TORONTO, ONTARIO — (Marketwired) — 11/11/14 — 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.
DREAM INDUSTRIAL REIT (TSX: DIR.UN) today announced its financial results for the three and nine months ended September 30, 2014.
HIGHLIGHTS
“Our strong leasing pipeline continues to reflect the development of our platform, the multi-tenant nature of our portfolio and the hard work of our people,” said John Todd, Chief Financial Officer. “Our accretive acquisitions completed in the quarter increase our presence in our major markets, further enhancing our ability to capitalize on strong Canadian industrial fundamentals.”
FINANCIAL HIGHLIGHTS
OPERATIONAL HIGHLIGHTS
CAPITAL STRUCTURE
The Trust–s capital structure remained stable during the quarter, with leverage at 52.8% and interest coverage of 3.0 times.
During the quarter, the Trust completed acquisitions of two separate portfolios for a total of 1.35 million square feet for $127.7 million. One portfolio of 248,000 square feet was acquired from an affiliate of Dream Office REIT. The acquisitions were financed by new and assumed mortgages totalling $78.1 million at a weighted average effective interest rate and face rate of 3.55% and 3.60%, respectively. In order to finance the acquisitions, the Trust also issued 2.7 million of REIT Units and 2.3 million of subsidiary redeemable units at $9.40 per unit.
DREAM INDUSTRIAL REIT NAMES BRENT CHAPMAN AS NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER
The Board of Trustees of Dream Industrial REIT announced today the appointment of Brent Chapman as President and Chief Executive Officer of Dream Industrial REIT, effective January 5, 2015. Mr. Chapman replaces Randy Cameron, who retired as President and CEO on October 31, 2014.
Mr. Chapman has over 28 years of experience across all facets of the real estate industry and comes to Dream Industrial REIT from Guardian Capital Real Estate where he is Managing Director. Prior to being with Guardian, Brent was President and CEO of GPM Investment Management and a director of Integrated Asset Management, the parent company of GPM. His career includes holding various senior positions in asset management, leasing, property management, acquisitions, financing and development with Oxford Properties and Talisker Corporation.
“Brent is a proven leader and well qualified to fill the role of President and Chief Executive Officer left open by Mr. Cameron–s retirement. Brent joins Dream Industrial to lead the overall business and will increase our focus on active asset management and capital recycling in managing our business.” said Jane Gavan, President of Dream Asset Management Corporation, the REIT–s asset manager.
CONFERENCE CALL
Senior management will host a conference call to discuss the results tomorrow, November 12, 2014 at 2:00 p.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#. To access the conference call via webcast, please go to Dream Industrial 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 for ninety (90) days following the call.
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 will be available at and on .
Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. Dream Industrial REIT owns a portfolio of 220 primarily light industrial properties comprising approximately 17.0 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 .
FOOTNOTES
Non-GAAP Measures
The Trust–s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this press release, as a complement to results provided in accordance with IFRS, the Trust discloses and discusses certain non-GAAP financial measures, including Net Operating Income (“NOI”), Funds From Operations (“FFO”), Adjusted Funds From Operations (“AFFO”), Level of debt (debt-to-total assets) and Interest coverage ratio as well as other measures discussed elsewhere in this release. These non-GAAP measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. The Trust has presented such non-GAAP measures as Management believes they are relevant measures of the Trust–s underlying operating performance and debt management. Non-GAAP measures should not be considered as alternatives to net income, cash generated from (utilized in) operating activities or comparable metrics determined in accordance with IFRS as indicators of the Trust–s performance, liquidity, cash flow, and profitability. For a full description of these measures and, where applicable, a reconciliation to the most directly comparable measure calculated in accordance with IFRS, please refer to the “Non-GAAP Measures and Other Disclosures” in Dream Industrial REIT–s Management–s Discussion and Analysis for the three and nine months ended September 30, 2014.
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 Dream 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. Dream Industrial REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in Dream Industrial REIT–s filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dream Industrial REIT–s website at .
Contacts:
Dream Industrial REIT
Michael Cooper
Chairman, Executive Committee
(416) 365-5145
Dream Industrial REIT
John Todd
Chief Financial Officer
(416) 365-8963