Welcome!

News Feed Item

Canadian Real Estate Investment Trust Announces Second Quarter 2014 Results and Renewal of Normal Course Issuer Bid

TORONTO, ONTARIO -- (Marketwired) -- 07/31/14 -- Canadian Real Estate Investment Trust ("CREIT") (TSX:REF.UN) today announced results for the three and six months ended June 30, 2014.

For the three months ended June 30, 2014, CREIT reported Funds from Operations ("FFO") of $0.74 per Unit compared to $0.71 per Unit for the same period in 2013, an increase of 4.2%.

For the six months ended June 30, 2014, CREIT reported FFO of $1.47 per Unit compared to $1.39 per Unit for the same period in 2013, an increase of 5.8%.

Stephen Johnson, President and Chief Executive Officer, said, "Our strong financial performance continued in the second quarter, with FFO increasing 4.2% over the comparative period in the prior year. CREIT's portfolio of high-quality real estate assets continued to produce a reliable and growing cash flow. Our investors continue to benefit from our prudent payout ratio, which results in the retention of significant cash flow. This, in itself, is a propellant for future growth, as it is invested in new acquisitions and development properties."

For the three months ended June 30, 2014 and 2013, FFO was as follows:


                                                 Three months ended June 30 
                                  ------------------------------------------
                                                                     Change 
                                                          ------------------
($ thousands, except per Unit                                               
 amounts)                                 2014        2013        ($)   (%) 
----------------------------------------------------------------------------
FFO                                 $   51,100  $   48,714  $   2,386   4.9%
FFO per Unit                        $     0.74  $     0.71  $    0.03   4.2%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
For the six months ended June 30, 2014 and 2013, FFO was as follows:        
                                                                            
                                                   Six months ended June 30 
                                 -------------------------------------------
                                                                     Change 
                                                          ------------------
($ thousands, except per Unit                                               
 amounts)                                 2014        2013        ($)   (%) 
----------------------------------------------------------------------------
FFO                               $    101,306  $   95,377  $   5,929   6.2%
FFO per Unit                      $       1.47  $     1.39  $    0.08   5.8%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The increase in FFO for the three and six months ended June 30, 2014, as compared to the same periods in 2013 are a result of transaction activities, improvements in same-asset performance and higher interest income from the mezzanine financing program.

The charts below provide summaries of net income for the three and six months ended June 30, 2014 and 2013.


                                                 Three months ended June 30 
                                       -------------------------------------
($ thousands, except per Unit                                               
 amounts)                                                            Change 
                                                               -------------
                                               2014        2013         ($) 
----------------------------------------------------------------------------
Income before gain on disposition of                                        
 investment properties, property                                            
 acquisition costs, foreign currency                                        
 (loss) gain and income taxes            $   22,950  $   20,905  $    2,045 
----------------------------------------------------------------------------
Net income                               $   22,754  $   25,228  $   (2,474)
----------------------------------------------------------------------------
Net income per Unit                      $     0.33  $     0.37  $    (0.04)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                   Six months ended June 30 
                                       -------------------------------------
($ thousands, except per Unit                                               
 amounts)                                                            Change 
                                                               -------------
                                               2014        2013         ($) 
----------------------------------------------------------------------------
Income before gain on disposition of                                        
 investment properties, property                                            
 acquisition costs, foreign currency                                        
 (loss) gain and income taxes            $   44,266  $   40,523  $    3,743 
----------------------------------------------------------------------------
Net income                               $   45,056  $   44,762  $      294 
----------------------------------------------------------------------------
Net income per Unit                      $     0.65  $     0.66  $    (0.01)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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, 2014 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.

Renewal of Normal Course Issuer Bid

CREIT today also announced that it has received approval from the Toronto Stock Exchange ("TSX") for the renewal of its normal course issuer bid ("NCIB") which will enable it to purchase for cancellation up to 3,464,500 of its outstanding Trust Units ("Units"), representing 5% of its 69,290,000 issued and outstanding Units as at July 31, 2014.

CREIT intends to commence the NCIB on August 13, 2014. The NCIB will expire on August 12, 2015 or such earlier date as CREIT completes its purchases pursuant to the NCIB. All purchases under the NCIB will be made on the open market through the facilities of the TSX, Alpha or alternate trading systems in Canada at market prices prevailing at the time of purchase. In accordance with TSX rules, any daily repurchases will be limited to a maximum of 25% of the average daily trading volume of the Units on the TSX for the six months ended July 31, 2014. Any Units that are repurchased will be cancelled.

The Trustees of CREIT believe that the ongoing purchase by CREIT of certain of its Units will afford additional liquidity for the issued and outstanding Units. It will also benefit all remaining Unitholders by increasing their proportionate equity and voting interests in CREIT.

From time to time, when CREIT does not possess material non-public information about itself or its securities, it will enter into a pre-defined plan with its broker to allow for the repurchase of Units at times when CREIT ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plans entered into with CREIT's broker will be adopted in accordance with applicable Canadian securities laws.

CREIT did not make any purchases under its NCIB that began on August 13, 2013.

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, office and industrial 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.

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
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st 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 w...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st 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 ...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities. In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, posited that disruption is inevitable for comp...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...