TORONTO, May 10, 2018 (GLOBE NEWSWIRE) -- DREAM OFFICE REAL ESTATE INVESTMENT TRUST (TSX:D.UN) or (“Dream Office REIT”, the “Trust” or “we”) today announced its financial results for the three months ended March 31, 2018. Management will host a conference call to discuss the results on May 11, 2018 at 8:00 a.m. (ET).
FINANCIAL HIGHLIGHTS | ||||||||
SELECTED FINANCIAL INFORMATION | Three months ended | |||||||
(unaudited) | March 31, | December 31, | March 31, | |||||
(In thousands of dollars except per unit amounts) | 2018 | 2017 | 2017 | |||||
Operating results | ||||||||
Net income | $ | 32,521 | $ | 100,731 | $ | 136 | ||
Comparative properties net operating income ("NOI")(1) | 40,626 | 41,086 | 43,146 | |||||
Funds from Operations (“FFO”)(1) | 35,460 | 32,235 | 65,483 | |||||
Per unit amounts(2) | ||||||||
Net asset value (“NAV”)(1) | $ | 23.81 | $ | 23.46 | $ | 22.15 | ||
FFO (diluted)(1) | 0.46 | 0.40 | 0.59 | |||||
Distribution rate(3) | 0.25 | 0.25 | 0.38 | |||||
Units | ||||||||
REIT A Units (in thousands) | 70,124 | 73,705 | 103,339 | |||||
LP B Units (in thousands) | 5,234 | 5,234 | 5,234 | |||||
Total units(4) (in thousands) | 75,358 | 78,939 | 108,573 | |||||
Portfolio information | ||||||||
Total number of properties(5) | 41 | 42 | 106 | |||||
Total gross leasable area (“GLA”) (in thousands of sq. ft.)(5) | 7,834 | 8,188 | 15,384 | |||||
Total investment properties value (in thousands of dollars)(6) | $ | 2,837,262 | $ | 2,878,839 | $ | 4,537,445 | ||
Comparative occupancy rate - including committed (period-end)(7) | 91.3% | 92.1% | 93.8% |
See footnotes
“We continue to advance our strategic plan concentrating our capital in downtown Toronto and reducing our exposure in other markets,” said Michael J. Cooper, Chief Executive Officer. “We are also pleased to have recently submitted our first redevelopment application at 250 Dundas St. W. We believe that we have many opportunities to increase the value of our core portfolio and are pleased to see increases in our net asset value over the last quarter and last year.”
CAPITAL HIGHLIGHTS | ||||||||
KEY FINANCIAL PERFORMANCE METRICS | ||||||||
(unaudited) | ||||||||
As at | ||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | ||||||
Financing | ||||||||
Weighted average face interest rate (period-end)(8) | 3.92% | 3.90% | 3.77% | |||||
Interest coverage ratio (times)(1)(9) | 3.0 | 3.2 | 3.3 | |||||
Net total debt-to-adjusted EBITDFV (years)(1) | 7.6 | 7.1 | 7.9 | |||||
Net total debt-to-total assets(1) | 40.7% | 39.6% | 49.8% | |||||
Net secured debt-to-total assets(1) | 31.6% | 30.6% | 43.5% | |||||
Debt – average term to maturity (years) | 4.2 | 4.5 | 3.8 | |||||
Available liquidity(1) and unencumbered assets | ||||||||
Cash and cash equivalents on hand (in millions) | $ | 65.0 | $96.9 | $ | 22.9 | |||
Undrawn demand revolving credit facilities (in millions) | 409.8 | 396.7 | 431.0 | |||||
Total available liquidity (in millions) | $ | 474.8 | $ | 493.6 | $ | 453.9 | ||
Unencumbered assets (in millions) | $ | 188.0 | $ | 299.0 | $ | 182.0 |
See footnotes
OPERATIONAL HIGHLIGHTS | |||||||||||
SELECTED FINANCIAL INFORMATION | |||||||||||
(unaudited) | As at | ||||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | |||||||||
Comparative Portfolio(6) | |||||||||||
Occupancy rate - including committed (period-end) | 91.3% | 92.1% | 93.8% | ||||||||
Occupancy rate - in-place (period-end) | 86.3% | 87.7% | 91.0% | ||||||||
Average in-place and committed net rent per square foot (period-end) | $ | 21.13 | $ | 20.97 | $ | 20.71 | |||||
Weighted average lease term (years) | 4.8 | 4.9 | 5.0 |
See footnotes
CALL
Management will host a conference call to discuss the results tomorrow, May 11, 2018 at 8:00 a.m. (ET). To access the conference call, please dial 1-888-465-5079 in Canada and the United States or 416-216-4169 elsewhere and use passcode 5098 584#. To access the conference call via webcast, please go to Dream Office REIT’s website at www.dreamofficereit.ca and click on the link for News & Events, then click on Calendar of Events. A taped replay of the conference call and the webcast will be archived for 90 days.
OTHER INFORMATION
Information appearing in this news release is a select summary of results. The condensed consolidated financial statements and Management’s Discussion and Analysis (“MD&A”) of the Trust are available at www.dreamofficereit.ca and on www.sedar.com.
Dream Office REIT is an unincorporated, open-ended real estate investment trust. Dream Office REIT owns well-located, high-quality central business district office properties in major urban centres across Canada, with a focus on downtown Toronto. For more information, please visit our website at www.dreamofficereit.ca.
FOOTNOTES
(1) Comparative properties NOI, EBITDAFV, FFO, diluted FFO per unit, NAV, NAV per unit, available liquidity, interest coverage ratio, net debt-to-adjusted EBITDAFV, net debt-to-net total assets, and net secured debt-to-net total assets are non-GAAP measures used by Management in evaluating operating and financial performance. Please refer to the cautionary statements under the heading “Non-GAAP Measures” in this press release.
(2) A description of the determination of basic and diluted amounts per unit can be found in section "Our Equity" under the heading “Weighted average number of units” of the MD&A.
(3) Effective with the July 2017 distribution, the Trust revised its monthly distribution to $0.08333 per unit, or $1.00 on an annualized basis.
(4) Total units includes 5.2 million LP B Units which are classified as a liability under IFRS.
(5) Total portfolio includes investment in joint ventures and excludes properties held for sale and redevelopment properties at the end of each period.
(6) Investment properties excludes properties held for sale and redevelopment properties at the end of each period.
(7) Comparative portfolio excludes properties sold, held for sale and redevelopment at the end of each period.
(8) Weighted average face interest rate is calculated as the weighted average face rate of all interest bearing debt on balance.
(9) Interest coverage ratio has been restated in the comparative periods to conform to current period presentation. For further details, please refer to the “Non-GAAP Measures and Other Disclosures” under the heading “Interest coverage ratio” in Dream Office REIT’s MD&A for the three months ended March 31, 2018.
NON-GAAP MEASURES
The Trust’s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this press release, as a complement to results provided in accordance with IFRS, the Trust discloses and discusses certain non-GAAP financial measures, including comparative properties NOI, EBITDAFV, FFO, diluted FFO per unit, NAV, NAV per unit, available liquidity, interest coverage ratio, net total debt-to-adjusted EBITDAFV, net total debt-to-net total assets, net secured debt-to-net total assets, as well as other measures discussed elsewhere in this release. These non-GAAP measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other income trusts. The Trust has presented such non-GAAP measures as Management believes they are relevant measures of the Trust’s underlying operating performance and debt management. Non-GAAP measures should not be considered as alternatives to net income, net rental income, cash generated from (utilized in) operating activities, non-current debt, or comparable metrics determined in accordance with IFRS as indicators of the Trust’s performance, liquidity, cash flow, and profitability. For a full description of these measures and, where applicable, a reconciliation to the most directly comparable measure calculated in accordance with IFRS, please refer to the “Non-GAAP Measures and Other Disclosures” in Dream Office REIT’s MD&A for the three months ended March 31, 2018.
FORWARD LOOKING INFORMATION
This press release may contain forward-looking information within the meaning of applicable securities legislation, including statements regarding the future composition of our portfolio, the terms of and duration of secured tenant renewals, and anticipated market rents. 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 Dream Office REIT’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and currency rate fluctuations. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. Dream Office REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in Dream Office REIT’s filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dream Office REIT’s website at www.dreamofficereit.ca.
For further information, please contact:
Michael J. Cooper | Rajeev Viswanathan |
Chairman and Chief Executive Officer | Chief Financial Officer |
(416) 365-5145 [email protected] | (416) 365-8959 [email protected] |
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