|By Marketwired .||
|April 21, 2014 05:00 PM EDT||
TORONTO, ON -- (Marketwired) -- 04/21/14 -- Brookfield Canada Office Properties (TSX: BOX.UN) (NYSE: BOXC), a Canadian REIT (Real Estate Investment Trust), today announced that net income for the three months ended March 31, 2014 was $42.1 million or $0.45 per unit, compared to $46.5 million or $0.50 per unit during the same period in 2013. Included in net income for the three months ended March 31, 2014 was a fair value gain of $2.9 million, compared to $9.0 million during the same period in 2013. The current IFRS value increased to $33.31 per unit from $33.18 per unit at the end of 2013.
Funds from operations ("FFO") for the three months ended March 31, 2014 was $40.9 million or $0.44 per unit, compared with $38.2 million or $0.41 per unit during the same period in 2013. Adjusted funds from operations ("AFFO") was $36.5 million or $0.39 per unit for the three months ended March 31, 2014, compared with $30.3 million or $0.33 per unit during the same period in 2013.
Commercial property net operating income for the three months ended March 31, 2014 was $68.6 million, compared with $68.8 million during the same period in 2013.
FIRST QUARTER HIGHLIGHTS
Brookfield Canada Office Properties leased 225,000 square feet of space during the first quarter of 2014. The Trust's occupancy rate finished the quarter at 95.6%. This rate compares favourably with the Canadian national average of 91.7%.
Leasing highlights include:
Toronto - 154,000 square feet
- A two-year, 52,000-square-foot renewal with Public Works and Government Services Canada at 151 Yonge St.
- A five-year, 21,000-square-foot new lease with Open Text Corp. at 105 Adelaide St. West
Calgary - 69,000 square feet
- A 12-year, 60,000-square-foot new lease with Canadian Natural Resources Limited at Bankers Hall
Raised unitholder distribution by 6% to $1.24 annually. The monthly payout will total $0.1033, an increase from the previous payout of $0.0975 monthly and $1.17 annually.
Finalized long-term renewal with PWGSC in Ottawa for 1,036,000 square feet which brings the region's average lease life to 6.4 years and the overall portfolio average to 8.4 years.
Achieved LEED Gold certification at Royal Centre in Vancouver. The Trust now has 10 LEED Gold certified properties, totaling 12.8 million square feet or 77% of the portfolio. Bankers Hall and Exchange Tower participated in the BOMA 360 International Designation Pilot and received certification during the quarter. These sustainability accomplishments reaffirm the Trust's commitment to owning environmentally conscious real estate and lowering the portfolio's carbon footprint.
"We are always looking at ways to add investment value for our unitholders and raising the dividend was an appropriate allocation of capital at this juncture," said Jan Sucharda, president and chief executive officer.
Net Operating Income, FFO and AFFO
This press release and accompanying financial information make reference to net operating income, FFO and AFFO on a total and per unit basis. Net operating income is defined by the Trust as income from commercial property operations after direct property operating expenses, including property administration costs have been deducted, but prior to deducting interest expense, general and administrative expenses and fair value gains (losses). The Trust's definition of FFO includes all of the adjustments that are outlined in the National Association of Real Estate Investment Trusts ("NAREIT") definition of FFO including the exclusion of gains (or losses) from the sale of real estate property and the add back of any depreciation and amortization related to real estate assets. In addition to the adjustments prescribed by NAREIT, the Trust also makes adjustments to exclude any unrealized fair value gains (or losses) that arise as a result of reporting under IFRS. These additional adjustments result in an FFO measure that would be similar to that which would result if the Trust determined net income in accordance with U.S. GAAP and is also consistent with the Real Property Association of Canada ("REALPAC") white paper on funds from operations for IFRS issued November 2012. AFFO is defined by the Trust as FFO net of normalized second-generation leasing commissions and tenant improvements, normalized maintaining value capital expenditures and straight-line rental income. The Trust uses net operating income, FFO and AFFO to assess its operating results. Net operating income is important in assessing operating performance and FFO is a widely used measure to analyze real estate. AFFO is typically a measure used to asses an entity's ability to pay distributions. The components of net operating income, FFO and AFFO are outlined in the financial information accompanying this press release. Net operating income, FFO and AFFO do not have any standard meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies.
Monthly Distribution Declaration
The Board of Trustees of Brookfield Canada Office Properties announced a distribution of $0.1033 per Trust unit payable on June 13, 2014 to holders of Trust Units of record at the close of business on May 30, 2014. Unitholders resident in Canada will receive payment in Canadian dollars and unitholders resident in the United States will receive their distributions in U.S. dollars at the exchange rate on the record date, unless they elect otherwise.
This press release contains "forward-looking information" within the meaning of Canadian provincial securities laws and applicable regulations and "forward-looking statements" within the meaning of "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the Trust's operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook, as well as the outlook for the Canadian economy for the current fiscal year and subsequent periods, and include words such as "expects," "anticipates," "plans," "believes," "estimates," "seeks," "intends," "targets," "projects," "forecasts," "likely," or negative versions thereof and other similar expressions, or future or conditional verbs such as "may," "will," "should," "would" and "could."
Although the Trust believes that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Trust, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.
Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: risks incidental to the ownership and operation of real estate properties including local real estate conditions; the impact or unanticipated impact of general economic, political and market factors in Canada; the ability to enter into new leases or renew leases on favourable terms; business competition; dependence on tenants' financial condition; the use of debt to finance the Trust's business; the behavior of financial markets, including fluctuations in interest rates; equity and capital markets and the availability of equity and debt financing and refinancing within these markets; risks relating to the Trust's insurance coverage; the possible impact of international conflicts and other developments including terrorist acts; potential environmental liabilities; changes in tax laws and other tax related risks; dependence on management personnel; illiquidity of investments; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits therefrom; operational and reputational risks; catastrophic events, such as earthquakes and hurricanes; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.
Caution should be taken that the foregoing list of important factors that may affect future results is not exhaustive. When relying on the Trust's forward-looking statements or information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, the Trust undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.
Investors, analysts and other interested parties can access the Trust's Supplemental Information Package at www.brookfieldcanadareit.com under the Investor Relations/Financial Reports section. This additional financial information should be read in conjunction with this press release.
About Brookfield Canada Office Properties
Brookfield Canada Office Properties is Canada's preeminent Real Estate Investment Trust (REIT). Its portfolio is comprised of interests in 28 premier office properties totaling 20.8 million square feet in the downtown cores of Toronto, Calgary, Ottawa and Vancouver and a development site of 980,000 square feet in Toronto. Landmark assets include Brookfield Place and First Canadian Place in Toronto and Bankers Hall in Calgary. For more information, visit www.brookfieldcanadareit.com.
CONSOLIDATED BALANCE SHEETS
----------------- ----------------- (Cdn $ Millions) March 31, 2014 December 31, 2013 ----------------- ----------------- Assets Investment properties Commercial properties $ 5,163.7 $ 5,158.2 Commercial developments 265.0 232.0 ----------------- ----------------- 5,428.7 5,390.2 Tenant and other receivables 24.8 17.5 Other assets 6.5 6.3 Cash and cash equivalents 145.0 194.8 ----------------- ----------------- $ 5,605.0 $ 5,608.8 ----------------- ----------------- Liabilities Investment property and corporate debt $ 2,339.3 $ 2,354.9 Accounts payable and other liabilities 158.3 161.6 Equity Unitholders' equity 859.1 854.7 Non-controlling interest(1) 2,248.3 2,237.6 ----------------- ----------------- $ 5,605.0 $ 5,608.8 ----------------- ----------------- (1) Non-controlling interest represents Class B LP units that are economically equivalent to Trust units and are required to be presented separately under IFRS.
CONSOLIDATED STATEMENTS OF INCOME
Three months ended (Cdn Millions, except per unit amounts) Mar. 31 --------------------- 2014 2013 ---------- ---------- Commercial property revenue $ 125.6 $ 128.3 Direct commercial property expense 57.0 59.5 Investment and other income 0.8 0.2 Interest expense 23.1 25.9 General and administrative expense 7.1 5.6 ---------- ---------- Income before fair value gains 39.2 37.5 Fair value gains 2.9 9.0 ---------- ---------- Net income and comprehensive income $ 42.1 $ 46.5 ---------- ---------- Net income and comprehensive income attributable to: Unitholders $ 11.8 $ 13.0 Non-controlling interest 30.3 33.5 ---------- ---------- $ 42.1 $ 46.5 ---------- ---------- Weighted average Trust units outstanding 26.1 26.1 Net income per Trust unit $ 0.45 $ 0.50 ---------- ----------
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
Three months ended (Cdn Millions, except per unit amounts) Mar. 31 ---------------------- 2014 2013 ---------- ---------- Net income $ 42.1 $ 46.5 Add (deduct): Fair value gains (2.9) (9.0) Amortization of lease incentives 0.4 0.7 Foreign exchange loss 1.3 -- ---------- ---------- Funds from operations 40.9 38.2 ---------- ---------- Funds from operations - unitholders $ 11.5 $ 10.7 Funds from operations - non-controlling interest 29.4 27.5 ---------- ---------- $ 40.9 $ 38.2 ---------- ---------- Weighted average Trust units outstanding 26.1 26.1 Funds from operations per Trust unit $ 0.44 $ 0.41 ---------- ----------
RECONCILIATION OF FUNDS FROM OPERATIONS TO ADJUSTED FUNDS FROM OPERATIONS
Three months ended (Cdn Millions, except per unit amounts) Mar. 31 ---------------------- 2014 2013 ---------- ---------- Funds from operations $ 40.9 $ 38.2 Add (deduct): Straight-line rental income 2.6 (1.5) Normalized 2nd generation leasing commissions and tenant improvements(1) (5.3) (5.1) Normalized sustaining capital expenditures(1) (1.7) (1.3) ---------- ---------- Adjusted funds from operations(2) 36.5 30.3 ---------- ---------- Adjusted funds from operations - unitholders $ 10.2 $ 8.5 Adjusted funds from operations - non-controlling interest 26.3 21.8 ---------- ---------- $ 36.5 $ 30.3 ---------- ---------- Weighted average Trust units outstanding 26.1 26.1 Adjusted funds from operations per Trust unit $ 0.39 $ 0.33 ---------- ---------- (1) As the components used in calculating AFFO vary quarter over quarter, a normalized level of activity is estimated based on historical spend levels as well as anticipated spend levels over the next few years. Maintaining value capital expenditures relate to capital items that are required to maintain the properties in their current operating state and exclude projects that are considered to add productive capacity. (2) AFFO calculated using actual leasing commissions, tenant improvements and maintaining value capital expenditures would result in AFFO of $39.7 million for the quarter ended March 31, 2014.
Vice President, Investor Relations and Communications
Email: Email Contact
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Apr. 23, 2017 01:45 AM EDT Reads: 8,472
Everyone wants to use containers, but monitoring containers is hard. New ephemeral architecture introduces new challenges in how monitoring tools need to monitor and visualize containers, so your team can make sense of everything. In his session at @DevOpsSummit, David Gildeh, co-founder and CEO of Outlyer, will go through the challenges and show there is light at the end of the tunnel if you use the right tools and understand what you need to be monitoring to successfully use containers in your...
Apr. 23, 2017 01:00 AM EDT Reads: 1,418
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Apr. 22, 2017 11:45 PM EDT Reads: 2,003
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Apr. 22, 2017 11:15 PM EDT Reads: 1,391
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Apr. 22, 2017 10:15 PM EDT Reads: 1,780
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Apr. 22, 2017 10:15 PM EDT Reads: 1,756
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Apr. 22, 2017 09:15 PM EDT Reads: 3,425
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
Apr. 22, 2017 08:00 PM EDT Reads: 1,788
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across supply chain networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost and time for product recall as well as advance trade. Are you curious about Blockchain and how it can provide you with new opportunities for innovation and growth? In her session at 20th Cloud Exp...
Apr. 22, 2017 06:15 PM EDT Reads: 1,092
Cybersecurity is a critical component of software development in many industries including medical devices. However, code is not always written to be robust or secure from the unknown or the unexpected. This gap can make medical devices susceptible to cybersecurity attacks ranging from compromised personal health information to life-sustaining treatment. In his session at @ThingsExpo, Clark Fortney, Software Engineer at Battelle, will discuss how programming oversight using key methods can incre...
Apr. 22, 2017 05:45 PM EDT Reads: 3,628
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Apr. 22, 2017 05:30 PM EDT Reads: 2,133
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
Apr. 22, 2017 04:30 PM EDT Reads: 1,645
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Apr. 22, 2017 03:15 PM EDT Reads: 2,297
Did you know that you can develop for mainframes in Java? Or that the testing and deployment can be automated across mobile to mainframe? In his session at @DevOpsSummit at 20th Cloud Expo, Vaughn Marshall, Sr. Principal Product Owner at CA Technologies, will discuss and demo how increasingly teams are developing with agile methodologies using modern development environments and automating testing and deployments, mobile to mainframe.
Apr. 22, 2017 03:00 PM EDT Reads: 640
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Apr. 22, 2017 03:00 PM EDT Reads: 1,357