Huntingdon Capital Corp. Announces 2011 Annual and Q4 2011 Results
RICHMOND, BC, March 19, 2012 /CNW/ - Huntingdon Capital Corp. (the "Corporation" or "Huntingdon") (TSX: HNT, HNT.DB and HNT.WT) today announced annual and fourth quarter 2011 results.
HIGHLIGHTS:
- Occupancy increased by 100 basis points to 86.2% compared to the same period in 2010
- Funds from operations ("FFO") increased by $2.3 million to $7.3 million ($0.54 per share) compared to the same period in 2010 despite fewer properties in the portfolio in 2011
- Invested $2.4 million during the quarter in investment properties to attract new tenants and improve building operations
- Converted to a corporate structure on December 31, 2011 which will provide greater flexibility in building the portfolio, re-investing capital and sheltering taxable income
- Successfully completed a $46.0 million public offering of secured debt units to finance the early redemption of the Series C convertible debentures set to mature in March 2012
- Reinstated a monthly dividend of $0.02 per month commencing February 2012
- Entered into a binding agreement to sell four Ontario retail properties for gross proceeds of $54.0 million
SELECTED FINANCIAL INFORMATION | |||||
(unaudited) | For the three months ended | For the twelve months ended | |||
(stated in $000s except per share and % amounts) | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2011 | Dec 31, 2010 | |
Restated1 | Restated1 | ||||
Operations | |||||
Occupancy rate (period end) | 86.2% | 85.2% | |||
GLA (period end) | 5,520,012 | 5,595,703 | |||
# of properties | 76 | 78 | |||
Operating results | |||||
Revenue from investment property | $18,529 | $18,121 | $72,417 | $73,069 | |
Net operating income ("NOI")2 | 9,273 | 9,425 | 38,890 | 37,669 | |
Funds from operations ("FFO")3 | 7,287 | 5,013 | 17,382 | 15,505 | |
Adjusted funds from operations ("AFFO")4 | 5,320 | (875) | 11,156 | 4,848 | |
Financing | |||||
Interest coverage ratio | 1.9x | 2.0x | 2.1x | 1.8x | |
Weighted average mortgage interest rate (period end) |
5.40% | 5.34% | |||
Debt to total assets ratio5 | 53.9% | 56.0% | |||
Per share amounts | |||||
NOI | |||||
Basic | $0.69 | $0.62 | $2.74 | $2.43 | |
Diluted | $0.68 | $0.62 | $2.70 | $2.42 | |
FFO | |||||
Basic | $0.54 | $0.33 | $1.22 | $1.00 | |
Diluted | $0.53 | $0.33 | $1.21 | $0.99 | |
AFFO | |||||
Basic | $0.40 | ($0.06) | $0.78 | $0.31 | |
Diluted | $0.39 | ($0.06) | $0.77 | $0.31 |
Strengthening Operations:
- Occupancy improved by 100 basis points to 86.2% compared to Q4 2010 led by lower vacancies at the ground-leased and office properties
- On a comparative property basis, occupancy improved by 110 basis points as the result of increased marketing efforts and leasing activity
- Net operating income ("NOI") for the year was $38.9 million compared to $37.7 million in 2010. On a comparative property basis, NOI increased by $3.1 million for the year to $38.8 million compared to $35.7 million in 2010. The increases were due primarily to higher occupancy, increased cost recoveries and lower property operating costs
- Funds from operations ("FFO") increased by $1.9 million (or 12.3%) to $17.4 million ($1.22 per share) compared to $15.5 million ($1.00 per share) in 2010, despite fewer properties in the portfolio in 2011. The increase was driven by higher NOI and a significant decrease in interest expense from refinancing higher rate debt and lower overall debt balances
- Adjusted funds from operations ("AFFO") increased by $6.3 million to $11.2 million in 2011 compared to the same period in 2010. The increase can be attributed to improved operating results during the year coupled with lower capital expenditures and leasing commissions compared to the prior year
Healthy Financial Position:
- Annual interest coverage improved to 2.1 times compared to 1.8 times in 2010 as a result of increased cash flow and lower interest charges
Financial Resources Highlights:
$46.0 Million New Secured Debt Issue Proceeds to Redeem Series C Convertible Debentures
- On November 14, 2011, the Corporation successfully completed the offering of a $46.0 million secured debenture and share warrant issue. The net proceeds were used to redeem the $38.0 million outstanding balance of the Series C convertible debentures on December 5, 2011.
Strategic Update:
Corporate Conversion
- On December 31, 2011, Huntingdon completed the conversion from an income trust to a corporation. The corporate structure will provide flexibility in structuring accretive investments as well as providing enhanced capital cost allowance balances to shelter operating income.
Information appearing in this press release is a select summary of results. The annual consolidated financial statements and management's discussion and analysis for the Corporation are available at www.huntingdoncapital.ca and on www.sedar.com
Footnotes
1 | Restated for International Financial Reporting Standards ("IFRS"). See the Audited Consolidated Financial Statements and the Management Discussion and Analysis for the three months and twelve months ended December 31, 2011 for a detailed explanation of the changes resulting from IFRS. | |||
2 | NOI is defined as revenue from investment properties less property operating expenses. | |||
3 | FFO is defined as net income, adjusted for deferred taxes, depreciation and amortization, realized gain or loss on sale of investment properties, and fair value adjustments on investment properties and investments. | |||
4 | AFFO is defined as funds from operations adjusted for non-cash revenue, maintenance and growth capital expenditures, leasing expenditures and other non-cash operating expenses. | |||
5 | Debt to total assets is defined as mortgage debt and secured or convertible debentures at their maturity value divided by total assets at their fair value. Mortgage debt includes mortgage debt related to assets held for sale. |
NOI, FFO and AFFO are not recognized as appropriate earning measures under IFRS, and are not construed as an alternative to earnings determined in accordance with IFRS, but are considered a useful supplemental indicator of the Corporation's performance.
Huntingdon is listed on the Toronto Stock Exchange under the symbols HNT (Shares), HNT.DB (Debentures), and HNT.WT (Warrants). Huntingdon owns, directly or indirectly, 75 income producing office, industrial, retail and standalone parking lot properties, including aviation-related facilities at five of Canada's leading international airports with a total gross leasable area of 5.5 million square feet; and two land parcels held for development, with other development and expansion opportunities within the portfolio.
Forward-Looking Information:
Certain statements contained in this press 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. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of our tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest rate fluctuations. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations including, but not limited to, the risks detailed from time to time in Huntingdon's filings with Canadian provincial securities regulators, including its most recent annual information form and management's discussion and analysis. Huntingdon cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and Huntingdon does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by applicable law.
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.
Zachary R. George, Director, President and Chief Executive Officer
Tel: (604) 249-5119
Fax: (604) 249-5101
Email: [email protected]
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