OneREIT
TSX : ONR.UN

OneREIT

May 15, 2017 17:37 ET

OneREIT Announces First Quarter 2017 Results

TORONTO, ONTARIO--(Marketwired - May 15, 2017) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY NON-CANADIAN SOURCE

OneREIT (TSX:ONR.UN) today announced results for the first quarter ended March 31, 2017.

Highlights:

  • Funds from Operations, adjusted ("FFO, adjusted") increased 3.9% to $9.4 million for the three months ended March 31, 2017 compared to $9.1 million for the same period in 2016.
  • FFO, adjusted per unit increased 2.9% to 10.8 cents for the quarter ended March 31, 2017 compared to 10.5 cents for the same period in 2016.
  • FFO, adjusted payout ratio for the first quarter was 69.5%.
  • The weighted average cost of mortgage debt decreased to 4.21%, an improvement of 29 basis points since the first quarter of 2016.
  • Portfolio committed occupancy increased to 89.7% compared to 86.9% on March 31, 2016.
  • Debt to gross book value ratio (excluding and including convertible debentures) as at March 31, 2017 were 51.7% and 58.1%, respectively.
  • The process to explore strategic alternatives is continuing.

Richard Michaeloff, President and CEO of OneREIT, said, "Our strategy of improving our portfolio continues on track. The third phase of our redevelopment of our Golden Mile Shopping Centre in Regina was recently completed with the opening of the 92,000 square foot Loblaw's Real Canadian Superstore on April 28. Work on the fourth and final phase is now underway with strong leasing interest. In addition, our new 44,000 square foot tenancy with the City of Toronto at Yorkgate Mall is now under construction and upon completion is expected to drive significant additional foot traffic at this growing urban centre. We also recently entered into an agreement for an 11,000 square foot Sobeys' Liquor Store pad to be constructed at our Southland Mall property. These initiatives will continue to strengthen our portfolio and drive revenue growth."

Financial Highlights
Three months ended March 31
(all amounts in $000's, except per unit amounts and ratios) 2017 2016
Rental revenue and other income 30,594 30,272
Property operating expenses 13,130 12,303
Property operating income 17,464 17,969
Share of joint venture net operating income 517 457
Net operating income (1) 17,981 18,426
Trust expenses 1,032 1,245
Finance costs - joint venture operations 211 183
Finance costs - operations 7,529 7,937
Finance costs - distributions on Class B Units 830 830
Income before fair value gains (losses) and other income 8,379 8,231
Fair value gains (losses) associated with financial instruments (1,594 ) (4,457 )
Fair value gains (losses) on investment property 2,298 (1,280 )
Fair value gain (loss) on joint venture 233 315
Net Income for the period 9,316 2,809
FFO, adjusted (2) 9,444 9,089
FFO, adjusted per unit $ 0.108 $ 0.105
FFO, adjusted payout ratio 69.5% 71.4%

Full Financial Results and MD&A will be available on SEDAR (www.sedar.com) as well as the Investors Relations section of the REIT's website (www.onereit.ca).

(1) A non-IFRS measurement, calculated by the REIT as rental revenue (net rents, property tax and operating cost recoveries, as well as other miscellaneous income from tenants) less operating expenses for properties.

(2) The reconciliations from net income (loss) to Funds from Operations, adjusted ("FFO, adjusted") are included in the REIT's MD&A.

The REIT's management considers Net Operating Income, Funds from Operations, adjusted and Debt to Gross Book Value ratio to be indicative measures in evaluating the REIT's performance. The table above includes non-IFRS information that should not be construed as an alternative to net income or cash flows from operations and may not be comparable to similar measures presented by other issuers as there is no standardized meaning prescribed by IFRS.

Conference Call

OneREIT will hold a conference call on Tuesday May 16, 2017 at 11:00 am (ET). Participating on the call will be members of the REIT's senior management.

Investors are invited to access the call by dialling 416-640-5944 or 1-800-263-0877. A recording of this call will be made available Tuesday May 16, 2017 beginning at 2:00 pm (ET) through to Tuesday, May 30, 2017 ending at 2:00pm (ET). To access the recording, please call 647-436-0148 or 1-888-203-1112 and use the reservation number 1488100.

About OneREIT

OneREIT is an unincorporated, open-end real estate investment trust which focuses on owning and acquiring retail properties across Canada with the goal of enhancing long-term Unitholder value.

Forward-Looking Information

This press release contains forward-looking statements, which reflect management's expectations regarding the REIT's future growth, results of operations, performance, and business prospects and opportunities. These statements relate to, but are not limited to, the REIT's expectations, intentions, plans and beliefs. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative or grammatical variations of these terms or other comparable terminology. Readers should be aware that these statements are subject to known and unknown risks, uncertainties and other factors, including, but not limited to: those discussed or referenced under the heading "Risk Factors" in the REIT's Management's Discussion and Analysis for the three months ended March 31, 2017, as well as competition within the commercial real estate sector, the effective international, national and regional economic conditions and the availability of capital to fund further investments in the REIT's business. Actual events or results may differ materially from those suggested by any forward-looking statements. Readers should not place undue reliance on any forward-looking statements contained in this press release. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of the REIT believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the REIT nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the OneREIT have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an exemption from the registration requirements of U.S. securities laws.

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