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Homburg Invest Inc. announces December 31, 2008 Financial Results

  • Published: 2009-03-26

Shares issued:  Class A - 16,790,018 Class B - 3,150,239
 
Halifax, Nova Scotia, March 26, 2009 (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 December 31, 2008 financial results prepared under  Canadian Generally Accepted Accounting Principles (GAAP).  The complete December 31, 2008 financial results and MD&A will be available for viewing and downloading from the corporation's web site at www.homburginvest.com and at SEDAR at www.sedar.com.
 
The Company is pleased to announce the results under Canadian GAAP for the year ended December 31, 2008 (all figures in $CAD).
 
Year Ended December 31, 2008:
  • Property revenue increased 49.3% to $309.6 million compared to December 31, 2007
  • Property net operating income (note) increased 38.9% to $225.2 million compared to December 31, 2007
  • Funds from operations per share, (note)  is $4.61
  • Funds from operations  (note)  is $91.3 million
    •  
    Three Months Ended December 31, 2008:
  • Property revenue increased 39.4% to $82.6 million compared to December 31, 2007
  • Property net operating income (note) increased 38.4% to $58.8 million compared to December 31, 2007
  • Funds from operations per share (note)  is $0.45
  • Funds from operations (note) is $8.9 million
    •  
    When comparing the fourth quarter and annual results from 2008 to 2007, during the fourth quarter of 2007, the Company realized a profit of $78 million on the initial sale of the Homburg Harris property in Calgary, Alberta.
     
    Operationally, the occupancy levels remain strong with an overall weighted average occupancy rate of 97.1% compared to 97.3% at December 31, 2007.
     
    Net asset value per share (note) at December 31, 2008 is $25.76
     
     
    Financial Highlights - GAAP
    Year ended December 31, 2008
     
     
     
     
    The Company is only releasing GAAP financial statements at this time. The lack of  transactions in the global real estate markets has made it  difficult to  obtain meaningful information to assess the fair market value of the real estate portfolio.  Homburg Invest Inc. will continue to gather the information required to determine the valuation of its portfolio, and will release the International Financial Reporting Standards (IFRS)  financial statements at that point.
     
    The deadline for filing the IFRS financial statements is May 12, 2009, one month prior to  our Annual General Meeting which is scheduled for June 12, 2009.
     
    The core operations of the Company, being the property operations, have remained strong year over year as evidenced by the FFO. The net loss for the year ended December 31, 2008, and in particular the fourth quarter of 2008, is primarily related to significant non-cash expenses being incurred. Specifically, during 2008 the Company has a goodwill impairment loss of $63.4 million; a foreign exchange loss of $19.6 million; a derivative instrument loss of $18.5 million; and a fair value loss on investments of $23.1 million.
     
     
    By filing the GAAP financial statements, MD&A, and Annual Information Form prior to March 31, 2009, the Company will have met all regulatory requirements in Canada.
     
    The Company has  scheduled a conference call  March 31, 2009 to discuss the results of the GAAP financial statements. The conference call will be available globally through Verizon by applying participant passcode HOMBURG through the following numbers:
    If calling from:
    Canada or the United States: Toll free - 1-866-617-1526/Toll charge 1-210-795-0624
    The Netherlands: Toll free - 0800-343-4364/Toll charge 31-20-717-6857
    Switzerland: Toll free - 0800-001-214/Toll charge 41-44-580-3896
     
     
    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 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 Financial Measures
     
    This news release includes measures widely accepted within the real estate industry which are not defined under CDN GAAP .  These measures include Funds from Operations, Funds from Operations per share, Property Net Operating Income, Net Asset Value per share, and Payout Ratio.  As these are not defined measures under CDN GAAP, 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 depreciation and amortization, non-recurring stock based compensation, future  and capital income taxes,  gain on sale of assets, unrealized fair value changes and unrealized foreign exchange gains or losses; divided by the weighted average number of shares outstanding
    b) Property Net operating income ("N0I") is presented by the Company as Property Revenue less Property Operating Expenses
    c) Net Asset Value per share is presented by the Company as Shareholders' Equity divided by the number of shares outstanding at year end.

    Canada

    Homburg Invest Inc.
    1741 Brunswick Street, Suite 600
    Halifax, Nova Scotia B3J 3X8
    Canada

    (+1) 902-468-3395ir@homburg.com