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.
Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.
The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.
Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.
The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.
Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”
“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.
“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”
Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.
The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.
It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.
Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.
It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.
“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.
Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.
The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.
Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.
The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.
“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.
Asked how long that environment could last, he said that’s out of Telus’ hands.
“What I can control, though, is how we go to market and how we lead with our products,” he said.
“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”
Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.
On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.
That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.
Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”
“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.
“We will continue to monitor developments and will take further action if our codes are not being followed.”
French said any initiative to boost transparency is a step in the right direction.
“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.
“I think everyone looking in the mirror would say there’s room for improvement.”
This report by The Canadian Press was first published Nov. 8, 2024.
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
