Huntingdon Capital Corp. Announces Q4 2012 Results

RICHMOND, BC, March 19, 2013 /CNW/ - Huntingdon Capital Corp. (the "Corporation" or "Huntingdon") (TSX: HNT, HNT.DB and HNT.WT) today announced fourth quarter 2012 results.

HIGHLIGHTS:

• Completed the sale of 27 investment properties to FAM Real Estate Investment Trust ("FAM REIT"), a newly formed real estate investment trust;
• Funds from operations ("FFO") were $3.8 million ($0.32 per share) compared to $3.1 million ($0.24 per share) for the previous quarter. The increase is attributable to lower current income tax in the current quarter;
• Occupancy decreased to 78.0% from 84.1% due to the sale of high occupancy investment properties to FAM REIT and loss of some tenancies at ground-leased properties;
• Interest coverage ratio was consistent with the previous quarter; and
• Debt to total assets ratio improved to 37.5%.
  
  

SELECTED FINANCIAL INFORMATION
(unaudited)		For the three months ended
(stated in $000s, unless otherwise noted and except for  per share amounts)		Dec 31, 2012	Sept 30, 2012	Dec 31, 2011
Operations
Occupancy rate (period end)		78.0%	84.1%	86.2%
GLA (period end)		2,688,346	4,527,632	5,520,012
# of properties (period end)		36	68	76
Operating results
Revenue from investment properties		$15,799	$15,312	$18,529
Net operating income ("NOI")^1		8,822	8,816	9,273
Funds from operations ("FFO")^2		3,776	3,055	5,507
Adjusted funds from operations ("AFFO")^3		3,303	2,172	5,089
Dividend payout ratio as a % of AFFO		20.9%	34.9%	-
Financing
Interest coverage ratio		2.2x	2.3x	1.9x
Weighted average mortgage interest rate (period end)		5.51%	5.36%	5.40%
Debt to total assets ratio^4(period end)		37.5%	50.0%	53.9%
Per share amounts
NOI
Basic		$0.75	$0.69	$0.69
Diluted		$0.71	$0.66	$0.68
FFO
Basic		$0.32	$0.24	$0.41
Diluted		$0.31	$0.23	$0.40
AFFO
Basic		$0.28	$0.17	$0.38
Diluted		$0.27	$0.16	$0.37

Strategic Initiatives:

• On December 28, 2012, Huntingdon completed the sale of 27 stabilized investment properties to FAM REIT for a total consideration of $87.6 million. Huntingdon retains a 30% interest in FAM REIT and will provide property and asset management services to FAM REIT to manage the day-to-day operations of the investment properties;
• On December 31, 2012, the Corporation sold two of its ground-lease properties in Calgary to the Calgary Airport Authority for $1.0 million. Huntingdon was released of all obligations with respect to the ground lease as well as any site restoration obligations; and
• On January 29, 2013, the Corporation announced its intention to purchase up to 6,628,940 trust units of KEYreit, or approximately 45% of the outstanding trust units, at $7.00 per trust unit. On March 18, 2013, the Corporation amended its offer to purchase up to 100% of the outstanding trust units at $7.50 per trust unit for a total consideration of $105.5 million. KEYreit primarily owns single tenant retail estate and small unenclosed shopping centres and plazas in primary, secondary and tertiary markets across Canada. The amended offer will expire on April 1, 2013.

Operations:

• Occupancy decreased from the previous quarter due to the sale of high occupancy investment properties to FAM REIT, as well as lease terminations at the Alberta and British Columbia ground-leased properties;
• NOI was consistent with the previous quarter; and
• AFFO increased to $3.3 million from $2.2 million in the previous quarter due to lower capital expenditures and current income taxes during the current quarter.

Financial position:

• Interest coverage was consistent with the previous quarter; and
• Debt to total assets ratio improved to 37.5% from 50.0% in the previous quarter following the sale of investment properties to FAM REIT.

Information appearing in this press release is a select summary of results.  The financial statements and management's discussion and analysis for the Corporation are available at www.huntingdoncapital.ca and on www.sedar.com

Footnotes

1	NOI is defined as revenue from investment properties less property operating expenses.
2	FFO is defined as net income, adjusted for deferred taxes, depreciation and amortization, gain or loss on disposition of investment properties, and fair value adjustments to investment properties.
3	AFFO is defined as FFO adjusted for non-cash revenue, maintenance and growth capital expenditures, leasing expenditures and other non-cash operating expenses.
4	Debt to total assets ratio is defined as mortgage debt and secured or convertible debentures at their maturity value divided by total assets at their fair value.

NOI, FFO and AFFO are not recognized as appropriate earnings 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 a British Columbia real estate operating company listed on the TSX (Common Shares: HNT; Debentures: HNT.DB; Warrants: HNT.WT). Huntingdon owns and manages a portfolio of 36 industrial, office, retail and aviation-related properties throughout Canada that have a total gross leasable area of 2.7 million square feet. In addition, Huntingdon owns a 30% interest in FAM REIT (TSX: F.UN, F.WT) and manages, on behalf of FAM REIT, a portfolio of 27 industrial, office, and retail properties throughout Canada that have a gross leasable area of 1.7 million square feet.

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.

 

SOURCE: Huntingdon Capital Corp.

Zachary R. George, Director, President and Chief Executive Officer
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