Inovalis Real Estate Investment Trust : Reports Financial Results for the First Quarter Ended March 31, 2019
/NOT FOR DISTRIBUTION TO
- Acquired the Trio property in late March, 2019 for
$69.5millionat a capitalization rate of approximately 5.25%, partially financed with mortgage debt of $47.4 millionbearing interest at 1.56%, which is expected to contribute significantly to future operating performance;
- Refinanced the Métropolitian property with a
$64.9 million12-year finance lease bearing interest at 2.07% and retiring an existing finance lease of $51.3 millionbearing interest at 2.43%;
- Refinanced the Courbevoie property with a
$14.3 million12-year mortgage loan bearing interest at 2.13% and retiring a maturing 5-year mortgage loan of $11.6 millionbearing interest 1.75%.
- Completed the sale of the
Hanoverproperty in January 2019, net proceeds of which were utilized to fund the acquisition of the Trio Property, which is expected to be accretive to FFO and AFFO:
- Due to the timing of the sale of
Hanoverin early January 2019and the redeployment of capital at the end of March 2019, net income or loss, funds from operations ("FFO") and adjusted funds from operations ("AFFO") for the three months ended March 31, 2019was negatively impacted by approximately $300,000( $0.01 centsper unit);
- Total assets increased to
$641 millioncompared to $619 millionthree months ago;
- Net loss for the three months ended
March 31, 2019was $1.7 millioncompared to a loss of $0.6 millionfor the same period in 2018 due to net change in fair value of exchangeable securities and promissory notes;
- FFO for the three months ended
March 31, 2019was $4.9 millionor 17 centsper unit;
- AFFO for the three months ended
March 31, 2019was $5.4 millionof 19 centsper unit.
This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans", or "continue", or similar expressions suggesting future outcomes or events. Some of the specific forward-looking information may include, among other things, the REIT's expectations regarding its business , including the extent to which a property is expected to be accretive to FFO and AFFO per unit. Forward looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond
"FFO" and "AFFO" are non-GAAP measures (see below).
The REIT's consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). This press release contains references to financial measures, which may include "AFFO" and "FFO". These measures do not have a standardized meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. The REIT has presented such non-GAAP measures as management believes they are relevant measures of the REIT's underlying operating performance. Non-GAAP measures should not be considered as alternatives to net income, total comprehensive income or cash generated from (utilized in) operating activities as indicators of the REIT's performance, liquidity, cash flow, and profitability. For a full description of these measures and a reconciliation to the most directly comparable measure calculated in accordance with IFRS, please refer to "Non-GAAP Measures and Other Disclosures" in the REIT's most recent Management's Discussion and Analysis.
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