Shares issued: Class A - 155,578,911 Class B - 31,514,782
Halifax, Nova Scotia, August 8, 2008 (TSX: HII.A & HII.B and NYSE
Euronext Amsterdam: HII) - Richard Homburg, Chairman and CEO of
Homburg Invest Inc. ("Homburg Invest" or "the Company") is pleased to
announce Homburg Invest has released the June 30, 2008 financial
results prepared under both Canadian Generally Accepted Accounting
Principles (GAAP) and International Financial Reporting Standards
(IFRS). The complete June 30, 2008 financial results and MD&A will
be available for viewing and downloading from the corporation's web
site at www.homburginvest.com.
The Company is pleased to announce a substantial increase in the
results both under IFRS and Canadian GAAP for the six months ended
June 30, 2008.
Increase in IFRS results:
* Property revenue increased 60.2% to $152.1 million compared to June
30, 2007.
* Property net operating income (note) increased 42.4% to $112.2
million compared to June 30, 2007
* Funds from operations per share (note) increased 72.2% to $0.31
compared to June 30, 2007
* Funds from operations (note) increased 137.0% to $56.1 million
compared to June 30, 2007
Increase in Canadian GAAP results:
* Property revenue increased 59.3% to $151.2 million compared to June
30, 2007
* Property net operating income (note) increased 41.3% to $111.4
million compared to June 30, 2007
* Funds from operations per share (note) increased 70.0% to $0.34
compared to June 30, 2007
* Funds from operations (note) increased 138.8% to $62.2 million
compared to June 30, 2007
The Company prepares it's quarterly and annual statements under both
GAAP and IFRS. This reflects the Board's view that the IFRS
presentation most accurately reflects the financial position of a
real estate investment company, while at the same time the Company
continues to comply with requirements to produce its results under
GAAP. This also reflects the Company's desire to provide its
shareholders with as much information as possible in today's
environment of continuing concerns with respect to financial
disclosure in the market place.
The most significant differences between IFRS and GAAP statements are
that while the IFRS statements reflect the investment properties at
fair value and are without depreciation charges, the GAAP statements
record the fixed assets at historical cost less accumulated
depreciation. In addition, deferred charges relating to leasing fees
have been recorded as an asset in the GAAP financial statements and
will be charged to expense over the period of the related lease.
These charges are written off in the period incurred under IFRS.
Financial Highlights - IFRS
Second Quarter ended June 30, 2008
Six Months Six Months
Ended Ended
June 30 June 30
(000's) 2008 2007 Increase
Property revenue $152,103 $94,961 60.2%
Property net operating income $112,212 $78,796 42.4%
Other revenue $134,615 $47,384
Unrealized valuation changes ($4,011) $25,093
Net earnings $34,563 $48,578
Earnings per share - basic and
diluted $0.19/$0.18 $0.38/$0.35
Funds from operations $56,084 $23,665 137.0%
Funds from operations per share -
basic and diluted $0.31/$0.30 $0.18/$0.17 72.2%
Financial Highlights - IFRS
Second Quarter ended June 30, 2008
Three Months Three Months
Ended Ended
June 30 June 30
(000's) 2008 2007 Increase
Property revenue $77,290 $54,925 40.7%
Property net operating income $56,972 $42,976 32.6%
Other revenue $49,672 $27,076
Unrealized valuation changes ($3,389) $16,538
Net earnings $16,709 $29,598
Earnings per share - basic and
diluted $0.09/$0.09 $0.22/$0.20
Funds from operations $25,828 $9,114 183.4%
Funds from operations per share
- basic and diluted $0.14/$0.13 $0.07/$0.06 100.0%
Property revenue for the second quarter is up 40.7% over the same
quarter in 2007 to $77.3 million. At the same time property net
operating income (NOI) increased to $57.0 million from $43.0 million,
an increase of 32.6%.
The positive aspects of the growth in our portfolio also manifest
themselves in our funds from operations ("FFO") which improved to
$25.8 million in the second quarter of 2008, up 183.4% from 2007's
quarter two. On an annualized basis this is a FFO of $0.62 per
share, which is a FFO payout ratio (note) of 77.4%. When the 50%
participation in our dividend reinvestment program is factored in,
the cash outflow on our annual $0.48 dividend is $0.24, a FFO cash
payout ratio of 38.7%.
Shareholders' equity increased from $886.3 million at December 31,
2007 to $886.7 million at June 30, 2008.
Financial Highlights - GAAP
Second Quarter ended June 30, 2008
Six Months Six Months
Ended Ended
June 30 June 30
(000's) 2008 2007 Increase
Property revenue $151,241 $94,961 59.3%
Property net operating income $111,350 $78,795 41.3%
Other income $141,054 $50,047
Realized gains on sale of property $Nil $2,179
Net earnings $18,543 $18,092
Earnings per share - basic and
diluted $0.10/$0.10 $0.14/$0.13
Funds from operations $62,166 $26,036 138.8%
Funds from operations per share -
basic and diluted $0.34/$0.33 $0.20/$0.19 70.0%
Financial Highlights - GAAP
Second Quarter ended June 30, 2008
Three Months Three Months
Ended Ended
June 30 June 30
(000's) 2008 2007 Increase
Property revenue $76,879 $54,925 40.0%
Property net operating income $56,561 $42,976 31.6%
Other income $48,731 $29,666
Net earnings $9,325 $9,490
Earnings per share - basic and
diluted $0.05/$0.05 $0.07/$0.07
Funds from operations $28,532 $11,485 148.4%
Funds from operations per share
- basic and diluted $0.15/$0.15 $0.09/$0.08 66.7%
Homburg Invest, with its head office in Halifax, Nova Scotia, owns
and develops a diversified portfolio of quality real estate including
office, retail, industrial and residential apartment and townhouse
properties throughout Canada, the United States and Western Europe.
-30-
For further information, please contact:
Mr. Richard Homburg,
Chairman and CEO
Homburg Invest Inc.
902-468-3395
or
J. Richard Stolle
President and COO
Homburg Invest Inc.
31-20-573-3855
This news release may contain statements which by their nature are
forward looking and express the Company's beliefs, expectations or
intentions regarding future performance, future events or trends.
Forward looking statements are made by the Company in good faith,
given management's expectations or intentions however, they are
subject to market conditions, acquisitions, occupancy rates, capital
requirements, sources of funds, expense levels, operating performance
and other matters. Therefore, forward looking statements contain
assumptions which are subject to various factors including: unknown
risks and uncertainties: general economic conditions; local market
factors; performance of other third parties; environmental concerns;
and interest rates, any of which may cause actual results to differ
from the Company's good faith beliefs, expectations or intentions
which have been expressed in or may be implied from this news
release. Therefore, forward looking statements are not guarantees of
future performance and are subject to known and unknown risks.
Information and statements in this document, other than historical
information, should be considered forward-looking and reflect
management's current views of future events and financial performance
that involve a number of risks and uncertainties. Factors that could
cause actual results to differ materially include, but are not
limited to, the following: general economic conditions and
developments within the real estate industry, competition and the
management of growth. The Toronto Stock Exchange has neither approved
nor disapproved of the information contained herein.
Note
Non GAAP and Non IFRS Financial Measures
This news release includes measures widely accepted within the real
estate industry which are not defined under CDN GAAP or IFRS. These
measures include Funds from Operations, Funds from Operations per
share, Property Net Operating Income, and Payout Ratio. As these
are not defined measures under CDN GAAP or IFRS, other issuers' may
have different calculations from those used by the Company.
The Company considers these amounts to be measures of operating and
financial performance.
a) Funds from Operations ("FFO") and FFO per share are presented by
the Company as net income (loss) from continuing operations adjusted
for amortization, stock based compensation, deferred and capital
income taxes, unrealized and realized valuation changes, and
unrealized foreign exchange gains; divided by the weighted average
number of shares outstanding
b) FFO payout ratio are presented by the Company as dividends per
share divided by funds from operations per share
c) FFO Cash payout ratio are presented by the Company as cash
dividends per share divided by fund from operations per share
d) Property Net operating income ("N0I") are presented by the Company
as Property Revenue less Property Operating Expenses
http://hugin.info/138798/R/1242147/267002.pdf
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- News HOMBURG INVEST SVA
- HOMBURG INVEST SVA : Invest Inc. announces june 30, 2008 financial results