Click here to close now.




















Welcome!

News Feed Item

Melcor REIT Announces Second Quarter Results

EDMONTON, ALBERTA -- (Marketwired) -- 08/06/14 --



---------------------------------------------------------------------------
Quarter Highlights                    Year-to-date Highlights

- Rental revenue of $11.12 million    - Rental revenue of $21.77 million,
  for growth of 14% over Q2-2013        exceeding YTD-2013 by 12%

- Net operating income of $7.20       - Net operating income of $13.93
  million for growth of 13% over Q2-    million for growth of 10% over YTD-
  2013                                  2013

- Adjusted funds from operations      - Adjusted funds from operations
  (AFFO) of $3.90 million or $0.19      (AFFO) grew 10% to $7.68 million or
  per unit compared to $0.19 per unit   $0.39 per unit compared to $0.37
  in Q2-2013                            per unit YTD-2013

- Debt to Gross Book Value (GBV)      - Occupancy at 92.0% compared to
  ratio of 46%, below our target        90.6% at the end of 2013
  range of 50-55%

- Gross leasable area increased by 4% - Distributions of $0.05625 per unit
  through 3 property acquisitions       per month paid YTD
---------------------------------------------------------------------------

Melcor REIT (TSX: MR.UN) announced results for the second quarter and first half of 2014, which ended June 30, 2014. Year-to-date rental revenue increased 12% to $21.77 million compared to $19.46 million in the first half of 2013. Adjusted funds from operations (AFFO) grew 10% to $7.68 million or $0.39 per unit for the first half of 2014.

Darin Rayburn, CEO of Melcor REIT commented: "We continue to execute our strategy and deliver as promised. Throughout the first half of 2014, we've increased our portfolio GLA by 9% through a number of external acquisitions as well as our first acquisition via the Melcor pipeline, which is unique to Melcor REIT. Our focus on leasing activity has been successful as well, with 77% of our expiring GLA renewed by the end of June. This contributed to an increase in occupancy and strong results overall.

We are pleased with our performance to date and will continue to take a disciplined and focused approach to achieving our objectives."

Financial Highlights for the quarter include:


--  On May 7, 2014 we successfully completed a bought deal issuance of
    1,900,000 trust units at $10.65 for gross proceeds of $20.24 million.
    The underwriters subsequently exercised their over allotment option for
    an additional 245,000 trust units at $10.65 for gross proceeds of $2.61
    million. The proceeds were used in part to fund two property
    acquisitions from Melcor, with the remainder used to pay down our
    revolving credit facility to support future acquisitions and for general
    trust purposes.

--  We continued to execute on our growth strategy and increased gross
    leasable area (GLA) by 4% to 1,837,439 sq. ft.

    --  We made our first acquisition via our proprietary Melcor pipeline,
        purchasing two multi-tenant retail properties for a purchase price
        of approximately $13.50 million (excluding transaction costs). The
        properties include Market Mall, a 42,586 sq. ft. retail community
        strip centre in Regina, Saskatchewan and phase three of Kingsview
        Market, a 11,555 sq. ft. retail complex in Airdrie.

    --  We acquired 107 Avenue Building, a 23,432 sq. ft. office building in
        Edmonton, Alberta for a purchase price of $5.55 million (excluding
        transaction costs).

--  We continue to focus on property management and asset enhancement
    initiatives in order to maintain and improve our assets. These
    initiatives led to improved occupancy and retention rates during the
    second quarter, with period end rates of 92.0% and 78.3% respectively.

--  We have achieved strong leasing activity year-to-date, with 71,754 sq.
    ft. in new leasing. 76.8% of the GLA expiring in 2014 was renewed at
    June 30, 2014.

The successful execution of these strategies contributed to:


--  Revenue growth of 14% over Q2-2013 as a result of our expanded
    portfolio. Weighted average base rent (per sq. ft.) and occupancy
    remained steady during the period. Higher revenue translated into
    increased NOI, which grew by 13% over Q2-2013. Direct operating expenses
    increased by 15%, primarily as a result of the new property additions in
    conjunction with timing and allocation differences in the comparative
    period.

--  FFO and AFFO of $4.43 million and $3.90 million, an 8% increase over Q2-
    2013. FFO and AFFO per unit were $0.22 and $0.19 respectively, and
    consistent over Q2-2013. Growth in FFO and AFFO was offset by the
    dilutive impact of the trust unit issuance during the period. We
    continue to pursue third party acquisition opportunities and monitor
    properties in the Melcor development pipeline to support future growth.

--  Distributions of $0.05625 per trust unit were paid in April, May and
    June. Distributions made during Q2-2014 represent a payout ratio of 89%.

--  As at June 30, 2014 we have funds available under our revolving credit
    facility, providing the REIT with the near term capacity to capitalize
    on future acquisition opportunities.

Selected Quarter Highlights



----------------------------------------------------------------------------
Financial Highlights
----------------------------------------------------------------------------
                      Three months ended          Six months ended
                            June 30                    June 30
----------------------------------------------------------------------------
($000s)                    2014     2013   delta%     2014     2013   delta%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Non-standard KPIs
Net operating income
 (NOI)                    7,203    6,379      13%   13,937   12,721      10%
Funds from operations
 (FFO)                    4,431    4,109       8%    8,719    8,104       8%
Adjusted funds from
 operations (AFFO)        3,902    3,604       8%    7,679    6,991      10%

Rental revenue           11,119    9,773      14%   21,766   19,461      12%
Income before fair
 value adjustments and
 taxes                    2,125    2,488    (15)%    4,264    5,905    (28)%
Fair value adjustment
 on investment
 properties                 568    1,792    (68)%      737    4,386    (83)%
Distributions to
 unitholders              1,782    1,027      74%    3,323    1,027     224%
Cash flows from
 operations               1,806    2,105    (14)%    4,102    9,141    (55)%

Per unit metrics(1)
Income - diluted           0.22     0.10     120%     0.43     0.10     330%
FFO                        0.22     0.22     (1)%     0.45     0.43       5%
AFFO                       0.19     0.19       -%     0.39     0.37       5%
Distributions             0.169    0.113      50%    0.338    0.113     199%


----------------------------------------------------------------------------
($000s)                        30-Jun-14         31-Dec-13            delta%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total assets ($000s)             476,468           454,743                5%
Equity ($000s)(2)                216,852           186,608               16%
Debt ($000s)(3)                  207,522           215,601              (4)%
Weighted average
 interest rate on debt             3.97%             3.98%                -%
Debt to GBV ratio                    46%               51%             (10)%
Finance costs coverage
 ratio(4)                           2.95              2.96                -%
Debt service coverage
 ratio(5)                           2.82              2.83                -%


----------------------------------------------------------------------------
Operational Highlights
----------------------------------------------------------------------------
($000s)                       30-June-14         31-Dec-13                r%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  Number of properties                32                29               10%
   Gross leasable area
       (GLA) (sq. ft.)         1,837,439         1,691,920                9%
 Occupancy % (weighted
               by GLA)             92.0%             90.6%                2%
 Retention % (weighted
               by GLA)             78.3%             75.5%                4%
      Weighted average
  remaining lease term
               (years)              4.65              4.75              (2)%
 Weighted average base
    rent (per sq. ft.)            $16.23            $16.63              (2)%

(1)   The comparative 2013 figures are calculated as if the trust units and
      Class B LP Units which were issued in 2013 were outstanding during the
      entire comparative period.

(2)   Calculated as the sum of trust units and Class B LP Units at their
      book value.

(3)   Calculated as the sum of total amount drawn on revolving credit
      facility, mortgages payable and Class C LP Units, excluding
      unamortized fair value adjustment on Class C LP Units, unamortized
      transaction costs and unamortized discount on bankers acceptance.

(4)   Calculated as the sum of FFO and finance costs; divided by finance
      costs, excluding distributions on Class B LP Units.

(5)   Calculated as FFO; divided by sum of contractual principal repayments
      on mortgages payable and distributions of Class C LP Units, excluding
      amortization of fair value adjustment on Class C LP Units.

MD&A and Financial Statements

Information included in this press release is a summary of results. This press release should be read in conjunction with Melcor REIT's Q2-2014 report to unitholders, including the consolidated financial statements and management's discussion and analysis for the three- and six-months ended June 30, 2014 which can be found on the REIT's website at www.MelcorREIT.ca or on SEDAR (www.sedar.com).

About Melcor REIT

Melcor REIT is an unincorporated, open-ended real estate investment trust. Melcor REIT owns, acquires, manages and leases quality retail, office and industrial income-generating properties with exposure to high growth Canadian markets. Its portfolio is currently made up of interests in 32 properties representing approximately 1.84 million square feet of gross leasable area located across Alberta and in Regina, Saskatchewan and Kelowna, British Columbia. For more information, please visit www.melcorREIT.ca.

Non-Standard Measures

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. These non-IFRS measures are more fully defined and reconciled in the REIT's Management Discussion and Analysis for the period ended June 30, 2014, which is available on SEDAR at www.sedar.com.

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events. 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 the REIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of tenants; the REIT's ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest rate fluctuations. The REIT's 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. The 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 the REIT's filings with securities regulators.

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
Palerra, the cloud security automation company, announced enhanced support for Amazon AWS, allowing IT security and DevOps teams to automate activity and configuration monitoring, anomaly detection, and orchestrated remediation, thereby meeting compliance mandates within complex infrastructure deployments. "Monitoring and threat detection for AWS is a non-trivial task. While Amazon's flexible environment facilitates successful DevOps implementations, it adds another layer, which can become a ...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, S...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Delphix, the market leader in Data as a Service (DaaS), has been announced winner of the DevOps Solution Award at the prestigious Computing Vendor Excellence Awards in London. The awards celebrate the achievements of the technology vendors and service providers that are leading the field of enterprise IT. Delphix was recognised as the vendor demonstrating the most effective support of DevOps culture for its ability to improve time to market and collaboration between teams.
"Our biggest growth area has been the security services, the managed services - the things that differentiate us in the market that there is no client that's too small and there's no client that's too big," explained Paul Mazzucco, Chief Security Officer at TierPoint, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
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...
Sysdig has announced two significant milestones in its mission to bring infrastructure and application monitoring to the world of containers and microservices: a $10.7 million Series A funding led by Accel and Bain Capital Ventures (BCV); and the general availability of Sysdig Cloud, the first monitoring, alerting, and troubleshooting platform specializing in container visibility, which is already used by more than 30 enterprise customers. The funding will be used to drive adoption of Sysdig Clo...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
"We do data integration for B2B also application to application, and we do data management and enable Big Data," explained Pat Adamiak, Vice President, Product Marketing at Liaison Technologies, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
"We specialize in testing. DevOps is all about continuous delivery and accelerating the delivery pipeline and there is no continuous delivery without testing," noted Marc Hornbeek, Sr. Solutions Architect at Spirent Communications, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.