CALGARY, Nov. 13 /CNW/ - Northern Property Real Estate Investment Trust
(NPR.UN) announced its financial results for the three months ended
September 30, 2006.
HIGHLIGHTS:
<<
- Quarterly Revenue and Distributable Income up 35% from Q3 2005.
- DIPU of $0.46 compared to $0.43 for same quarter last year
- Payout ratio 72.8% of Distributable Income to date for 2006
- Debt to Gross Book Value 56.5% at September 30, 2006.
- Improvement in vacancy rates in St. John's & Yellowknife
>>
Total rental property revenue in the third quarter of 2006 increased
35.7% to $22.6 million from $16.4 million in the third quarter of 2005. During
the same period Net Operating Income increased to $15.4 million from
$10.7 million, an increase of 41.9%. The total assets of the REIT increased
42.9% year over year to $610.5 million from September 30, 2005.
"The focus of NPREIT during Q3 has been on the absorption and management
of the large amount of real estate we have acquired in the last few months",
said Northern Property President & CEO, Jim Britton. "A major initiative has
been undertaken at all levels of the organization to implement a new property
management/accounting system which will help us manage our assets more
effectively in the future".
Market vacancy loss in the portfolio was somewhat improved for the
quarter at 2.7% while renovation vacancy declined to 1% of revenue. The early
fall leasing season has shown signs of success with improved occupancy levels
being experienced in St. John's and Yellowknife commencing in September.
Rental market conditions continue to be robust in Alberta, Nunavut and in
north eastern British Columbia with the exception of Chetwynd. Yellowknife and
Inuvik rental markets continue to be soft.
Net earnings of $4.9 million were up 38% from $3.5 million in Q3, 2005.
Overall distributable income increased 35.6% to 9.3 million from 6.8 million
for the same quarter in 2005. DIPU increased 7% from $0.43 to $0.46, due for
the most part to accretive purchasing over the past 12 months. Same door
revenue growth was a strong 5.4% during Q3, however continued cost pressures
related to utility prices continue to negatively affect operating margins in
many properties in the far north.
"NPREIT is maintaining very healthy financial metrics," Jim Britton went
on to say. "Our debt to gross book value at 56.5% is low by the standards of
most multi-residential enterprises. Our payout ratio for the first 9 months
was only 78% of our distributable income so we have ample cash flow to both
invest in the upkeep of our buildings and to support unitholder
distributions".
For a full copy of the Management Discussion & Analysis and Financial
Statements please log on to www.sedar.com or www.npreit.com.
<<
Earnings per unit
-------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
-------------------------------------------------------------------------
($000) except per Unit amounts 2006 2005 2006 2005
-------------------------------------------------------------------------
Rental properties revenue 22,183 16,499 60,938 46,306
Laundry and other income 231 128 865 352
Rental properties operating
expenses (7,177) (5,864) (22,425) (17,178)
-------------------------------------------------------------------------
Net operating income (NOI) 15,237 10,713 39,378 29,480
-------------------------------------------------------------------------
Interest on mortgages (4,550) (2,667) (11,811) (7,764)
Interest on operating
facility (401) (415) (1,105) (1,091)
Amortization (4,475) (3,354) (12,141) (9,361)
Amortization of lease
origination costs (42) (20) (125) (40)
Interest and other income 153 222 480 591
Trust administration
costs(1) (1,091) (1,031) (3,350) (2,864)
Loss on sale of assets - (27) - (44)
Gain on settlement of debt - 66 - 66
Current income taxes (74) (93) (277) (288)
Future income tax recovery 107 110 296 324
-------------------------------------------------------------------------
Earnings from continuous
operations 4,864 3,504 11,345 9,009
Earnings from discontinued
operations 51 - 105 -
-------------------------------------------------------------------------
Net Earnings 4,915 3,504 11,450 9,009
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings per unit
Basic:
Earnings from continuing
operations 0.24 0.22 0.60 0.56
Earnings from discontinued
operations - - - -
Cumulative effect of accounting
change - - - -
-------------------------------------------------------------------------
0.24 0.22 0.60 0.56
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Diluted:
Earnings from continuing
operations 0.24 0.22 0.60 0.56
Earnings from discontinued
operations - - - -
Cumulative effect of accounting
change - - - -
-------------------------------------------------------------------------
0.24 0.22 0.60 0.56
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Adjustment for retroactive application of LTIP accounting policy
change had the following changes on the above restated quarterly
results:
---------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
---------------------------------------------------------------------
($000) 2006 2005 2006 2005
---------------------------------------------------------------------
Trust administration costs
prior to change (1,091) (1,031) (3,398) (2,855)
Accounting policy change - - 48 (9)
---------------------------------------------------------------------
Restated trust
administration costs(1) (1,091) (1,031) (3,350) (2,864)
---------------------------------------------------------------------
NORTHERN PROPERTY REAL ESTATE INVESTMENT TRUST
Consolidated Balance Sheets
(Thousands of dollars)
-------------------------------------------------------------------------
September 30, December 31,
2006 2005
$ $
---------------------------
Unaudited Audited
ASSETS
Rental properties and other
capital assets (Note 4) 565,030 408,976
Capital improvements in progress 9,904 5,000
Capital assets under development 7,791 -
Prepaid expenses and other assets 9,290 6,156
Accounts receivable 10,488 3,988
Tenant security deposits 2,617 2,049
Loans receivable 572 317
Deferred rent 522 -
Intangible assets (Note 6) 625 658
Assets held for sale (Note 4 and 13) 3,677 -
---------------------------
610,516 427,144
---------------------------
---------------------------
LIABILITIES
Mortgages payable (Note 5) 243,630 187,421
Acquisition Facility (Note 7) 3,071 -
Loans Payable (Note 8) 65,231 15,317
Accounts payable and accrued liabilities 11,281 10,803
Distributions payable 2,225 1,756
Long-term incentive plan obligation (Note 9) 563 -
Future income tax liability 11,245 11,541
Bank indebtedness (Note 7) 34,487 37,993
Intangible liabilities (Note 6) 340 505
---------------------------
372,073 265,336
---------------------------
UNITHOLDERS' EQUITY (Note 11) 238,443 161,808
---------------------------
610,516 427,144
---------------------------
---------------------------
APPROVED BY THE BOARD
..................... Trustee
..................... Trustee
NORTHERN PROPERTY REAL ESTATE INVESTMENT TRUST
Consolidated Statements of Earnings
Three Months and Nine Months Ended September 30
(Columnar amounts expressed in thousands of dollars,
except for per unit amounts)
Three Months Ended Nine Months Ended
September September September September
30, 2006 30, 2005 30, 2006 30, 2005
------------------------------------------
Unaudited Unaudited Unaudited Unaudited
$ $ $ $
REVENUE
Rental properties revenue 22,183 16,449 60,938 46,306
Laundry and other income 231 128 865 352
Rental properties operating
expenses (7,177) (5,864) (22,425) (17,178)
-------------------- --------------------
Net operating income 15,237 10,713 39,378 29,480
-------------------- --------------------
EXPENSES
Interest on mortgages 4,550 2,667 11,811 7,764
Interest on operating
facility 401 415 1,105 1,091
Amortization 4,517 3,374 12,266 9,401
-------------------- --------------------
9,468 6,456 25,182 18,256
-------------------- --------------------
INCOME FROM OPERATIONS
BEFORE OTHER ITEMS 5,769 4,257 14,196 11,224
-------------------- --------------------
OTHER ITEMS
Interest and other income 153 222 480 591
Trust administration costs (1,091) (1,031) (3,398) (2,855)
Gain on settlement of debt - 66 - 66
Loss on sale of
capital assets - (27) - (44)
-------------------- --------------------
(938) (770) (2,918) (2,242)
-------------------- --------------------
EARNINGS BEFORE INCOME TAXES 4,831 3,487 11,278 8,982
-------------------- --------------------
INCOME TAXES
Current (74) (93) (277) (288)
Future recovery 107 110 296 324
-------------------- --------------------
33 17 19 36
-------------------- --------------------
EARNINGS from continuous
operations 4,864 3,504 11,297 9,018
EARNINGS from discontinued
operations (Note 13) 51 - 105 -
-------------------- --------------------
Earnings before cumulative
effect of accounting change 4,915 3,504 11,402 9,018
Cumulative effect of
accounting change (Note 2) - - 48 (9)
-------------------- --------------------
Net Earnings 4,915 3,504 11,450 9,009
-------------------- --------------------
-------------------- --------------------
Net earnings per unit (Note 12)
Basic:
Basic from continuing
operations 0.24 0.22 0.60 0.56
Basic from discontinued
operations - - - -
Cumulative effect of
accounting change - - - -
-------------------- --------------------
Basic earnings per unit 0.24 0.22 0.60 0.56
-------------------- --------------------
-------------------- --------------------
Diluted:
Diluted from continuing
operations 0.24 0.22 0.60 0.56
Diluted from discontinued
operations - - - -
Cumulative effect of
accounting change - - - -
-------------------- --------------------
-------------------- --------------------
Diluted earnings per unit 0.24 0.22 0.60 0.56
-------------------- --------------------
-------------------- --------------------
NORTHERN PROPERTY REAL ESTATE INVESTMENT TRUST
Consolidated Statements of Unitholders' Equity (Unaudited)
At September 30
(Thousands of dollars)
Cumul- Cumul- Cumul-
ative Contri- ative ative
Capital buted Net Distri-
(Note 11) Surplus Income butions Total
-------------------------------------------------------------------------
Unitholders' Equity
- December 31,
2005 176,958 - 39,189 (56,010) 160,137
Adjust for
accounting
change (54) 1,513 212 - 1,671
-------------------------------------------------------------------------
December 31, 2005
Restated (Note 2) 176,904 1,513 39,401 (56,010) 161,808
-------------------------------------------------------------------------
Net income - - 11,450 - 11,450
Distributions
to unitholders - - - (18,693) (18,693)
New units issued 87,535 - - - 87,535
Issuance costs (3,653) - - - (3,653)
Long term
incentive plan
units issued 856 (860) - - (4)
-------------------------------------------------------------------------
Unitholders' Equity
- September 30,
2006 261,642 653 50,851 (74,703) 238,443
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cumul- Cumul- Cumul-
ative Contri- ative ative
Capital buted Net Distri-
(Note 11) Surplus Income butions Total
-------------------------------------------------------------------------
Unitholders' Equity
- December 31,
2004 137,803 - 27,773 (35,872) 129,704
Adjust for
accounting
change (28) 995 98 - 1,065
-------------------------------------------------------------------------
December 31, 2004
Restated (Note 2) 137,775 995 27,871 (35,872) 130,769
-------------------------------------------------------------------------
Net income - 9,018 - 9,018
Distributions to
unitholders - - (15,038) (15,038)
New units issued 40,879 - - 40,879
Issuance costs (1,937) - - (1,937)
Long term
incentive plan
units issued
and forfeited 173 (168) (9) - (4)
-------------------------------------------------------------------------
Unitholders' Equity
- September 30,
2005 176,890 827 36,880 (50,910) 163,687
-------------------------------------------------------------------------
-------------------------------------------------------------------------
NORTHERN PROPERTY REAL ESTATE INVESTMENT TRUST
Consolidated Statements of Cash Flows
Three Months and Nine Months Ended September 30
(Columnar amounts expressed in thousands of dollars,
except for per unit amounts)
-------------------------------------------------------------------------
Three Months Ended Nine Months Ended
-------------------- --------------------
September September September September
30, 2006 30, 2005 30, 2006 30, 2005
Unaudited Unaudited Unaudited Unaudited
$ $ $ $
-------------------- --------------------
CASH FLOWS RELATED TO THE
FOLLOWING ACTIVITIES:
OPERATING
Net earnings 4,864 3,504 11,297 9,018
Net earnings from
discontinued operations 51 - 105 -
Adjustments for:
Cumulative effect of
accounting change - - 48 (9)
Amortization 4,495 3,354 12,178 9,361
Loss on sale of assets - 27 - 44
Gain on settlement of debt - (66) - (66)
Amortization of lease
origination costs 42 20 125 40
Amortization of above and
below market leases (48) (24) (144) (48)
Amortization of fair value
debt and loans (11) - (26) -
Amortization of deferred
revenue 1 - 4 -
Straight line rent (200) - (491) -
Future income tax recovery (107) (110) (296) (324)
Long-term incentive plan 188 125 562 375
-------------------- --------------------
Funds from operations 9,275 6,830 23,363 18,391
Funds from discontinued
operations 27 - 81 -
Changes in non-cash working
capital (6,830) (1,544) (9,749) (28)
-------------------- --------------------
2,472 5,286 13,695 18,363
-------------------- --------------------
FINANCING
Proceeds of public offering
(net of issue costs) (264) - 71,158 38,149
Proceeds of mortgages 14,172 15,846 40,600 33,243
Proceeds from sale of assets - 24 - 288
Proceeds from capital lease - 207 - 207
Proceeds of loan - 1,140 13,683 2,890
Repayment of mortgages and
interim facilities (3,031) (5,386) (9,783) (10,183)
Repayment of loan (15,887) (1,750) (27,809) (1,750)
Repayment of lease loan (13) - (37) -
Distributions to
unitholders (Note 12) (6,661) (5,016) (18,231) (14,773)
-------------------- --------------------
(11,684) 5,065 69,581 48,071
-------------------- --------------------
INVESTING
Acquisition of properties
and other capital assets (3,854) (5,805) (64,370) (58,679)
Capital assets under
development (7,059) (3,987) (12,795) (6,978)
Building improvements (1,257) (891) (2,605) (1,645)
-------------------- --------------------
(12,170) (10,683) (79,770) (67,302)
-------------------- --------------------
NET (INCREASE) DECREASE IN
BANK INDEBTEDNESS (21,382) (332) 3,506 (868)
BANK INDEBTEDNESS,
BEGINNING OF PERIOD 1,451 (37,249) (37,993) (36,713)
-------------------- --------------------
BANK INDEBTEDNESS,
END OF PERIOD (19,931) (37,581) (34,487) (37,581)
-------------------- --------------------
-------------------- --------------------
SUPPLEMENTARY INFORMATION
Interest paid 5,332 3,053 13,644 8,737
-------------------- --------------------
-------------------- --------------------
Interest received 33 7 92 194
-------------------- --------------------
-------------------- --------------------
Income taxes paid 31 90 419 324
-------------------- --------------------
-------------------- --------------------
NORTHERN PROPERTY REAL ESTATE INVESTMENT TRUST
Notes to the Consolidated Financial Statements (Unaudited)
Nine Months Ended September 30, 2006 and September 30, 2005
(Columnar amounts expressed in thousands of dollars except
where indicated)
-------------------------------------------------------------------------
1. DESCRIPTION OF THE TRUST
Northern Property Real Estate Investment Trust ("NPREIT") is an
unincorporated "open-end" real estate investment trust that invests
in and owns a portfolio of residential and commercial income
producing properties. NPR's 100% owned properties are held either
directly by, or through wholly-owned single purpose subsidiaries of,
Northern Property R.E.I.T. Holdings Inc., Northern Property Holdings
Corp., in its capacity as general partner of the Partnership, or
Urbco. One property in Inuvik is held directly by 5147 NWT. Ltd., in
its capacity as general partner of ICS, and 11 additional properties
in Inuvik are directly held by 5147 NWT Ltd., in its capacity as
general partner of ICP. The land and buildings of the six senior
living facilities (LTC properties) are held by NPR Health Property
General Partner Ltd., in its capacity as general partner of NPR
Health Property Limited Partnership.
2. CHANGES IN ACCOUNTING POLICIES
CICA Handbook Section 3870 which established standards for the
recognition, measurement, and disclosure of stock-based compensation
and other stock-based payments was retroactively adopted by NPREIT.
Historically, NPREIT accounted for the LTIP (Long Term Incentive
Plan) as a liability at market rate when granted with a mark to
market fair value adjustment at year end and upon issuance. LTIP
upon the application of Section 3870 is treated as unitholders'
equity at market value when granted.
As a result of retroactively adopting this method during the quarter
ended September 30, 2006, the cumulative effect was to change
unitholders' equity for December 31, 2004 by $1,065,000 and equity
for December 31, 2005 by an incremental $606,000 for a total change
of $1,671,000, in addition the LTIP payable for December 31, 2005
decreased by $1,671,000. The balance in LTIP payables represents an
accrual for LTIP obligations which will be recorded to unitholders'
equity upon grant date. The impact on the prior periods was
significant and accordingly, the interim quarters have been restated
to reflect a change in earnings:
-------------------------------------------------------------------------
2003 2004 2005 2006
-------------------------------------------------------------------------
($000)
except
per Unit
amounts Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
-------------------------------------------------------------------------
Net
earnings as
previously
reported 3,424 2,514 2,696 2,818 3,504 2,398 2,407 4,077 4,915
Impact of
accounting
change 14 84 - (9) - 123 - 48 -
-------------------------------------------------------------------------
Net
earnings -
restated 3,438 2,598 2,696 2,809 3,504 2,521 2,407 4,125 4,915
-------------------------------------------------------------------------
3. BASIS OF PRESENTATION
These unaudited interim consolidated financial statements of NPREIT
have been prepared in accordance with the recommendations of the
handbook of the Canadian Institute of Chartered Accountants ("CICA")
and are consistent with those used in the audited consolidated
financial statements as at and for the period ended December 31,
2005 except for the change in accounting policy described in Note 2.
These unaudited interim consolidated financial statements do
not include all of the disclosures required by Canadian generally
accepted accounting principles ("Canadian GAAP") applicable to annual
financial statements; therefore, they should be read in conjunction
with the December 31, 2005 audited consolidated financial statements.
The preparation of financial statements in accordance with Canadian
GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, and to make
disclosure of contingent assets and liabilities at the date of the
financial statements, and the reported amounts of revenues and
expenses during the reported period. Actual results may differ from
those estimates.
4. RENTAL PROPERTIES AND OTHER CAPITAL ASSETS
------------------------------------------------------
September 30, 2006 December 31, 2005
------------------------------------------------------
Accumu- Accumu-
lated Net lated Net
Amorti- Book Amorti- Book
Cost zation Value Cost zation Value
$ $ $ $ $ $
------------------------------------------------------
Land 50,301 - 50,301 30,642 - 30,642
Buildings 541,712 34,274 507,438 392,643 23,914 368,729
Furniture,
fixtures and
equipment 5,246 1,597 3,649 4,440 1,043 3,397
Vehicles 801 355 446 676 247 429
Capital and
leasehold
improvements 10,394 3,660 6,734 7,965 2,371 5,594
Equipment
under capital
lease 212 73 139 212 27 185
------------------------------------------------------
608,666 39,959 568,707 436,578 27,602 408,976
Less: Asset
held for sale 3,758 81 3,677 - - -
------------------------------------------------------
604,908 39,878 565,030 436,578 27,602 408,976
------------------------------------------------------
------------------------------------------------------
NPREIT acquired properties in 2006 for a total purchase price of
$167.1 million (2005 - $60.8 million). The acquisitions were
financed as follows:
-----------------------------------
Three Months Nine Months
Ended Ended
September 30 September 30
-----------------------------------
2006 2005 2006 2005
$ $ $ $
-----------------------------------
Property acquisitions -
(included in above totals):
Mortgages, debt assumed and
mezzanine repaid - - 92,395 5,856
Units issued - - 12,484 790
Cash paid 3,614 5,137 65,225 54,159
-----------------------------------
3,614 5,137 167,104 60,805
Fair value adjustment to debt - - 39 155
-----------------------------------
Total purchase price of
property acquisitions 3,614 5,137 167,143 60,960
-----------------------------------
-----------------------------------
Residential units acquired - 158 445 1,268
LTC beds - - 960 -
Commercial square feet acquired - 4,482 8,199 68,031
-----------------------------------
-----------------------------------
5. MORTGAGES PAYABLE
Mortgages payable bear interest at rates ranging from 3.83% to 13.5%
(weighted average rate of 5.79% as at September 30, 2006 and 5.76% as
at December 31, 2005) per annum, payable in principal and interest
instalments of $2.1 million monthly during 2006, and maturing between
2006 and 2019. All mortgages are secured by specific charges against
specific properties.
6. INTANGIBLE ASSETS AND LIABILITIES
Intangible assets are composed of the value of above-market leases
and lease origination costs for real property acquisitions initiated
after September 12, 2003, and are net of accumulated amortization of
$226,446 (December 31, 2005 - $34,912).
Intangible liabilities are composed of the value of below-market
leases for income property acquisitions initiated after September 12,
2003, and are net of accumulated amortization of $258,034
(December 31, 2005 - $116,136).
7. BANK INDEBTEDNESS
NPREIT has a revolving line of credit in the amount of $40 million
for acquisition and operating purposes, bearing interest at prime or
bankers' acceptance plus 150 basis points with a maturity rate of
May 31, 2007. The rate previous to June 01, 2006 was prime plus 0.25%
or bankers' acceptance rate with a maturity of May 31, 2006. Specific
properties have been pledged as collateral security for the line of
credit. At September 30, 2006, NPREIT has utilized $34,487,000
(December 31, 2005 - $37,993,000).
NPREIT has an acquisition facility in the amount of $30 million for
acquisition and general corporate purposes to a maximum of 75% of the
appraised value of the acquisition at prime. Specific properties have
been pledged as collateral security for the acquisition facility. At
September 30, 2006, NPREIT has utilized $3,071,000 (December 31, 2005
- $nil).
8. LOANS PAYABLE
----------------------
September December
30, 2006 31, 2005
('000s) $ $
Inuvik Commercial Properties Zheh Gwizhu ----------------------
Limited Partnership (ICP)- 50% ownership
Prime plus 0.5%, $490,000 CIBC demand loan,
repayable in monthly interest instalments
and principal payments starting April, 2006,
specific properties pledged as collateral
due 2016 233 -
Prime plus 0.75%, $1,280,000 CIBC demand
loan, repayable in monthly interest
instalments, specific properties pledged as
collateral due 2015 - 640
Prime plus 0.75%, $1,000,000 CIBC demand loan,
repayable in monthly interest instalments and
principal payments starting March, 2006,
specific properties pledged as collateral
due 2015 487 500
Inuvik Capital Suites Zheh Gwizhu Limited
Partnership (ICS)- 50% Ownership
Prime plus 0.75%, $6,583,618 CIBC demand loan,
repayable in monthly principal and interest
instalments, specific properties pledged as
collateral due April 2006 3,193 3,292
NPREIT
Prime plus 0.75%, $9,000,000 TD Bank demand
loan, repayable in monthly interest
instalments, specific properties pledged as
collateral due March 15, 2006 - 9,000
5.25%, $1,885,206 Vendor take-back loan,
repaid in full in April, 2006 - 1,885
NPR Health Limited Partnership
5.78%, $65,000,000 BMO Financial Group and
Sun Life Assurance Company of Canada demand
loan, repayable in monthly principal and
interest instalments, specific properties
and rents therein pledged as collateral due
August 2009 61,318 -
----------------------
65,231 15,317
----------------------
----------------------
9. LONG-TERM INCENTIVE PLAN
The Board of Trustees approved a long-term incentive plan ("LTIP")
for the executives of NPREIT, based on the results of each fiscal
year. Units were granted under the long-term incentive plan (LTIP) as
follows:
---------------------------------------------------------------------
Grant Date Units
---------------------------------------------------------------------
TOTAL - December 31, 2005 88,616
Units vested and issued - January, 2006 (22,015)
Units vested and issued - May, 2006 (30,208)
Units vested and issued - July, 2006 (500)
---------------------------------------------------------------------
TOTAL - September 30, 2006 65,231
---------------------------------------------------------------------
---------------------------------------------------------------------
The actual amount of the LTIP award is determined at the end of the
year by the Board of Trustees based on an assessment of the
performance of the Trust and the individual performance of the
executives. The number of units issued is based on the trading price
on December 31st of each year. In the May 17, 2006 Annual General
Meeting unitholders approved the shortening of LTIP vesting periods.
Previously, units vested in 1/3 tranches, 12, 24 and 36 months
following their initial grant. Pursuant to the policy change, rights
to units now vest in 1/3 tranches: immediately upon award, then 12
and 24 months following. All outstanding rights to units that had
been subject to 36 month vesting, vested with the units being
provided to Plan participants by May 18, 2006. As at September 30,
2006, a total of 52,723 LTIP units have vested and been issued
(September 30, 2005 - 12,924) and $562,500 has been accrued for
estimated 2006 LTIP awards.
10. EMPLOYEE UNIT PURCHASE PLAN
The Board of Trustees approved an Employee Unit Purchase Plan (the
"EUPP") for the employees of NPREIT, effective June 16, 2005. Under
the terms of the EUPP, employees may invest a maximum of 5% of their
salary in NPREIT units and the Trust will contribute one unit for
every three units acquired by an employee. The units are purchased on
the TSX at market prices. For the period ended September 30, 2006,
employees invested a total of $68,274 (December 31, 2005 - $45,276)
and the trust contributed $22,757 (December 31, 2005 - $15,092).
Units were purchased at a weighted average cost of $21.11 per unit
(December 31, 2005 - $18.02 per unit).
11. UNITHOLDERS' CAPITAL
Total NPREIT Trust units and Class B units issued, outstanding and
eligible for distributions at September 30, 2006 is 20,271,453
(December 31, 2005 - 16,046,681), representing net proceeds of
$261,642,426 (net of issue costs of $14,917,429) (December 31, 2005 -
$176,958,424 net of issue costs of $11,272,569). The number of units
issued and outstanding is as follows:
---------------------------------------------------------------------
Issue Class B
Date Description Trust Units Price (1) LP Units
---------------------------------------------------------------------
December 31,
2004 TOTAL 10,399,120 - 3,099,637
---------------------------------------------------------------------
Adjustment for
accounting
change
(Note 2)
---------------------------------------------------------------------
December 31,
2004-restated
January 6,
2005 Offering 2,490,000 $16.10 -
January 6,
2005 Issue costs - - -
January 10, LTIP units
2005 issued 10,634 $16.45 -
January 14, LTIP units
2005 issued 726 $17.25 -
March 1, Property
2005 acquisition - - 45,000
September 29, LTIP units
2005 issued 1,564 $17.75 -
LP units
exchanged 775,803 - (775,803)
Adjustment for
accounting
change
(Note 2)
---------------------------------------------------------------------
December 31,
2005 TOTAL 13,677,847 - 2,368,834
January 04, LTIP units
2006 issued 21,765 $15.13 -
February 13, LTIP units
2006 issued 250 $15.13 -
February 26, Property
2006 acquisition - - 520,730
February 26,
2006 Issue costs - - -
April 01, 2006 Property
acquisition - - 7,961
April 21, 2006 Offering 3,540,000 $21.20 -
April 21, 2006 Issue costs - - -
April 21, 2006 Property
acquisition - - 79,758
May 18, 2006 LTIP units
issued 30,208 $17.15 -
June 01, 2006 Property
acquisition - - 23,600
July 10, 2006 LTIP units
issued 500 $17.63 -
September 30,
2006 Issue costs
LP units
exchanged 418,948 - (418,948)
---------------------------------------------------------------------
September 30,
2006 TOTAL 17,689,518 - 2,581,935
---------------------------------------------------------------------
---------------------------------------------------------------------
---------------------------------------------------------------------
TOTAL
-------------------------
Date Description Issue Price Units $(000's)
---------------------------------------------------------------------
December 31,
2004 TOTAL - 13,498,757 137,803
---------------------------------------------------------------------
Adjustment for
accounting
change
(Note 2) (28)
---------------------------------------------------------------------
December 31,
2004-restated 137,775
January 6,
2005 Offering - 2,490,000 40,089
January 6,
2005 Issue costs - - (1,937)
January 10, LTIP units
2005 issued - 10,634 175
January 14, LTIP units
2005 issued - 726 12
March 1, Property
2005 acquisition $17.56 45,000 790
September 29, LTIP units
2005 issued - 1,564 26
LP units
exchanged - - -
---------------------------------------------------------------------
Adjustment for
accounting
change
(Note 2) (26)
---------------------------------------------------------------------
December 31,
2005 TOTAL - 16,046,681 176,904
January 04, LTIP units
2006 issued - 21,765 329
February 13, LTIP units
2006 issued - 250 4
February 26, Property
2006 acquisition $19.20 520,730 9,998
February 26,
2006 Issue costs - - (17)
April 01, 2006 Property
acquisition $22.80 7,961 182
April 21, 2006 Offering - 3,540,000 75,048
April 21, 2006 Issue costs - - (3,609)
April 21, 2006 Property
acquisition $22.80 79,758 1,818
May 18, 2006 LTIP units
issued - 30,208 518
June 01, 2006 Property
acquisition $22.60 23,600 486
July 10, 2006 LTIP units
issued - 500 8
September 30,
2006 Issue costs (27)
LP units
exchanged - - -
---------------------------------------------------------------------
September 30,
2006 TOTAL - 20,271,453 261,642
---------------------------------------------------------------------
---------------------------------------------------------------------
(1) The average of the value of those units which have vested.
Trust Units
Total number of units outstanding at September 30, 2006 is 17,689,518
(December 31, 2005 - 13,677,847) representing a net book value of
$228,737,200 (December 31, 2005 - $150,733,094), net of issue costs.
Class B Exchangeable Limited Partnership Units and Special Voting
Units
As at September 30, 2006, NPREIT has 2,581,935 Class B Units
(December 31, 2005 - 2,368,834) of a controlled limited partnership
outstanding representing a value of $32,905,226 (December 31, 2005 -
$26,225,331).
12. INCOME AVAILABLE FOR DISTRIBUTION AND PER UNIT INFORMATION
The terms of the Trust Indenture state that Distributable Income is
defined as net income determined in accordance with Canadian
generally accepted accounting principles, subject to certain
adjustments. Other adjustments may be made to Distributable Income as
determined by the majority of the Trustees at their discretion.
Distributable income
paid per unit Three Months Ended Nine Months Ended
----------------------- -----------------------
September September September September
30, 2006 30, 2005 30, 2006 30, 2005
Unaudited Unaudited Unaudited Unaudited
$ $ $ $
----------------------- -----------------------
Total Operating Cash
Flows 2,472 5,286 13,695 18,354
Addback:
Net change in
operating working
capital 6,830 1,544 9,749 28
----------------------- -----------------------
Distributable income 9,332 6,830 23,444 18,382
Less: income not
distributed 2,679 1,814 5,213 3,609
----------------------- -----------------------
Distributions paid to
unitholders 6,653 5,016 18,231 14,773
----------------------- -----------------------
----------------------- -----------------------
Earnings per unit Three Months Ended Nine Months Ended
----------------------- -----------------------
September September September September
30, 2006 30, 2005 30, 2006 30, 2005
Unaudited Unaudited Unaudited Unaudited
$ $ $ $
----------------------- -----------------------
Net earnings from
continuing operations 4,864 3,504 11,297 9,018
Net earnings from
discontinued operations 51 - 105 -
----------------------- -----------------------
4,915 3,504 11,402 9,018
Cumulative effect of
accounting change - - 48 (9)
----------------------- -----------------------
4,915 3,504 11,450 9,009
----------------------- -----------------------
----------------------- -----------------------
Weighted average
units for basic
earnings per unit 20,271,404 16,045,151 18,722,647 15,991,227
Effect of dilutive
units to be issued in
respect of the
long-term incentive
plan 36,729 51,530 36,729 51,530
----------------------- -----------------------
Weighted average
units for diluted
earnings per unit 20,308,133 16,096,681 18,759,376 16,042,757
----------------------- -----------------------
----------------------- -----------------------
----------------------- -----------------------
----------------------- -----------------------
Earnings per unit
Basic:
Earnings from
continuing operations 0.24 0.22 0.60 0.56
Earnings from
discontinued operations - - - -
Cumulative effect of
accounting change - - - -
----------------------- -----------------------
0.24 0.22 0.60 0.56
----------------------- -----------------------
----------------------- -----------------------
Diluted:
Earnings from
continuing
operations 0.24 0.22 0.60 0.56
Earnings from
discontinued
operations - - - -
Cumulative effect
of accounting change - - - -
----------------------- -----------------------
0.24 0.22 0.60 0.56
----------------------- -----------------------
----------------------- -----------------------
Distributions per unit
For the period ended September 30, NPREIT made distributions to
unitholders as follows:
2006 2005
---------------------------------------------------------------------
Month Record date Payment date Distribution per unit
---------------------------------------------------------------------
January January 31 February 15 0.1094 0.1042
February February 28 March 15 0.1094 0.1042
March March 31 April 15 0.1094 0.1042
April April 30 May 15 0.1094 0.1042
May May 31 June 15 0.1094 0.1042
June June 30 July 15 0.1094 0.1042
July July 31 August 15 0.1094 0.1042
August August 31 September 15 0.1094 0.1042
September September 30 October 15 0.1094 0.1042
---------------------
Total distributions 0.9846 0.9378
---------------------
---------------------
13. DISCONTINUED OPERATIONS
During the third quarter, a 66 unit property in Fort St. John's, BC,
was classified as available for sale. The following tables set forth
the assets and liabilities, and the results of operations associated
with these discontinued operations:
Three Months Ended Nine Months Ended
--------------------------------------------
September September September September
30, 2006 30, 2005 30, 2006 30, 2005
(Thousands of Dollars) Unaudited Unaudited Unaudited Unaudited
$ $ $ $
REVENUE
Rental properties
revenue 163 - 370 -
Laundry and other
income - - 3 -
Rental properties
operating expenses (39) - (95) -
---------------------- ---------------------
Net operating income 124 - 278 -
---------------------- ---------------------
EXPENSES
Interest on mortgages 46 - 92 -
Amortization 27 - 81 -
---------------------- ---------------------
73 - 173 -
---------------------- ---------------------
EARNINGS FROM
DISCONTINUED
OPERATIONS, BEFORE
INCOME TAXES 51 - 105 -
---------------------- ---------------------
---------------------- ---------------------
INCOME TAXES
Current - - - -
Future recovery - - - -
---------------------- ---------------------
- - - -
---------------------- ---------------------
EARNINGS from
discontinued
operations 51 - 105 -
---------------------- ---------------------
---------------------- ---------------------
----------------------
September December
30, 2006 31, 2005
('000s) $ $
----------------------
ASSETS
Discontinued Rental property assets (net) 3,677 -
----------------------
Total Assets 3,677 -
----------------------
----------------------
Discontinued Liabilities - -
----------------------
Total Liabilities - -
----------------------
----------------------
14. GUARANTEE
Guarantees for equity accounted investments and proportionately
consolidated joint ventures total $2.2 million at September 30, 2006
(December 31, 2005 - $1.3 million). Of this amount $1.9 million has
been included in the mortgage balance payable. The mortgages bear
interest at rates ranging from 5.10% to 7.50% and mature August, 2007
to May, 2011. The mortgages are secured by specific charges against
the properties owned by the corporations and joint ventures. NPREIT
would be liable in the event of a default of the corporation or joint
venture.
15. RELATED PARTY TRANSACTIONS
A trustee leases space from NPREIT under normal commercial terms. The
amounts paid during the period for the space were $316,581 for the
nine months ended September 30, 2006 (2005 - $335,099). Amounts
outstanding in accounts receivable pertaining to this lease were
$4,939 at September 30, 2006 (2005 - $Nil).
A trustee of NPREIT is a senior partner of a law firm that provides
and continues to provide legal services to NPREIT in the ordinary
course of business. Fees paid during the three month period ended
September 30, 2006 were $3,435 (2005 - $3,018) and $194,134 (2005 -
$129,503) for the nine month period ended September 30, 2006.
16. SUBSEQUENT EVENTS
Subsequent to September 30, 2006, NPREIT completed the sale of the
property Village St. John, Fort St. John, B.C. for $4.3 million. This
property had been purchased on March 01, 2006 for $3.8 million
(including transaction costs). NPREIT received an unsolicited offer
to purchase and after review of the property within the mix of the
NPREIT portfolio decided to accept the offer. The sale closed on
November 01, 2006.
Subsequent to September 30, 2006, NPREIT completed the following
financings:
a) On October 6, 2006 NPREIT completed the refinancing of the
Crystal Ridge Townhomes in Iqaluit, Nunavut in the amount of
$1.9 million maturing August 01, 2016 and bearing interest at
5.28% per annum.
b) On October 6, 2006 NPREIT completed the refinancing of the Joamie
Ridge Townhomes in Iqaluit, Nunavut in the amount of $1.8 million
maturing August 01, 2016 and bearing interest at 5.28% per annum.
c) On October 6, 2006 NPREIT completed the refinancing of the
Sivulliik Townhomes in Iqaluit, Nunavut in the amount of
$.9 million maturing August 01, 2016 and bearing interest at
5.280% per annum.
17. COMPARATIVE FIGURES
Certain of the prior year's figures have been reclassified to confirm
with the current presentation.
>>
| Home > Quotes & Charts > News > News Article |
|
Northern Property Real Estate Investment Trust (NPR.UN) Exchange: Toronto Stock Exchange
|
$30.750 
May 24, 2013, 12:25 AM EDT
Change:
-0.21 (-0.68%)
Volume: 65,132
Day Low
30.590
30.590
Day High
31.000
31.000
Northern Property REIT Reports Record Results
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. View delay times for all exchanges.
Market Data powered by QuoteMedia. See the QuoteMedia and TMX Group Terms of Use.
Market Data powered by QuoteMedia. See the QuoteMedia and TMX Group Terms of Use.
