INVESTUS REAL ESTATE INC. DISCLOSES FINANCIAL RESULTS FOR THE THIRD QUARTER
OF 2010
QUEBEC CITY, Nov. 25 /CNW Telbec/ - Investus Real Estate Inc. (TSX Venture: IVT), a real estate company investing in industrial properties in primary and secondary markets, mainly in Eastern Canada, announces its unaudited financial results for the third quarter ended September 30, 2010.
Operating Results:
Quarter | Cumulative (9 Months) | ||||
Periods ended September 30 | 2010 | 2009 | 2010 | 2009 | |
Rental revenue from income-producing properties |
453,607 | 468,424 | 1,367,510 | 1,315,758 | |
Net operating income(1) | 367,542 | 366,986 | 1,102,197 | 1,094,396 | |
Administrative expenses | 57,115 | 66,026 | 218,488 | 422,221 | |
Corporate reorganization costs | - | 1,608 | - | 318,565 | |
Net income (loss) | 10,836 | (1,863) | (15,413) | (604,058) | |
Net income (loss) per share (basic and diluted) |
0.000 |
(0.000) |
|
(0.001) |
(0.021) |
Funds from operations (FFO)(1) | 146,087 | 143,861 | 390,340 | (208,769) |
|
(1) Non-GAAP financial measure. See the relevant section of the MD&A. |
Rental revenue from income-producing properties totalled $453,607 for the three-month period ended September 30, 2010, compared with $468,424 for the corresponding period of the previous year, this slight decline being attributable to the recovery of operating costs.
Net operating income rose to $367,542, up from $366,986 for the equivalent period of 2009.
Administrative expenses amounted to $57,115, down from $66,026 for the same period of fiscal 2009. Administrative expenses have stabilized since the reorganization-related decisions made last year.
The corporate reorganization costs incurred during fiscal 2009 consist primarily of severance benefits paid to an employee and an officer. This expense is of a non-recurring nature.
The Company posted net income of $10,836 or $0.000 per share for the third quarter of 2010, as opposed to a loss of $1,863 or $0.000 per share for the corresponding period of the previous year.
After deducting corporate reorganization costs, recurring net income amounted to $10,836 for the quarter ended September 30, 2010, whereas the Company recorded a recurring loss of $255 in 2009. For the cumulative nine-month periods ended September 30, 2010 and 2009, the recurring net loss stood at $15,413 and $285,493 respectively, reflecting the impact of the measures taken by management to turn around the situation.
Forward-Looking Statements:
This press release may contain forward-looking statements with respect to Investus and its operations, strategy, financial performance and financial condition. These statements generally can be identified by the use of terms such as "may", "expect", "plan", ""anticipate", "estimate", "intend", "believe" or "continue" or the negative thereof or similar variations, as well as the use of the conditional and future tense. The actual performance and results of Investus discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some of the risk factors that could affect future results and cause actual results to differ materially from those expressed in the forward-looking statements contained herein include the impact of economic conditions, industry conditions, government legislation, environmental risks, competition from other industry players, stock market volatility and the ability to access sufficient capital from internal and external sources. A full description of these risk factors can be found in the Initial Public Offering Final Prospectus of Investus Real Estate Inc. (formerly Capital Wapiti Inc.) dated April 5, 2007 and the Filing Statement dated October 15, 2007, which are available electronically at www.sedar.com under Investus Real Estate Inc., the new business name.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made at the date hereof.
About Investus Real Estate Inc.
Investus is a Canadian corporation that invests exclusively in industrial properties in primary and secondary markets, mainly in Eastern Canada. The Company owns four properties covering an area of slightly over 199,000 square feet and purchased for a total of $17.2 million. Further information about the Company is available at www.investus.ca and on SEDAR's website at www.sedar.com.
For further information:
Serge Beaudet, President and Chief Executive Officer
Investus Real Estate Inc.- (514) 892-2936, [email protected]
Roger Harvey, Chief Financial Officer
Investus Real Estate Inc.- (418) 780-4744, [email protected]
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