Allied Properties Real Estate Investment Trust Announces Fourth-Quarter & Year-End Results With Continuing Growth in FFO & AF...
04 Marzo 2014 - 10:34PM
Marketwired
Allied Properties Real Estate Investment Trust Announces
Fourth-Quarter and Year-End Results With Continuing Growth in FFO
and AFFO Per Unit
TORONTO, ONTARIO--(Marketwired - Mar 4, 2014) - Allied
Properties REIT (TSX:AP.UN) today announced results for its fourth
quarter and year ended December 31, 2013. "It was all about
execution and financial discipline," said Michael Emory, President
and CEO. "We delivered FFO and AFFO per unit growth of 8% and 16%
in 2013, pushing our FFO and AFFO pay-out ratios for the year down
to 70% and 82%. This enabled us at year-end to increase our annual
distribution by 4% to $1.41 per unit. We also continued our
unwavering commitment to the balance sheet by further improving our
debt ratios, interest coverage ratios and immediate and near-term
liquidity."
The results for the
fourth quarter are summarized below and compared to the same
quarter in 2012:
|
|
|
|
|
(In thousands except for per unit and % amounts) |
Q4 2013 |
Q4 2012 |
CHANGE |
% CHANGE |
|
Net income |
31,169 |
25,524 |
5,645 |
22.1% |
Same-asset net operating income ("NOI") |
40,701 |
36,676 |
4,025 |
11.0% |
Funds from operations ("FFO") |
34,796 |
28,020 |
6,776 |
24.2% |
FFO per unit (diluted) |
$0.51 |
$0.45 |
$0.06 |
13.3% |
FFO pay-out ratio |
67.7% |
73.2% |
(5.5%) |
|
Adjusted FFO ("AFFO") |
29,506 |
23,430 |
6,076 |
25.9% |
AFFO per unit (diluted) |
$0.43 |
$0.38 |
$0.05 |
13.2% |
AFFO pay-out ratio |
79.8% |
87.5% |
(7.7%) |
|
Total debt as a % of fair value of investment properties |
35.7% |
36.4% |
(0.7%) |
|
Net debt as a multiple of annualized Q4 EBITDA |
6.3:1 |
6.5:1 |
(0.2:1) |
|
Operating interest-coverage ratio |
4.1:1 |
3.7:1 |
0.4:1 |
|
Total interest-coverage ratio |
3.0:1 |
2.8:1 |
0.2:1 |
|
The results for the
year ended December 31, 2013, are summarized below and compared to
the same period in 2012:
|
|
|
|
|
(In thousands except for per unit and % amounts) |
2013 |
2012 |
CHANGE |
% CHANGE |
|
Net income |
118,234 |
93,325 |
24,909 |
26.7% |
Same-asset net operating income ("NOI") |
139,059 |
126,670 |
12,389 |
9.8% |
Funds from operations ("FFO") |
131,679 |
102,152 |
29,527 |
28.9% |
FFO per unit (diluted) |
$1.94 |
$1.79 |
$0.15 |
8.4% |
FFO pay-out ratio |
70.0% |
73.8% |
(3.8%) |
|
Adjusted FFO ("AFFO") |
112,135 |
81,707 |
30,428 |
37.2% |
AFFO per unit (diluted) |
$1.66 |
$1.43 |
$0.23 |
16.1% |
AFFO pay-out ratio |
82.2% |
92.3% |
(10.1%) |
|
Total debt as a % of fair value of investment properties |
35.7% |
36.4% |
(0.7%) |
|
Net debt as a multiple of annualized Q4 EBITDA |
6.3:1 |
6.5:1 |
(0.2:1) |
|
Operating interest-coverage ratio |
4.0:1 |
3.2:1 |
0.8:1 |
|
Total interest-coverage ratio |
3.0:1 |
2.7:1 |
0.3:1 |
|
Allied's financial
performance measures for the fourth quarter and fiscal year were up
from the comparable quarter and period in 2012, despite a
continuing reduction in its debt ratios. This is a result of
increased occupancy, portfolio-wide rental growth, accretion from
recent acquisitions and increasing NOI as a result of
value-creation activity.
Allied's operating
performance measures were also strong. Having leased over 1.5
million square feet of space in 2013, Allied finished the year with
its rental portfolio 91.9% leased, 94.4% leased if upgrade
properties are excluded. Allied renewed or replaced leases for
85.6% of the GLA that matured in the 2013. This resulted in an
overall increase of 8.9% in net rental income per square foot from
the affected space.
With $182 million in
acquisitions completed in 2013, Allied exceeded its targets for the
year. As expected, most of the acquisitions were immediately
accretive to FFO and AFFO per unit. They were also heavily weighted
in Western Canada, continuing the ongoing improvement in Allied's
geographic diversification.
Allied's
value-creation activity progressed well in 2013. Having completed
one upgrade project and five redevelopment projects over the course
of the year, Allied now has two upgrade projects and three
redevelopment projects scheduled for completion in 2014. Allied
also has 11 intensification projects underway, two of which are
Properties Under Development and the remaining nine of which are
rental properties going through the municipal approval or
pre-development process. At the end of 2013, Allied's Properties
Under Development represented 4% of the fair value of its
portfolio.
Allied recently
announced a major lease transaction at The Breithaupt Block in
Kitchener for 185,000 square feet and another at QRC West, Phase I,
in Toronto for 70,000 square feet. "These long-term commitments to
our development portfolio bode well for our value-creation activity
going forward," said Mr. Emory.
Allied's balance
sheet continued to grow and strengthen in 2013. At the end of the
year, the fair value of its assets was $3.4 billion, up 16% from
the end of 2012 through a combination of acquisitions ($182
million) and value appreciation ($285 million), offset somewhat by
dispositions ($7 million). Allied's total debt was 36% of fair
value and comprised entirely of first mortgages with a weighted
average term of six years and a weighted average interest rate of
4.8% Its immediate liquidity was $133 million, and it had
approximately $400 million in unencumbered properties, affording it
very considerable near-term liquidity.
FFO, AFFO and
EBITDA, total debt and net debt are not financial measures defined
by International Financial Reporting Standards ("IFRS"). Please see
Allied's MD&A for a description of these measures and their
reconciliation to financial measures defined by IFRS, as presented
in Allied's consolidated financial statements for the year ended
December 31, 2013. These statements, together with accompanying
notes and MD&A, have been filed with SEDAR, www.sedar.com, and
are also available on Allied's web-site, www.alliedreit.com.
NOI is not a measure
recognized under IFRS and does not have any standardized meaning
prescribed by IFRS. NOI is presented in this press release because
management of Allied believes that this non-IFRS measure is an
important financial performance indicator. NOI, as computed by
Allied, may differ from similar computations as reported by other
similar organizations and, accordingly, may not be comparable to
NOI reported by such organizations.
This press release
may contain forward-looking statements with respect to Allied, its
operations, strategy, financial performance and condition. These
statements generally can be identified by use of forward looking
words such as "may", "will", "expect", "estimate", "anticipate",
intends", "believe" or "continue" or the negative thereof or
similar variations. Allied's actual results and performance
discussed herein could differ materially from those expressed or
implied by such statements. Such statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations. Important factors that could cause actual results to
differ materially from expectations include, among other things,
general economic and market factors, competition, changes in
government regulations and the factors described under "Risk
Factors" in the Allied's Annual Information Form which is available
at www. sedar.com. The cautionary statements qualify all
forward-looking statements attributable to Allied and persons
acting on its behalf. Unless otherwise stated, all forward-looking
statements speak only as of the date of this press release, and
Allied has no obligation to update such statements.
Allied
Properties REIT is a leading owner, manager and developer of urban
office environments that enrich experience and enhance
profitability for business tenants operating in Canada's major
cities. Its objectives are to provide stable and growing cash
distributions to unitholders and to maximize unitholder value
through effective management and accretive portfolio
growth.
Allied Properties Real Estate Investment TrustMichael R.
EmoryPresident & Chief Executive
Officer416.977.9002memory@alliedreit.comwww.alliedreit.com
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