Retrocom REIT Announces 2012 Results

Marketwired

TORONTO, ONTARIO--(Marketwire - March 7, 2013) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY NON-CANADIAN SOURCE

Retrocom Mid-Market Real Estate Investment Trust (TSX:RMM.UN) (the "REIT") today announced results for the fourth quarter and the year ended December 31, 2012.

Highlights

  • Net Operating Income ("NOI") and Funds from Operation, adjusted ("FFO, adjusted") increased by 6.4% and 31.7% respectively for the year ended December 31, 2012 compared with the comparative period last year.

  • Improved Debt to Gross Book Value ratio as at December 31, 2012 to 49.1%.

  • Acquired three investment properties for $61.9 million consisting of 247,000 square feet of GLA. The REIT obtained three 10 year mortgage loans totalling $37.5 million at a weighted average interest rate of 4.16%.

  • Completed approximately $34 million of mortgage re-financing and renewals at a 253 basis point lower interest rate.

  • Raised $73.5 million through public offerings of trust units.

  • Canadian Tire leased 135,000 square feet at Southland Mall, representing 2.4% of the portfolio GLA. The REIT also plans a $6.4 million renovation of the property.

  • The REIT has accepted an assignment from Zellers of the lease at Yorkgate Mall and has released the premises for 10 years at higher rents.

  • In place portfolio occupancy on December 31, 2012 was 89.4%, up from 86.0% at the end of 2011, and committed portfolio occupancy was 92.1%.

Financial Highlights

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  Dec 31   Dec 31   Dec 31   Dec 31  
                 
(all amounts in $000's, except per unit amounts and ratios) 2012   2011   2012   2011  
Rental revenue and other income   20,586     20,281     80,258     77,923  
Property operating expenses   10,227     9,377     37,177     36,477  
Property operating income   10,359     10,904     43,081     41,446  
Share of joint venture net operating income   317     45     1,049     45  
Net operating income (1)   10,676     10,949     44,130     41,491  
Trust expenses   1,023     1,109     4,055     4,528  
Transaction costs on issuance of convertible debentures   -     -     -     1,973  
Finance costs - joint venture operations   66     -     178     -  
Finance costs-operations   4,440     4,960     18,647     20,076  
Finance costs-distributions on Class B Units   1,025     1,025     4,100     4,100  
Income before fair value gains (losses) and other income   4,122     3,855     17,150     10,814  
Fair value gains (losses) associated w ith financial instrument   2,975     (11,156 )   (7,301 )   (1,986 )
Fair value gain on investment property   38,886     8,967     57,605     5,529  
Fair value gains (losses) on participant's rights under LTIP   40     (61 )   6     168  
Fair value gains (losses) on joint venture property   18     5,051     647     4,916  
Loss from sale of investment property   -     -     (105 )   -  
Other income settlement   -     -     1,090     -  
Income for the period   46,041     6,656     69,092     19,441  
FFO, adjusted (2)   5,174     4,927     22,450     17,041  
                         
FFO, adjusted per unit $ 0.095   $ 0.111   $ 0.446   $ 0.410  
FFO, adjusted payout ratio   118.4 %   101.4 %   100.9 %   109.8 %
Distributions per unit $ 0.1125   $ 0.1125   $ 0.4500   $ 0.4500  

Full Financial Results and MD&A will be available on SEDAR (www.sedar.com) as well as the Investors Relations section of the REIT's website (www.rmmreit.com).

(1) A non-IFRS measurement, calculated by the REIT as rental revenue (net rents, property tax and operating cost recoveries, as well as other miscellaneous income from tenants) less operating expenses for properties.
   
(2) The reconciliations from net income (loss) to Funds from Operations, adjusted are included in the REIT's MD&A.

The REIT's management considers Net Operating Income, Funds from Operations, Funds from Operations, adjusted, and Debt to Gross Book Value ratio to be indicative measures in evaluating the REIT's performance. The table above includes non-IFRS information that should not be construed as an alternative to net income or cash flows from operations and may not be comparable to similar measures presented by other issuers as there is no standardized meaning prescribed by IFRS.

Conference Call

Retrocom REIT will hold a conference call on Friday, March 8, 2013 at 10:00am (ET). Participating on the call will be members of the REIT's senior management.

Investors are invited to access the call by dialling 416-644-3415 or 1-877-974-0445. You will be required to identify yourself and the organization on whose behalf you are participating. A recording of this call will be made available Friday, March 8, 2013 beginning around 11:00 am (ET) through to Tuesday, March 26, 2013. To access the recording, please call 416-640-1917 or 1-877-289-8525 and use the reservation number 4599177#.

About Retrocom REIT

Retrocom REIT is an unincorporated, open-end real estate investment trust which focuses on owning and acquiring retail properties across Canada with the goal of enhancing long-term Unitholder value.

Forward-Looking Information

This press release may contain forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", and by discussions of strategies that involve risks and uncertainties. The forward-looking statements are based on certain key expectations and assumptions made by the REIT. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of the REIT believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the REIT nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the Retrocom Mid-Market REIT have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.

Contact:
Retrocom Mid-Market Real Estate Investment Trust
Richard Michaeloff
Chief Executive Officer
(416) 741-7993
(416) 741-7999
rmichaeloff@rmmreit.com
www.rmmreit.com

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