Retrocom REIT Announces 2012 Results

Thu Mar 7, 2013 8:46pm EST

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Retrocom Mid-Market Real Estate Investment Trust

March 7, 2013 - 08:45:41 PM

Retrocom REIT Announces 2012 Results

TORONTO, ONTARIO--(Marketwire - March 7, 2013) - 


Retrocom Mid-Market Real Estate Investment Trust (TSX:RMM.UN) (the "REIT")
today announced results for the fourth quarter and the year ended December 31,


--  Net Operating Income ("NOI") and Funds from Operation, adjusted ("FFO,
    adjusted") increased by 6.4% and 31.7% respectively for the year ended
    December 31, 2012 compared with the comparative period last year. 
--  Improved Debt to Gross Book Value ratio as at December 31, 2012 to
--  Acquired three investment properties for $61.9 million consisting of
    247,000 square feet of GLA. The REIT obtained three 10 year mortgage
    loans totalling $37.5 million at a weighted average interest rate of
--  Completed approximately $34 million of mortgage re-financing and
    renewals at a 253 basis point lower interest rate. 
--  Raised $73.5 million through public offerings of trust units. 
--  Canadian Tire leased 135,000 square feet at Southland Mall, representing
    2.4% of the portfolio GLA. The REIT also plans a $6.4 million renovation
    of the property. 
--  The REIT has accepted an assignment from Zellers of the lease at
    Yorkgate Mall and has released the premises for 10 years at higher
--  In place portfolio occupancy on December 31, 2012 was 89.4%, up from
    86.0% at the end of 2011, and committed portfolio occupancy was 92.1%.

Financial Highlights

                                        Three     Three                     
                                       months    months      Year      Year 
                                        ended     ended     ended     ended 
                                       Dec 31    Dec 31    Dec 31    Dec 31 
(all amounts in $000's, except per                                          
 unit amounts and ratios)                2012      2011      2012      2011 
Rental revenue and other income        20,586    20,281    80,258    77,923 
Property operating expenses            10,227     9,377    37,177    36,477 
Property operating income              10,359    10,904    43,081    41,446 
Share of joint venture net operating                                        
 income                                   317        45     1,049        45 
Net operating income (1)               10,676    10,949    44,130    41,491 
Trust expenses                          1,023     1,109     4,055     4,528 
Transaction costs on issuance of                                            
 convertible debentures                     -         -         -     1,973 
Finance costs - joint venture                                               
 operations                                66         -       178         - 
Finance costs-operations                4,440     4,960    18,647    20,076 
Finance costs-distributions on Class                                        
 B Units                                1,025     1,025     4,100     4,100 
Income before fair value gains                                              
 (losses) and other income              4,122     3,855    17,150    10,814 
Fair value gains (losses) associated                                        
 w ith financial instrument             2,975   (11,156)   (7,301)   (1,986)
Fair value gain on investment                                               
 property                              38,886     8,967    57,605     5,529 
Fair value gains (losses) on                                                
 participant's rights under LTIP           40       (61)        6       168 
Fair value gains (losses) on joint                                          
 venture property                          18     5,051       647     4,916 
Loss from sale of investment                                                
 property                                   -         -      (105)        - 
Other income settlement                     -         -     1,090         - 
Income for the period                  46,041     6,656    69,092    19,441 
FFO, adjusted (2)                       5,174     4,927    22,450    17,041 
FFO, adjusted per unit               $  0.095  $  0.111  $  0.446  $  0.410 
FFO, adjusted payout ratio              118.4%    101.4%    100.9%    109.8%
Distributions per unit               $ 0.1125  $ 0.1125  $ 0.4500  $ 0.4500 

Full Financial Results and MD&A will be available on SEDAR ( as
well as the Investors Relations section of the REIT's website

(1)  A non-IFRS measurement, calculated by the REIT as rental revenue (net  
     rents, property tax and operating cost recoveries, as well as other    
     miscellaneous income from tenants) less operating expenses for         
(2)  The reconciliations from net income (loss) to Funds from Operations,   
     adjusted are included in the REIT's MD&A.                              

The REIT's management considers Net Operating Income, Funds from Operations,
Funds from Operations, adjusted, and Debt to Gross Book Value ratio to be
indicative measures in evaluating the REIT's performance. The table above
includes non-IFRS information that should not be construed as an alternative
to net income or cash flows from operations and may not be comparable to
similar measures presented by other issuers as there is no standardized
meaning prescribed by IFRS.

Conference Call

Retrocom REIT will hold a conference call on Friday, March 8, 2013 at 10:00am
(ET). Participating on the call will be members of the REIT's senior

Investors are invited to access the call by dialling 416-644-3415 or
1-877-974-0445. You will be required to identify yourself and the organization
on whose behalf you are participating. A recording of this call will be made
available Friday, March 8, 2013 beginning around 11:00 am (ET) through to
Tuesday, March 26, 2013. To access the recording, please call 416-640-1917 or
1-877-289-8525 and use the reservation number 4599177#.

About Retrocom REIT

Retrocom REIT is an unincorporated, open-end real estate investment trust
which focuses on owning and acquiring retail properties across Canada with the
goal of enhancing long-term Unitholder value.

Forward-Looking Information

This press release may contain forward-looking statements. In some cases,
forward-looking statements can be identified by the use of words such as
"may", "will", "should", "expect", "plan", "anticipate", "believe",
"estimate", "predict", "potential", "continue", and by discussions of
strategies that involve risks and uncertainties. The forward-looking
statements are based on certain key expectations and assumptions made by the
REIT. By their nature, forward-looking statements involve numerous
assumptions, inherent risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions, forecasts, projections and
various future events will not occur. Although management of the REIT believes
that the expectations reflected in the forward-looking statements are
reasonable, there can be no assurance that future results, levels of activity,
performance or achievements will occur as anticipated. Neither the REIT nor
any other person assumes responsibility for the accuracy and completeness of
any forward-looking statements, and no one has any obligation to update or
revise any forward-looking statement, whether as a result of new information,
future events or such other factors which affect this information, except as
required by law.

This press release shall not constitute an offer to sell or the solicitation
of an offer to buy, which may be made only by means of a prospectus, nor shall
there be any sale of the Units in any state, province or other jurisdiction in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under securities laws of any such state, province or other
jurisdiction. The Units of the Retrocom Mid-Market REIT have not been, and
will not be registered under the U.S. Securities Act of 1933, as amended, and
may not be offered, sold or delivered in the United States absent registration
or an application for exemption from the registration requirements of U.S.
securities laws.

Retrocom Mid-Market Real Estate Investment Trust
Richard Michaeloff
Chief Executive Officer
(416) 741-7999
(416) 741-7993 (FAX)
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