TORONTO, ONTARIO — (Marketwire) — 11/07/11 — 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 posted strong financial results for the three and nine months ended September 30, 2011, evidencing the success of the Trusts acquisition strategy and the strength of its operations.
HIGHLIGHTS
“The acquisition of the Blackstone portfolio and 700 de la Gauchetiere, the fourth largest building in Montreal, increased our asset base by over 30% and resulted in our largest single-quarter increase in AFFO attributable to acquisitions,” said Michael Cooper, Chief Executive Officer. “It-s been a great year. We have strengthened our geographic diversification as well as our presence in central business districts. And, we have increased our market cap by 62% while increasing per unit AFFO by over 11%.” added Mr. Cooper.
Senior management will be hosting a conference call to discuss the results tomorrow, Tuesday, November 8, 2011 at 9:00 a.m. (ET). To access the call, please dial: (416) 340-8530 or toll free at 1-877-440-9795. A taped replay of the call will be available for 30 days by dialling (905) 674-9451 and using passcode 8327075. To access the conference call via webcast, please go to Dundee REIT-s website at ww.dundeereit.com and click on the link for News & Events, then click on Calendar of Events. The webcast will be archived for 30 days.
FINANCIAL HIGHLIGHTS
ACQUISITION HIGHLIGHTS
During the quarter, Dundee REIT completed over $1.0 billion of acquisitions, including the 24-property, 2.7 million square foot Blackstone Portfolio and the 1.0 million square foot Class A office property in downtown Montreal. Year-to-date, Dundee REIT has completed $1.5 billion of acquisitions, adding more than 6.5 million square feet of properties to its portfolio. In the past two years the Trust has added $2.6 billion of properties to its portfolio, 70% of which are in very desirable locations within central business districts.
OPERATIONAL HIGHLIGHTS
Portfolio occupancy strong at 95.8% – the overall percentage of occupied and committed space remained strong at 95.8% but down from prior quarter due to acquisitions completed with a 94% average occupancy rate (June 30, 2011 – 96.5%; September 30, 2010 – 97.1%). On a comparative property basis, occupancy softened slightly quarter-over-quarter with an improvement in the comparative office portfolio being offset by a decrease in the industrial portfolio.
In-place rents increased on a total portfolio basis as well as on a comparative property basis. In addition, average in-place rents remain approximately 7% below estimated market rents, providing an opportunity to capture increases through leasing activity. Average in-place rents were $14.96 per square foot up from $14.37 at June 30, 2011 (December 31, 2010 – $14.29, September 30, 2010 – $14.49). The Calgary market continues to strengthen as demonstrated by increasing market rental rates. Throughout the remainder of 2011, approximately 573,347 square feet of space will expire, of which 244,542 square feet or 43% has already been committed.
CAPITAL INITIATIVES
Information appearing in this news release is a select summary of results. The 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 and provides high quality, affordable business premises. It is focused on owning, acquiring, leasing and managing mid-sized urban and suburban office and industrial properties in Canada. Dundee REIT-s portfolio currently consists of approximately 18.9 million square feet of gross leasable area across Canada. Dundee REIT-s portfolio is well diversified by geographic location and tenant mix. For more information, please visit .
FOOTNOTES
NOI, FFO and AFFO are key measures of performance used by real estate operating companies; however, they are not defined by generally accepted accounting principles (GAAP), do not have standard meanings and may not be comparable with other industries or income trusts.
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, that 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