|By Marketwired .||
|August 6, 2014 05:13 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 08/06/14 --
Editors Note: There is a photo associated with this press release.
DREAM GLOBAL REIT (TSX:DRG.UN) today reported a 10% year-over-year increase in its Q2 2014 AFFO per unit and announced that it has entered into a long-term joint venture with Public Officials Benefit Association ("POBA"). Dream Global REIT's management team will be holding a conference call tomorrow, August 7, 2014 at 2:00 p.m. (ET).
Joint Venture with POBA
Dream Global REIT has entered into a long-term joint venture with POBA, a South Korean pension fund and one of the most active overseas real estate investors in South Korea. POBA will be acquiring a 50% joint venture interest in seven of Dream Global REIT's properties for a gross proceeds of approximately EUR221 million ($322 million). The transaction remains subject to various closing conditions and is expected to close in stages during the third and fourth quarters of 2014.
"We are very excited about the opportunities that this joint venture will provide for both parties involved. Choosing Dream Global REIT as a partner is not only an endorsement of our strong operating platform but also highlights the confidence of POBA in our ability to source accretive acquisitions in the future," said Jane Gavan, President and Chief Executive Officer of Dream Global REIT. "This joint venture offers us the opportunity to diversify our sources of capital, to leverage our REIT operating platform by generating joint venture management income and to continue to take advantage of the attractive investment environment."
Q2 2014 Financial and Operating Results Highlights
-- Q2 2014 AFFO per unit increased by 10% compared to Q2 2013 - basic AFFO per unit was $0.22 for the quarter and $0.43 for the first six months of 2014, compared with $0.20 and $0.39 respectively for same periods in 2013; -- Strong leasing activity - the Trust completed 89,700 square feet of new leases and 133,100 square feet of renewals in Q2 2014, resulting in a retention ratio of 76% and in the seventh quarter of positive net absorption; -- Comparative portfolio occupancy increases further - the Trust's comparative portfolio occupancy increased to 87.7%, up 20 basis points during Q2 2014 and 130 basis points since the beginning of 2014; -- Acquisitions - subsequent to quarter end, the Trust closed the acquisition of "Officium" in Stuttgart for approximately EUR46.9 million ($68.4 million) at a going-in cap rate of 6.6%, increasing year-to-date total acquisitions to approximately $183 million; -- Dispositions - seven properties were disposed during the quarter as part of the Trust's continuing capital recycling program for an aggregate sales price of $11.9 million, or 103% of the assets' book value, increasing year-to-date total dispositions to approximately $31.2 million. KEY PERFORMANCE INDICATORS June 30, March 31, June 30, 2014 2014 2013 ---------------------------------------------------------------------------- Portfolio Number of properties 286 293 299 Gross leasable area ("GLA") 15,679,545 15,820,974 15,404,094 Occupancy rate - including committed (1) (period-end) 87.9% 87.7% 85.7% Occupancy rate - in place (period-end) 87.0% 86.9% 84.5% Average in-place net rent per square foot (period-end) EUR8.74 EUR8.72 EUR8.14 Market rent above (below) in-place rent (%) 1.8% 1.5% 3.5% Initial Properties 11.6% 10.6% 10.8% Acquisition Properties (6.1)% (5.8)% (4.1)% ---------------------------------------------------------------------------- Three months ended June Six months ended June 30, 30, ----------------------- ------------------------ 2014(2) 2013(2) 2014(2) 2013(2) ---------------------------------------------------------------------------- Operating results Investment properties revenue $ 67,514 $ 54,413 $ 134,647 $ 100,777 Net rental income 47,079 36,191 92,879 63,502 Net rental income - Initial Properties 20,732 19,320 42,359 38,976 Net rental income - Acquisition Properties 26,347 16,871 50,520 24,526 FFO(3) 26,079 21,393 50,835 37,186 AFFO(4) 24,199 19,607 47,283 34,377 Distributions Declared distributions $ 22,098 $ 20,027 $ 44,104 $ 36,040 DRIP participation ratio (for the period) 16.2% 11.6% 17.0% 10.8% Per unit amounts Distribution rate $ 0.20 $ 0.20 $ 0.40 $ 0.40 Basic: (6) FFO 0.24 0.22 0.46 0.42 AFFO 0.22 0.20 0.43 0.39 Diluted: FFO 0.23 0.21 0.45 0.42 Payout ratio (%): AFFO (basic) 91.3% 100.0% 93.2% 102.6% ---------------------------------------------------------------------------- June 30, March 31, June 30, 2014 2014 2013 ---------------------------------------------------------------------------- Financing Weighted average effective interest rate on debt (period- end) 3.68% 3.69% 3.79% Weighted average face rate of interest on debt (period-end) 3.33% 3.35% 3.35% Interest coverage ratio(5) 3.39 times 3.41 times 3.40 times Net debt-to-adjusted EBITDFV (years)(5) 9.10 9.00 8.91 Level of debt (net debt-to-gross book value, net of cash)(5) 56% 56% 51% Debt - average term to maturity (years) 4.2 4.2 4.9 Unsecured convertible debentures 151,327 150,822 149,360 ---------------------------------------------------------------------------- (1) Occupancy in Q1 and Q2 2014 includes space covered by a headlease that was previously classified as vacant space. The Q2 2013 occupancy rate has not been restated. (2) Operating results for the three month and six month periods ended June 30, 2014 were converted at $1.496:EUR1 and $1.504:EUR1, respectively; for the three month and six month periods ended June 30, 2013, operating results were converted at $1.337:EUR1 and $1.335:EUR1, respectively. (3) FFO - net income, adjusted for fair value adjustments on investment property and financial instruments, share of income from equity- accounted investments, internal direct leasing costs, loss on sale of investment property, term debt swap settlements, loss on settlement of foreign currency contracts, amortization of lease incentives, deferred income taxes and income taxes on gains on sale. (4) AFFO - FFO adjusted for amortization of debt costs, deferred unit compensation expense, straight line rent and the Trust's estimates of normalized leasing costs and normalized non-recoverable recurring capital expenditures.
Joint venture with POBA - POBA is a South Korean pension fund for government officials and one of the most active overseas real estate investors in South Korea. Since it was founded in 1975, POBA has grown from 79,000 members to 235,000 members in 2013. POBA has been building a diversified investment portfolio focused on stable long-term returns, with a global commercial real estate portfolio that includes assets in England, China and Brazil.
"This strategic joint venture and significant acquisition of a high quality office portfolio in Germany allows us to expand into one of the most highly sought-after real estate markets in the world. With Dream, we have found a partner on the ground who is not only an experienced owner and operator of real estate but also understands our unique requirements," said Eunghan Park, Executive Managing Director of POBA.
The sale of the Trust's 50% interest in seven properties has a capitalization rate ("cap rate") of approximately 5.3% and includes ABC Bogen in Hamburg, Lowenkontor in Berlin, Werfthaus and K26 in Frankfurt, doubleU in Dusseldorf, Z-Up in Stuttgart and Marsstrasse 20-22 in Munich. The Trust intends to reinvest the net proceeds from this transaction in high quality office properties in its target markets. Dream Global REIT's acquisition pipeline remains robust.
"We are excited that we are being recognized for establishing an excellent platform in under three years that provides value to joint venture partners to co-invest with us. We now can grow with equity from the sale of properties from the original portfolio, with partners and with equity from the Canadian capital markets. The opportunities in Germany are plentiful and strategic partners like POBA will help us grow in Germany and potentially elsewhere when we identify appropriate opportunities," said Michael Cooper, Vice Chair of the Board of Trustees of Dream Global REIT.
Acquisition - on July 31, 2014, the Trust completed the acquisition of "Officium" in Stuttgart, Germany, a multi-tenant property with an excellent tenant roster that includes AXA, Deutsche Sparkassen and Oracle. The acquisition of this EUR46.9 million ($68.4 million) property has a cap rate of 6.6% and will add approximately 268,000 square feet of high quality office space in one of the Big 7 office markets in Germany to the Trust's portfolio. The Trust has negotiated 7.5-year mortgage financing for this property at a loan-to-value of approximately 60% and an interest rate of 1.99%.
To view the photo of "Officium" in Stuttgart, please visit the following link: http://www.marketwire.com/library/20140806-DRGlg.jpg.
Funds from operations - FFO increased to $26.1 million and $50.8 million, respectively, for the three and six months ended June 30, 2014, from $21.4 million and $37.2 million during the same periods in 2013. On a per unit basis, FFO for the three months and six months ended June 30, 2014 was $0.24/unit and $0.46/unit, respectively, compared to $0.22/unit and $0.42/unit, respectively, for the same periods in 2013. Positive absorption of space as well as completed acquisitions contributed to the increase in FFO.
Adjusted funds from operations - AFFO increased to $24.2 million and $47.3 million, respectively, for the three and six months ended June 30, 2014, from $19.6 million and $34.4 million during the same periods in 2013. On a per unit basis, AFFO for the three months and six months ended June 30, 2014 was $0.22/unit and $0.43/unit, respectively, compared to $0.20/unit and $0.39/unit, respectively, for the same periods in 2013.
Equity - On July 31, 2014, the Trust had 110,759,320 units outstanding. At the July 31, 2014 closing price of $9.06 per unit, the Trust's market capitalization was $1.0 billion.
Financing - On April 29, 2014, the Trust drew down a mortgage with a principal balance of $55.8 million at a fixed rate of 2.33% for a seven-year term in connection with the acquisition of connection with the acquisition of My Falkenried in Hamburg which closed in Q1.
CONFERENCE CALL DETAILS
Dream Global REIT's management team will be holding a conference call tomorrow, August 7, 2014 at 2:00 p.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 8694 191#. A taped replay of the call will be available for ninety days. For access details, please go to Dream Global REIT's website at www.dreamglobalreit.ca and click on the News and Events link, then click on Calendar of Events.
Information appearing in this news release is a select summary of results. The financial statements and management's discussion and analysis for the Trust are available at www.dreamglobalreit.ca and on SEDAR at www.sedar.com.
Dream Global REIT is an unincorporated, open-ended real estate investment trust that provides investors with the opportunity to invest in commercial real estate exclusively outside of Canada. Dream Global REIT's portfolio currently consists of approximately 15.7 million square feet of gross leasable area of office, industrial and mixed use properties across Germany. For more information, please visit www.dreamglobalreit.ca.
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 Dream Global REIT's control that 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, global 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 Canadian and German economies remain 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. Dream Global 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 Dream Global REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dream Global REIT's website at www.dreamglobalreit.ca.
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Oct. 23, 2016 05:30 PM EDT Reads: 2,844
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 23, 2016 05:30 PM EDT Reads: 815
SYS-CON Events announced today that SoftNet Solutions 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. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
Oct. 23, 2016 05:00 PM EDT Reads: 733
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Oct. 23, 2016 05:00 PM EDT Reads: 1,227
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Oct. 23, 2016 05:00 PM EDT Reads: 831
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Oct. 23, 2016 04:45 PM EDT Reads: 2,399
“Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CloudBerry Backup is a leading cross-platform cloud backup and disaster recovery solution integrated with major public cloud services, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.
Oct. 23, 2016 04:30 PM EDT Reads: 1,314
SYS-CON Events announced today that Embotics, the cloud automation company, 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. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
Oct. 23, 2016 04:30 PM EDT Reads: 798
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Oct. 23, 2016 04:15 PM EDT Reads: 1,473
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
Oct. 23, 2016 03:30 PM EDT Reads: 1,471
SYS-CON Events announced today that Coalfire 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. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
Oct. 23, 2016 03:30 PM EDT Reads: 1,520
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, will contrast how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He will show the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He will also have live demos of building immutable pipe...
Oct. 23, 2016 03:15 PM EDT Reads: 1,534
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, you'll learn about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how Docke...
Oct. 23, 2016 03:15 PM EDT Reads: 1,582
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
Oct. 23, 2016 03:00 PM EDT Reads: 34,035
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Oct. 23, 2016 02:30 PM EDT Reads: 1,370