Dundee Industrial REIT Announces Record AFFO Per Unit and Name Change to Dream Industrial REIT
05 Maggio 2014 - 8:47PM
Marketwired
Dundee Industrial REIT Announces Record AFFO Per Unit and Name
Change to Dream Industrial REIT
TORONTO, ONTARIO--(Marketwired - May 5, 2014) -
This news
release contains forward-looking information that is based upon
assumptions and is subject to risks and uncertainties as indicated
in the cautionary note contained within this press
release.
DUNDEE INDUSTRIAL REIT (TSX:DIR.UN) today announced its
financial results for the three months ended March 31, 2014.
HIGHLIGHTS
- Adjusted Funds From Operations ("AFFO") per unit grew by 18%
from Q1 2013 and 2.6% from Q4 2013 - AFFO for the three months
ended March 31, 2014 was 19.7 cents compared to 16.7 cents for the
three months ended March 31, 2013 and 19.2 cents for the three
months ended December 31, 2013.
- Occupancy increases to 96.3% from 95.7% at December 31, 2013 -
The Trust completed another strong quarter of leasing to date with
400,000 square feet commencing, reflecting a tenant renewal ratio
of 80%, new leasing transactions of 183,000 square feet and
renewals of 218,000 square feet.
- Stable capital structure - Leverage remained stable at 52.4%
with interest coverage of 2.9 times and a weighted average term to
maturity on debt of 4.2 years.
- Continued opportunities for rent growth - Estimated market
rental rates exceed in place rents by approximately 6.0%.
- Capital recycling activities - Portfolio optimization
activities underway include a 65% occupied property under contract
for sale for gross proceeds of $11.2 million with an expected
closing in May and the purchase of a 50% interest in the Trust's
only co-owned property for $2.3 million, which is also expected to
close in May.
As previously announced in the Trust's 2013 annual report, we
are moving into a new and exciting time in our business and
following our annual meeting today, Dundee Industrial REIT's name
will be Dream Industrial REIT.
SELECTED FINANCIAL INFORMATION |
|
(unaudited) |
Three Months Ended |
|
($000's except unit and per unit amounts) |
March 31, 2014 |
|
December 31, 2013 |
|
March 31, 2013 |
|
Investment properties revenue |
$ |
40,914 |
|
$ |
41,149 |
|
$ |
29,250 |
|
Net
operating income ("NOI")(1) |
|
27,215 |
|
|
27,060 |
|
|
19,892 |
|
Funds
from operations ("FFO")(1) |
|
17,044 |
|
|
16,872 |
|
|
11,993 |
|
Adjusted funds from operations ("AFFO")(1) |
|
14,006 |
|
|
13,630 |
|
|
9,275 |
|
Investment properties value |
|
1,532,065 |
|
|
1,540,791 |
|
|
1,148,845 |
|
Debt |
|
836,061 |
|
|
840,382 |
|
|
659,504 |
|
Per
unit data (basic) |
|
|
|
|
|
|
|
|
|
AFFO
- basic and diluted |
$ |
0.197 |
|
$ |
0.192 |
|
$ |
0.167 |
|
FFO -
basic |
|
0.239 |
|
|
0.237 |
|
|
0.216 |
|
FFO -
diluted |
|
0.234 |
|
|
0.233 |
|
|
0.215 |
|
Distributions |
|
0.17 |
|
|
0.17 |
|
|
0.17 |
|
FFO
payout ratio (%) |
|
71.1 |
% |
|
71.7 |
% |
|
78.7 |
% |
AFFO
payout ratio (%) |
|
86.3 |
% |
|
88.5 |
% |
|
101.8 |
% |
Units
(period end) |
|
|
|
|
|
|
|
|
|
REIT
Units |
|
55,063,083 |
|
|
54,921,726 |
|
|
46,749,543 |
|
LP Class B Units, Series 1 |
|
16,282,096 |
|
|
16,282,096 |
|
|
16,282,096 |
|
Total
number of units |
|
71,345,179 |
|
|
71,203,822 |
|
|
63,031,639 |
|
|
|
|
|
|
|
|
|
|
|
Portfolio gross leasable area (sq. ft.) |
|
15,599,084 |
|
|
15,663,357 |
|
|
11,434,418 |
|
Occupied and committed space |
|
96.3 |
% |
|
95.7 |
% |
|
96.5 |
% |
See footnotes on page 3
"We are pleased with our continued strong operating metrics
which reflect our focus on internal growth and operating our
properties well," said Randy Cameron, President and Chief Executive
Officer. "This, along with strong fundamentals for industrial real
estate supports continued growth in net operating income and
adjusted funds from operations."
Subsequent to March 31, the Trust obtained a commitment to
extend the maturity date of its credit facility to June 2016 from
October 2014, and increase the size from $50 million to $75
million. This provides the Trust with additional financial
flexibility as it refinances debt and recycles capital.
FINANCIAL HIGHLIGHTS
- AFFO Growth - AFFO for the quarter was $14.0 million or 0.197
cents on a per unit basis. AFFO per unit for the quarter was 18%
higher than the same period in the prior year and 2.6% higher
compared to the fourth quarter of 2013.
- Increase in FFO per unit - FFO for the quarter was $17.0
million or 23.9 cents per unit. FFO per unit for the quarter
increased 10.6% compared to the same period in the prior year and
was 0.8% higher than the fourth quarter of 2013.
- Total NOI of $27.2 million for the quarter - Total NOI has
grown 37% compared to the same period last year primarily as a
result of acquisitions completed in the second quarter of 2013.
Comparative property NOI over the fourth quarter of 2013 increased
by 1.1%.
OPERATIONAL HIGHLIGHTS
- Leasing Profile - Leasing activity during the first quarter
included 183,000 square feet of new leases, 218,000 square feet of
renewals and a net decrease in committed space for future occupancy
of 51,000 square feet, compared to 271,000 square feet of expiries
and 16,000 square feet of early terminations. At period-end, the
Trust had 740,000 square feet of vacant space, of which 158,000
square feet is committed for future occupancy. The average
remaining lease term at March 31, 2014 is 4.6 years.
- Portfolio occupancy at 96.3% - Overall occupancy (including
committed space) improved to 96.3% compared to 95.7% at end of the
fourth quarter of 2013.
- Estimated market rents 6.0% above average in-place rents - At
quarter-end, estimated market rents were approximately 6.0% above
the Trust's current average in-place rental rate of $6.96 per
square foot (December 31, 2013 - $6.92). The 6.0% difference
between in-place and market rent provides the Trust with
opportunities for rental rate growth.
|
GLA (in millions of sq. ft.) |
Occupancy (%) |
Average lease term (years) |
Average in-place rent (per sq. ft.) |
Estimated market rent (per sq. ft.) |
Western Canada |
4.2 |
98.3 |
4.3 |
$ |
8.66 |
$ |
9.73 |
Ontario |
4.9 |
98.0 |
4.3 |
|
6.11 |
|
6.23 |
Quebec |
3.7 |
93.8 |
6.1 |
|
5.95 |
|
6.16 |
Eastern Canada |
2.8 |
93.4 |
3.4 |
|
7.12 |
|
7.35 |
Total |
15.6 |
96.3 |
4.6 |
$ |
6.96 |
$ |
7.38 |
CAPITAL STRUCTURE
The Trust's capital structure remained stable during the
quarter, with leverage at a stable 52.4% and interest coverage of
2.9 times.
Key performance indicators(2) |
March 31, 2014 |
|
December 31, 2013 |
|
Level
of debt (debt-to-total assets)(3) |
52.4 |
% |
52.6 |
% |
Interest coverage ratio(4) |
2.9 times |
|
2.9 times |
|
Average face interest rate on all debt |
4.17 |
% |
4.18 |
% |
Debt - average term to maturity (years) |
4.2 |
|
4.1 |
|
See footnotes on page 3
During the quarter, the Trust entered into an agreement to sell
a 65,000 square foot property in Calgary to a major tenant in the
property for $11.2 million. The property is 65% occupied and has
been reclassified to asset held for sale and excluded from our
operating statistics for the current quarter. The sale is expected
to close in May.
The Trust has waived conditions on the acquisition of our
partner's 50% interest in a 26,000 square foot property in Edmonton
for $2.3 million, the only property in which we had a co-ownership
interest. This transaction is also expected to close in May.
OUTLOOK
For the remainder of 2014, management will be primarily focused
on operations and growing rental income by leveraging the strength
in our major markets. We are also recycling capital on an
opportunistic basis to continue to improve the quality of our
portfolio and exploring intensification opportunities.
CONFERENCE CALL
Senior management will host a conference call to discuss the
results tomorrow, May 6, 2014 at 9:00 a.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 9411 711#. A taped replay of the call
will be available for 90 days. To access the conference call via
webcast, please go to Dundee Industrial REIT's website at
www.dundeeindustrial.com and, in the Investor Centre, click on
Calendar of Events. The webcast will be archived for 90 days.
Other information
Information appearing in this news release is a select summary
of results. The condensed consolidated financial statements and
management's discussion and analysis for the Trust, as well as its
Supplementary Information Package will be available at
www.dundeeindustrial.com and on www.sedar.com.
Dundee Industrial REIT is an unincorporated, open-ended real
estate investment trust. Dundee Industrial REIT owns a portfolio of
205 primarily light industrial properties comprising approximately
15.6 million square feet of gross leasable area in key industrial
markets across Canada. Its objective is to build upon and grow its
portfolio and to provide stable, sustainable and growing cash
distributions to its unitholders. For more information, please
visit www.dundeeindustrial.com.
FOOTNOTE
(1) |
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. |
(2) |
The
key performance indicators include the results of operations for
the three months ended March 31, 2014, December 31, 2013 and March
31, 2013. |
(3) |
Level
of debt is determined as total debt before deferred financing costs
and mark-to-market adjustments, divided by total assets. |
(4) |
The
interest coverage ratio for the three months ended March 31, 2014
and December 31, 2013 is calculated as net rental income plus
interest and fee income, less general and administrative expenses,
plus deferred unit compensation expense, all divided by interest
expense on debt, excluding deferred financing and mark-to-market
adjustments. |
Forward-looking information
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 Dundee Industrial REIT's control, which 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, general 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 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. Dundee Industrial 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
Dundee Industrial REIT's filings with securities regulators,
including its latest annual information form and MD&A. These
filings are also available at Dundee Industrial REIT's website at
www.dundeeindustrial.com.
Dundee Industrial REITRandy CameronPresident & Chief
Executive Officer(403) 270-2480rcameron@dundeeindustrial.comDundee
Industrial REITJohn ToddChief Financial Officer(416)
365-8963jtodd@dundeeindustrial.comwww.dundeeindustrial.com
Grafico Azioni Dream Industrial Real Es... (TSX:DIR.UN)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Dream Industrial Real Es... (TSX:DIR.UN)
Storico
Da Mag 2023 a Mag 2024