CAPREIT Reports Continued Growth and Strong Operating Performance in First Quarter of 2016
/EINPresswire.com/ -- TORONTO, ONTARIO -- (Marketwired) -- 05/06/16 -- Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX: CAR.UN) announced today record portfolio growth and strong operating and financial results for the three months ended March 31, 2016.
Three Months Ended March 31, 2016 2015
---------------------------------------------------------------
Operating Revenues (000s) $ 145,638 $ 128,954
Net Operating Income ("NOI") (000s)
(1) $ 84,380 $ 74,824
NOI Margin (1) 57.9% 58.0%
Normalized Funds From Operations
("NFFO") Per Unit - Basic (1) $ 0.409 $ 0.393
NFFO Payout Ratio (1) 75.8% 77.8%
---------------------------------------------------------------
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(1) NOI, NFFO and NFFO per Unit are measures used by Management in
evaluating operating performance. Please refer to the cautionary statements
under the heading "Non-IFRS Financial Measures" and the reconciliations
provided in this press release.
Q1 2016 HIGHLIGHTS:
-- Operating revenues up 12.9% from last year due to increased average
monthly rents ("AMR") on stabilized properties, high stable occupancies,
and contributions from acquisitions
-- AMR up 1.7% for stabilized residential suites
-- Portfolio occupancy remains stable at 98.3% at March 31, 2016
-- NOI up 12.8% compared to first quarter last year
-- NOI margin remains stable at 57.9%
-- Same property NOI up a strong 2.6% in the quarter, despite challenges in
the Alberta market
-- Trust Expenses increase by $5.5 million due to costs related to
transactions that were not completed
-- NFFO up 19.6% due to strong operating performance, acquisitions and
organic growth
-- Strong accretive growth as NFFO per Unit up 4.1% despite 15% increase in
weighted average Units outstanding
-- NFFO payout ratio remains conservative at 75.8%
-- Closed or committed mortgage refinancings and new financings of $164.8
million, including $53.5 million for renewals of existing mortgages and
$111.3 million for additional top ups and new financings with a weighted
average term to maturity of 9.3 years, and a reduced weighted average
interest rate of 2.44%.
"Following another record year in 2015, our growth and strong operating performance continued in the first quarter of 2016," commented Thomas Schwartz, President and Chief Executive Officer. "Looking ahead, with a full year's contribution from the significant number of acquisitions completed in 2015, and continued industry-leading organic growth, we expect 2016 will be another year of stable, consistent and sustainable growth."
PORTFOLIO OPERATING RESULTS
Three Months Ended March 31, 2016 2015 ---------------------------------------------------------------------------- Overall Portfolio Occupancy (1) 98.3% 98.6% Overall Portfolio Average Monthly Rents (1),(2) $ 971 $ 975 Operating Revenues (000s) $ 145,638 $ 128,954 Annualized Net Rental Revenue Run-Rate (000s) (1),(3),(4) $ 557,404 $ 492,734 Operating Expenses (000s) $ 61,258 $ 54,130 NOI (000s) (4) $ 84,380 $ 74,824 NOI Margin (4) 57.9% 58.0% Number of Suites and Sites Acquired 670 681 Number of Suites Disposed - 530 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) As at March 31. (2) Average monthly rents are defined as actual rents, net of vacancies, divided by the total number of suites and sites in the portfolio and do not include revenues from parking, laundry or other sources. (3) For a description of net rental revenue run-rate, see the Results of Operations section in the MD&A for the three months ended March 31, 2016. (4) Net rental revenue run-rate and NOI are measures used by Management in evaluating operating performance. Please refer to the cautionary statements under the heading "Non-IFRS Financial Measures" and the reconciliations provided in this press release.
Operating Revenues
For the three months ended March 31, 2016, total operating revenues increased by 12.9% compared to the same period last year due primarily to the contribution from acquisitions, increased average monthly rents on stabilized properties, and continuing high stable occupancies. Ancillary revenues, such as parking, laundry and antenna income, increased 13% for the three months ended March 31, 2016 compared to the same period last year due to Management's continued focus on maximizing the revenue potential of its property portfolio.
CAPREIT's annualized net rental revenue run-rate, based on the average monthly rents in place and CAPREIT's share of residential suites and sites as at March 31, 2016, increased to $557.4 million, up 13.1% from $492.7 million as of March 31, 2015 largely due to acquisitions and organic NOI growth. Net rental revenue net of dispositions for the twelve months ended March 31, 2016 was $521.0 million (2015 - $478.2 million).
Portfolio Average Monthly Rents ("AMR")
Properties Owned
Prior to
Total Portfolio March 31, 2015
As at March 31, 2016 2015 2016 2015 (1)
Occ. Occ. Occ. Occ.
AMR % AMR % AMR % AMR %
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Average
Residential
Suites $ 1,065 98.2 $ 1,088 98.5 $ 1,106 98.2 $ 1,088 98.5
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Average MHC Land
Lease Sites $ 369 98.3 $ 359 99.3 $ 369 98.3 $ 359 99.3
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Overall
Portfolio
Average $ 971 98.3 $ 975 98.6 $ 992 98.2 $ 975 98.6
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(1) Prior period's comparable AMR and occupancy have been restated for
properties disposed of since March 31, 2015.
Overall average monthly rents for the stabilized residential suite portfolio (properties owned prior to March 31, 2015) increased 1.7% to $1,106 at March 31, 2016 from $1,088 at March 31, 2015. Excluding Alberta, average monthly rents for the stabilized residential suite portfolio increased a solid 2.2% to $987 at March 31, 2016 from $966 at March 31, 2015. This was due primarily to a combination of ongoing successful sales and marketing strategies, above guideline rent increases, and continued strength in the residential rental sector in the majority of CAPREIT's regional markets. Occupancy for the stabilized residential suite portfolio remained strong at 98.2% as at March 31, 2016 compared to 98.5% for the same period last year. While occupancies remained stable for the total portfolio, average monthly rents declined marginally due to acquisitions completed late in 2015 in lower-rent markets.
Suite Turnovers and Lease Renewals - Excluding Alberta and Saskatchewan
For the Three Months
Ended March 31, 2016 2015
% %
Change in AMR Turnovers Change in AMR Turnovers
& &
Renewals Renewals
$ % (1) $ % (1)
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Suite Turnovers 34.0 3.2 4.5 17.2 1.6 4.6
Lease Renewals 25.9 2.4 13.8 21.9 2.0 12.5
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Weighted Average of
Turnovers and
Renewals 27.9 2.6 20.6 1.9
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(1) Percentage of suites turned over or renewed during the year based on the
total number of residential suites (excluding co-ownerships) held at the
end of the period.
Suite Turnovers and Lease Renewals - Total Residential Portfolio
For the Three Months
Ended March 31, 2016 2015
% %
Change in AMR Turnovers Change in AMR Turnovers
& &
Renewals Renewals
$ % (1) $ % (1)
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Suite Turnovers (23.6) (2.1) 5.8 11.9 1.1 6.1
Lease Renewals 24.2 2.2 14.8 24.2 2.2 15.7
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Weighted Average of
Turnovers and
Renewals 10.7 1.0 20.7 1.9
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(1) Percentage of suites turned over or renewed during the year based on the
total number of residential suites (excluding co-ownerships) held at the
end of the period.
For suite turnovers in the residential suite portfolio (excluding co-ownerships and the Alberta and Saskatchewan regions) during the three months ended March 31, 2016, average monthly rents increased strongly by approximately $34 or 3.2% compared to an increase of $17 or 1.6% for the same period last year, primarily due to the strong rental markets of British Columbia and Ontario.
Overall, suite turnovers in the residential suite portfolio (excluding co-ownerships) during the three months ended March 31, 2016, resulted in average monthly rents decreasing by approximately $24 or 2.1%, compared to an increase of approximately $12 or 1.1% for the same period last year primarily due to strategically reduced rents in the Alberta and Saskatchewan rental markets to increase occupancy and higher unit turnover than in previous years, offset by the strong rental markets of British Columbia and Ontario.
The rate of growth in average monthly rents on lease renewals during the period remained stable primarily due to the increased guideline increases for 2016 (Ontario - 2.0%, British Columbia - 2.9%), which compare more favourably to the permitted guideline increases in 2015 (Ontario - 1.6%, British Columbia - 2.5%) and by above guideline increases ("AGI") applied, offset by weakness in the Alberta market. Management's continues to believe that its well-diversified portfolio serves to mitigate weakness in any specific geographic region. Management continues to pursue applications for AGIs where it believes increases are supported by market conditions above the annual guideline to raise average monthly rents on lease renewals.
Operating Expenses For the Three Months Ended March 31, 2016 % (1) 2015 % (1) ($ Thousands) ---------------------------------------------------------------------------- Operating Expenses Realty Taxes $ 16,007 11.0 $ 14,665 11.4 Utilities 18,943 13.0 17,835 13.8 Other (2) 26,308 18.1 21,630 16.8 ---------------------------------------------------------------------------- Total Operating Expenses $ 61,258 42.1 $ 54,130 42.0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) As a percentage of total operating revenues. (2) Comprises R&M, wages, general and administrative, insurance, advertising, and legal costs.
Operating Expenses
Overall operating expenses increased in the three months ended March 31, 2016, compared to the same period last year, due primarily to the increased size of the portfolio. Total operating expenses as a percentage of operating revenues remained stable at 42.1% for the three months ended March 31, 2016 compared to 42.0% in the same period last year.
Net Operating Income
Overall NOI rose by 12.8% in the first quarter of 2016 and the NOI margin remained stable at 57.9% compared to 58.0% for the same period last year.
For the three months ended March 31, 2016, operating revenues for stabilized suites and sites increased 2.1% while operating costs increased by 1.4% compared to the same period last year. As a result, stabilized NOI increased by 2.6% for the three months ended March 31, 2016.
Trust Expenses
Trust expenses increased to $11.1 million in the first quarter of 2016 from $6.5 million in the prior year's first quarter due to costs of $5.5 million related to transactions that were not completed.
NON-IFRS FINANCIAL MEASURES
Three Months Ended March 31, 2016 2015 --------------------------------------------------------- NFFO (000s) $ 52,295 $ 43,719 NFFO Per Unit - Basic $ 0.409 $ 0.393 Cash Distributions Per Unit $ 0.305 $ 0.295 NFFO Payout Ratio 75.8% 77.8% NFFO Effective Payout Ratio 50.8% 54.0% --------------------------------------------------------- ---------------------------------------------------------
For the three months ended March 31, 2016, basic NFFO per Unit increased by 4.1% compared to the same period last year despite the approximate 15% increase in the weighted average number of Units outstanding due to the two successful equity offerings completed in March 2015 and October 2015.
LIQUIDITY AND LEVERAGE
As at March 31, 2016 2015
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Total Debt to Gross Book Value 45.80% 44.32%
Total Debt to Gross Historical Cost (1) 55.72% 54.20%
Total Debt to Total Capitalization 47.06% 45.25%
Debt Service Coverage Ratio (times) (2) 1.64 1.59
Interest Coverage Ratio (times) (2) 3.00 2.82
Weighted Average Mortgage Interest Rate (3) 3.36% 3.60%
Weighted Average Mortgage Term to Maturity (years) 6.1 6.2
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(1) Based on historical cost of investment properties.
(2) Based on the trailing four quarters ended March 31, 2016.
(3) Weighted average mortgage interest rate includes deferred financing
costs and fair value adjustments on an effective interest basis. Including
the amortization of the realized component of the loss on interest rate
hedge settlement of $32.5 million included in Accumulated Other
Comprehensive Loss (''AOCL''), the effective portfolio weighted average
interest rate at March 31, 2016 would be 3.49% (March 31, 2015 - 3.75%).
Financial Strength
Management believes CAPREIT's strong balance sheet and liquidity position will enable it to continue to take advantage of acquisition and property capital investment opportunities over the long term.
CAPREIT is achieving its financing goals as demonstrated by the following key indicators:
-- Total debt to gross book value ratio remained strong at 45.8% as at
March 31, 2016 compared to 44.3% for the same period last year, both
well below our target debt ratio;
-- Debt service and interest coverage as at March 31, 2016 improved to 1.64
times and 3.00 times, respectively, compared to 1.59 times and 2.82
times last year;
-- As at March 31, 2016, 96.8% (March 31, 2015 - 95.8%) of CAPREIT's
mortgage portfolio was insured by the Canada Mortgage and Housing
Corporation ("CMHC"), excluding the mortgages on CAPREIT's MHC land
lease sites and Euro LIBOR borrowings, resulting in improved spreads on
mortgages and lower overall interest costs than conventional mortgages.
-- The effective portfolio weighted average interest rate on mortgages has
steadily declined to 3.36% as at March 31, 2016 from 3.60% as at March
31, 2015, resulting in significant potential interest rate savings in
future years;
-- Management expects to raise between $275 million and $325 million in
total mortgage renewals and refinancings in 2016;
-- The weighted average term to maturity of the mortgage portfolio remained
stable at 6.1 years as at March 31, 2016 compared to 6.2 years at March
31, 2015;
-- As at March 31, 2016, CAPREIT has investment properties with a fair
value of $299.7 million not encumbered by mortgages and securing only
the Acquisition and Operating Facility. CAPREIT intends to maintain
unencumbered investment properties with an aggregate fair value in the
range of $150 and $180 million over the long term.
Property Capital Investments
During the three months ended March 31, 2016, CAPREIT made property capital investments (excluding disposed properties, head office assets, tenant improvements and signage) of $30.5 million as compared to $24.9 million in the same period last year. For the full 2016 year, CAPREIT expects to complete property capital investments of approximately $170 million to $180 million, including approximately $92 million targeted at acquisitions completed since January 1, 2011, and approximately $21 million in high-efficiency boilers and other energy-saving initiatives.
Property capital investments include suite improvements, common areas and equipment, which generally tend to increase NOI more quickly. CAPREIT also continues to invest in energy-saving initiatives, including boilers, energy-efficient lighting systems, and water-saving programs, which permit CAPREIT to mitigate potentially higher increases in utility and R&M costs and significantly improve overall portfolio NOI.
Subsequent Events
On April 12, 2016, CAPREIT completed the acquisition of a property located in Charlottetown, Prince Edward Island totaling 12 residential suites. The purchase price (excluding transaction costs) of approximately $1.2 million was funded with cash from CAPREIT's Acquisition and Operating credit facility.
On April 26, 2016, CAPREIT completed the acquisition of a property located in Markham, Ontario totaling 71 residential townhome suites. The purchase price (excluding transaction costs) of approximately $16.4 million was funded with cash from CAPREIT's Acquisition and Operating credit facility.
Additional Information
More detailed information and analysis is included in CAPREIT's unaudited condensed consolidated interim financial statements and MD&A for the three months ended March 31, 2016, which have been filed on SEDAR and can be viewed at www.sedar.com under CAPREIT's profile or on CAPREIT's website on the investor relations page at www.caprent.com or www.capreit.net.
Conference Call
A conference call hosted by Thomas Schwartz, President and CEO and the CAPREIT Management Team, will be held Monday, May 9, 2016 at 10:00 am EST. The telephone numbers for the conference call are: Local/International: (416) 340-2216, North American Toll Free: (866) 225-0198.
A slide presentation to accompany Management's comments during the conference call will be available one hour and a half prior to the conference call. To view the slides, access the CAPREIT website at www.caprent.com or www.capreit.net, click on "Investor Relations" and follow the link at the top of the page. Please log on at least 15 minutes before the call commences.
The telephone numbers to listen to the call after it is completed (Instant Replay) are local/international (905) 694-9451 or North American toll free (800) 408-3053. The Passcode for the Instant Replay is 5687860#. The Instant Replay will be available until midnight, May 16, 2016. The call and accompanying slides will also be archived on the CAPREIT website at www.caprent.com or www.capreit.net. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.caprent.com or www.capreit.net.
About CAPREIT
CAPREIT owns interests in multi-unit residential rental properties, including apartments, townhomes and manufactured home communities primarily located in and near major urban centres across Canada. As at March 31, 2016, CAPREIT had owning interests in 47,476 residential units, comprised of 41,177 residential suites and 30 manufactured home communities ("MHC") comprising 6,299 land lease sites. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.caprent.com or www.capreit.net and our public disclosure which can be found under our profile at www.sedar.com.
Non-IFRS Financial Measures
CAPREIT prepares and releases unaudited quarterly and audited consolidated annual financial statements prepared in accordance with IFRS. In this and other earnings releases and investor conference calls, as a complement to results provided in accordance with IFRS, CAPREIT also discloses and discusses certain non-IFRS financial measures, including Net Rental Revenue Run-Rate, NOI, FFO, NFFO and applicable per Unit amounts and payout ratios. These non-IFRS measures are further defined and discussed in the MD&A released on May 6, 2016, which should be read in conjunction with this press release. Since Net Rental Revenue Run-Rate, NOI, FFO and NFFO are not determined by IFRS, they may not be comparable to similar measures reported by other issuers. CAPREIT has presented such non-IFRS measures as Management believes these non-IFRS measures are relevant measures of the ability of CAPREIT to earn and distribute cash returns to Unitholders and to evaluate CAPREIT's performance. A reconciliation of Net Income and such non-IFRS measures including Adjusted Funds From Operations ("AFFO") is included in this press release. These non-IFRS measures should not be construed as alternatives to net income (loss) or cash flow from operating activities determined in accordance with IFRS as an indicator of CAPREIT's performance.
Cautionary Statements Regarding Forward-Looking Statements
Certain statements contained, or contained in documents incorporated by reference, in this press release constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to CAPREIT's future outlook and anticipated events or results and may include statements regarding the future financial position, business strategy, budgets, litigation, projected costs, capital investments, financial results, taxes, plans and objectives of or involving CAPREIT. Particularly, statements regarding CAPREIT's future results, performance, achievements, prospects, costs, opportunities and financial outlook, including those relating to acquisition and capital investment strategy and the real estate industry generally, are forward-looking statements. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative thereof or other similar expressions concerning matters that are not historical facts. Forward-looking statements are based on certain factors and assumptions regarding expected growth, results of operations, performance and business prospects and opportunities. In addition, certain specific assumptions were made in preparing forward-looking information, including: that the Canadian and Irish economies will generally experience growth, however, may be adversely impacted by the global economy; that inflation will remain low; that interest rates will remain low in the medium term; that Canada Mortgage and Housing Corporation ("CMHC") mortgage insurance will continue to be available and that a sufficient number of lenders will participate in the CMHC-insured mortgage program to ensure competitive rates; that the Canadian capital markets will continue to provide CAPREIT with access to equity and/or debt at reasonable rates; that vacancy rates for CAPREIT properties will be consistent with historical norms; that rental rates will grow at levels similar to the rate of inflation on renewal; that rental rates on turnovers will remain stable; that CAPREIT will effectively manage price pressures relating to its energy usage; and, with respect to CAPREIT's financial outlook regarding capital investments, assumptions respecting projected costs of construction and materials, availability of trades, the cost and availability of financing, CAPREIT's investment priorities, the properties in which investments will be made, the composition of the property portfolio and the projected return on investment in respect of specific capital investments.
Although the forward-looking statements contained in this press release are based on assumptions, Management believes they are reasonable as of the date hereof, there can be no assurance actual results will be consistent with these forward-looking statements; they may prove to be incorrect. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond CAPREIT's control, that may cause CAPREIT or the industry's actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risks related to: reporting investment properties at fair value, real property ownership, leasehold interests, co-ownerships, investment restrictions, operating risk, energy costs and hedging, environmental matters, insurance, capital investments, indebtedness, interest rate hedging, foreign operation and currency risks, taxation, harmonization of federal goods and services tax and provincial sales tax, government regulations, controls over financial accounting, legal and regulatory concerns, the nature of units of CAPREIT ("Trust Units") and of CAPREIT's subsidiary, CAPREIT Limited Partnership ("Exchangeable Units") (collectively, the "Units"), unitholder liability, liquidity and price fluctuation of Units, dilution, distributions, participation in CAPREIT's distribution reinvestment plan, potential conflicts of interest, dependence on key personnel, general economic conditions, competition for residents, competition for real property investments, continued growth and risks related to acquisitions. There can be no assurance the expectations of CAPREIT's Management will prove to be correct. These risks and uncertainties are more fully described in regulatory filings, including CAPREIT's Annual Information Form, which can be obtained on SEDAR at www.sedar.com, under CAPREIT's profile, as well as under Risks and Uncertainties section of the MD&A released on May 6, 2016. The information in this press release is based on information available to Management as of May 6, 2016. Subject to applicable law, CAPREIT does not undertake any obligation to publicly update or revise any forward-looking information.
SOURCE: Canadian Apartment Properties Real Estate Investment Trust
SELECTED FINANCIAL INFORMATION
Condensed Balance Sheets
March 31, December 31,
As at 2016 2015
($ Thousands)
---------------------------------------------------------------------
Investment Properties $ 6,995,720 $ 6,863,140
Total Assets 7,242,736 7,102,828
Mortgages Payable 3,122,929 3,097,773
Bank Indebtedness 214,589 168,211
Total Liabilities 3,517,596 3,442,875
Unitholders' Equity 3,725,140 3,659,953
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For The Three Months Ended March 31, 2016 2015
($ Thousands)
----------------------------------------------------------------------------
Net Operating Income $ 84,380 $ 74,824
(Less) Plus:
Trust Expenses (1) (11,080) (6,464)
Unrealized Gain on Remeasurement of Investment
Properties 45,842 31,125
Realized Loss on Disposition of Investment
Properties - (639)
Remeasurement of Exchangable Units (329) (656)
Unit-based Compensation Expenses (7,250) (14,978)
Interest on Mortgages Payable and Other
Financing Costs (27,261) (25,704)
Interest on Bank Indebtedness (1,414) (857)
Interest on Exchangeable Units (49) (48)
Other Income (2) 2,653 2,242
Amortization (818) (643)
Severance and Other Employee Costs - (2,417)
Unrealized and Realized Gain (Loss) on
Derivative Financial Instruments (147) 28
Dilution Loss on Equity Accounted Investments - (4,346)
Gain on Foreign Currency Translation 1,571 1,400
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Net Income $ 86,098 $ 52,867
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Other Comprehensive Income $ 76 $ 1,560
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Comprehensive Income $ 86,174 $ 54,427
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(1) Includes a special one-time bonus to senior management of $0.8 million
in 2015. Includes acquisition research costs of $5.5 million relating to
transactions that were not completed.
Condensed Statements of Cash Flows
Three Months Ended March 31, 2016 2015
($ Thousands)
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Cash Provided By Operating Activities:
Net Income $ 86,098 $ 52,867
Items in Net Income Not Affecting Cash:
Changes in Non-cash Operating Assets and
Liabilities (7,812) (7,246)
Realized and Unrealized Gain on
Remeasurements (45,366) (29,858)
Unit-based Compensation Expenses 7,250 14,978
Items Related to Financing and Investing
Activities 23,460 23,265
Other 1,062 5,216
---- ----------------------------
Cash Provided By Operating Activities $ 64,692 $ 59,222
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Cash Used In Investing Activities
Acquisitions (55,011) (198,498)
Capital Investments (33,278) (27,641)
Acquisition of Investments - (32,305)
Dispositions - 24,004
Other 3,480 399
----------------------------
Cash Used In Investing Activities $ (84,809) $ (234,041)
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Cash Used In Financing Activities
Net Mortgages, Net of Financing Costs 25,021 180,140
Bank Indebtedness, Net 46,378 (108,544)
Interest Paid (26,903) (25,069)
Proceeds on Issuance of Units 2,623 151,925
Distributions, Net of DRIP and Other (27,002) (23,633)
----------------------------
Cash Used In Financing Activities $ 20,117 $ 174,819
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Changes in Cash and Cash Equivalents During the
Period - -
Cash and Cash Equivalents, Beginning of Period - -
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Cash and Cash Equivalents, End of Period $ - $ -
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Reconciliation of Net Income to FFO and to NFFO
Three Months Ended March 31, 2016 2015
($ Thousands, except per Unit amounts)
----------------------------------------------------------------------------
Net Income $ 86,098 $ 52,867
Adjustments:
Unrealized Gain on Remeasurement of Investment
Properties (45,842) (31,125)
Realized Loss on Disposition of Investment
Properties - 639
Remeasurement of Exchangeable Units 329 656
Remeasurement of Unit-based Compensation
Liabilities 6,022 13,815
Interest on Exchangeable Units 49 48
Gain on Foreign Exchange (1,571) (1,400)
Unrealized and Realized Loss (Gain) on
Derivative Financial Instruments 147 (28)
Dilution Loss on Equity Accounted Investments - 4,346
Amortization of Property, Plant and Equipment 818 643
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FFO $ 46,050 $ 40,461
Adjustments:
Amortization of Loss from AOCL to Interest and
Other Financing Costs 771 841
Acquisition Research Costs(4) 5,474 -
Severance and Other Employee Costs - 2,417
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NFFO $ 52,295 $ 43,719
NFFO per Unit - Basic $ 0.409 $ 0.393
NFFO per Unit - Diluted $ 0.404 $ 0.387
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Total Distributions Declared (1) $ 39,630 $ 34,022
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NFFO Payout Ratio (2) 75.8% 77.8%
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Net Distributions Paid (1) $ 26,567 $ 23,597
Excess NFFO Over Net Distributions Paid $ 25,728 $ 20,122
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Effective NFFO Payout Ratio (3) 50.8% 54.0%
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(1) For a description of distributions declared and net distributions paid,
see the Non-IFRS Financial Measures section in the MD&A for the three
months ended March 31, 2016.
(2) The payout ratio compares distributions declared to NFFO.
(3) The effective payout ratio compares net distributions paid to NFFO.
(4) Expenses incurred relates to transactions that were not completed
included in trust expenses.
Reconciliation of NFFO to AFFO
Three Months Ended March 31, 2016 2015
($ Thousands, except per Unit amounts)
----------------------------------------------------------------------------
NFFO $ 52,295 $ 43,719
Adjustments:
Provision for Maintenance Property Capital
Investments (1) (4,502) (3,912)
Amortization of Fair Value on Grant Date of
Unit-based Compensation 1,228 1,163
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AFFO $ 49,021 $ 40,970
AFFO per Unit - Basic $ 0.384 $ 0.368
AFFO per Unit - Diluted $ 0.379 $ 0.362
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Total Distributions Declared (2) $ 39,630 $ 34,022
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AFFO Payout Ratio (3) 80.8% 83.0%
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Net Distributions Paid (2) $ 26,567 $ 23,597
Excess AFFO Over Net Distributions Paid $ 22,454 $ 17,373
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Effective AFFO Payout Ratio (4) 54.2% 57.6%
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(1) An industry based estimate (see the Non-IFRS Measures section in the
MD&A for the three months ended March 31, 2016).
(2) For a description of distributions declared and net distributions paid,
see the Non-IFRS Financial Measures section in the MD&A for the three
months ended March 31, 2016.
(3) The payout ratio compares distributions declared to AFFO.
(4) The effective payout ratio compares net distributions paid to AFFO.
Contacts:
CAPREIT
Mr. Michael Stein
Chairman
(416) 861-5788
CAPREIT
Mr. Thomas Schwartz
President & CEO
(416) 861-9404
CAPREIT
Mr. Scott Cryer
Chief Financial Officer
(416) 861-5771
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