News Feed Item

Dundee Industrial REIT Announces Record AFFO Per Unit and Name Change to Dream Industrial REIT

TORONTO, ONTARIO -- (Marketwired) -- 05/05/14 --

This news release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release.

DUNDEE INDUSTRIAL REIT (TSX:DIR.UN) today announced its financial results for the three months ended March 31, 2014.


--  Adjusted Funds From Operations ("AFFO") per unit grew by 18% from Q1
    2013 and 2.6% from Q4 2013 - AFFO for the three months ended March 31,
    2014 was 19.7 cents compared to 16.7 cents for the three months ended
    March 31, 2013 and 19.2 cents for the three months ended December 31,
--  Occupancy increases to 96.3% from 95.7% at December 31, 2013 - The Trust
    completed another strong quarter of leasing to date with 400,000 square
    feet commencing, reflecting a tenant renewal ratio of 80%, new leasing
    transactions of 183,000 square feet and renewals of 218,000 square feet.
--  Stable capital structure - Leverage remained stable at 52.4% with
    interest coverage of 2.9 times and a weighted average term to maturity
    on debt of 4.2 years. 
--  Continued opportunities for rent growth - Estimated market rental rates
    exceed in place rents by approximately 6.0%. 
--  Capital recycling activities - Portfolio optimization activities
    underway include a 65% occupied property under contract for sale for
    gross proceeds of $11.2 million with an expected closing in May and the
    purchase of a 50% interest in the Trust's only co-owned property for
    $2.3 million, which is also expected to close in May. 

As previously announced in the Trust's 2013 annual report, we are moving into a new and exciting time in our business and following our annual meeting today, Dundee Industrial REIT's name will be Dream Industrial REIT.

SELECTED FINANCIAL INFORMATION                                              
(unaudited)                                              Three Months Ended 
($000's except unit and per unit      March 31,  December 31,     March 31, 
 amounts)                                  2014          2013          2013 
Investment properties revenue      $     40,914  $     41,149  $     29,250 
Net operating income ("NOI")(1)          27,215        27,060        19,892 
Funds from operations ("FFO")(1)         17,044        16,872        11,993 
Adjusted funds from operations                                              
 ("AFFO")(1)                             14,006        13,630         9,275 
Investment properties value           1,532,065     1,540,791     1,148,845 
Debt                                    836,061       840,382       659,504 
Per unit data (basic)                                                       
AFFO - basic and diluted           $      0.197  $      0.192  $      0.167 
FFO - basic                               0.239         0.237         0.216 
FFO - diluted                             0.234         0.233         0.215 
Distributions                              0.17          0.17          0.17 
FFO payout ratio (%)                       71.1%         71.7%         78.7%
AFFO payout ratio (%)                      86.3%         88.5%        101.8%
Units (period end)                                                          
REIT Units                           55,063,083    54,921,726    46,749,543 
LP Class B Units, Series 1           16,282,096    16,282,096    16,282,096 
Total number of units                71,345,179    71,203,822    63,031,639 
Portfolio gross leasable area (sq.                                          
 ft.)                                15,599,084    15,663,357    11,434,418 
Occupied and committed space               96.3%         95.7%         96.5%

See footnotes on page 3

"We are pleased with our continued strong operating metrics which reflect our focus on internal growth and operating our properties well," said Randy Cameron, President and Chief Executive Officer. "This, along with strong fundamentals for industrial real estate supports continued growth in net operating income and adjusted funds from operations."

Subsequent to March 31, the Trust obtained a commitment to extend the maturity date of its credit facility to June 2016 from October 2014, and increase the size from $50 million to $75 million. This provides the Trust with additional financial flexibility as it refinances debt and recycles capital.


--  AFFO Growth - AFFO for the quarter was $14.0 million or 0.197 cents on a
    per unit basis. AFFO per unit for the quarter was 18% higher than the
    same period in the prior year and 2.6% higher compared to the fourth
    quarter of 2013. 
--  Increase in FFO per unit - FFO for the quarter was $17.0 million or 23.9
    cents per unit. FFO per unit for the quarter increased 10.6% compared to
    the same period in the prior year and was 0.8% higher than the fourth
    quarter of 2013. 
--  Total NOI of $27.2 million for the quarter - Total NOI has grown 37%
    compared to the same period last year primarily as a result of
    acquisitions completed in the second quarter of 2013. Comparative
    property NOI over the fourth quarter of 2013 increased by 1.1%. 


--  Leasing Profile - Leasing activity during the first quarter included
    183,000 square feet of new leases, 218,000 square feet of renewals and a
    net decrease in committed space for future occupancy of 51,000 square
    feet, compared to 271,000 square feet of expiries and 16,000 square feet
    of early terminations. At period-end, the Trust had 740,000 square feet
    of vacant space, of which 158,000 square feet is committed for future
    occupancy. The average remaining lease term at March 31, 2014 is 4.6
--  Portfolio occupancy at 96.3% - Overall occupancy (including committed
    space) improved to 96.3% compared to 95.7% at end of the fourth quarter
    of 2013. 
--  Estimated market rents 6.0% above average in-place rents - At quarter-
    end, estimated market rents were approximately 6.0% above the Trust's
    current average in-place rental rate of $6.96 per square foot (December
    31, 2013 - $6.92). The 6.0% difference between in-place and market rent
    provides the Trust with opportunities for rental rate growth. 

                         GLA               Average       Average market rent
                (in millions  Occupancy lease term in-place rent    (per sq.
                 of sq. ft.)        (%)    (years) (per sq. ft.)        ft.)
Western Canada           4.2       98.3        4.3  $       8.66  $     9.73
Ontario                  4.9       98.0        4.3          6.11        6.23
Quebec                   3.7       93.8        6.1          5.95        6.16
Eastern Canada           2.8       93.4        3.4          7.12        7.35
Total                   15.6       96.3        4.6  $       6.96  $     7.38


The Trust's capital structure remained stable during the quarter, with leverage at a stable 52.4% and interest coverage of 2.9 times.

                                                   March 31,   December 31, 
Key performance indicators(2)                           2014           2013 
Level of debt (debt-to-total assets)(3)                 52.4%          52.6%
Interest coverage ratio(4)                         2.9 times      2.9 times 
Average face interest rate on all debt                  4.17%          4.18%
Debt - average term to maturity (years)                  4.2            4.1 

See footnotes on page 3

During the quarter, the Trust entered into an agreement to sell a 65,000 square foot property in Calgary to a major tenant in the property for $11.2 million. The property is 65% occupied and has been reclassified to asset held for sale and excluded from our operating statistics for the current quarter. The sale is expected to close in May.

The Trust has waived conditions on the acquisition of our partner's 50% interest in a 26,000 square foot property in Edmonton for $2.3 million, the only property in which we had a co-ownership interest. This transaction is also expected to close in May.


For the remainder of 2014, management will be primarily focused on operations and growing rental income by leveraging the strength in our major markets. We are also recycling capital on an opportunistic basis to continue to improve the quality of our portfolio and exploring intensification opportunities.


Senior management will host a conference call to discuss the results tomorrow, May 6, 2014 at 9:00 a.m. (ET). To access the conference call, please dial 1-866-229-4144 in Canada and the United States or 416-216-4169 elsewhere and use passcode 9411 711#. A taped replay of the call will be available for 90 days. To access the conference call via webcast, please go to Dundee Industrial REIT's website at www.dundeeindustrial.com and, in the Investor Centre, click on Calendar of Events. The webcast will be archived for 90 days.

Other information

Information appearing in this news release is a select summary of results. The condensed consolidated financial statements and management's discussion and analysis for the Trust, as well as its Supplementary Information Package will be available at www.dundeeindustrial.com and on www.sedar.com.

Dundee Industrial REIT is an unincorporated, open-ended real estate investment trust. Dundee Industrial REIT owns a portfolio of 205 primarily light industrial properties comprising approximately 15.6 million square feet of gross leasable area in key industrial markets across Canada. Its objective is to build upon and grow its portfolio and to provide stable, sustainable and growing cash distributions to its unitholders. For more information, please visit www.dundeeindustrial.com.


(1)  NOI, FFO and AFFO - are key measures of performance used by real estate
     operating companies; however, they are not defined by International    
     Financial Reporting Standards ("IFRS"), do not have standard meanings  
     and may not be comparable with other industries or income trusts.      
(2)  The key performance indicators include the results of operations for   
     the three months ended March 31, 2014, December 31, 2013 and March 31, 
(3)  Level of debt is determined as total debt before deferred financing    
     costs and mark-to-market adjustments, divided by total assets.         
(4)  The interest coverage ratio for the three months ended March 31, 2014  
     and December 31, 2013 is calculated as net rental income plus interest 
     and fee income, less general and administrative expenses, plus deferred
     unit compensation expense, all divided by interest expense on debt,    
     excluding deferred financing and mark-to-market adjustments.           

Forward-looking information

This press release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dundee Industrial REIT's control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and currency rate functions. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. Dundee Industrial REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise. Additional information about these assumptions and risks and uncertainties is contained in Dundee Industrial REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dundee Industrial REIT's website at www.dundeeindustrial.com.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DevOps theory promotes a culture of continuous improvement built on collaboration, empowerment, systems thinking, and feedback loops. But how do you collaborate effectively across the traditional silos? How can you make decisions without system-wide visibility? How can you see the whole system when it is spread across teams and locations? How do you close feedback loops across teams and activities delivering complex multi-tier, cloud, container, serverless, and/or API-based services?
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Streamlyzer 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. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
Today every business relies on software to drive the innovation necessary for a competitive edge in the Application Economy. This is why collaboration between development and operations, or DevOps, has become IT’s number one priority. Whether you are in Dev or Ops, understanding how to implement a DevOps strategy can deliver faster development cycles, improved software quality, reduced deployment times and overall better experiences for your customers.
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
SYS-CON Events announced today that Cloudbric, a leading website security provider, 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. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will w...