News releases: archive

 

 

 

Halifax, Nova Scotia, May 9, 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 March 31, 2008 financial results prepared under both Canadian Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).  The complete three-month period 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.

 

Increase in IFRS results:

Property revenue increased 86.9% to $74.8 million compared to March 31, 2007

Net operating income increased 54.2% to $55.2 million compared to March 31, 2007

Funds from operations per share (note) increased 16.7% to $0.14 compared to March 31, 2007

Funds from operations (note) increased 62.0% to $24.8 million compared to March 31, 2007

 

Increase in Canadian GAAP results:

Property revenue increased 89.4% to $74.4 million compared to March 31, 2007

Net operating income increased 56.3% to $54.8 million compared to March 31, 2007

Funds from operations per share increased 14.3% to $0.16 compared to March 31, 2007

Funds from operations increased 60.4% to $28.2 million compared to March 31, 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.

 

Property revenue for the first quarter is up 86.9% over the same quarter in 2007 to $74.8 million.   At the same time net operating income (NOI) increased to $55.2 million from $35.8 million, an increase of 54.2%. 

 

The positive aspects of the growth in our portfolio also manifest themselves in our funds from operations ("FFO") which improved to $24.8 million in the first quarter of 2008, up 62.0% from 2007's quarter one.  On an annualized basis this is a FFO of $0.56 per share, which is a FFO payout ratio (note) of 85.7%.  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 42.9%. 

 

Shareholders' equity increased from $886.3 million at December 31, 2007 to $908.0 million at March 31, 2008.

 

GAAP funds from operations were $28.2 million or $0.16 per share compared with funds from operations of $17.6 million in 2007 or $0.14 per share.

 

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.

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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