TORONTO, ONTARIO — (Marketwired) — 08/08/13 — 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 REIT (TSX: D.UN) today announced its financial results for the three and six months ended June 30, 2013. Senior management will host a conference call to discuss the results tomorrow, August 9, 2013 at 9:00 a.m. (ET).
HIGHLIGHTS
“We-ve assembled a portfolio that is not easy to replicate and, in the process, have become the largest landlord of office space in the Greater Toronto Area with a significant presence in other key markets across the country. We are pleased with our diversified portfolio of central business district assets and our strong balance sheet, which reflects our ongoing strategy of building a high-quality business with increasingly stable and reliable cash flows. Our ability to access the unsecured debt market at attractive rates reflects these efforts,” said Michael Cooper, Vice Chairman and CEO of Dundee REIT.
PORTFOLIO INVESTMENT ACTIVITY
In keeping with its acquisition strategy to intensify in the central business districts of major Canadian markets, Dundee REIT completed office property acquisitions comprising 1.0 million square feet for approximately $360.1 million during the quarter. The properties have a weighted average occupancy rate of 99.5% and a weighted average lease term of 5.7 years. These acquisitions are located in key business districts in Vancouver, Saskatoon, Calgary and Toronto, and continue to enhance the quality and diversification of the Trust-s portfolio.
Acquisitions during the quarter included the following properties in addition to those previously announced:
CAPITAL INITIATIVES
Over the past fifteen months, the Trust has been focused on increasing balance sheet strength which, in Management-s view, increases the stability and quality of the Trusts cash flows and should ultimately result in a lower relative cost of capital. The effect of this has been demonstrated by the Trust-s ability to continue to refinance debt at competitive rates, including accessing the unsecured debt market for the first time as an investment grade rated BBB (low) issuer. The Trust continues to strategically review its overall debt profile and identify areas where it can repay high-interest bearing debt and, where appropriate, enter into new or refinancing arrangements where it takes advantage of longer terms at lower interest rates. When compared to Q4 2012, the Trust-s overall debt metrics have continued to improve.
CONFERENCE CALL
Senior management will host a conference call to discuss the results tomorrow, August 9, 2013 at 9:00 a.m. (ET). To access the call, please dial: (647) 317-3471 or toll free at 1-866-551-3680 and use passcode 44853576#. To access the conference call via webcast, please go to Dundee REIT-s website at and click on the link for News & Events, then click on Calendar of Events. A taped replay of the conference call and the webcast will be available 90 days.
Other information
Information appearing in this news release is a select summary of results. The consolidated financial statements and management-s discussion and analysis for the Trust, as well as its Supplementary Information Package are available at and on .
Dundee REIT is an unincorporated, open-ended real estate investment trust. Dundee REIT is focused on owning, acquiring, leasing and managing well-located, high-quality central business district and suburban office properties. Its portfolio currently comprises approximately 24.3 million square feet of gross leasable area in major urban centres across Canada. Dundee REIT-s portfolio is well diversified by geographic location and tenant mix. For more information, please visit .
FOOTNOTES
(1) Metrics include results and balances of equity accounted investments and exclude discontinued operations.
(2) NOI – net rental income, exclude net rental income from properties held for sale and discontinued operations.
(3) FFO – net income, adjusted for items including fair value adjustments on investment properties and financial instruments, gains on sale, and amortization of equipment.
(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.
(5) Excludes development and redevelopment properties and properties held for sale, and the prior period also excludes discontinued operations – industrial properties.
(6) The key performance indicators for December 31, 2012, exclude the results of operations and the debt of discontinued operations.
(7) Level of debt is determined as total debt, including debt related to equity accounted investments, divided by total assets (including total assets of equity accounted investments and adjusted for accumulated amortization on property and equipment).
(8) The interest coverage ratio for the period, including results from equity accounted investments, is calculated as net rental income plus interest and fee income, less general and administrative expenses, all divided by interest expense on debt.
Non-IFRS supplemental measures
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.
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 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 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 REIT-s filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dundee REIT-s website at .
Contacts:
Dundee REIT
Michael J. Cooper
Vice Chairman and Chief Executive Officer
(416) 365-5145
Dundee REIT
Mario Barrafato
Senior Vice-President and Chief Financial Officer
(416) 365-4132