REIT Report. Week November 5, 2010

Transcription

1 Name Market Cap Last Week Variation Low High Last distribution Allied Property REIT (AP.UN) M Artis REIT (AX.UN) M Boardwalk REIT (BEI.UN) 2.12B Brookfield Properties (BPO-T) 9.35B BTB REIT (BTB.UN) 26.28M Calloway REIT (CWT.UN) 2.55B Canadian Apartment Properties REIT (CAR.UN) 1.16B CREIT (REF.UN) 2.17B Partners REIT (CRH.UN) 33.39M Chartwell Senior Housing REIT (CSH.UN) 1.21B Cominar REIT (CUF.UN) 1.31B Crombie Reit (CRR.UN) M Dundee REIT (D.UN) 1.11B Extendicare REIT (EXE.UN) M First Capital Realty (FCR-T) 2.44B H&R REIT (HR.UN) 2.96B Holloway Lodging REIT (HLR.UN) 13.31M Homburg Canada REIT (HCR.UN) M Huntington REIT (HNT.UN) M Interrent REIT (IIP.UN) 49.57M InnVest REIT (INN.UN) M Has suspend distribution 1

2 Name Market Cap Last Week Variation Low High Last distribution Killam Properties (KMP/KMP:DB) M Lakeview Hotel REIT (LHR.UN) 4.86M Lanesborough REIT (LRT.UN) 11.45M Morguard REIT (MRT.UN) M Northern Property REIT (NPR.UN) Northwest Healthcare REIT (NWH.UN) M Primaris Retail REIT (PMZ.UN) 1.32B Retrocom Mid-Market REIT (RMM.UN) M Pure Industrial REIT (AAR.UN) M RioCan REIT (REI.UN) 5.78B Royal Host REIT (RYL.UN) 42.76M Scott s REIT (SRQ.UN) 54.74M Whiterock REIT (WRK.UN) M Note: List comprises of selected REITs 2

3 Interest Close Change CND Overnight Rate (Nov 28, 10) U.S. Fed Funds Rate 0.19 (Oct 27, 10) Y-Treasury Bill 1.21 (Oct 27, 10) Month 1.02 (Oct 27, 10) Month 0.92 (Oct 27, 10) Economic Activity Rate Change Unemployment rate 7.9 (October 2010) Highlights: In October, employment remained virtually unchanged for the second consecutive month, as full-time gains offset part-time losses. The unemployment rate edged down to 7.9 and has been around 8 for the past seven months. Full-time employment rose by 47,000 in October, while part-time fell by 44,000. Over the past three months, losses in part time have been offset by full-time gains. Losses in retail and wholesale trade were offset by gains in information, culture and recreation; construction; and agriculture. The construction industry continued its upward trend that started in July IN THE NEWS BTB REIT (TSX: BTB.UN) has reached an agreement with a syndicate of underwriters led by National Bank Financial Inc. and Dundee Securities Corp. and including Canaccord Genuity Corp. and HSBC Securities (Canada) Inc. to issue to the public, subject to regulatory approval, on a bought deal basis, 15,000,000 trust units (the "Units") at a price of $0.67 per Unit representing gross proceeds of $10.1 Million. The REIT has granted the underwriters an over-allotment option exercisable in whole or in part at any time up to 30 days after closing, to purchase up to an additional 2,250,000 Units at the same offering price. The net proceeds from this offering (after deducting the Underwriters' fee and estimated offering expenses) will be used to fund future property acquisitions, to repay indebtedness and for general trust purposes. BTB also announced that subject to fulfilling the TSX listing requirements, the REIT will transfer its listing from the TSX Venture Exchange to the TSX. A further notice of listing will be issued. (BTB REIT, November 1 st, 2010) Calloway REIT (TSX: CWT.UN) released its results for the third quarter ended September 30, HIGHLIGHTS Issued $266 million in new Trust Units Acquired two income properties for $129.9 million Invested $40.7 million to complete the development and lease up of 153,879 square feet Portfolio occupancy rate increased to 99.2 Negotiated renewals of 279,500 square feet with an average rent increase of 8.4 Net income increased by $3.7 million ($0.03 per unit) to $10.5 million ($0.10 per unit)(1) compared to the same period in 2009 Funds from operations (non-gaap measure) increased by $4.1 million to $43.4 million(1) compared to the same period in

4 Issued $100 million in unsecured debentures bearing interest at 5 per annum which d on October 1, 2010 redeemed $150 million Series C senior unsecured debentures which d on October 25, 2010 (Calloway REIT, November 3, 2010) Charter REIT changed its name to Partners REIT (TSX: CRH.UN). The units of the REIT will continue to trade under the symbol CRH.UN until such time as the REIT applies for a new symbol, which it expects to do in the near future. According to the media release: The name change reflects the REIT's new ownership structure, new Board of Trustees, and a new focus on achieving aggressive growth in assets under management, distributable cash, and Unitholder value. The new name also reflects the REIT's partnership with its new asset manager, LAPP Global Asset Management Corp., an affiliate of League Assets Corp., and its proven and highly successful operating philosophy. (Partners REIT, November 1 st, 2010) Dundee REIT (TSX: D.UN) announced November 1st, 2010, that the Toronto Stock Exchange accepted a notice filed by Dundee REIT to renew its prior normal course issuer bid for a further one year period. Under the bid, Dundee REIT will have the ability to purchase for cancellation up to a maximum of 4,010,675 of its REIT Units, Series A (representing 10 of the REIT's public float of 40,106,751 REIT Units, Series A) through the facilities of the Toronto Stock Exchange. The bid will commence on November 3, 2010 and will remain in effect until the earlier of November 2, 2011 or the date on which the REIT has purchased the maximum number of units permitted under the bid. The REIT's average daily trading volume for the most recently completed six calendar months was 123,908 (25 of which being 30,977). As of October 28, 2010, the number of issued and outstanding REIT Units, Series A is 41,973,428. Dundee REIT intends to make the bid because it believes that units may become available during the period of the bid at prices that would make the purchase of such units for cancellation in the best interests of the REIT and its unitholders. Dundee REIT did not purchase any units under its prior normal course issuer bid which terminated on September 25, (Dundee REIT, November 1 st, 2010) First Capital Realty (TSX: FCR-T) (First Capital Realty, November 4 th, 2010) announced the financial results for the three and nine months ended September 30 th, HIGHLIGHTS Invested $334 million in acquisitions, development activities and property improvements Added 937,000 square feet of gross leasable area from acquisitions, development and redevelopment coming on line Acquired three income-producing shopping centres and additional interests in three existing shopping centres totalling 555,000 square feet, three properties adjacent to existing shopping centres totalling 117,000 square feet, four properties held for development, and five land parcels adjacent to existing properties for future development comprising a total of 10.3 acres Occupancy of 96.4 compares to 96.0 at September 30, Vacancy includes 0.6 of space held for redevelopment Completed new leasing on existing space totalling 384,000 square feet at an average rate of $18.97 per square foot Year-to-date, through September 30, 2010 the Company raised $350 million through the issuance of senior unsecured debentures, $75 million in secured financings and $105.2 million from equity issuances. Subsequent to September 30, 2010, the Company issued an additional $50 million principal amount senior unsecured debentures, Series K, with a coupon rate of 4.95 (4.897 yield-to-maturity), maturing November (First Capital Realty, November 4 th, 2010) 4

5 Northern Property REIT (TSX: NPR.UN) will hold a special meeting of unitholders on Thursday, November 25, 2010 to consider, among other things, an internal reorganization to ensure NPR meets the definition of a Real Estate Investment Trust, as defined in the Income Tax Act (Canada). The Reorganization will result in the creation of a stapled unit structure to be held by current NPR unitholders and holders of Northern Property Limited Partnership B Units. A new taxpaying Alberta corporation, to be known as NorSerCo Inc., will be created which will hold those business assets of NPR which produce revenues that do not meet the REIT criteria under the Income Tax Act (Canada) ("Non-Qualifying Revenue"). NPR's principal assets which produce Non-Qualifying Revenue are the day-to-day business operations associated with NPR's four ExecuSuite properties. The Reorganization contemplates that NorSerCo will acquire these ExecuSuite operations and will make monthly lease payments to NPR for the use of the ExecuSuite properties, which are proposed to be retained by NPR. The removal of the Non-Qualifying Revenue associated with the ExecuSuite operations is expected to assist in preserving NPR's REIT status. NPR currently pays annual distributions of $1.53 per unit ($ monthly). Assuming completion of the Reorganization, it is intended that holders of Stapled Units will receive distributions from NPR and dividends from NorSerCo which together will be equal to NPR's current annual distributions per unit. The Reorganization is subject to approval by an affirmative vote of two-thirds of the votes cast by holders of NPR units and B Units present in person or by proxy at the Special Meeting, together with certain other customary conditions. (Northern Property REIT, November 2 nd, 2010) Northwest Healthcare REIT (TSX: NWH.UN) has entered into an agreement to acquire the Alexander Medical Building, located in Peterborough, Ontario. The purchase is expected to in the fourth quarter of 2010, subject to customary closing conditions, and is expected to be immediately accretive. Alexander Medical Building will be the REIT's twentieth asset in the Ontario Region, and its first acquisition in the City of Peterborough, the regional hub of east-central Ontario. The total purchase price is expected to be approximately $8.6 million, subject to adjustments, which represents approximately an 8 capitalization rate applied to the in-place annual net operating income from the property, which includes income from paid parking which is already in place at the property. In addition, the investment has the potential for value enhancement since the REIT believes that the site can accommodate an expansion of approximately 6,000 square feet of gross leasable area. This investment is the REIT's fifth announced acquisition since its initial public offering on March 25, (Northwest Healthcare REIT, November 5 th, 2010) 5