TORONTO, Nov. 11, 2020 (GLOBE NEWSWIRE) — WPT Industrial Real Estate Investment Trust (the “REIT”) (TSX: WIR.U; WIR.UN; OTCQX: WPTIF) announced today its results for the three and nine months ended September 30, 2020. All dollar amounts are stated in U.S. funds.Highlights for the three months ended September 30, 2020: * Collected 99.6% of billed rent for the quarter, continuing the REIT’s record of strong rent collections * Investment properties revenue and net operating income (“NOI”)(1) increased 55.5% and 52.2%, respectively, over the same period last year * Funds from operations (“FFO”)(1) and adjusted funds from operations (“AFFO”)(1) increased 48.7% and 43.5%, respectively, over the same period last year * Occupancy increased to 98.3% from 97.4% in the second quarter * Weighted average cash and straight-line rent re-leasing spreads of 15.9% and 21.3%, respectively, for lease renewals signed in the quarter “The REIT continued its strong operating performance with Q3 representing another quarter of nearly 100% rent collection and positive momentum on the leasing front, including increased occupancy and favorable re-leasing spreads on renewals. We also expanded our proprietary development pipeline and third-party assets under management during the quarter and look forward to building on that momentum and growth in the quarters to come,” commented Scott Frederiksen, Chief Executive Officer. FINANCIAL AND OPERATIONAL HIGHLIGHTS(all figures in thousands of US dollars, except per Unit amounts, ratios, percentages, number of investment properties, amounts related to remaining lease term and GLA) Three months ended September 30,Nine months ended September 30, 2020 2019 2020 2019 Operating Results: Investment properties revenue$45,621 $29,335 $122,938 $83,247 Management fee revenue$916 $2,237 $1,285 $3,086 NOI (1)$33,151 $21,788 $88,575 $61,093 Net income and comprehensive income$78,419 $21,342 $175,871 $71,619 Net income and comprehensive income per Unit (basic) (2)(3)$0.922 $0.362 $2.069 $1.257 Net income and comprehensive income per Unit (diluted) (2)(4)$0.900 $0.351 $2.019 $1.218 FFO (1)$22,020 $14,807 $53,162 $37,382 FFO per Unit (diluted) (1)(2)(4) $0.253 $0.243 $0.636 $0.636 AFFO (1) (5)$17,192 $11,980 $40,803 $28,437 AFFO per Unit (diluted) (1)(2)(4) $0.197 $0.197 $0.491 $0.484 Cash flows from operations$33,227 $20,246 $83,625 $53,278 Adjusted Cash Flows from Operations (“ACFO”) (1) $20,148 $12,577 $49,564 $33,534 Book value per Unit (1)$13.72 $13.09 $13.72 $13.09 Distributions: Distributions per Unit (2)(5)$0.190 $0.190 $0.570 $0.570 Distributions declared (3)(5)$16,304 $11,353 $47,696 $33,385 ACFO payout ratio (1)(5) 80.9% 90.3% 96.2% 99.6% Weighted average number of Units (basic) (2)(3) 84,980 59,014 81,048 56,954 Weighted average number of Units (diluted) (2)(4) 87,076 60,875 83,051 58,789 As at September 30, 2020 December 31, 2019 Operational Information: Number of investment properties 99 74 Number of investment properties under development (PUD) 1 – GLA 31,653,999 22,870,482 Occupancy 98.3% 99.0% Average remaining lease term (years) 4.5 4.9 Fair value of investment properties $2,359,318 $1,573,077 Debt Metrics: Weighted average effective interest rate (6) 3.0% 3.8% Variable interest rate debt as percentage of total debt (7) 12.4% 24.7% Debt-to-assets (1) 47.4% 41.2% Interest coverage ratio (1) 3.0x 3.1x Fixed charge coverage ratio (1) 2.8x 2.7x Debt to Adjusted EBITDA (1) 9.0x 8.2x (1) NOI, same properties NOI, FFO, FFO per Unit (diluted), AFFO, AFFO per Unit (diluted), ACFO, Book value per Unit, ACFO payout ratio, cash re-leasing spread, straight-line rent re-leasing spread, debt-to-assets, interest coverage ratio, fixed charge coverage ratio, capitalization rate and debt to Adjusted EBITDA (“Adjusted EBITDA” is defined as earnings before fair value adjustments to investment properties, interest (inclusive of finance costs), taxes, depreciation and amortization) are key measures of operating results and financial performance used by real estate operating companies, however, they are not defined by International Financial Reporting Standards (“IFRS”), do not have standard meanings and may not be comparable with other industries or issuers. This data should be read in conjunction with the “Non-IFRS Measures” section of the REIT’s MD&A. (2) Includes trust units of the REIT (“REIT Units”) and class B partnership units of WPT Industrial, LP (the “Partnership”) (“Class B Units”) (collectively, the “Units”). (3) Excludes all options, deferred trust units (“DTUs”), and deferred limited partnership units (“DPUs”) outstanding under the REIT’s deferred compensation plans. (4) Includes all options, DTUs, and DPUs outstanding under the REIT’s deferred compensation plans. (5) Includes distributions on the Units and Subscription Receipts (defined herein). (6) Includes mortgages payable, the Credit Facility, mark-to-market adjustments and financing costs. (7) Includes amounts outstanding under the Credit Facility. OPERATING PERFORMANCE For the three and nine months ended September 30, 2020, investment properties revenue increased $16.3 million or 55.5% and $39.7 million or 47.7%, respectively, compared to the same period last year. The increase was primarily due to the contribution from 2019 and 2020 acquisitions and an increase in base rent in existing properties. Net income and comprehensive income for the nine months ended September 30, 2020 was $175.9 million compared to $71.6 million in the same period last year. Net income and comprehensive income for the three months ended September 30, 2020 was $78.4 million compared to $21.3 million in the same period last year. The increase in net income is mainly due to fair value adjustments to investment properties of $53.6 million and $55.5 million for the three and nine months ended September 30, 2020, respectively, in addition to a non-cash fair value adjustment of $103.3 million in the first quarter related to the exchange of Subscription Receipts for REIT Units.NOI for the three and nine months ended September 30, 2020 was up 52.2% and 45.0%, respectively, compared to the same period last year. Same properties NOI increased 1.7% and 1.8% for the three and nine months ended September 30, 2020, respectively, primarily due to increases in contractual base rent partially offset by reductions in occupancy in properties held in both periods.FFO for the three and nine months ended September 30, 2020 was up 48.7% and 42.2%, respectively, compared to the same period last year. AFFO for the three and nine months ended September 30, 2020 was up 43.5% and 43.5%, respectively, compared to the same period last year. Both FFO and AFFO were mainly impacted by increased properties revenue due to acquisitions, increases in base rent, and a reduction in general and administrative expenses compared to the prior period. FFO per Unit for the three months ended September 30, 2020 was up $0.010 per Unit or 4.1% compared to the same period last year. FFO per Unit for the nine months ended September 30, 2020 was flat compared to the same period last year. AFFO per Unit for the three months ended September 30, 2020 was flat compared to the same period last year. AFFO per Unit for the nine months ended September 30, 2020 was up $0.007 per Unit or 1.4%, compared to the same period last year. FFO per Unit and AFFO per Unit were also impacted by a 43.0% and 41.3% increase in the weighted average number of Units outstanding compared to the same three and nine month period last year.Cash flows from operations and ACFO were up 64.1% and 60.2%, respectively, for the quarter and 56.9% and 47.8%, respectively, year-to-date compared to the same periods last year. The REIT’s ACFO payout ratio for the three and nine months ended September 30, 2020 was 80.9% and 96.2%. The ACFO payout ratio for the nine months was directly affected by the timing of equity financings in October 2019 and February 2020 relative to the timing of deployment of such proceeds and early repayment of secured indebtedness. Cash flows from operations and ACFO were higher compared to the same period last year, primarily due to increased NOI from 2019 and 2020 acquisition activity and a decrease in free rent.LEASING ACTIVITY The REIT had 260,500 square feet of new leases and 1,427,500 square feet of lease renewals commence in the third quarter. Lease renewals commencing in the quarter had a weighted average cash re-leasing spread and straight-line rent re-leasing spread of 12.2% and 20.1%, respectively. Lease renewals signed in the third quarter had a weighted average cash re-leasing spread and straight-line rent re-leasing spread of 15.9% and 21.3%, respectively.As at September 30, 2020, the REIT’s occupancy increased to 98.3%.FINANCIAL & LIQUIDITY POSITION As at September 30, 2020, the REIT’s debt-to-asset ratio was 47.4% with interest and fixed charge coverage ratios of 3.0 and 2.8 times, respectively, and a debt-to-Adjusted EBITDA ratio of 9.0 times. The weighted average effective interest rate on outstanding debt was 3.0% at September 30, 2020 with a weighted average term to maturity on the REIT’s mortgages payable and total debt of 3.6 years and 3.6 years, respectively. Weighted average remaining lease term was 4.5 years.As at September 30, 2020, the REIT had approximately $156.5 million available to be drawn on the Credit Facility and cash on hand of $19.5 million, for total liquidity of approximately $176.0 million. The REIT has no mortgages maturing in 2020 and only one mortgage loan, with a balance of $6.3 million, maturing in 2021.The REIT will continue to focus on capital recycling initiatives in the remainder of 2020 and early 2021 in an effort to further strengthen the REIT’s balance sheet and create additional flexibility to allocate capital to the REIT’s growing development pipeline.PRIVATE CAPITAL AND DEVELOPMENT ACTIVITY The REIT generated $0.9 and $1.3 million of management fee revenue during the three and nine months ended September 30, 2020, consisting of recurring management fees.The REIT has eleven projects representing a total of approximately 4.6 million square feet of modern distribution and logistics real estate in its private capital development pipeline, including new projects in the Phoenix, New York and Los Angeles markets. The REIT expects these eleven projects to include approximately $228 million of total contributed equity, with $195 million funded by third-party partners.RECENT EVENTS On July 31, 2020, the REIT acquired a land parcel located in Mansfield, New Jersey through a development joint venture for a purchase price of $39.0 million (exclusive of closing and transaction costs). The REIT is developing approximately 772,000 square feet of modern distribution and logistics space on the site and funding 10% of the required equity for the project, with the remaining 90% of required project equity funded by third-party partners.On August 28, 2020, the REIT sold the investment property located at 1370 Discovery Industrial Court, Mableton, Georgia to a third-party purchaser for net cash proceeds of approximately $10.0 million. The proceeds from the sale were used to repay indebtedness.On August 28, 2020, the REIT contributed a land parcel in Eagan, Minnesota into a private capital joint venture for a combination of cash and equity interests in the joint venture. The REIT is developing a distribution building on the property on behalf of the joint venture totaling approximately 206,000 square feet of GLA.On September 3, 2020, the REIT contributed a land parcel in Houston, Texas into a private capital joint venture for a combination of cash and equity interests in the joint venture. The REIT is developing one or more industrial buildings on the property on behalf of the joint venture totaling approximately 500,000 square feet.RENT COLLECTION UPDATE As of November 11, 2020, the REIT has received over 99% of contractual rents for August, September, October and November 2020.INVESTOR CONFERENCE CALL A conference call will be hosted by the REIT’s management team on Thursday, November 12, 2020 at 10:00 am Eastern Time. The telephone numbers to participate in the conference call are Canada Toll Free: (855) 669-9657, U.S. Toll Free (888) 249-8268 and International: (412) 902-4153. The live audio conference call will also be available as a webcast. To access the live audio webcast please access the link on the “Investors” page on our web site at www.wptreit.com. The telephone numbers to listen to the call after it is completed (Instant Replay) are Canada Toll Free (855) 669-9658, U.S. Toll Free (877) 344-7529 and International (412) 317-0088. The Passcode for the Instant Replay is 10148510. A recording of the call will also be archived on the REIT’s web site at www.wptreit.com.About WPT Industrial Real Estate Investment Trust WPT Industrial Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT acquires, develops, manages and owns distribution and logistics properties located in the United States. WPT Industrial, LP (the REIT’s operating subsidiary) indirectly owns or manages a portfolio of properties across 20 U.S. states consisting of approximately 35.6 million square feet of GLA and 108 properties. The REIT pays monthly cash distributions, currently at $0.0633 per Unit, or approximately $0.76 per Unit on an annualized basis, in US funds.For more information, please contact:Scott Frederiksen, Chief Executive Officer WPT Industrial Real Estate Investment Trust Tel: (612) 800-8501Forward-Looking Statements This press release contains “forward-looking information” as defined under applicable Canadian securities law (“forward-looking statements”) which reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT, including statements concerning (i) expected growth opportunities and the availability of acquisition opportunities from its private capital pipeline, (ii) expectations regarding debt refinancing, capital recycling and associated impacts on the REIT’s liquidity position and (iii) the impact on the REIT of the occurrence of and response to the coronavirus disease 2019 (COVID-2019) pandemic. The words “plans”, “expects”, “scheduled”, “estimates”, “intends”, “anticipates”, “projects”, “believes” or variations of such words and phrases (including negative variations) or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “occur”, “be achieved” or “continue” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management of the REIT as of the date of this press release, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such estimates, beliefs and assumptions include, but are not limited to, the REIT’s ability to complete due diligence and entitlements on private capital development pipeline opportunities, the REIT’s ability to complete development and investment transactions, the REIT’s ability to undertake capital recycling through asset sales, results of operations, future prospects and opportunities, the demographic and industry trends remaining unchanged, no change in legislative or regulatory matters, future levels of indebtedness, the tax laws as currently in effect remaining unchanged, the continual availability of capital, the current economic conditions remaining unchanged, continued positive net absorption and declining vacancy rates in the markets in which the REIT’s properties are located, and anticipated and potential adverse impacts resulting from the COVID-19 pandemic.When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved, if achieved at all. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed or referenced under “Risk Factors” in the REIT’s most recently filed annual information form and management’s discussion and analysis, each of which are available under the REIT’s profile on SEDAR at www.sedar.com. These forward-looking statements have been approved by management to be made as of the date of this press release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.The COVID-19 pandemic has cast additional uncertainty on the REIT’s prior expectations, future outlook, anticipated events and projections. There can be no assurance that they will continue to be valid. Given the rapid pace of change with respect to the impact of the COVID-19 pandemic, it is premature to make further assumptions about these matters. The duration, extent and severity of the impact the COVID-19 pandemic, including measures to prevent its spread, will have on the REIT’s business is highly uncertain and impossible to accurately predict at this time.
Shares take a breather after stellar month, China data upbeat – reuters.com
SYDNEY (Reuters) – World shares paused to assess a record-busting month on Monday as the prospect of a vaccine-driven economic recovery next year and yet more free money from central banks eclipsed immediate concerns about the coronavirus pandemic.
Helping sentiment was a survey showing factory activity in China handily beat forecasts in November, and the country’s central bank surprised with a helping of cheap loans. That left blue chips up 1.3% on the day and 7.4% for the month.
The rush to risk has also benefited oil and industrial commodities while undermining the safe-haven dollar and gold.
“November looks set to be an awesome month for equity investors with Europe leading the charge at a country/regional level,” said NAB analyst Rodrigo Catril.
Many European bourses are boasting their best month ever with France up 21% and Italy almost 26%. The MSCI measure of world stocks is up 13% for November so far, while the S&P 500 has climbed 11% to all-time peaks.
Early Monday, MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.4%, to be up almost 11% for the month in its best performance since late 2011.
Japan’s Nikkei 225 eased 0.4%, but was still 15.4% higher on the month for the largest rise since 1994.
E-Mini futures for the S&P 500 dipped 0.4%, and EUROSTOXX 50 futures 0.6%.
“Markets are overbought and at risk of a short term pause,” said Shane Oliver, head of investment strategy at AMP Capital.
“However, we are now in a seasonally strong time of year and investors are yet to fully discount the potential for a very strong recovery next year in growth and profits as stimulus combines with vaccines.”
Cyclical recovery shares including resources, industrials and financials were likely to be relative outperformers, he added.
The surge in stocks has put some competitive pressure on safe-haven bonds but much of that has been cushioned by expectations of more asset buying by central banks.
Sweden’s Riksbank surprised last week by expanding its bond purchase program and the European Central Bank is likely to follow in December.
DOLLAR IN DECLINE
Federal Reserve Chair Jerome Powell testifies to Congress on Tuesday amid speculation of further policy action at its next meeting in mid-December.
As a result U.S. 10-year yields are ending the month almost exactly where they started at 0.84%, a solid performance given the exuberance in equities.
The U.S. dollar has not been as lucky.
“The idea that a potential Treasury Secretary (Janet) Yellen and Fed chair Powell could work more closely to shape and coordinate super easy monetary policy and massive fiscal stimulus that could drive a rapid post pandemic recovery saw the dollar under pressure,” said Robert Rennie, head of financial market strategy at Westpac.
Against a basket of currencies, the dollar index was pinned at 91.771 having shed 2.4% for the month to lows last seen in mid-2018.
The euro has caught a tailwind from the relative outperformance of European stocks and climbed 2.7% for the month so far to reach $1.1967. A break of the September peak at $1.2011 would open the way to a 2018 top at $1.2555.
The dollar has even declined against the Japanese yen, a safe-haven of its own, losing 0.7% in November to reach 103.89 yen, though it remains well above key support at 103.16.
Sterling stood at $1.3334, having climbed steadily this month to its highest since September, as investors wagered a Brexit deal would be brokered even as the deadline for talks loomed ever larger.
One major casualty of the rush to risk has been gold, which was near a five-month trough at $1,771 an ounce having shed 5.6% so far in November.
Oil, in contrast, has benefited from the prospect of a demand revival should the vaccines allow travel and transport to resume next year. [O/R]
Some profit-taking set in early Monday ahead of an OPEC+ meeting to decide whether the producers’ group will extend large output cuts. Brent crude futures fell 52 cents to $47.66, while U.S. crude eased 60 cents to $44.93 a barrel.
Editing by Lincoln Feast & Simon Cameron-Moore
Alberta reports 1,608 new cases of COVID-19, second highest number during pandemic – CBC.ca
Alberta reported 1,608 new cases of COVID-19 and nine additional deaths on Sunday.
The total number of active cases in Alberta grew to 15,692, according to the province. There are 435 people in the hospital and 95 in intensive care.
According to the province there is a “brief delay in a death being reported to Alberta Health or in a death being confirmed post-mortem as having COVID-19 as a contributing cause”.
The nine deaths brings the provincial total to 533. Five of which are linked to the outbreak at the Edmonton Chinatown Care Centre in Edmonton. They include a man and woman, both in their 80s who died on Nov. 25. They had underlying conditions along with COVID-19. A man in his 70s who died on Nov. 26 who also had underlying conditions. Another man and woman in their 90s who died on Nov. 27 also had one or more additional conditions.
The remaining deaths include a man in his 90s linked to the outbreak at Westlock Continuing Care Centre in North Zone. The province did not confirm if he had underlying conditions. Another man in his 90s in south zone who died on Nov. 28 also with underlying conditions.
Another man in his 80s linked to the outbreak at Laurel Heights Retirement Residence in Edmonton Zone who died on Nov. 28, and a man in his 80s who died on Nov. 29 due to the outbreak at Clifton Manor in Calgary Zone. The province could not confirm underlying conditions for either.
A regional breakdown of cases as of Saturday shows the impact of COVID-19 in different parts of the province:
Calgary zone: 5,756 active cases
South zone: 642 active cases
Edmonton zone: 7,230 active cases
North zone: 857 active cases
Central zone: 1,101 active cases
Unknown: 106 active cases
The majority of people in the hospital and ICU are from the Edmonton zone. There are 222 people hospitalized in Edmonton and 50 in intensive care. In comparison, Calgary has 138 people in hospital and 33 in intensive care. The remaining zones’ hospitalizations are in double digits.
ICU admissions near 100 in Alberta, 1,608 new COVID-19 cases – Calgary Herald
Article content continued
The current outbreak at Clifton Manor, in southeast Calgary, has had 41 positive cases, 39 of which are active, with one recovery and one death. This is the second outbreak at Clifton Manor. The first resulted in seven deaths and 38 recoveries.
Hundreds of anti-maskers rally in Calgary
Saturday’s anti-mask protest of approximately 1,000 people in front of city hall was led by a group called Walk for Freedom, which said on social media it was rallying to “protect our Charter rights.”
On Friday, Calgary Mayor Naheed Nenshi called anti-mask rallies “illegal” due to provincial limits on outdoor gatherings.
New provincial rules introduced Tuesday restrict outdoor gatherings to a maximum of 10 people and many municipalities, including Calgary, have bylaws making the use of face coverings mandatory in many settings, though they aren’t required outdoors.
“Of course, police will always use their discretion in cases like this. They don’t want the enforcement to cause more danger for people,” Nenshi said. “Whether you agree or disagree, it is your right to assemble peacefully, however right now the law says you can only assemble in a group of 10.”
The same day, Alberta Justice Minister Kaycee Madu said the province expected enforcement of COVID-19 public-health orders to ramp up, granting 700 additional peace officers across the province the powers to issue fines starting at $1,000 for egregious violations.
“As minister of justice, my expectation is that those who are in violation of the measures that we have put in place would have to be held accountable,” Madu said.
Shawn Rupchan with the Calgary Police Service said there wasn’t enforcement at the rally itself but there could be something on followup.
— With files from Jason Herring
Shares take a breather after stellar month, China data upbeat – reuters.com
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