This news release contains forward-looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release.
TORONTO, Aug. 07, 2018 (GLOBE NEWSWIRE) -- DREAM INDUSTRIAL REIT (DIR.UN-TSX) or (“Dream Industrial REIT”, the “Trust” or “we”) today announced its financial results for the three and six months ended June 30, 2018.
“We have made meaningful progress in the first half of 2018 in sourcing attractive investment opportunities in Canada and the U.S., improving core operations, simplifying our capital structure and reducing the risk within our business,” said Brian Pauls, Chief Executive Officer of Dream Industrial REIT. “Our net asset value per unit has increased 7.5% since the beginning of the year and we are well positioned to continue growing and improving the value of Dream Industrial.”
Selected Financial Information | |||||||||||||
(unaudited) | Three Months Ended | Six Months Ended | |||||||||||
($000’s except unit and per unit amounts) | June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||
Net income (loss) | 16,242 | (7,108 | ) | 61,113 | 6,102 | ||||||||
Net operating income (“NOI”)(1) | 32,570 | 28,936 | 65,073 | 57,337 | |||||||||
Comparative properties NOI(1) | 29,575 | 29,093 | 58,954 | 57,667 | |||||||||
Funds from operations (“FFO”)(1) | 20,125 | 18,502 | 41,357 | 36,261 | |||||||||
Per unit data | |||||||||||||
FFO – diluted(1)(2) | $ | 0.211 | $ | 0.230 | $ | 0.434 | 0.451 | ||||||
Distributions | 0.175 | 0.175 | 0.350 | 0.350 | |||||||||
FFO payout ratio (%)(1)(3) | 82.9 | % | 76.1 | % | 80.6 | % | 77.6 | % | |||||
See footnotes at end. |
Selected BALANCE SHEET INFORMATION | ||||
(unaudited) | ||||
($000’s except unit and per unit amounts) | June 30, 2018 | December 31, 2017 | ||
Liquidity(4) | 320,173 | 177,651 | ||
Level of debt (net debt-to-assets)(1) | 41.4 | % | 47.9 | % |
Net asset value (“NAV”) per unit(1) | $ 10.05 | $ 9.35 | ||
Units (period-end) | ||||
REIT Units | 90,541,066 | 75,104,843 | ||
LP Class B Units | 18,551,855 | 18,551,855 | ||
Total number of units | 109,092,921 | 93,656,698 | ||
Investment properties | 1,933,998 | 1,722,988 | ||
Portfolio gross leasable area (square feet)(5) | 19,144,041 | 17,188,043 | ||
Occupied and committed space(5) | 96.6 | % | 96.6 | % |
Average occupancy for the period(5) | 95.4 | % | 95.8 | % |
See footnotes at end. | ||||
QUARTERLY FINANCIAL AND OPERATIONAL HIGHLIGHTS
INVESTMENT HIGHLIGHTS
161 The West Mall, Etobicoke, ON | |||||||||||||||||||
Gross leasable area (s.f.) | 205,000 | A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/c5505545-4206-419b-a0c6-8447878d7ef3 | |||||||||||||||||
Site Area (acres) | 10.4 | ||||||||||||||||||
WALT (years) | 7.5 | ||||||||||||||||||
Occupancy | 100% | ||||||||||||||||||
Clear Height (feet) | 38' | ||||||||||||||||||
Number of tenants | 2 | ||||||||||||||||||
CAPITAL STRUCTURE
Key performance indicators | June 30, 2018 | December 31, 2017 | ||||
Level of debt (net debt-to- assets)(1) | 41.4 | % | 47.9 | % | ||
Interest coverage ratio(1) | 3.3 times | 3.3 times | ||||
Weighted average face interest rate on all debt(6) | 3.80 | % | 3.75 | % | ||
Debt – weighted average term to maturity (years) | 4.1 | 3.8 | ||||
Unencumbered assets(1)(7) | $ | 94,152 | $ | 113,191 | ||
Undrawn lines of credit | 123,000 | 123,000 | ||||
See footnotes at end. | ||||||
“We have made significant progress on reducing our level of debt and we continue to strengthen our balance sheet with the redemption of the convertible debentures in early August,” said Lenis Quan, Chief Financial Officer of Dream Industrial REIT. “We are well positioned to focus on strategies to improve the value of our business, including growing organically and identifying asset recycling opportunities that can improve overall portfolio quality and generate higher cash flow and NAV growth.”
CONFERENCE CALL
Senior management will host a conference call to discuss the results on Wednesday, August 8, 2018 at 10:00 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 6802 324#. To access the conference call via webcast, please go to Dream Industrial REIT’s website at www.dreamindustrialreit.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 available for ninety (90) days following the call.
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 for the Trust will be available at www.dreamindustrialreit.ca and on www.sedar.com.
Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. Dream Industrial REIT owns and operates a portfolio of 220 geographically diversified light industrial properties comprising approximately 19 million square feet of gross leasable area in key markets across Canada with a growing presence in the United States. Its objective is to build upon and grow its portfolio and to provide stable and sustainable cash distributions to its unitholders. For more information, please visit www.dreamindustrialreit.ca.
FOOTNOTES
(1) NOI, comparative properties NOI, FFO, FFO payout ratio, level of debt (net debt-to-assets), NAV per unit, interest coverage ratio, unencumbered assets are non-GAAP measures used by Management in evaluating operating performance and debt management. Please refer to the cautionary statements under the heading “Non-GAAP Measures” in this press release. |
(2) A description of the determination of diluted amounts per unit can be found in our Management’s Discussion and Analysis for the three and six months ended June 30, 2018 under the heading “Non-GAAP Measures and Other Disclosures”. |
(3) Payout ratio for FFO (non-GAAP measure) is calculated as the ratio of distribution rate to diluted FFO per unit. |
(4) Liquidity is calculated as the sum of cash on hand and undrawn lines of credit as of June 30, 2018. (5) Excludes property or properties held for sale at each period. |
(6) Weighted average effective interest rate is calculated as the weighted average face rate of interest net of amortization of fair value adjustments and financing costs of all interest bearing debt. Weighted average face interest rate is calculated as the weighted average face interest rate of all interest bearing debt. |
(7) Includes property or properties held for sale. |
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 net operating income (“NOI”), comparative properties NOI, funds from operations (“FFO”), FFO payout ratio, level of debt (net debt-to-assets), net asset value (“NAV”) per unit, interest coverage ratio and unencumbered 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, cash generated from (utilized in) operating activities 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, please refer to the “Non-GAAP Measures and Other Disclosures” in Dream Industrial REIT’s Management’s Discussion and Analysis for the three and six months ended June 30, 2018.
Forward looking information
This press release may contain forward-looking information within the meaning of applicable securities legislation, including statements regarding our objectives and strategies and plans to expand our presence in our existing markets. 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 Industrial 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 Industrial 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 Industrial REIT’s filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dream Industrial REIT’s website at www.dreamindustrialreit.ca.
For further information, please contact:
Dream Industrial REIT
Brian Pauls | Lenis Quan | |
Chief Executive Officer | Chief Financial Officer | |
(416) 365-2365 | (416) 365-2353 | |
[email protected] | [email protected] |