Morguard Real Estate Investment Trust Announces 2019 Annual Results

MISSISSAUGA, ON, Feb. 13, 2020 /CNW/ - Morguard Real Estate Investment Trust ("the Trust") (TSX: MRT.UN) today is pleased to announce its 2019 Annual Results. These results have been prepared in accordance with International Financial Reporting Standards ("IFRS").

Revenue from real estate properties includes contracted rent from tenants along with recoveries of property expenses. Revenue for the year ended December 31, 2019, decreased 1.2% to $273.1 million from $276.5 million for the same period in 2018. This decrease is primarily due to reduced recoveries of property taxes for the Trust's properties in Calgary.

Property operating expenses for the year ended December 31, 2019, increased 4.2% to $66.8 million from $64.1 million for the same period in 2018. This increase is primarily due to expenses related to new GLA from the completion of development projects in the Trust's enclosed regional centres over 2018 and 2019.

Net operating income for the year ended December 31, 2019, declined 1.4% as compared to 2018. This decline was from two of the three properties which lost their Sears tenancy late in 2017.

Interest expense for the year ended December 31, 2019, increased 4.2% to $58.0 million from $55.6 million for the same period in 2018 due to $0.7 million in interest expense incurred on lease liabilities from the new IFRS 16 "Leases" guidance, as well as a decline of $0.5 million in capitalized interest due to fewer development projects ongoing.

Net Operating Income, Funds from Operations

This press release and accompanying financial information make reference to net operating income and funds from operations on a total and per unit basis. Net operating income is defined as income from property operations after operating expenses have been deducted, but prior to deducting interest expense, general and administrative expenses and fair value gains/(losses). The Trust presents FFO in accordance with the Real Property Association of Canada white paper on funds from operations and adjusted funds from operations for IFRS. FFO is a non-GAAP measure that is widely accepted as a supplemental measure of financial performance for real estate entities. In accordance with such white paper, the Trust defines FFO as net income adjusted for fair value changes on real estate properties and gains/(losses) on the sale of real estate properties.

Financial Statements and Management's Discussion and Analysis

The Trust's Q4 2019 Consolidated Financial Statements and Management's Discussion and Analysis will be made available on the Trust's website at www.morguard.com and have been filed with SEDAR at www.sedar.com.

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About Morguard Real Estate Investment Trust

The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 48 retail, office and industrial income producing properties in Canada with a book value of $2.9 billion and approximately 8.5 million square feet of leasable space.

SOURCE Morguard Real Estate Investment Trust