World News: 00:05 GMT Wednesday 7th August 2019. [European Residential Real Estate Investment Trust via Globe Newswire via SPi World News]
TORONTO, Aug. 06, 2019 (GLOBE NEWSWIRE) -- European Residential Real Estate Investment Trust (“ERES” or the “REIT”) (TSX-V: ERE.UN) announced today its results for the three and six months ended June 30, 2019.
“During the second quarter of 2019, we continued to expand our presence within the European multi-residential sector. Our partnership with CAPREIT has allowed us to take advantage of accretive acquisition opportunities in order to to generate long-term value for our Unitholders” commented Phillip Burns, Chief Executive Officer of ERES. “Our target geographic markets, particularly the Netherlands, remain strong and stable, and we are confident that our operating performance will increase as we continue to leverage CAPREIT’s proven management platform.”
Net Operating Income (“NOI”) was €6.7 million for the three months ended June 30, 2019, up from €3.6 million for the three months ended June 30, 2018. NOI was €10.7 million for the six months ended June 30, 2019, up from €7.0 million in the six months ended June 30, 2018. The increases were due primarily to increased revenues coupled with reduced operating expenses. NOI margin strengthened to 78.7% for the three months ended June 30, 2019 from 68.9% in the quarter ended June 30, 2018, and 76.7% for the six months ended June 30, 2019 from 68.7% for the comparative period last year.
Funds from Operations (“FFO”) for the three and six months ended June 30, 2019 were €4.5 million (€0.039 per Unit) and €7.3 million (€0.073 per Unit), respectively, compared to €2.5 million (€0.031 per Unit) and €4.5 million (€0.055 per Unit) in the prior year periods. Adjusted Funds from Operations (“AFFO”) for the three and six months ended June 30, 2019 were €4.0 million (€0.035 per Unit) and €6.5 million (€0.066 per Unit), respectively, compared to €2.5 million (€0.030 per Unit) and €4.5 million (€0.055 per Unit) in the same prior year periods. The increases were primarily due to higher rental revenue and stabilized NOI in 2019 as well as the Acquisitions. FFO and AFFO are calculated by excluding the effects of certain non-recurring items such as property management company net losses and interest on related party loans incurred in 2018, and general and administrative expenses related to structuring.
“Our Pipeline Agreement with CAPREIT continues to provide us with access to funding to act quickly and efficiently on accretive acquisition opportunities,“ added Scott Cryer, Chief Financial Officer. “Our balance sheet continues to strengthen, and we are confident in our ability to exceed our previously published financial forecast.“
On July 10, 2019, the REIT drew €22.5 million on the New Revolving Credit Facility to pay CAPREIT and certain of its subsidiaries the remaining outstanding consideration in connection with its most recent acquisition of a portfolio of properties located in the Netherlands.
On July 15, 2019, the REIT declared its first monthly distribution in respect of July 2019 of €0.00875 per Unit and Class B LP Unit, being equivalent to €0.105 per Unit annualized. The distribution is payable to holders of the Units and Class B LP Units of record on July 31, 2019, with payment on August 15, 2019.
On July 29, 2019, the REIT filed a preliminary base shelf prospectus in connection with the qualification of up to C$750 million of securities.
A slide presentation to accompany Management’s comments during the conference call will be available 30 minutes prior to the conference call. To view the slides, access the ERES REIT website at , click on “Investor Relations,“ and follow the link at the top of the page. Please log on at least 15 minutes before the call commences.
The telephone numbers to listen to the call after it is completed (Instant Replay) are local/international (905) 694-9451 or North American toll free (800) 408-3053. The Passcode for the Instant Replay is 1590093#. The Instant Replay will be available until midnight, September 7th, 2019. The call and accompanying slides will also be archived on the ERES REIT website at www.eresreit.com.
ERES REIT’s Management Discussion and Analysis and Unaudited Financial Statements can be found at or
For more information please contact:
Phillip Burns Chief Executive OfficerEmail:
Scott CryerChief Financial OfficerEmail:
Globe Newswire: 00:05 GMT Wednesday 7th August 2019
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