Press Releases

FIRST CAPITAL REALTY REPORTS STRONG Q3 OPERATING RESULTS

November 08, 2007

FIRST CAPITAL REALTY REPORTS STRONG Q3 OPERATING RESULTS
Record level of activity in the portfolio

Toronto, Ontario (November 8, 2007) - First Capital Realty Inc. (“First Capital Realty”) (TSX:FCR) Canada’s leading owner, developer and operator of supermarket-anchored neighbourhood and community shopping centres, located predominantly in growing metropolitan areas, today announced strong operating results for the third quarter ended September 30, 2007.

THIRD QUARTER HIGHLIGHTS:

($ millions, except share and per share amounts) September 30, 2007 September 30, 2006 Percentage
Change
Enterprise value $ 4,274 $ 3,723 14.8%
Property rental revenue $ 96.2 $ 81.6 17.9%
Net operating income (NOI) $ 61.7 $ 52.4 17.7%
Funds from operations (FFO) $ 31.4 $ 28.5 10.2%
FFO per diluted share $ 0.40 $ 0.38 5.3%
Debt to market capitalization 46.9% 45.7% _
Weighted average number of shares for FFO (000’s) 79,001 74,997 5.3%

 

Invested $123 million in acquisitions of adjacent space, development and redevelopment activities and property improvements.

  • Added 183,000 square feet of gross leasable area from additions to existing shopping centres and development coming on line.

  • Added six development sites comprising 47.0 acres, and 0.4 acres in one land parcel adjacent to an existing property.

  • 1.5% same property NOI growth; 11.0% increase on renewal leases.

  • Net new leasing totalled 131,000 square feet including development coming on line; renewal leasing totalled 196,000 square feet.

  • Average lease rate per occupied square foot increased by 3.8% to $14.35 at September 30, 2007 compared to the prior year third quarter.

NINE MONTHS HIGHLIGHTS:

($ millions, except share and per share amounts) September 30, 2007 September 30, 2006 Percentage Change
Property rental revenue $ 280.2 $ 238.2 17.6%
Net operating income (NOI) $ 178.6 $ 148.3 20.4%
FFO $ 92.5 $ 84.5 9.5%
FFO per diluted share $ 1.19 $ 1.15 3.5%
Weighted average number of shares for FFO (000’s) 77,902 73,747 5.6%

 

  • Invested $390 million in acquisitions, development activities and property improvements.

  • Added 1.3 million square feet of gross leasable area from acquisitions and development coming on line.

  • Added 89.7 acres from acquisition of eight development sites and three parcels adjacent to existing properties.

  • 4.0% same property NOI growth; 10.9% increase on renewal leases.

  • Occupancy remains at 95%; 1.8% of vacancy is from space held for redevelopment.

  • Acquisitions during the nine months at 91% occupancy; closures for redevelopment including demolition totalled 269,000 square feet at an average rate of $8.11.

  • Net new leasing totalled 378,000 square feet including development coming on line; renewal leasing totalled 819,000 square feet.

  • Completed new leasing on existing space totalling 368,000 square feet at an average rate of $17.67 per square foot, representing a 37.8% increase versus lost leases year-to-date.

“Our solid performance through 2007 is the result of a rigorous and consistent focus on finding the ‘Sure Thing’ - well located properties in urban markets with good rent growth opportunities and low risk profiles,” said Dori J. Segal, President & CEO. “Looking ahead, we will continue executing our strategy of disciplined acquisitions, proactive management, and selective development and redevelopment activities while maintaining a good credit posture.”

FINANCIAL HIGHLIGHTS

FFO presented herein is a key financial measurement used by the real estate industry to measure and compare the operating performance of real estate organizations. FFO is a supplemental non-GAAP financial measure and a reconciliation containing adjustments from GAAP net income to FFO is included in this press release.

Effective January 1, 2007, the Company adopted certain new Canadian accounting standards (GAAP). These standards did not require restatement of prior periods. The effect of the GAAP changes are detailed in the 2007 Third Quarter Report and the Company’s September 30, 2007 Supplemental Information Package.

Funds from Operations (“FFO”)

Funds from operations for the three months ended September 30, 2007 totalled $31.4 million, or $0.40 per diluted common share, compared to $28.5 million, or $0.38 per diluted common share in 2006. FFO for the first nine months of 2007 totalled $92.5 million or $1.19 per diluted common share compared to $84.5 million or $1.15 per diluted common share in the first nine months of 2006. The increase in FFO in the three and nine month periods ended September 30, 2007 is primarily due to the Company’s income- producing property acquisitions and development projects coming on line in 2007 and to a lesser degree, realized gains on marketable securities, partially offset by increased interest and corporate expenses. Corporate expenses include $0.3 million and $2.5 million in transaction costs related to unsuccessful and unfeasible acquisitions for the three and nine months ended September 30, 2007, respectively, which compares to $0.2 million and $0.7 million in the same periods in 2006.

Net Income

   Three months ended September 30 Nine months ended September 30
($ millions, except share and per share amounts) 2007 2006 2007 2006
Net income $ 6.9 $ 6.5 $ 21.1 $ 33.9(1)
Earnings per diluted share $ 0.09 $ 0.09 $ 0.27 $ 0.46
Weighted average common shares (diluted) (000’s) 79,001 74,997 77,902 73,747

1. Includes the Company’s share in the gain (~$13.4 million, net of tax) realized by Equity One on the disposition of its Texas portfolio.

 

Net income for the three and nine months ended September 30, 2007 amounted to $6.9 million or nine cents per share basic and diluted and $21.1 million or 27 cents per share basic and diluted, respectively. This compares to $6.5 million or nine cents per share basic and diluted, for the three months ended September 30, 2006 and $33.9 million or 46 cents per share basic and diluted, respectively. The year-to- date decrease in net income is primarily due to the Company’s share in the gain (approximately $13.4 million, net of taxes) realized on the disposition of the Texas property portfolio of Equity One, Inc. in the second quarter of 2006.

ACQUISITION AND DEVELOPMENT AND OTHER INVESTMENT HIGHLIGHTS

During the third quarter of 2007, the Company did not acquire any shopping centres. The Company invested $23.0 million in acquiring additional space and one land parcel at or adjacent to existing properties adding 46,000 square feet of gross leasable area and 0.4 acres of expansion land to the portfolio. The Company also invested $40.6 million in the acquisition of interests in six land sites adding 47.0 acres of commercial land for future development. In addition, the Company acquired the remaining 50% interest in an income-producing shopping centre located in Whitby, Ontario. The acquisition amount of $11.2 million, including closing costs, was funded through an assumed mortgage of $7.3 million with the balance paid in cash.

Through the first nine months of 2007, the Company has invested $275.4 million in the acquisition of five income-producing properties totalling 831,000 square feet; acquisition of additional space and land parcels at or adjacent to existing properties adding 119,000 square feet of space at nine properties and 4.0 acres of expansion land at three others; acquisition of 85.6 acres of commercial land for future development at eight sites and the remaining 50% interest in an income-producing shopping centre.

Development of 137,200 square feet was brought on line during the third quarter with 100,800 square feet leased at an average rate of $22.79 per square foot. Through the first nine months of 2007, the Company has brought on-line 335,800 square feet of space, including three supermarkets and three drugstores, which was 89.2% occupied at an average lease rate of $18.04 per occupied square foot.

In addition to the acquisitions, the Company invested $47.4 million during the third quarter in its active development projects and improvements to existing properties in the portfolio. Currently 1,161,000 square feet of gross leasable area is under development or redevelopment on 103.2 acres of land sites or parcels of land adjacent to existing properties. In the first nine months of 2007, investments in these activities totalled $114.2 million.

At September 30, 2007, the Company owned 337 acres of land sites and parcels available for future development.

OPERATING HIGHLIGHTS

Net operating income for the three months ended September 30, 2007 totalled $61.7 million, compared to $52.4 million in the third quarter of 2006, an increase of $9.3 million or 17.7%. Acquisitions during 2007, combined with the full impact of acquisitions in the prior year, contributed $9.2 million to net operating income in the quarter, while development and redevelopment activities contributed a further $7.2 million. Same property net operating income increased 1.5%, generating growth of $0.6 million in the third quarter of 2007.

Year-to-date, acquisitions completed in 2007 and 2006 contributed $25.2 million, while development and redevelopment activities contributed a further $20.0 million. Same property net operating income increased 4.0%, generating growth of $4.9 million in the nine month period ended September 30, 2007.

Net new leasing in the third quarter totalled 131,100 square feet including development coming on line, while renewal leasing totalled 195,600 square feet. For the nine months ended September 30, 2007, net new leasing totalled 377,800 square feet, including development coming on-line, and renewal leasing totalled 819,300 square feet. The Company achieved a 37.8% increase in rates on new versus lost leases year-to-date and a 10.9% increase on renewal lease rates over expiring lease rates.

The average rate per occupied square foot at September 30, 2007 increased to $14.35 per square foot including the impact of the 2007 acquisitions, which had an average lease rate of $14.31 per square foot.

This compares to an average rate of $13.95 per square foot at December 31, 2006 and $13.83 at September 30, 2006.

Portfolio occupancy at September 30, 2007 of 95.0% compares to 95.7% at December 31, 2006 and 95.4% at September 30, 2006. Properties acquired during the nine month period ended September 30, 2007 were at 91.0% occupancy while closures for redevelopment totalled 169,200 square feet, providing potential for future income growth through leasing and redevelopment activities.

FINANCING AND CAPITAL MARKET HIGHLIGHTS

In the aggregate, the Company issued approximately 3.4 million common shares during the nine month period ended September 30, 2007 primarily from shareholder participation in the Dividend Reinvestment Plan, and to a lesser degree, payment of interest on convertible debentures, the conversion of convertible debentures and exercise of warrants and options.

On October 4, 2007, the Company completed a $100 million increase on its unsecured revolving credit facility syndicated with seven financial institutions bringing the total availability to $350 million, with a term to March 2010.

SUBSEQUENT EVENT HIGHLIGHTS Dividend Reinvestment Plan

On October 10, 2007, the Company issued 760,135 common shares at a net price of $25.30 to participants in the DRIP.

DIVIDENDS

The Company announced that it will pay a fourth quarter dividend of $0.32 per common share on January 9, 2008 to shareholders of record on December 28, 2007.

OUTLOOK

The current environment remains extremely competitive. Nevertheless, the Company will continue to selectively acquire properties that are well-located and of high quality, where they add strategic value and/or operating synergies provided they will be accretive to FFO over the long term.

Development and redevelopment activities continue to provide the Company with opportunities to grow within its existing portfolio and to participate in new growth markets. Once completed, these activities typically generate higher returns on investment.

With respect to acquisitions of both income-producing and development properties, the Company will continue to focus on maintaining the sustainability and growth potential of rental income to ensure that among other things, refinancing risk is minimized. This is particularly important in the current environment of low capitalization rates and increasing cost of capital.

Specifically, Management is focusing on the following four areas to achieve its objectives in 2007:

  • same property net operating income growth;

  • development and redevelopment activities;

  • increasing efficiency and productivity of operations; and

  • improving the cost of capital.

Overall, Management is confident that the quality of the Company’s real estate will continue to generate sustainable and growing cash flows while producing superior returns on investment over the long term.

GUIDANCE

Guidance for the year ending December 31, 2007 is updated to reflect changes in the markets as follows.

These projections involve numerous assumptions such as rental income (including assumptions on timing of lease-up, development coming on line and levels of percentage rent), interest rates, tenant defaults, the U.S. - Canadian foreign currency exchange rate, corporate expenses, level and timing of acquisitions of income producing properties, participation by shareholders in our Dividend Reinvestment Plan and numerous other factors. In addition, the projected range of funds from operations includes Equity One based on publicly available information. Not all factors which affect our range of projected funds from operations are determinable at this time and actual results may vary from the projected results in a material respect, and may be above or below the range presented in a material respect.

Specific assumptions include shopping centre acquisitions totalling $250 million, development coming on line of approximately 480,000 square feet and the current interest rate environment and current US- Canadian foreign exchange environment. The range presented represents Management’s estimate of results based upon these assumptions as of the date of this press release.

(per share amounts)   Low High

Projected net income per diluted share

$

0.36

$ 0.38

Adjustments

 

 

 

Projected FFO from Equity One net of equity income

 

0.11

0.11

Projected amortization and future income taxes

 

1.11

1.11

Projected FFO per diluted share

$

1.58

$ 1.60

 

Readers should refer to the section below titled “Forward Looking Statements” for important information relating to our guidance, including risk factors.

CONFERENCE CALL

Management will hold a conference call at 10:00 a.m. ET on Friday, November 9, 2007 to discuss the Company’s third quarter results. The call and supporting slides can be accessed at the Company’s website at www.firstcapitalrealtv.ca. You may participate in the live conference toll free at 800-633-8949 or at 416-641-6700. To ensure your participation, please call five minutes prior to the scheduled start of the call. The call will be archived through November 16, 2007 and can be accessed by dialing toll free 800-558-5253 or 416-626-4100 with access code 21351951.

WEBCAST

To access the webcast, go to First Capital Realty’s website at www.firstcapitalrealty.ca, and click on the link for the webcast at the bottom of our Home Page. The webcast will be archived on our Home Page for 30 days and can be accessed, thereafter, in the Conference Calls section of our website.

Management’s presentation will be followed by a question and answer period. To ask a question, press ‘1’ followed by ‘4’ on a touch-tone phone. The conference call coordinator is immediately notified of all requests in the order in which they are made, and will introduce each questioner. To cancel your request, press ‘1’ followed by ‘3’. If you hang up, you can reconnect by dialing 800-633-8949 or 416-641-6700. For assistance at any point during the call, press ‘*0’.

COMPANY INFORMATION

The Company’s Supplementary Information for the third quarter will be posted on the Company’s website at www.firstcapitalrealtv.ca.

ABOUT FIRST CAPITAL REALTY (TSX:FCR)

First Capital Realty is Canada’s leading owner, developer and operator of supermarket-anchored neighbourhood and community shopping centres, located predominantly in growing metropolitan areas. The Company currently owns interests in 163 properties, including six under development, totalling approximately 19.2 million square feet of gross leasable area and 12 land sites in the planning stage for future retail development. In addition, the Company owns 14 million shares of Equity One (approximately 19%), one of the largest shopping centre REITS in the southern U.S., that trades on the New York Stock Exchange under the ticker symbol EQY. Including its investments in Equity One, the Company has interests in 339 properties totalling approximately 37.3 million square feet of gross leasable area.

Forward Looking Statements

Certain statements included in this press release constitute forward-looking statements, including those identified by the expressions “anticipate ", “believe ", “plan ", “estimate ", “expect", “intend" and similar expressions to the extent they relate to the Company or its Management. The forward-looking statements are not historical facts but reflect the Company's current expectations regarding future results or events and are based on information currently available to Management. Certain material factors and assumptions were applied in providing these forward-looking statements.

Management believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, Management can give no assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under “Risk Management" in the Management's Discussion and Analysis (“MD&A") contained in the Company's 2006 Annual Report which is available on SEDAR at www.sedar.com.

Factors that could cause actual results or events to differ materially from those expressed or implied by forward-looking statements in addition to those described in the MD&A, include, but are not limited to, general economic conditions, the availability of new competitive supply of retail properties which may become available either through construction or sublease, First Capital Realty's ability to maintain occupancy and to lease or re-lease space at current or anticipated rents, tenant bankruptcies, financial difficulties and defaults, changes in interest rates, changes in operating costs, First Capital Realty's ability to obtain insurance coverage at a reasonable cost and the availability of financing.

Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. First Capital Realty undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.

These forward-looking statements are made as of November 8, 2007

For further information:
Dori J. Segal, President & C.E.O., or
Karen H. Weaver, C.F.O.
First Capital Realty Inc.
85 Hanna Avenue, Suite 400
Toronto, Ontario, Canada M6K 3S3
Tel: (416) 504-4114
Fax: (416) 941-1655
www.firstcapitalrealty .ca

 

NON-GAAP SUPPLEMENTAL FINANCIAL MEASURES

Funds from Operations

In Management’s view, funds from operations (“FFO”) is a commonly accepted and meaningful indicator of financial performance in the real estate industry. First Capital Realty believes that financial analysts, investors and shareholders are better served when the clear presentation of comparable period operating results generated from FFO disclosure supplements Canadian generally accepted accounting principles (“GAAP”) disclosure. The Company’s method of calculating FFO may be different from methods used by other corporations or REITs (real estate investment trusts) and accordingly, may not be comparable to such other corporations or REITs. FFO is presented to assist investors in analyzing the Company’s performance. FFO: (i) does not represent cash flow from operating activities as defined by GAAP (ii) is not indicative of cash available to fund all liquidity requirements, including payment of dividends and capital for growth and (iii) should not be considered as an alternative to GAAP net income for the purpose of evaluating operating performance.

Funds from Operations - RealPac Recommendations

First Capital Realty calculates FFO in accordance with the recommendations of the Real Property Association of Canada (“RealPac”). The definition is meant to standardize the calculation and disclosure of FFO across real estate entities in Canada, modelled on the definition adopted by the National Association of Real Estate Investment Trusts (“NAREIT”) in the United States. FFO as defined by RealPac differs in two respects from the definition adopted by NAREIT. Under the RealPac definition, future income taxes are excluded from FFO, whereas under the NAREIT definition, they are included. In addition, impairment losses are excluded from the RealPac FFO definition, whereas the NAREIT definition includes them. As a result, when calculating FFO, the Company adjusts the FFO reported by Equity One to comply with the RealPac definition, when appropriate.

 Net Operating Income

Net operating income is defined as property rental revenue less property operating costs. In Management’s opinion, net operating income is useful in analyzing the operating performance of the Company’s shopping centre portfolio. Net operating income is not a measure defined by GAAP and there is no standard definition of net operating income. Accordingly, net operating income may not be comparable with similar measures presented by other entities. Net operating income should not be construed as an alternative to net income or cash flow from operating activities determined in accordance with GAAP.

CONSOLIDATED BALANCE SHEETS

(unaudited) September 30   December 31
(thousands of dollars) 2007   2006

ASSETS

 

 

 

Real Estate Investments

 

 

 

Shopping centres

$ 2,643,176

$

2,423,801

Land and shopping centres under development

276,546

 

178,347

Deferred costs

79,429

 

74,778

Intangible assets

37,404

 

31,868

 

3,036,555

 

2,708,794

Investment in Equity One, Inc.

191,869

 

228,665

Loans, mortgages and other real estate assets

18,564

 

24,056

 

3,246,988

 

2,961,515

Other assets

41,481

 

47,129

Amounts receivable

37,421

 

28,070

Cash and cash equivalents

10,182

 

6,810

Future income tax assets

12,579

 

17,355

 

$ 3,348,651

$

3,060,879

LIABILITIES

 

 

 

Mortgages and credit faalities

$ 1,418,216

$

1,388,650

Accounts payable and other liabilities

105,689

 

106,145

Intangible liabilities

18,318

 

18,453

Senior unsecured debentures

595,128

 

399,813

Convertible debentures

221,393

 

192,189

Future income tax liabilities

46,356

 

44,036

 

2,405,100

 

2,149,286

SHAREHOLDERS' EQUITY

943,551

 

911,593

 

$ 3,348,651

$

3,060,879

 

CONSOLIDATED STATEMENTS OF EARNINGS 

  Three months ended Nine months ended
(unaudited)   September 30   September 30   September 30   September 30
(thousands of dollars, except per share amounts)   2007   2006   2007   2006

REVENUE

 

 

 

 

 

 

 

 

Roperty rental revenue

$

96,192

$

81,592

$

280,248

$

238,165

Interest and other income

 

506

 

236

 

5,564

 

3,171

 

 

96,698

 

81,828

 

285,812

 

241,336

EXPENSES

 

 

 

 

 

 

 

 

Roperty operating costs

 

34,467

 

29,236

 

101,614

 

89,873

Interest expense

 

29,486

 

24,014

 

87,161

 

68,486

Amortization

 

20,151

 

18,052

 

58,449

 

49,610

Corporate expenses

 

6,016

 

3,850

 

18,379

 

13,044

 

 

90,120

 

75,152

 

265,603

 

221,013

Equity income from Equity One, Inc.

 

2,253

 

2,872

 

9,920

 

27,179

Loss on settlement of debt

 

-

 

-

 

(483)

 

.

Income before income taxes

 

8,831

 

9,548

 

29,646

 

47,502

Income taxes:

 

 

 

 

 

 

 

 

Current

 

37

 

31 7

 

1,304

 

3,502

Future

 

1,854

 

2,689

 

7,241

 

10,076

 

 

1,891

 

3,006

 

8,545

 

13,578

Net income

$

6,940

$

6,542

$

21,101

$

33,924

Earnings per common share

 

 

 

 

 

 

 

 

Basic

$

0.09

$

0.09

$

0.27

$

0.46

Diluted

$

0.09

$

0.09

$

0.27

$

0.46

 

CONSOLIDATED STATEMENTS OF FUNDS FROM OPERATIONS

  Three months ended Nine months ended
(unaudited)   September 30   September 30   September 30   September 30
(thousands of dollars, except per share amounts)   2007   2006   2007   2006

Net income for the period

$

6,940

$

6,542

$

21,101

$

33,924

Add (deduct):

 

 

 

 

 

 

 

 

Amortization of shopping centres, deferred costs

 

 

 

 

 

 

 

 

and intangible assets

 

19,852

 

16,944

 

57,662

 

46,673

Gain on disposition of income-producing

 

 

 

 

 

 

 

 

shopping centre

 

-

 

-

 

(323)

 

-

Current income tax on Equity One special

 

 

 

 

 

 

 

 

dividend from gain on real estate

 

-

 

-

 

-

 

2,702

Equity income from Equity One

 

(2,253)

 

(2,872)

 

(9,920)

 

(27,179)

Funds from operations from Equity One

 

4,971

 

5,237

 

16,691

 

18,302

Future income taxes

 

1,854

 

2,689

 

7,241

 

10,076

Funds from operations

$

31,364

$

28,540

$

92,452

$

84,498

FFO per diluted share

$

0.40

$

0.38

$

1.19

$

1.15

Weighted average diluted shares - FFO

 

79,000,640

 

74,997,493

 

77,901,917

 

73,746,633

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

    Three months ended   Nine months ended
(unaudited)   September 30   September 30   September 30   September 30
(thousands of dollars)   2007   2006   2007   2006

NET INCOME

$

6,940

$

6,542

$

21,101

$

33,924

OTHER COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

Unrealized foreign currency (loss) gain on

 

(3,331)

 

65

 

(9,812)

 

(2,398)

translating self-sustaining foreign operations

 

 

 

 

 

 

 

 

Other comprehensive loss of Equity One, Inc.

 

(1,211)

 

-

 

(320)

 

-

Loss on cash flow hedges of interest rates

 

(1,128)

 

-

 

(783)

 

-

Change in cumulative unrealized gain on

 

 

 

 

 

 

 

 

available-for-sale marketable securities

 

260

 

-

 

(344)

 

-

Reclassification of adjustment for gains and losses on cash

 

 

 

 

 

 

 

 

flow hedges of interest rates included in income

 

-

 

-

 

(436)

 

-

Other comprehensive (loss) income before income taxes

 

(5,410)

 

65

 

(11,695)

 

(2,398)

Future income tax (recovery)

 

(719)

 

-

 

(623)

 

-

Other comprehensive (loss) income

 

(4,691)

 

65

 

(11,072)

 

(2,398)

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

$

2,249

$

6,607

$

10,029

$

31,526

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

    Three months ended   Nine months ended
(unaudited) September 30 September 30 September 30 September 30
(thousands of dollars)   2007   2006   2007   2006

CASH FLOW PROVIDED BY (USED IN):

 

 

 

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income

$

6,940

$

6,542

$

21,101

$

33,924

Items not affecting cash

 

 

 

 

 

 

 

 

Amortization

 

20,151

 

18,052

 

58,449

 

49,610

Amortization of above- and below-market leases

 

(545)

 

(453)

 

(1,538)

 

(1,173)

Rent revenue recognized on a straight-line basis

 

(1,922)

 

(889)

 

(5,246)

 

(2,707)

Gains on land and property sales

 

-

 

(134)

 

(323)

 

(134)

Realized loss (gain) on sale of marketable securities

 

531

 

(288)

 

(2,742)

 

(924)

Change in unrealized (gain) loss on investment in

 

 

 

 

 

 

 

 

marketable securities

 

(548)

 

-

 

273

 

-

Loss on settlement of debt

 

-

 

-

 

483

 

-

Non-cash compensation expense

 

1,307

 

624

 

3,153

 

1,753

Interest paid in excess of implicit interest on

 

 

 

 

 

 

 

 

assumed mortgages

 

(562)

 

(612)

 

(1,383)

 

(1,734)

Debenture interest in excess of coupon

 

206

 

55

 

486

 

154

Convertible debenture interest paid in common shares

 

6,563

 

2,758

 

12,048

 

4,295

Other non-cash interest expense

 

770

 

-

 

2,473

 

-

Equity income from Equity One, Inc.

 

(2,253)

 

(2,872)

 

(9,920)

 

(27,179)

Future income taxes

 

1,854

 

2,689

 

7,241

 

10,076

Unrealized losses (gains) on certain interest rate swaps

 

122

 

1,001

 

(643)

 

332

Deferred leasing costs

 

(1,099)

 

(1,948)

 

(2,727)

 

(4,915)

Dividends received from Equity One, Inc.

 

4,173

 

4,474

 

13,458

 

28,508

Net change in non-cash operating items

 

(9,917)

 

(9,202)

 

(7,322)

 

(9,949)

Cash provided by operating activites

 

25,771

 

19,797

 

87,321

 

79,937

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Acquisition of shopping centres

 

(22,668)

 

(63,652)

 

(187,669)

 

(251,963)

Acquisition of land for development

 

(44,038)

 

(16,024)

 

(64,412)

 

(27,965)

Proceeds from disposition of shopping centre

 

-

 

-

 

6,400

 

-

Proceeds from disposition of land for development

 

-

 

1,236

 

-

 

1,236

Expenditures on shopping centres

 

(8,647)

 

(6,057)

 

(17,121)

 

(12,523)

Expenditures on land and shopping centres under development

 

(37,690)

 

(24,755)

 

(94,330)

 

(55,502)

Investment in common shares of Equity One, Inc.

 

-

 

-

 

(2,254)

 

-

Decrease (increase) in loans and mortgage receivable

 

2,141

 

(65)

 

1,847

 

3,776

Investment in marketable securities

 

(4,612)

 

(4,858)

 

(32,556)

 

(17,010)

Proceeds from disposition of marketable securities

 

15,143

 

5,137

 

37,632

 

18,027

Cash used in investing activities

 

(100,371)

 

(109,038)

 

(352,463)

 

(341,924)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Mortgage financings and credit facilities

 

 

 

 

 

 

 

 

Borrowings, net of financing costs

 

119,736

 

5,954

 

281,623

 

232,003

Principal instalment payments

 

(10,245)

 

(9,424)

 

(30,101)

 

(26,776)

Repayments on maturity

 

(55,767)

 

(104,747)

 

(223,297)

 

(257,805)

Issuance of common shares, net of issue costs

 

1,323

 

2,280

 

4,309

 

33,508

Issuance of senior unsecured debentures, net of issue costs

 

(28)

 

198,359

 

198,276

 

297,083

Issuance of convertible debentures, net of issue costs

 

(4)

 

-

 

53,302

 

-

Payment of dividends

 

(4,991)

 

(6,804)

 

(15,213)

 

(16,832)

Cash provided by financing activities

 

50,024

 

85,618

 

268,899

 

261,181

Effect of currency rate movement on cash balances

 

382

 

35

 

(385)

 

330

(Decrease) increase in cash and cash equivalents

 

(24,194)

 

(3,588)

 

3,372

 

(476)

Cash and cash equivalents, beginning of the period

 

34,376

 

8,447

 

6,810

 

5,335

Cash and cash equivalents, end of the period

$

10,182

$

4,859

$

10,182

$

4,859

SUPPLEMENTARY INFORMATION

 

 

 

 

 

 

 

 

Cash income taxes paid (refunded)

$

(143)

$

2,363

$

761

$

3,385

Cash interest paid

$

30,449

$

24,196

$

83,938

$

68,777

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