BPO Properties Reports First Quarter Results.TORONTO -- BPO BPO Business Process Outsourcing BPO Benevolent & Protective Order (of Elks of the USA) BPO Benzoyl Peroxide BPO Business Process Optimization BPO Broker Price Opinions BPO Buffalo Philharmonic Orchestra Properties Ltd. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BPP (Bits Per Pixel) See bit depth. bpp - bits per pixel ) today announced financial results for the three months ended March 31, 2005.
---------------------------------------------------------------------
(Millions, except per share amounts) 2004
Excluding Including
property property
Three months ended March 31 disposition disposition
2005 gains gains
---------------------------------------------------------------------
Funds from operations (FFO)
- $ (millions) $ 26.2 $ 27.0 $ 33.0
- per share $ 0.82 $ 0.84 $ 1.05
Net income
- $ (millions) $ 21.3 $ 16.0 $ 20.8
- per share $ 0.64 $ 0.45 $ 0.62
---------------------------------------------------------------------
For the three months ended March 31, 2005, BPO Properties' funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. ("FFO FFO See: Funds from operations ") was $26.2 million ($0.82 per share) compared to $27.0 million ($0.84 per share) for the same period in 2004. Including the $6.0 million gain recorded on the sale of the company's interest in Gulf Canada Square
Canada Square is a public square at Canary Wharf, on the Isle of Dogs in London's Docklands. , FFO was $33.0 million for the three months ended March 31, 2004. Net income for the three months ended March 31, 2005 was $21.3 million ($0.64 per share) up from $20.8 million ($0.62 per share) during the same period in 2004. "Our focused strategy of investing in select Canadian cities, pro-actively leasing to solid tenants, along with disciplined asset and capital management, has enabled us to produce consistently strong results," said Tom Farley, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of BPO Properties. OPERATIONS REVIEW The portfolio was 94.8% occupied at quarter-end compared to a Canadian national average of 90.1%. BPO Properties pro-actively leased more than 400,000 square feet of space during the quarter, approximately three times the amount contractually expiring. Leasing highlights from the first quarter include: Toronto - Eight-year renewal with National Bank for 139,000 square feet at Exchange Tower - Five-year renewal with Land Registry The configuration database in all 32-bit versions of Windows that contains settings for the hardware and software in the PC it is installed in. The Registry is made up of the SYSTEM.DAT and USER.DAT files. Many settings previously stored in the WIN.INI and SYSTEM. for 90,000 square feet at Atrium on Bay The Atrium on Bay is a retail and office complex on the former site of the Ford Hotel on Dundas Street West, extending from Yonge Street to Bay Street. The 14-floor building was built in 1981 with two floors of retail stores. - Thirteen-year lease with Allard Johnson Communications for 17,000 square feet at Hudson's Bay Centre Calgary - Ten-year expansion with Talisman Energy Talisman Energy TSX: TLM is one of Canada's largest petroleum companies. It was originally part of British Petroleum, known as BP Canada, but in 1992 it became an independent company named Talisman Energy. for 60,000 square feet at Bankers Hall Bankers Hall is a building complex located in downtown Calgary, Alberta, which includes twin 52-storey office towers (197 metres high), designed by the architectural firm Cohos Evamy in postmodern architectural style. - Ten-year expansion with EnCana Corporation EnCana Corporation is one of the largest independently owned oil and gas companies in the world. In both 2003 and 2004 it was Canada's most profitable company, with approximately $3.5 billion (U.S.) in profits on $12.2 billion in revenue. for 60,000 square feet at Bankers Hall MARKET HIGHLIGHTS While each of BPO Properties' markets has shown significant improvement during the quarter, the positive momentum in Calgary is particularly noteworthy. The economic boom in Alberta driven by the oil and gas industry has resulted in double-digit annual gains in retail sales growth, home sales, exports and manufacturing shipments in the Western Canadian province Noun 1. Canadian province - Canada is divided into 12 provinces for administrative purposes province, state - the territory occupied by one of the constituent administrative districts of a nation; "his state is in the deep south" . Unemployment stands at a very healthy 4.2%. With a rapidly expanding tenant base, the demand for office space in downtown Calgary Downtown Calgary is a region of central Calgary, Alberta. It is not a single neighbourhood per se, but is actually a larger community containing three neighbourhoods and a number of districts. Generally speaking, downtown Calgary is bordered by 14th Street W. is strong. Market vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. is 6.4%; BPO Properties has virtually no vacancy For No Vacancy (band), see . No Vacancy is a standard sign in motels indicating there are no rooms available for rent at the moment. In many places the word "No" in the sign is made of a neon light bulb and can be turned on (to indicate "no vacancy") or turned off (to in its seven million square foot portfolio. OUTLOOK "We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that our premier office portfolio will continue to attract quality tenants and position us for long-term growth. Additionally, we are encouraged by the strong Western Canadian economy which has produced better-than-anticipated demand particularly for our premier assets," concluded Farley. Dividend Declaration The Board of Directors of BPO Properties declared a quarterly common share dividend of $0.15 per share, payable June 30, 2005 to shareholders of record at the close of business on June 1, 2005. The Board of Directors also declared dividends declared dividend A dividend authorized by a firm's board of directors. At the time a dividend is declared, the firm creates a liability for the dividend's payment. on series G, J and M preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , payable August 14, 2005, record date of July 30, 2005, for the period May 14, 2005 to August 13, 2005. The dividend per preferred share is to be computed in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the terms of the shares. Conference Call BPO Properties' year-end conference call can be accessed by teleconference on Monday, May 2 at 4 p.m. E.T. at 800-653-4799. The call will be archived through May 9, 2005 and can be accessed by dialing 800-653-4806. The conference call can also be accessed by Web cast on the BPO Properties Web site at www.bpoproperties.com. Supplemental Information Investors, analysts and other interested parties can access BPO Properties' Supplemental Information Package on BPO Properties' Web site under the Investor Relations/Financial Reports section. This additional financial information should be read in conjunction with this press release. BPO Properties Profile BPO Properties Ltd. is a Canadian company that invests in real estate, focusing on the ownership and value enhancement of premier office properties. The current property portfolio is comprised of interests in 17 commercial properties and development sites totaling 14.1 million square feet, including landmark properties such as the Exchange Tower, home of the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. , and Bankers Hall in Calgary. BPO Properties' common shares trade on the TSX under the symbol BPP. Further information about the company can be found at www.bpoproperties.com. Note: This press release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " that are based on certain assumptions and reflect the company's current expectations. The words "believe," "expect," "anticipate," "intend," "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include general economic conditions, local real estate conditions, timely re-leasing of occupied square footage upon expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created , interest rates, availability of equity and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay and other risks detailed from time to time in the documents filed by the company with the securities regulators in Canada. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release makes reference to "funds from operations" on a total and per share basis. Management uses funds from operations as a key measure to evaluate performance. Shareholders are encouraged to consider both net income and funds from operations in assessing BPO Properties' results.
CONSOLIDATED BALANCE SHEET
---------------------------------------------------------------------
March 31 December 31
(Millions) 2005 2004
---------------------------------------------------------------------
Assets
Commercial properties $ 1,000.4 $ 1,003.9
Marketable securities and other investments 376.6 377.9
Loans receivable 93.0 91.7
Future income taxes 52.1 49.2
Other assets 32.3 28.5
Cash and cash equivalents 19.1 11.2
---------------------------------------------------------------------
$ 1,573.5 $ 1,562.4
---------------------------------------------------------------------
---------------------------------------------------------------------
Liabilities and shareholders' equity
Commercial property debt $ 653.8 $ 655.8
Accounts payable and other liabilities 44.6 45.6
Shareholders' equity 875.1 861.0
---------------------------------------------------------------------
$ 1,573.5 $ 1,562.4
---------------------------------------------------------------------
---------------------------------------------------------------------
CONSOLIDATED STATEMENT OF INCOME
---------------------------------------------------------------------
Three Months Ended March 31
(Millions, except per share amounts) 2005 2004
---------------------------------------------------------------------
Commercial Properties
Revenue $ 54.7 $ 54.8
Expenses 25.7 27.3
---------------------------------------------------------------------
29.0 27.5
Loans and investment income 10.0 13.0
---------------------------------------------------------------------
39.0 40.5
---------------------------------------------------------------------
Expenses
Interest expense 10.8 11.4
Administrative expenses and large corporation tax 2.0 2.1
---------------------------------------------------------------------
26.2 27.0
Property disposition gains - 6.0
---------------------------------------------------------------------
26.2 33.0
Depreciation and amortization 7.8 6.7
Future income taxes and other non-cash items (2.9) 5.5
---------------------------------------------------------------------
Net income $ 21.3 $ 20.8
---------------------------------------------------------------------
---------------------------------------------------------------------
Net income per common share $ 0.64 $ 0.62
---------------------------------------------------------------------
---------------------------------------------------------------------
BPO Properties Ltd. (TSX:BPP) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion