02:55:07 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Edgefront Real Estate Investment Trust
Symbol ED
Shares Issued 28,726,907
Close 2015-05-25 C$ 1.80
Market Cap C$ 51,708,433
Recent Sedar Documents

Edgefront earns $1.21-million in Q1

2015-05-26 00:15 ET - News Release

Mr. Kelly Hanczyk reports

EDGEFRONT REAL ESTATE INVESTMENT TRUST ANNOUNCES CONTINUED STRONG RESULTS, AN INCREASE TO THE DISCOUNT TO ISSUANCE PRICE UNDER THE DRIP, THE JUNE DISTRIBUTION, AND A NEW INDEPENDENT TRUSTEE

Edgefront Real Estate Investment Trust has released its results for the three months ended March 31, 2015, has declared the June, 2015, distribution, has increased the discount to issuance price under the distribution reinvestment program, has had a new independent trustee elected, and has released the voting results from the 2015 annual and special meeting.

Highlights:

  • Brian Felesky, a seasoned board member, joins the REIT as an independent trustee. The board is now composed of a majority of independent members.
  • The REIT completes its annual and special meeting. All resolutions passed. All nominated trustees were elected.
  • The discount to the issuance price under the distribution reinvestment plan has increased from 3 per cent to 4 per cent.
  • The REIT's rental revenues were derived from stable, industry-leading tenants with strong earnings.
  • The conservative adjusted funds from operations payout ratio was 77.8 per cent, and the debt to total assets ratio was 48.2 per cent.
  • AFFO per unit was 5.1 cents. Distributions per unit were four cents for the quarter.

Summary of results

                             FINANCIAL HIGHLIGHTS 

                                             Three months ended March 31,
                                      2015                                2014                 

Funds from operations (FFO)          $1,258,600                          $637,694
Adjusted funds from operations (AFFO) 1,487,544                           785,640
Distributions declared                1,157,839                           673,083
Distributions per unit                0.040                               0.039
FFO per unit 
Basic                                 0.044                               0.037
Diluted                               0.044                               0.037
AFFO per unit 
Basic                                 0.051                               0.046
Diluted                               0.051                               0.046
AFFO payout ratio (1)                 77.8%                               85.7%
Debt to total assets ratio            48.2%                               46.8%

 
             FINANCIAL RESULTS

               Three months ended March 31,
                       2015           2014           

Rental revenue   $2,714,375     $1,528,471      
Net rental income 2,203,093      1,264,439      
Net income (loss) 1,219,336       (288,921)      

Net income for the three months ended March 31, 2014, was reduced by a fair value adjustment of investment properties of $915,346. Excluding this item, net income for the three months ended March 31, 2014, would have been $626,425.

"We are pleased with the continued strength of our platform of properties," stated Kelly Hanczyk, chief executive officer. "The REIT's properties are long-term-leased, mission-critical real estate, which provides stability for our investors. We are seeing a robust pipeline of acquisition opportunities and are looking forward to announcing significant growth for 2015 in the near term."

Revenues and results from operations in line with expectations

Rental revenue increased to $2,714,375 in the quarter as compared with $1,528,471 in the same quarter of 2014. Net rental income grew to $2,203,093 in the quarter as compared with $1,264,439 in same quarter of 2014.

The REIT generated funds from operations and adjusted funds from operations of $1,258,600 and $1,487,544, respectively, in the quarter ended March 31, 2015, with FFO and AFFO per unit of 4.4 cents and 5.1 cents, respectively.

Distributions of four cents per unit were declared for the quarter. The AFFO payout ratio for the quarter was 77.8 per cent.

Balance sheet and liquidity

The REIT's debt to total assets ratio was 48.2 per cent at March 31, 2015. The REIT intends to maintain a debt to total assets ratio of less than 55 per cent.

New independent trustee elected to board of trustees

Brian Felesky, CM, QC, was elected to the REIT's board at the annual and special meeting held May 22, 2015. Mr. Felesky is the past vice-chairman, investment banking (Canada), of Credit-Suisse. He was a founding partner of Felesky Flynn LP, where he specialized in corporate tax law. Mr. Felesky is active on a number of boards, including Aspen Properties, and is involved in a number of charitable and community-based organizations. Mr. Felesky will serve as a member of the REIT's audit committee.

"We're pleased to have Brian join our board," stated Mr. Hanczyk, CEO. "In addition to an impressive career of general business experience, Brian has extensive real estate and board member experience and will complement our existing board well. We would like to thank Chad Danard, who served as a trustee of the REIT from Jan. 14, 2014, through May 22, 2015, for his contributions to the board and the REIT in general. Mr. Danard did not seek re-election to the board, allowing the addition of an independent trustee, such that the board is now comprised of a majority of independent trustees."

Distribution reinvestment program

The REIT's current distribution per unit continues to be 1.333 cents per month. The REIT's distribution reinvestment program entitles eligible unitholders to elect to receive all, or a portion of the cash distributions of the REIT reinvested in units of the REIT. Commencing with the June distribution, eligible unitholders who so elect will receive a bonus distribution of units equal to 4 per cent of each distribution that was reinvested by them under the DRIP.

June, 2015, distribution

The REIT will make a cash distribution in the amount of 1.333 cents per unit, representing 16 cents on an annualized basis, payable July 15, 2015, to unitholders of record as of June 30, 2015.

Annual and special meeting voting results

The REIT is pleased to announce that each of the matters set out in the REIT's management information circular dated April 24, 2015, for the annual and special meeting of unitholders held on May 22, 2015, was approved by the requisite majority of unitholders.

Further, each of the trustee nominees listed in the circular was elected as a trustee of the REIT. Voting results for the individual trustees are as set out in the attached voting results table.

 VOTING RESULTS FOR ELECTION OF DIRECTORS

Name of nominee   Votes for  Votes withheld

Cody Church       14,587,293 15,400        
Robert E. Dickson 14,465,041 137,652       
Brian Felesky     14,586,393 16,300        
Mario Forgione    14,431,533 171,160       
Kelly C. Hanczyk  14,596,193 6,500         
Lorne Jacobson    14,587,293 15,400        
Ted Manziaris     14,563,791 38,902        

Final results on all matters voted at the meeting will be filed shortly with the Canadian securities regulators.

We seek Safe Harbor.

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