|By PR Newswire||
|March 13, 2014 02:51 AM EDT||
TORONTO, March 12, 2014 /CNW/ - WPT Industrial Real Estate Investment Trust (the "REIT") (TSX: WIR.U - OTCQX: WPTIF) announced today its financial and operating results for the three months ended December 31, 2013 and the period from March 4, 2013 to December 31, 2013.
The REIT had no material operations from the date of inception, March 4, 2013, to the completion of its IPO on April 26, 2013. Any comparisons of actual financial results to the REIT's financial forecast provided in its IPO Prospectus dated April 18, 2013, have been prorated to correspond with the period from April 26, 2013 to December 31, 2013 (the "Forecast"). All dollar amounts are stated in US funds.
- Completed $114.3 million Initial Public Offering ("IPO") in April 2013
- Solid operating results since IPO
- Revenues, NOI and AFFO all exceed Forecast
- Occupancy remains strong at 96.4% as at December 31, 2013
- July 15, 2013 property acquisition makes strong and accretive contribution to earnings
- AFFO payout ratio down to 88.9% for the three months ended December 31, 2013
- Strong and flexible liquidity position with 52.9% debt-to-gross book value ratio
"We are pleased with our operating and financial results in 2013 as we expanded our portfolio and enhanced the performance of our properties," stated Scott Frederiksen, Chief Executive Officer. "Most importantly, our results in 2013 exceeded the Forecast published with our IPO, and we look for this growth and positive performance to continue going forward."
"As Canada's only publicly-traded real estate entity focused exclusively on the US industrial property sector, we believe we will continue to build value for our Unitholders as we benefit from a strengthening US economy, solid and stable industrial property fundamentals and, with our cash distributions paid in US dollars, an enhanced yield for Canadian investors should the US dollar strengthen over time," Mr. Frederiksen added.
SOLID OPERATING PERFORMANCE
Investment properties revenue was higher in the period from March 4, 2013 to December 31, 2013 than the Forecast due primarily to the contribution from an acquisition completed on July 15, 2013, vacancy loss factors assumed in the Forecast that were unrealized during the period, and favorable differences in actual recoverable expenses compared to amounts assumed in the Forecast.
Net Operating Income ("NOI") for the period from March 4, 2013 to December 31, 2013 was higher than the Forecast due to the contribution from the July 15, 2013 acquisition as well as vacancy loss factors assumed in the Forecast that were unrealized during the period..
Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO") for the period from March 4 2013 to December 31, 2013 were higher than the Forecast due primarily to the higher investment properties revenue and NOI as outlined above. FFO per Unit and AFFO per Unit amounts were lower than Forecast for the period from March 4, 2013 to December 31, 2013 due primarily to professional fees related to the July 15, 2013 acquisition and overall higher legal fees than assumed in the Forecast. The REIT's AFFO payout ratio, including the underwriters' over-allotment and general and administration expenses related to the Illinois property acquisition on July 15, 2013, was 94.4% for the period from March 4, 2013 to December 31, 2013. The AFFO payout ratio for the quarter ended December 31, 2013 was 88.9%.
STRONG FINANCIAL & LIQUIDITY POSITION
As at December 31, 2013 the REIT's debt-to-gross-book-value ratio was a conservative 52.9% with an interest coverage ratio of 3.2 times and a fixed charge coverage ratio of 2.8 times. The weighted average effective interest rate on its outstanding debt was 4.0% with a weighted average term to maturity of 6.2 years on its mortgages payable, well matched by the weighted average remaining lease term of 5 years. As at December 31, 2013 the REIT had approximately $16.8 million available on its $75 million revolving credit facility.
On August 12, 2013 the Toronto Stock Exchange approved the REIT's notice of intention to purchase and cancel its REIT Units pursuant to a Normal Course Issuer Bid ("NCIB"). As of December 31, 2013 the REIT had purchased and cancelled 697,800 REIT Units under its NCIB at a weighted average price of $8.14 per REIT Unit.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
|(In thousands of USD, except where noted)||
March 4, 2013
to June 30,
March 4, 2013
to December 31,
|Investment properties revenue||$||12,649||$||12,577||$||8,433||$||33,659|
|NOI (1), (2)||$||9,370||$||9,370||$||6,263||$||25,003|
|FFO (1), (3)||$||5,731||$||5,686||$||3,988||$||15,405|
|AFFO (1), (4)||$||4,680||$||4,264||$||2,957||$||11,901|
|FFO per Unit (1)||$||0.241||$||0.236||$||0.180||$||0.659|
|AFFO per Unit (1)||$||0.197||$||0.177||$||0.140||$||0.509|
|Distributions per Unit||$||0.175||0.175||$||0.127||$||0.477|
|AFFO payout ratio (8)||88.9%||99.3%||96.0%||94.4%|
|Weighted-average number of Units (5)||23,797,779||24,069,551||21,322,362||23,381,561|
|Number of real estate investment properties||38||38||37|
|Average remaining lease term (years)||5.0||5.3||4.7|
|Weighted-average effective interest rate (6)||4.0%||4.0%||4.3%|
|Debt-to-gross book value||52.9%||52.9%||51.3%|
|Interest coverage ratio||3.2x||3.2x||3.3x|
|Fixed charge coverage ratio||2.8x||2.8x||2.9x|
|Debt to EBITDA (7)||8.0x||8.1x||7.1x|
|REIT Units outstanding at period end||10,732,200||10,750,200||11,430,000|
|Class B Units outstanding at period end||13,059,709||13,059,709||10,867,362|
Welsh Retained Interest at period end
(on fully-diluted basis assuming all
Class B Units held are redeemed for REIT Units)
|(1)||NOI, FFO, AFFO, AFFO payout ratio and EBITDA are key measures of performance used by real estate operating companies, however, they are not defined by IFRS, do not have standard meanings and may not be comparable with other industries or trusts. This data should be read in conjunction with the "Non-IFRS Measures" section of the MD&A for the period from March 4, 2014 to December 31, 2013.|
|(2)||NOI is defined as investment properties revenue, less investment properties operating expenses.|
|(3)||The reconciliation of FFO to net income can be found in the MD&A for the period from March 4, 2013 to December 31, 2013.|
|(4)||The reconciliation of AFFO to FFO can be found in the MD&A for the period from March 4, 2013 to December 31, 2013.|
|(5)||Includes REIT Units and Class B Units (collectively, the "Units").|
|(6)||Includes mortgages payable, bank indebtedness, mark-to-market adjustments and financing costs.|
|(7)||EBITDA is defined as NOI, less general and administrative expenses and is annualized for purposes of this metric.|
|(8)||Includes the impact of the underwriters' over-allotment issued on May 16, 2013 and the general and administrative expenses related to the July 15, 2013 acquisition.|
Actual Results Compared to Forecast
For the three months
December 31, 2013
For the period from
March 4, 2013 to
December 31, 2013
|Investment properties revenue||$||12,649||$||11,211||$||33,659||$||30,974|
INVESTOR CONFERENCE CALL
A conference call will be hosted by the REIT's management team on Thursday, March 13, 2014 at 10:00 am ET. The telephone numbers to participate in the conference call are Canada Toll Free: (855) 669-9657, U.S. Toll Free (888) 317-6016 and International: (412) 317-6016. The live audio conference call will also be available as a webcast. To access the live audio webcast please access the link on the "Investors" page on our web site at www.wptreit.com. The telephone numbers to listen to the call after it is completed (Instant Replay) are Canada Toll Free (855) 669-9658, U.S. Toll Free (877) 344-7529 and International (412) 317-0088. The Passcode for the Instant Replay is 10039580#. A recording of the call will also be archived on the REIT's web site at www.wptreit.com.
About WPT Industrial Real Estate Investment Trust
WPT Industrial Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been formed to own and operate an institutional-quality portfolio of primarily industrial properties located in the United States, with a particular focus on warehouse and distribution industrial real estate. WPT Industrial, LP (the REIT's operating subsidiary) indirectly owns a portfolio of properties consisting of approximately 9.9 million square feet of gross leasable area, comprised of 36 industrial properties and two office properties located in 12 states in the United States. Welsh Property Trust, LLC is the external asset manager and property manager of the REIT. The REIT pays monthly cash distributions, currently at $0.0583 per Trust Unit, or approximately $0.70 per Trust Unit on an annualized basis, in US funds.
This press release contains "forward-looking information" as defined under applicable Canadian securities law ("forward-looking information" or "forward-looking statements") which reflect management's expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words "plans", "expects", "does not expect", "scheduled", "estimates", "intends", "anticipates", "does not anticipate", "projects", "believes" or variations of such words and phrases or statements to the effect that certain actions, events or results "may", "will", "could", "would", "might", "occur", "be achieved" or "continue" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management of the REIT as of the date of this press release, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The REIT's estimates, beliefs and assumptions, which may prove to be incorrect, include the various assumptions set forth herein, including, but not limited to, the REIT's and the property's future growth potential, anticipated amounts of expenses, results of operations, future prospects and opportunities, the demographic and industry trends remaining unchanged, no change in legislative or regulatory matters, future levels of indebtedness, the tax laws as currently in effect remaining unchanged, the continual availability of capital, the current economic conditions remaining unchanged, and continued positive net absorption and declining vacancy rates in the markets in which the REIT's properties are located.
When relying on forward-looking statements to make decisions, the REIT
cautions readers not to place undue reliance on these statements, as
forward-looking statements involve significant risks and uncertainties,
should not be read as guarantees of future performance or results and
will not necessarily be accurate indications of whether or not the
times at or by which such performance or results will be achieved. A
number of factors could cause actual results to differ materially from
the results discussed in the forward-looking statements, including, but
not limited to, the factors discussed under "Risk Factors" in the
REIT's final prospectus dated April 18, 2013, which is available under
the REIT's profile on SEDAR at www.sedar.com. These forward-looking statements are made as of the date of this press
release and, except as expressly required by applicable law, the REIT
assumes no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
SOURCE WPT Industrial Real Estate Investment Trust
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 04:45 AM EDT Reads: 1,350
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Jul. 28, 2016 04:15 AM EDT Reads: 1,256
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Jul. 28, 2016 03:45 AM EDT Reads: 2,317
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 03:30 AM EDT Reads: 1,578
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Jul. 28, 2016 03:15 AM EDT Reads: 2,635
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Jul. 28, 2016 03:00 AM EDT Reads: 1,617
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
Jul. 28, 2016 02:30 AM EDT Reads: 1,540
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 02:30 AM EDT Reads: 1,793
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
Jul. 28, 2016 02:15 AM EDT Reads: 1,400
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Jul. 28, 2016 02:00 AM EDT Reads: 2,055
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
Jul. 28, 2016 01:45 AM EDT Reads: 1,105
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Jul. 28, 2016 01:15 AM EDT Reads: 843
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 01:00 AM EDT Reads: 1,621
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Jul. 28, 2016 12:15 AM EDT Reads: 2,249
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 27, 2016 10:30 PM EDT Reads: 1,410