VANCOUVER, Aug. 7, 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 and six months ended June 30, 2014.
Q2 2014 Financial Results
The financial results, consisting of PIRET's unaudited interim consolidated condensed financial statements for the three and six months ended June 30, 2014, and Management's Discussion and Analysis ("MD&A") dated August 7, 2014, are available on SEDAR (www.sedar.com) or the Trust's website (www.piret.ca).
Highlights for the six months ended June 30, 2014:
- As at June 30, 2014, PIRET's portfolio consists of 161 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 $253.1 million by issuing 55,200,000 Class A units from two bought deal public offerings
- .The occupancy for our portfolio was 96.4% as at June 30, 2014, with a weighted average lease term of 6.9 years. Our occupancy rises to 97.3% when factoring in committed space.
- Investment properties increased to $1.45 billion as at June 30, 2014 from $1.31 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.
- PIRET completed the expansion project for ContainerWorld Forwarding Services Inc. The expansion increased the industrial property located at 16133 Blundell Road, Richmond, BC by 151,200 square feet and now totals 635,600 square feet, one of the largest single industrial properties in Greater Vancouver.
- Loan to Gross Book Value as at June 30, 2014 was 46.6%, down from 54.1% at December 31, 2013.
- Revenue for the six months ended June 30 increased 49% from $45.0 million in 2013 to $66.9 million in 2014. For the three months ended June 30, PIRET's revenues increased 32% from $25.8 million in 2013 compared to $34.0 million in 2014.
- Earnings from property operations increased by 42% for the six months ended June 30, 2014 compared to the same period at June 30, 2013 from $33.5 million to $47.6 million. For the three months ended June 30, PIRET's earnings from property operations increased 26% from $19.2 million in 2013 to $24.2 million in 2014.
- Funds from operations ("FFO")1 for the six months ended June 30, 2014 increased to $29.1 million compared to $21.5 million for the same period in 2013. On a per unit basis, FFO for the six months ended June 30, 2014 remained at $0.19 when compared to the same period in 2013. The FFO payout ratio for the six months ended June 30, 2014 increased to 81.3% from 80.2% for the same period in 2013.
For the three months ended June 30, 2014, FFO increased to $14.7 million compared to $12.6 million for the same period in 2013. On a per unit basis, FFO for the three months ended June 30, 2014 was $0.09, compared to $0.10 for the same period in 2013. The FFO payout ratio for the three months ended June 30, 2014 increased to 82.4% from 78.5% in the same period in 2013.
- On an Adjusted funds from operations ("AFFO")1 basis, there was an increase from $19.3 million for the six months ended June 30, 2013 to $24.3 million for the same period in 2014. On a per unit basis, AFFO was $0.16 for the six months ended June 30, 2014 and $0.17 for the six months ended June 30, 2013. The AFFO payout ratio was 97.4% in 2014 compared to 89.4% in 2013 for the first six months.
AFFO increased from $11.3 million to $12.0 million for the three months ended June 30, 2013 and 2014 respectively. On a per unit basis, AFFO was $0.08 for the three months ended June 30, 2014 and $0.09 for the three months ended June 30, 2013. The AFFO payout ratio for the three months ended June 30 increased from 87.1% in 2013 to 101.1% 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|
|($000s, except per unit basis)|| For the six months
ended June 30
| For the three months
ended June 30
|Revenue||$ 66,944||$ 45,000||$ 33,972||$ 25,775|
|Net operating income||47,641||33,475||24,241||19,215|
|Distributions declared per unit||0.16||0.16||0.08||0.08|
|FFO (1) per unit (diluted)||0.19||0.19||0.09||0.10|
|AFFO (1) per unit (diluted)||0.16||0.17||0.08||0.09|
As previously announced on July 21, 2014, management will host the conference call at 3:00 pm (EST), 12:00 pm (PST), on Thursday, August 7, 2014, to review the financial results and corporate developments for the three and six month period ended June 30, 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
Conference Call Replay
If you cannot participate on August 7, 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 August 14, 2014.
Please enter the Replay ID# 213677, 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.
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.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED NOR APPROVED THE CONTENTS OF THIS PRESS RELEASE AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.
1 FFO 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.
SOURCE Pure Industrial Real Estate Trust (PIRET)