Homburg Invest Inc. announces March 31, 2009 financial results
Halifax, Nova Scotia, May 14, 2009 (TSX: HII.A & HII.B and NYSE
Euronext Amsterdam: HII) - Richard Homburg, Chairman and CEO of
Homburg Invest Inc. ("Homburg Invest" or "the Company") is pleased to
announce Homburg Invest has released the March 31, 2009 financial
results prepared under both Canadian Generally Accepted Accounting
Principles (GAAP) and International Financial Reporting Standards
(IFRS). The complete March 31, 2009 financial results and MD&A will
be available for viewing and downloading from the corporation's web
site at www.homburginvest.com and at SEDAR at www.sedar.com.
The Company is pleased to announce the results under both IFRS and
Canadian GAAP for the three months ended March 31, 2009.
Increase in IFRS results:
* Property revenue increased 7.8% to $80.6 million compared to March
31, 2008
* Property net operating income (note) increased 3.7% to $57.3
million compared to March 31, 2008
* Funds from operations per share (note) were $0.55.
* Funds from operations (note) were $11.0 million.
Increase in Canadian GAAP results:
* Property revenue increased 7.6% to $80.0 million compared to March
31, 2008
* Property net operating income (note) increased 4.4% to $57.2
million compared to March 31, 2008
* Funds from operations per share (note) were $0.66.
* Funds from operations (note) were $13.2 million.
"Same Property" (properties owned throughout the entire comparative
reporting periods) N0I increased by 5.5% in the first quarter.
The Company prepares it's quarterly and annual statements under both
GAAP and IFRS. This reflects the Board's view that the IFRS
presentation most accurately reflects the financial position of a
real estate investment company, while at the same time the Company
continues to comply with requirements to produce its results under
GAAP. This also reflects the Company's desire to provide its
shareholders with as much information as possible in today's
environment of continuing concerns with respect to financial
disclosure in the market place.
The most significant differences between IFRS and GAAP statements are
that while the IFRS statements reflect the investment properties at
fair value and are without depreciation charges, the GAAP statements
record the fixed assets at historical cost less accumulated
depreciation. In addition, deferred charges relating to leasing fees
have been recorded as an asset in the GAAP financial statements and
will be charged to expense over the period of the related lease.
These charges are written off in the period incurred under IFRS.
Financial Highlights - IFRS
First Quarter ended March 31, 2009
(000's) Three Months Three Months
Ended Ended
March 31 March 31
2009 2008 Increase
Property revenue $80,640 $74,813 7.8%
Property net operating income $57,268 $55,240 3.7%
Funds from operations $10,980 $30,256
Funds from operations per share - $0.55/$0.55 $1.57/$1.53
basic and diluted
Property revenue for the first quarter is up 7.8% over the same
quarter in 2008 to $80.6 million. At the same time property net
operating income (NOI) increased to $57.3 million from $55.2 million,
an increase of 3.7%.
Shareholders' equity increased from $606.8 million at December 31,
2008 to $625.5 million at March 31, 2009.
Net asset value per share (note) at March 31, 2009 under IFRS is
$31.41.
The current global capital and real estate markets are experiencing
significant and dramatic change. As a result, there has been a
tightening of access to capital for new debt as well as refinancing
existing debt as it matures. We believe we are well positioned to
withstand this credit crisis as only $74.0 million, or 2.6%, of our
total long term debt is maturing over the next 21 months to the end
of 2010; and this maturing debt has a weighted average interest rate
of 7.51%. We have already secured refinancing on $8.0 million of the
$11.0 maturing in 2009 at an effective interest rate of 6.3%.
The Company has been very successful in the past in raising non-asset
backed debt financing and mortgage bond financing on the global
market to the extent of $700 million. The Company can continue to
look to these unique financing markets for additional funds.
With the tightening of the capital markets, the Company feels it is
prudent to raise cash from various sources and is exploring various
alternatives such as partnering of deals, selling (a portion) of
specific projects, delaying start of development projects and the
issue of new equity bonds.
Our objective is to further strengthen the balance sheet.
Financial Highlights - GAAP
First Quarter ended March 31, 2009
(000's) Three Months Three Months
Ended Ended
March 31 March 31
2009 2008 Increase
Property revenue $80,032 $74,362 7.6%
Property net operating income $57,195 $54,789 4.4%
Funds from operations $13,203 $33,634
Funds from operations per share - $0.66/$0.66 $1.74/$1.70
basic and diluted
Homburg Invest, with its head office in Halifax, Nova Scotia, owns
and develops a diversified portfolio of quality real estate including
office, retail, industrial and residential apartment and townhouse
properties throughout Canada, the United States and Western Europe.
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For further information, please contact:
Mr. Richard Homburg,
Chairman and CEO
Homburg Invest Inc.
902-468-3395
or
J. Richard Stolle
President and COO
Homburg Invest Inc.
31-20-573-3855
This news release may contain statements which by their nature are
forward looking and express the Company's beliefs, expectations or
intentions regarding future performance, future events or trends.
Forward looking statements are made by the Company in good faith,
given management's expectations or intentions however, they are
subject to market conditions, acquisitions, occupancy rates, capital
requirements, sources of funds, expense levels, operating performance
and other matters. Therefore, forward looking statements contain
assumptions which are subject to various factors including: unknown
risks and uncertainties: general economic conditions; local market
factors; performance of other third parties; environmental concerns;
and interest rates, any of which may cause actual results to differ
from the Company's good faith beliefs, expectations or intentions
which have been expressed in or may be implied from this news
release. Therefore, forward looking statements are not guarantees of
future performance and are subject to known and unknown risks.
Information and statements in this document, other than historical
information, should be considered forward-looking and reflect
management's current views of future events and financial performance
that involve a number of risks and uncertainties. Factors that could
cause actual results to differ materially include, but are not
limited to, the following: general economic conditions and
developments within the real estate industry, competition and the
management of growth. The Toronto Stock Exchange has neither approved
nor disapproved of the information contained herein.
Note
Non GAAP and Non IFRS Financial Measures
This news release includes measures widely accepted within the real
estate industry which are not defined under CDN GAAP or IFRS. These
measures include Funds from Operations, Funds from Operations per
share, Property Net Operating Income, and Net Asset Value per share.
As these are not defined measures under CDN GAAP or IFRS, other
issuers' may have different calculations from those used by the
Company.
The Company considers these amounts to be measures of operating and
financial performance.
a) Funds from Operations ("FFO") and FFO per share are presented by
the Company as net income (loss) from continuing operations adjusted
for depreciation and amortization, non-recurring stock based
compensation, deferred and capital income taxes, unrealized and
realized valuation changes, gain (loss) on financial instruments and
derivatives, and unrealized foreign exchange gains(losses); divided
by the weighted average number of shares outstanding
b) Property Net operating income ("N0I") is presented by the Company
as Property Revenue less Property Operating Expenses
c) Net Asset Value per share is presented by the Company as
Shareholders' Equity divided by the number of shares outstanding at
period end.
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.