OneREIT Announces Second Quarter 2017 Results


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

TORONTO, Aug. 14, 2017 (GLOBE NEWSWIRE) -- OneREIT (TSX:ONR.UN) today announced results for the second quarter ended June 30, 2017.

Highlights:

  • Funds from Operations, adjusted (“FFO, adjusted”) increased 2.1% to $18.7 million for the six months ended June 30, 2017 compared to $18.3 million for the same period in 2016.
     
  • FFO, adjusted per unit increased 1.4% to 21.4 cents for the six months ended June 30, 2017 compared to 21.1 cents for the same period in 2016.
     
  • FFO, adjusted payout ratio for the second quarter was 71%.
     
  • The weighted average cost of mortgage debt decreased to 4.17%, an improvement of 13 basis points since the second quarter of 2016.
     
  • Portfolio committed occupancy increased to 89.8% compared to 87.0% on June 30, 2016.
     
  • Debt to gross book value ratio (excluding and including convertible debentures) as at June 30, 2017 were 52.3% and 58.7%, respectively.                                       
 
Financial Highlights
      
  Three months ended Six months ended 
(all amounts in $000's , except per unit amounts and ratios)  2017  2016  2017  2016 
Rental revenue and other income    28,394   29,847    58,988   60,119 
Property operating expenses    10,561   12,158    23,690   24,461 
Property operating income    17,833   17,689    35,298   35,658 
Share of joint venture net operating income    526   462    1,043   919 
Net operating income (1)    18,359   18,151    36,341   36,577 
Trust expenses    1,500   1,300    2,532   2,545 
Finance costs - joint venture operations    218   173    429   356 
Finance costs - operations    7,877   8,046    15,406   15,983 
Finance costs - distributions on Class B Units    831   831    1,661   1,661 
Income  before fair value gains (losses) and other income    7,933   7,801    16,313   16,032 
Fair value gains (losses) associated with financial instruments    1,827   (9,485)   233   (13,942)
Fair value gains (losses) on investment property    (17,297) (1,454)   (14,999) (2,734)
Fair value gain (loss) on joint venture    221   (86)   455   229 
Net Income for the period    (7,315) (3,224)   2,002   (415)
      
FFO, adjusted (2)  9,272   9,248    18,716   18,337 
FFO, adjusted per unit $   0.106  $0.106 $   0.214  $0.211 
FFO, adjusted payout ratio  71.0%  70.8%  70.1%  71.1% 
              

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.onereit.ca).

(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 (“FFO, adjusted”) are included in the REIT’s MD&A.

The REIT’s management considers Net Operating Income, 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.

About OneREIT

OneREIT 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 contains forward-looking statements, which reflect management’s expectations regarding the REIT’s future growth, results of operations, performance, and business prospects and opportunities. These statements relate to, but are not limited to, the REIT’s expectations, intentions, plans and beliefs.  In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", “intend”, "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative or grammatical variations of these terms or other comparable terminology.  Readers should be aware that these statements are subject to known and unknown risks, uncertainties and other factors, including, but not limited to: those discussed or referenced under the heading “Risk Factors” in the REIT’s Management’s Discussion and Analysis for the six months ended June 30, 2017, as well as competition within the commercial real estate sector, the effective international, national and regional economic conditions and the availability of capital to fund further investments in the REIT’s business.  Actual events or results may differ materially from those suggested by any forward-looking statements. Readers should not place undue reliance on any forward-looking statements contained in this press release. 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 OneREIT 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 exemption from the registration requirements of U.S. securities laws.


            

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