64 | $ | 1.51 | $ | 0.13 | 8.6 | % | ||||
The charts below provide a summary of net income for the three and six months ended June 30, 2016 and 2015.
Three months ended June 30 | |||||||||
Change | |||||||||
($ thousands, except per Unit amounts) | 2016 | 2015 | ($) | ||||||
Net income excluding fair value gains (losses), property acquisition costs and income taxes | $ | 61,987 | $ | 54,325 | $ | 7,662 | |||
Net income | $ | 39,856 | $ | 29,873 | $ | 9,983 | |||
Net income per Unit | $ | 0.55 | $ | 0.41 | $ | 0.14 | |||
Six months ended June 30 | |||||||||
Change | |||||||||
($ thousands, except per Unit amounts) | 2016 | 2015 | ($) | ||||||
Net income excluding fair value gains (losses), property acquisition costs and income taxes | $ | 118,250 | $ | 108,206 | $ | 10,044 | |||
Net income | $ | 97,032 | $ | 85,848 | $ | 11,184 | |||
Net income per Unit | $ | 1.33 | $ | 1.18 | $ | 0.15 | |||
Financial Measures and Additional Financial Information
FFO is a generally accepted supplemental measure of operating performance for real estate entities; however, it is not a measure defined by International Financial Reporting Standards. Readers are directed to CREIT's Condensed Consolidated Financial Statements and MD&A for a description of the measure and its reconciliation to net income.
CREIT's Condensed Consolidated Financial Statements and MD&A for the three and six months ended June 30, 2016 are posted on CREIT's website at www.creit.ca. Readers are directed to these documents for financial details and a fulsome discussion on CREIT's results.
Conference Call
Interested parties are invited to discuss the financial results on a conference call with senior management. Conference call details are as follows:
Date: Friday, July 29, 2016 at 11:00 a.m. EDT
Dial-in number: (647) 788-4919 or (877) 291-4570
Conference call ID: 42768995
A taped replay of the call will be available until August 29, 2016. To access the replay, please dial (416) 621-4642 or (800) 585-8367.
Webcast:
Alternatively, to access the simultaneous webcast, please click on the following link on CREIT's website: http://www.gowebcasting.com/7707. The webcast will be archived for one year.
About CREIT
CREIT is a real estate investment trust focused on accumulating and aggressively managing a portfolio of high-quality real estate assets and delivering the benefits of real estate ownership to Unitholders. The primary benefit is a reliable and, over time, increasing monthly cash distribution. CREIT owns a diversified portfolio of retail, industrial and office properties.
Cautionary Statements Regarding Forward-looking Statements
This news release contains forward-looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. We undertake no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except as required by law.
