Top-News
Mittwoch,
09.08.2017 23:05
von
PR Newswire
| Aufrufe: 65
Lanesborough REIT reports 2017 second quarter results
Mann mit Smartphone und Tablet (Symbolbild).
© metamorworks / iStock / Getty Images Plus / Getty Images
Canada NewsWire
WINNIPEG, Aug. 9, 2017
WINNIPEG, Aug. 9, 2017 /CNW/ - Lanesborough Real Estate Investment Trust ("LREIT") (TSX: LRT.UN) today reported its operating results for the quarter ended June 30, 2017. The following comments in regard to the financial position and operating results of LREIT should be read in conjunction with Management's Discussion & Analysis and the financial statements for the quarter ended June 30, 2017, which may be obtained from the LREIT website at www.lreit.com or the SEDAR website at www.sedar.com.
Operating results during Q2-2017 continued to reflect the stabilized rental market conditions in Fort McMurray, Alberta, LREIT's primary market, as the process of re‑establishing the community progresses.
According to a recent report by Canada Mortgage and Housing Corporation ("CMHC"), one‑third of the previously destroyed houses are now under reconstruction, with the vast majority breaking ground during the first six months of 2017. CMHC is forecasting further reductions in the average vacancy rates, primarily due to demand from construction workers taking part in the rebuilding efforts.
Operating Results
LREIT completed the three and six months periods ended June 30, 2017 with negative funds from operations ("FFO") of $1.6 million and $3.3 million, respectively, compared to negative FFO of $4.3 million and $8.6 million, respectively, during the same periods in 2016. The favourable FFO variance mainly reflects a decrease in interest expense and an increase in net operating income ("NOI").
The decrease in interest expense is mainly due to the divestiture and debt restructuring initiatives undertaken during 2016 which resulted in reduced amortization of transaction costs, reduced mortgage loan debt and reductions in the rate of interest applicable to the revolving loan and Series G debenture debt.
The increase in NOI is mainly due to an increase in the net rental revenue of the Fort McMurray property portfolio, as a result of an increase in the average occupancy rate to 71% during the second quarter of 2017, compared to 58% during the second quarter of 2016. The increase in net rental revenues was partially offset by the loss of revenue associated with sales of Beck Court and Willowdale Gardens in May 2016.
ARIVA.DE Börsen-Geflüster
Kurse
 |
 |
 |
 |
 |
Overall, LREIT completed Q2-2017 with a loss and comprehensive loss of $8.9 million, compared to income and comprehensive income of $20.5 million during Q2-2016. The decrease in income mainly reflects an unfavourable variance in fair value adjustments of the investment properties, partially offset by the above noted decrease in interest expense and increase in NOI.
Liquidity and Capital Resources
During the first six months of fiscal 2017, cash used in operating activities, before working capital adjustments, amounted to $0.7 million, compared to $1.6 million during the same period in 2016, and the cash shortfall, after accounting for working capital adjustments, regular mortgage principal repayments, capital expenditures, and transaction costs, was $4.5 million, compared to $3.3 million during the first six months of 2016. The increase in the cash shortfall is mainly due to an increase in cash used in operations after working capital adjustments. The cash shortfall was funded by additional advances under the revolving loan facility from 2668921 Manitoba Ltd.
As of June 30, 2017, LREIT is current with respect to all debt service payments, with the exception of one matured mortgage loan with an expired forbearance agreement. As previously reported, the mortgage loan matured in December 2015 and subsequently operated under a forbearance agreement which matured on February 28, 2017, after which it was being over-held, pending the completion of a review of an extension request.
During Q2-2017, the extension request was denied and the lender of the matured mortgage loan applied to have a receiver appointed in respect of the underlying mortgaged property. Due to a defect in the security held by the lender, the lender was not able to place the property into receivership; however, the Alberta Court of Queen's Bench did inform the lender that the guarantee provided by LREIT with respect to the original mortgage loan was enforceable and granted summary judgment against LREIT in respect of the guarantee obligation. As a result, the lender may pursue the enforcement options available to an unsecured creditor, including a new application for receivership that would encompass LREIT's beneficial ownership of the property. LREIT is unable to satisfy the full repayment of the matured mortgage loan with its current resources and continues to seek a settlement with the lender in the form of extended financing or by the divestiture of the property.
As previously reported, five mortgage loans on eight properties with an aggregate principal balance of $64.3 million, which were previously in default of debt service payments, are still presented as being in default, as the lender indicated that there are service fees outstanding with respect to the loans and no payment of such fees has been made. Management expects that an agreement with respect to the servicing fees will be negotiated and that any default will be remedied. In the interim, LREIT continues to meet the debt service obligations of these mortgages and the lender has taken no action to enforce the loans. In the event that full repayment is demanded LREIT would not be able to satisfy the full repayment of the loan with its current resources.
Outlook
LREIT continues to benefit from the debt restructuring and divestiture activities that took place during 2016, as they have allowed for the deferral of interest payments, a decrease in mortgage loan debt, and decreases in the interest rates charged. Such factors, when combined with the improved operating performance being experienced in fiscal 2017, are beginning to reduce the extent of the operating cash deficiencies.
Notwithstanding the progress made, LREIT continues to face financing challenges and the ability to continue operations in the near‑term is contingent on the continued financial support of Shelter and its parent company, 2668921 Manitoba Ltd., as well as LREIT's ability to renew and/or refinance its mortgage loan debts as they become due.
Looking beyond the post‑fire rebuilding process in Fort McMurray, which may take several years, the long term prospects of the Fort McMurray rental market will remain closely correlated with the price of oil and oil sands development activity.
As previously announced on March 31, 2017, LREIT no longer satisfies the continued listing requirements of the Toronto Stock Exchange and it is not anticipated that such requirements will be satisfied in the foreseeable future. As a result, LREIT intends to transition the listings of its trust units and Series G debentures to the TSX Venture Exchange later this year.
STATEMENT OF FINANCIAL POSITION
| | | June 30 | | December 31 | ||||||
| | | 2017 | | 2016 | | 2015 | ||||
| Total assets | | $ | 236,253,617 | | $ | 245,402,329 | | $ | 278,524,804 | |
| Total long‑term financial liabilities (1) | | $ | 247,863,222 | | $ | 243,501,308 | | $ | 279,529,237 | |
| Weighted average interest rate | | | | | | | | | | |
| | ‑ Mortgage loan debt | | | 5.7% | | | 5.8% | | | 6.0% |
| | ‑ Total debt | | | 5.6% | | | 5.6% | | | 6.4% |
| | | |||||||||
| (1) | Long‑term financial liabilities consist of mortgage loans, debentures, defeased liability (December 2015) and the | |||||||||
KEY FINANCIAL PERFORMANCE INDICATORS
| | Three Months Ended | | Six Months Ended | |||||||||
| | 2017 | | 2016 | | 2017 | | 2016 | |||||
| Operating Results | | | | | | | | |||||
| | Rentals from investment properties | $ | 4,880,593 | | $ | 3,979,652 | | $ | 9,525,108 | | $ | 8,431,114 |
| | Net operating income | $ | 2,474,144 | | $ | 1,824,148 | | $ | 4,706,257 | | $ | 3,483,505 |
| | Income (loss) before discontinued operations | $ | (8,899,395) | | $ | 20,514,463 | | $ | (13,591,204) | | $ | 12,874,234 |
| | Income (loss) & comprehensive income (loss) | $ | (8,909,938) | | $ | 20,488,721 | | $ | (13,555,657) | | $ | 12,889,424 |
| | Funds from Operations (FFO) | $ | (1,563,031) | | $ Werbung Mehr Nachrichten zum Optionsschein (WKN: ) kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1  Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News | |||||||
