Pure Industrial Real Estate Trust Announces Release of Q1 2014 Financial Results

May 14, 2014, 08:00 ET from Pure Industrial Real Estate Trust (PIRET)

VANCOUVER, May 14, 2014 /PRNewswire/ - Pure Industrial Real Estate Trust ("PIRET" or the "Trust") (TSX: AAR.UN) is pleased to announce the release of its financial results for the three months ended March 31, 2014.

Q1 2014 Financial Results

The financial results, consisting of PIRET's unaudited interim condensed financial statements for the three months ended March 31, 2014, and Management's Discussion and Analysis ("MD&A") dated May 14, 2014, are available on SEDAR (www.sedar.com) or the Trust's website (www.piret.ca).

Highlights for the three months ended March 31, 2014:

  • As at March 31, 2014, PIRET's portfolio consists of 164 properties representing gross leasable area ("GLA") of approximately 14.1 million square feet, an increase from 156 properties and 12.6 million square feet of GLA at December 31, 2013. 
  • PIRET raised $74.8 million by issuing 16,445,000 Class A units from a bought deal public offering. 
  • The occupancy for our portfolio was 96.5% as at March 31, 2014, with a weighted average lease term of 6.9 years.  Our occupancy rises to 97.4% when factoring in committed space.
  • Investment properties increased to $1.4 billion as at March 31, 2014 from $1.3 billion at December 31, 2013 due primarily to the acquisition of 9 properties with 1.5 million square feet of GLA.  With these acquisitions, PIRET continues to execute its accretive growth strategy and build critical mass in its target markets.  The acquisitions have strengthened PIRET's high quality national and regional tenant base within Canada. 
  • Loan to Gross Book Value as at March 31, 2014 was 52.9%, down from 54.1% at December 31, 2013.
  • Revenue for the quarter ended March 31, 2014 increased 72% from $19.2 million in 2013 to $33.0 million in 2014.   
  • Earnings from property operations increased by 64% for the quarter ended March 31, 2014 compared to the quarter ended March 31, 2013 from $14.3 million to $23.4 million.  
  • Funds from operations ("FFO")1 for the three months ended March 31, 2014 increased to $14.4 million compared to $9.0 million for the same period in 2013.  On a per unit basis, FFO for the three months ended March 31, 2014 increased to $0.10 when compared to $0.09 for the same period in 2013.  The FFO payout ratio for the three months ended March 31, 2014 trended downward to 80.3% from 82.4% in the same period in 2013.
  • On an Adjusted funds from operations ("AFFO")1 basis, there was an increase from $8.0 million to $12.8 million for the three months ended March 31, 2013 and 2014 respectively.  On a per unit basis, AFFO was $0.09 for the three months ended March 31, 2014 and $0.08 for the three months ended March 31, 2013.  The AFFO payout ratio for the three months ended March 31 continues to trend downwards from 92.4% in 2013 to 90.9% in 2014.  PIRET's AFFO payout ratio in the quarter has been impacted by the bought deal public offering and the timing of closing the acquisitions.

Selected Financial Information

($000s, except per unit basis)

For the three months

ended March 31




$          32,972

$          19,226

Net operating income



Distributions declared per unit



FFO (1)  per unit (diluted)



        Payout ratio



AFFO (1)  per unit (diluted)



        Payout ratio



Conference Call

As previously announced on May 2, 2014, management will host the conference call at 4:00 pm (EST), 1:00 pm (PST), on Wednesday, May 14, 2014, to review the financial results and corporate developments for the three month period ended March 31, 2014.

To participate in this conference call, please dial one of the following numbers approximately 10 minutes prior to the commencement of the call, and ask to join the Pure Industrial Real Estate Trust Conference Call.

Dial in numbers:
Toll free dial in number (from Canada and USA)......................................... 1-888-390-0546
International or Local Toronto................................................................... 1-416-764-8688


1FFO and AFFO are widely accepted supplemental measures of financial performance for real estate entities. However, these measures are not defined under IFRS. PIRET's MD&A, available on SEDAR at www.sedar.com, provides more detail regarding this measure.

Conference Call Replay

If you cannot participate on May 14, a replay of the conference call will be available by dialing one of the following replay numbers.  You will be able to dial in and listen to the conference 120 minutes after the meeting end time, and the replay will be available until May 21, 2014.

Please enter the Replay ID# 972068, followed by the # key.
Replay toll free dial in number (from Canada and USA)............................... 1-888-390-0541
Replay international or local Toronto......................................................... 1-416-764-8677

About Pure Industrial Real Estate Trust

PIRET is an unincorporated, open-ended investment trust that acquires, owns and operates a diversified portfolio of income-producing industrial properties in primary markets across Canada.  PIRET focuses exclusively on investing in industrial properties and is the largest internally managed publicly traded REIT in Canada that offers investors exclusive exposure to Canada's industrial asset class.

Additional information about PIRET is available at www.piret.ca or www.sedar.com.

Forward-Looking Information:

Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions.  These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.  The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by PIRET.

Although PIRET believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because PIRET can give no assurance that they will prove to be correct.  Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.  Actual results could differ materially from those currently anticipated due to a number of factors and risks.  These include, but are not limited to, the failure to satisfy the conditions to complete the acquisition, the inability to obtain mortgage financing on expected terms, competitive factors in the industries in which PIRET operates, prevailing economic conditions, and other factors, many of which are beyond the control of PIRET.

The forward-looking statements contained in this news release represent PIRET's expectations as of the date hereof, and are subject to change after such date. PIRET disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.


SOURCE Pure Industrial Real Estate Trust (PIRET)