Morguard Real Estate Investment Trust Announces 2019 First Quarter Results

MISSISSAUGA, ON, May 1, 2019 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today is pleased to announce its financial results for the three months ended March 31, 2019.  These results have been prepared in accordance with International Financial Reporting Standards ("IFRS").

FOR THE THREE MONTHS ENDED MARCH 31

The Trust is pleased to report that the following retail development projects have been completed in the first quarter of 2019:

During the quarter, the Trust activated 6,800 square feet of new GLA at Pine Centre Mall in Prince George, British Columbia. This free standing space includes a restaurant and is fully leased as of April 3, 2019.

During the quarter, the Trust activated 43,600 square feet of redeveloped GLA at Parkland Mall in Red Deer, Alberta. This remerchandised space includes Winners and additional units and is 54% leased.

First quarter net operating income has increased slightly to $37.9 million in 2019 as compared to $37.6 million in 2018. This increase is due to the incremental net operating income from either new or redeveloped GLA in the amount of 183,500 square feet which has come on stream in 2018.

Fair value losses have decreased to $5.7 million in 2019 as compared to $6.0 million in 2018.

Interest expense has increased 5.1% to $14.4 million in 2019 from $13.7 in 2018 due to higher short-term interest rates in 2019.

Net income has decreased to $16.9 million in 2019 ($0.28 per unit) from $17.6 million in 2018 ($0.29 per unit).

Funds from operations has decreased to $23.1 million in 2019 ($0.38 per unit in 2019) as compared to $23.6 million in 2018 ($0.39 per unit).

Cash distributions per unit remain unchanged at $0.24 per unit in both 2019 and 2018.

Net Operating Income, Funds from Operations

This press release and accompanying financial information make reference to net operating income and funds from operations on a total and per unit basis.  Net operating income is defined as income from property operations after operating expenses have been deducted, but prior to deducting interest expense, general and administrative expenses and fair value gains/(losses).  The Trust presents FFO in accordance with the Real Property Association of Canada white paper on funds from operations and adjusted funds from operations for IFRS. FFO is a non-GAAP measure that is widely accepted as a supplemental measure of financial performance for real estate entities.  In accordance with such white paper, the Trust defines FFO as net income adjusted for fair value changes on real estate properties and gains/(losses) on the sale of real estate properties.

Financial Statements and Management's Discussion and Analysis

The Trust's Q1 2019 Consolidated Financial Statements and Management's Discussion and Analysis will be made available on the Trust's website at www.morguard.com and have been filed with SEDAR at www.sedar.com

Conference Call Details:

About Morguard Real Estate Investment Trust

The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 49 retail, office and industrial income producing properties in Canada with a book value of $3.0 billion and approximately 8.6 million square feet of leasable space.

SOURCE Morguard Real Estate Investment Trust