TORONTO, ONTARIO — (Marketwire) — 11/08/11 — Whiterock Real Estate Investment Trust (“Whiterock”) (TSX: WRK.UN) today announced strong financial results for the quarter ended September 30, 2011.
Whiterock-s recurring funds from operations (“FFO”) per unit and recurring adjusted funds from operations (“AFFO”) per unit (both adjusted for mortgage prepayment penalties of $1.6 million) increased to $0.32 and $0.29, respectively, representing a recurring FFO payout ratio of 88.2% and a recurring AFFO payout ratio of 97.1%. Whiterock also achieved same-property NOI growth of 1.8% (1.9% on a cash basis) year-over-year, along with an overall portfolio occupancy rate of 96.9%.
The equity offering completed by Whiterock in July for gross proceeds of $85.8 million funded acquisitions that were subsequently completed in July and August. The first full quarter impact of the acquisitions completed in the third quarter will be realized in the fourth quarter. Recurring run rate AFFO per unit for the third quarter of 2011, based on a full quarter impact of the acquisitions completed in the third quarter, was $0.31 (or $1.24 annualized), representing a recurring run rate AFFO payout ratio of 90.3%.
“We are very pleased with our results in the third quarter,” said Jason Underwood, CEO of Whiterock. “Our disciplined and accretive acquisition program and our internal growth initiatives continue to drive increasing FFO and AFFO per unit, exceeding our distributions to unitholders. Even with the new equity raised in July, we achieved impressive recurring FFO and recurring AFFO per unit growth (year-over-year) of approximately 7% and 8%, respectively. We look forward to the upcoming fourth quarter to demonstrate the first full quarter impact of our recently completed acquisitions, which amounted to $334 million (before closing costs).”
The following highlights should be read in conjunction with the consolidated financial statements and management-s discussion and analysis for the quarter ended September 30, 2011. These will be available on Whiterock-s website at .
HIGHLIGHTS – September 30, 2011
FFO and AFFO are supplemental non-IFRS financial measures used by the real estate industry to measure and compare the operating performance of real estate organizations. Whiterock-s method of calculating FFO and AFFO may be different from methods used by other REITs or corporations. A description of Whiterock-s calculation of FFO and AFFO is included in Whiterock-s Management-s Discussion and Analysis (“MD&A”) for the quarter ended September 30, 2011.
Whiterock-s Consolidated Financial Statements and MD&A for the quarter ended September 30, 2011 are posted on Whiterock-s website. Readers are directed to these documents for a more detailed discussion of Whiterock-s results.
CONFERENCE CALL
Whiterock invites you to participate in its live conference call with senior management on Tuesday, November 8, 2011 at 11:00 a.m. E.S.T., to discuss the Whiterock-s third quarter 2011 results and achievements. Investors can click on the link to access the third quarter financial statements and MD&A. A three-page quarterly summary to accompany management-s comments during the call will be available on Whiterock-s website. To view it, please go to .
To participate in the live conference call, please dial 1-866-605-3852 (within Canada) or 1-877-317-6789 (within the U.S.). To ensure your participation, please call five minutes prior to the scheduled start of the call.
Whiterock-s conference call will also be broadcast through a live, listen-only audio webcast, which can be accessed by clicking on the following link:
The webcast will be archived 24 hours after the end of the conference call and can be accessed for one year. Listeners who wish to participate in the Q&A session will not be able to do so through the webcast and must join the live conference call.
About Whiterock REIT
Whiterock REIT is a growth-oriented diversified commercial REIT with a wholly-owned, co-owned, and long-term leased aggregate real estate portfolio that totals over 10.1 million square feet of gross leasable area across 79 properties, geographically diversified across 8 Canadian provinces and 2 U.S. states.
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of applicable securities legislation. These forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect” “estimate”, “anticipate”, “intend”, “believe” or “continue”, the negative forms thereof and similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management-s current beliefs and are based on information currently available to management. These statements are not guarantees of future events or performance and, by their nature, are based on Whiterock-s estimates and assumptions, which are subject to known and unknown risks, uncertainties and other factors that may cause the actual events, results or prospects to be materially different from those expressed or implied herein. Readers are cautioned that a number of factors, including those discussed in the section entitled “Risk Factors” in Whiterock-s Annual Information Form, which can be obtained at , could cause actual events, results or prospects to differ materially from those stated or implied. These factors should be considered carefully, and a reader should not place undue reliance on forward-looking statements, as there can be no assurance that actual events, results or prospects will be consistent with such statements. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a relatively stable leasing environment, the maintenance of current occupancy levels, stable interest costs, limited dilution from conversion of convertible debentures; stable acquisition capitalization rates and available access to equity and debt capital markets to fund, at acceptable costs, Whiterock-s future growth plans, and to enable Whiterock to refinance its debt as it matures. In addition, historic performance is not necessarily indicative of future results. Except as specifically required by applicable law, Whiterock does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Whiterock Real Estate Investment Trust
Jason Underwood
CEO
(416) 907-4861
Whiterock Real Estate Investment Trust
Kursat Kacira
CFO
(416) 572-0427