Cadillac Fairview Reports 54 Percent Increase In 1998 Third Quarter Operating Cash Flow.TORONTO--(BUSINESS WIRE)--Sept. 17, 1998--Cadillac Fairview Fairview, borough (1990 pop. 10,733), Bergen co., NE N.J.; settled 1860, inc. 1894. Clothing and embroideries are made in Fairview. Co(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CDF (1) (Central Distribution Frame) A connecting unit (typically a hub) that acts as a central distribution point to all the nodes in a zone or domain. See MDF. .) (NYSE NYSE See: New York Stock Exchange :CDF) Cadillac Fairview The Cadillac Fairview Corporation is a development corporation which is a wholly owned subsidiary of the Ontario Teachers' Pension Plan. Cadillac Fairview owns, develops and manages property, malls and large office and retail spaces, mostly in Canada and the United States. Corporation announced today its financial results for the third quarter and the nine months ended July July: see month. 31, 1998. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the third quarter increased 54 percent to C$54.0 million on revenue of C$203.1 million compared to cash flow from operations of C$35.2 million on revenue of C$159.8 million for the three months ended July 31, 1997. On a per share basis, cash flow from operations for the three months ended July 31, 1998 was C$0.69 (C$0.66 fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) compared to C$0.53 (C$0.51 fully diluted) for the same period in 1997, an increase of 30 percent. Net income for the three months ended July 31, 1998 was C$17.2 million or C$0.22 per share compared to C$8.1 million or C$0.12 per share for the three months ended July 31, 1997. Net income in the current period was reduced by charges for early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of long term debt of C$5.1 million (C$0.07 per share) before income taxes, compared to C$1.9 million (C$0.03 per share) in 1997. Cash flow from operations for the nine months ended July 31, 1998 increased 50 percent to C$161.4 million on revenue of C$592.1 million compared to cash flow from operations of C$107.4 million on revenue of C$473.9 million for the nine months ended July 31, 1997. On a per share basis, cash flow from operations for the nine months ended July 31, 1998 was C$2.09 (C$2.00 fully diluted) compared to C$1.65 (C$1.58 fully diluted) for the same period in 1997, an increase of 27 percent. Net income for the nine months ended July 31, 1998 was C$39 million or C$0.50 per share compared to C$29.2 million or C$0.45 per share for the nine months ended July 31, 1997. Net income for the nine months ended July 31, 1998 was reduced by charges for early extinguishment of long term debt of C$33.3 million (C$0.43 per share) before income taxes, compared to C$1.9 million (C$0.03 per share) in 1997. "This was another quarter of strong results for Cadillac Fairview", said Jon JON Jonah JON Jesus of Nazareth JON Job Order Number JON Johnston Island, US, Outlying Islands (Airport Code) Hagan, Executive Vice President and Chief Financial Officer. "Our three part strategy of growth through strategic acquisitions and development, prudent management of our capital structure and continued maximization max·i·mize tr.v. max·i·mized, max·i·miz·ing, max·i·miz·es 1. To increase or make as great as possible: of the value of existing properties is working. The recovery of the office and retail markets in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of is now contributing to our cash flow growth. Our goal is to continue the momentum, enhancing our quality franchise in Canada and making Cadillac Fairview the investment vehicle of choice for investors in Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. real estate", he added. The following table summarizes Cadillac Cadillac expensive automobile and status symbol. [Trademarks: Crowley Trade, 83] See : Luxury Fairview's results for the third quarter: -0-
Increase
1998 1997 (Decrease)
---------------------------------------
(C$ millions, except per share amounts)
Three months ended
July 31, 1998:
Revenue $203.1 $159.8 27 percent
Cash Flow from Operations $ 54.0 $ 35.2 54 percent
Net Income $ 17.2 $ 8.1 112 percent
Per Share:
Cash Flow from Operations
- basic $0.69 $0.53 30 percent
- fully diluted $0.66 $0.51 29 percent
Net Income
- basic and fully diluted $0.22 $0.12 83 percent
Net Operating Income
by Segment:
Canadian Retail $69.2 $52.5 32 percent
Canadian Office $25.3 $18.7 35 percent
United States Retail (US$) $11.8 $11.5 3 percent
Nine months ended
July 31, 1998:
Revenue $592.1 $473.9 25 percent
Cash Flow from Operations $161.4 $107.4 50 percent
Net Income $ 39.0 $ 29.2 34 percent
Per Share:
Cash Flow from Operations
- basic $2.09 $1.65 27 percent
- fully diluted $2.00 $1.58 27 percent
Net Income
- basic and fully diluted $0.50 $0.45 11 percent
Net Operating Income by
Segment:
Canadian Retail $199.6 $160.4 24 percent
Canadian Office $ 73.9 $ 54.3 36 percent
United States Retail (US$) $ 37.0 $ 35.6 4 percent
REVIEW OF THREE MONTHS ENDED JULY 31, 1998 Rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. Properties Operations During the third quarter Cadillac Fairview's rental properties continued to realize growth in net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. . The operating highlights are as follows: Canadian Retail Properties - Net operating income from existing Canadian retail properties increased by C$4.0 million or 8 percent to C$56.5 million compared to the same period in 1997. - CRU occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy increased by 1 percent during the quarter to 95 percent due primarily to the completion of remerchandising initiatives on certain properties compared to 94 percent for the same period in 1997. - Retail sales for the twelve months ended July 31, 1998 increased by 5.6 percent to C$455 per square foot, with 1998 calendar year sales up 6.4 percent - Acquisitions of retail properties in 1997 and 1998 added net operating income of C$12.7 million. Canadian Office Properties - Net operating income from existing Canadian office properties increased by C$2.2 million or 13 percent to C$19.1 million compared to 1997 due to mainly higher occupancy and rental rates. These were offset partially by the 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. loss created by the closure of Eaton's Eaton's was once Canada's largest department store retailer. Founded in 1869 in Toronto by Timothy Eaton, an Irish immigrant, Eaton's first advertisement read "We propose to sell our goods for CASH ONLY – In selling goods, to have only one price. head office premises premises n. 1) in real estate, land and the improvements on it, a building, store, shop, apartment, or other designated structure. The exact premises may be important in determining if an outbuilding (shed, cabana, detached garage) is insured or whether a person at 250 Yonge Yonge is a surname, and may refer to:
- Occupancy in the Canadian office properties was 94 percent, unchanged during the third quarter and greater by 1 percent compared to the same period in 1997. - Acquisitions of office properties in 1997 and 1998 contributed additional net operating income of C$5.3 million. United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Retail Properties - Net operating income from United States retail properties increased by US$.3 million or 3 percent to US$11.8 million compared to 1997. - Occupancy in our U.S. retail properties was 83 percent, an increase of 1 percent during the third quarter and greater by 2 percent compared to the same period in 1997. - Leased occupancy increased by 1 percent during the third quarter to 85 percent at July 31, 1998. - Retail sales in our properties for the twelve months ended June June: see month. 30, 1998 increased by 2.3 percent to US$320 per square foot, with calendar year sales up 4.2 percent. Redevelopment Activity During the third quarter Cadillac Fairview continued redevelopment activities at two properties: At Toronto Eaton Centre The Toronto Eaton Centre is a large shopping mall and office complex in downtown Toronto, Ontario Canada, named after the now-defunct Eaton's department store chain. In terms of the number of visitors, the shopping mall is Toronto's top tourist attraction. , a dominant 3.4 million square foot retail and office complex in downtown Toronto Downtown Toronto is the heart of the City of Toronto, Ontario, Canada. It is approximately bounded by Bloor Street (including areas slightly north of Bloor around Yonge Street) to the north, Lake Ontario to the south, Bayview Avenue - Don Valley Parkway to the east, and Bathurst with retail sales of C$766 per square foot, construction commenced to: - remodel re·mod·el tr.v. re·mod·eled also re·mod·elled, re·mod·el·ing also re·mod·el·ling, re·mod·els also re·mod·els To make over in structure or style; reconstruct. the exterior facade facade (fəsäd`), exterior face or wall of a building. The term implies ordered placement of its openings and other features and thus seems inapplicable to a wall without design. facing Yonge Street to create 12,500 square feet of retail space - renovate 250 Yonge Street office building lobby A lobby can refer to:
- construct a 7,500 square foot Roots store These projects are expected to be completed by the end of 1998 at a cost of C$19 million. - the centre court expansion project on the western side of the complex to add 50,000 square feet of prime retail space. This project is expected to be completed by the fall of 1999 at a cost of C$21 million. Cadillac Fairview has a 75 percent interest in the project. At Cataraqui Town Centre Cataraqui Town Centre, (known informally as "Cat Centre") is a shopping mall located in Kingston, Ontario, Canada. It is the largest mall in southeastern Ontario with over 141 stores. Its anchor stores are The Bay, Zellers and Sears. , a dominant 400,000 square foot regional shopping centre located in Kingston, Ontario Kingston, Ontario, is a Canadian city located at the eastern end of Lake Ontario, where the lake runs into the St. Lawrence River and the Thousand Islands begin. Kingston is the county seat of Frontenac County. , construction commenced on a 165,000 square foot Sears department store and the addition of 30 specialty stores Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" comprising 54,000 square feet. The expansion is expected to be completed by the fall of 1999, at a cost of C$30 million. Cadillac Fairview has a 50 percent interest in this project. Acquisition Activity During the third quarter Cadillac Fairview completed the acquisition of interests in five rental properties comprising nearly two million square feet at a purchase cost of C$284 million. - Acquired the shares of Tritor Developments Limited for total consideration of C$255 million, including the assumption of existing mortgages of C$104 million, for a combination of cash and shares. Tritor's assets are comprised mainly of the following three dominant regional shopping centres in New Brunswick New Brunswick, province, Canada New Brunswick, province (2001 pop. 729,498), 28,345 sq mi (73,433 sq km), including 519 sq mi (1,345 sq km) of water surface, E Canada. : - a 100 percent interest in Champlain Place, a 728,000 square foot regional shopping centre complex in Dieppe, New Brunswick. - a 100 percent interest in Regent Mall, a 445,000 square foot regional shopping centre in Fredericton, New Brunswick. - a 100 percent interest in McAllister Place, a 470,000 square foot regional centre in Saint John, New Brunswick. - A 100 percent interest in the Interprovincial Pipe Building, a 21 storey, 195,000 square foot office property in downtown Edmonton Downtown Edmonton (Alberta) is bounded by 109 Street to the west, 105 Avenue to the north, 97 Street to the east, 97 Avenue, 100 Avenue, and Rossdale Road to the south and Jasper Avenue to the southeast (the downtown core), though many people consider part or all of the surrounding , Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. . Since the end of the third quarter, Cadillac Fairview completed the acquisition of seven rental properties from Bimcor Inc. for total cash consideration of C$150 million. These assets are comprised mainly of the following: - a 100 percent interest in four office buildings comprising 700,000 square feet in suburban Toronto, Ontario. - a 100 percent interest in a 376,000 square foot office building in downtown Edmonton, Alberta. Cadillac Fairview has completed acquisitions in 1998 of over C$700 million compared to C$488 million in all of fiscal 1997. Capital Management Activity Cadillac Fairview continued to proactively manage its capital structure as follows: - during the third quarter completed refinancings of over C$167 million at an average rate of 6.1 percent contributing annual savings of C$4.4 million. - during the third quarter repurchased 633,112 common shares at an average price of C$29.93 per share plus 456,654 warrants at a cost of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. C$6.8 million. Since the end of the quarter Cadillac Fairview completed refinancings of C$141 million at an average rate of 6.85 percent producing annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. savings of C$2.4 million and also raised C$96.5 million by issue of 5.7 percent subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. . This brings the refinancing Refinancing An extension and/or increase in amount of existing debt. activity in 1998 to more than C$603 million at an average rate of 6.2 percent compared to C$562 million in all of fiscal 1997 and produces annualized savings of C$16 million or C$0.20 per share. Including new financing, the total amount raised or replaced in 1998 now exceeds C$960 million. The financial statements for the nine months ended July 31, 1998 are presented below.
CADILLAC FAIRVIEW CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(in thousands of dollars except per share and share amounts)
(unaudited)
Three months ended July 31, Nine months ended July 31,
-------------------------- -------------------------
1998 1997 1998 1997
---- ---- ---- ----
Revenues
Rental $196,829 $153,772 $572,381 $459,428
Fee income 4,357 4,110 12,490 11,334
Interest and other 1,938 1,877 7,184 3,131
-------- -------- -------- --------
203,124 159,759 592,055 473,893
Expenses
Property operating 84,968 66,762 245,550 196,083
Interest 50,598 44,696 146,635 132,470
General and
Administrative 8,262 7,789 24,772 22,829
Capital taxes 2,600 1,600 6,700 4,600
Advisory fees - 750 - 2,250
Depreciation and
amortization 23,459 20,713 69,260 57,475
-------- -------- -------- --------
169,887 142,310 492,917 415,707
-------- -------- -------- --------
Operating income 33,237 17,449 99,138 58,186
Loss on early
extinguishment of
long-term debt 5,139 1,865 33,280 1,865
-------- -------- -------- --------
28,098 15,584 65,858 56,321
Income taxes 10,900 7,500 26,900 27,100
-------- -------- -------- --------
Net income $ 17,198 $ 8,084 $ 38,958 $ 29,221
Retained earnings,
beginning of period 97,119 62,125 75,359 40,988
Repurchase of shares
and warrants (14,068) - (14,068) -
-------- -------- -------- --------
Retained earnings,
end of period $100,249 $70,209 $100,249 $ 70,209
-------- -------- -------- --------
-------- -------- -------- --------
Net income per share
- basic and
fully diluted $0.22 $0.12 $0.50 $0.45
CADILLAC FAIRVIEW CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
(unaudited)
July 31, July 31,
1998 1997
---- ----
Assets
Real estate assets $4,284,080 $3,388,220
Amounts receivable 50,837 59,253
Other assets 133,233 135,785
---------- ----------
$4,468,150 $3,583,258
---------- ----------
---------- ----------
Liabilities
Long-term debt 2,751,126 2,316,788
Accounts payable and other liabilities 122,722 102,031
Deferred income taxes 36,400 27,800
---------- ----------
2,910,248 2,446,619
Shareholders' Equity
Capital stock 1,428,854 1,062,030
Foreign currency translation adjustment 28,799 4,400
Retained earnings 100,249 70,209
---------- ----------
1,557,902 1,136,639
---------- ----------
$4,468,150 $3,583,258
---------- ----------
---------- ----------
CADILLAC FAIRVIEW CORPORATION
CONSOLIDATED CASH FLOW STATEMENTS
(in thousands of dollars, except per share and share amounts)
(unaudited)
Three months ended July 31, Nine months ended July 31,
-------------------------- -------------------------
1998 1997 1998 1997
---- ---- ---- ----
Operating activities
Net income $ 17,198 $ 8,084 $ 38,958 $ 29,221
Items not affecting
cash from operations
Depreciation and
amortization 23,459 20,826 69,260 57,588
Deferred
income taxes 8,200 4,400 19,900 18,700
Loss on early
extinguishment
of debt 5,139 1,865 33,280 1,865
-------- -------- -------- --------
Cash flow from
operations 53,996 35,175 161,398 107,374
Net changes in other
operating items (12,706) (29,764) (25,781) (44,962)
-------- -------- -------- --------
Cash provided
by operating
activities 41,290 5,411 135,617 62,412
-------- -------- -------- --------
Financing activities
Long-term debt
Acquisitions
financing 194,086 31,730 267,900 110,692
Refinancing
debt 177,469 182,004 832,633 579,749
Repayments (154,636) (95,296) (954,754) (564,181)
Issue of common
shares 35,817 - 368,999 76,933
Repurchase of shares
and warrants (25,743) - (25,743) -
Restricted cash 621 (4,796) 7,017 (24,432)
-------- -------- -------- --------
Cash provided
by financing
activities 227,614 113,642 496,052 178,761
-------- -------- -------- --------
Investing activities
Rental properties
Proceeds from sale - - - 2,565
Acquisitions (300,327) (133,084) (589,892) (227,368)
Capital
expenditures (16,882) (1,654) (35,886) (6,091)
Land held for
development (487) (624) (2,407) (4,584)
Properties held
for sale (2,718) 16,793 2,464 20,368
Amounts receivable
and other assets 12,831 (228) 5,636 (2,902)
-------- -------- -------- --------
Cash used
by investing
activities (307,583) (118,797) (620,085) (218,012)
-------- -------- -------- --------
Net (decrease) increase
in unrestricted cash
and short-term
investments (38,679) 256 11,584 23,161
Unrestricted cash and
short-term
investments, beginning
of period 83,844 47,379 33,581 24,474
-------- -------- -------- --------
Unrestricted cash and
short-term investments,
end of period $ 45,165 $ 47,635 $ 45,165 $ 47,635
-------- -------- -------- --------
-------- -------- -------- --------
Cash flow from operations
per share
- basic $0.69 $0.53 $2.09 $1.65
-------- -------- -------- --------
-------- -------- -------- --------
- fully diluted $0.66 $0.51 $2.00 $1.58
-------- -------- -------- --------
-------- -------- -------- --------
Weighted average
number shares
- basic 78,099,550 66,370,938 77,121,784 64,903,381
Weighted average
number shares
- fully diluted 87,430,467 75,661,307 86,119,483 74,193,750
Cadillac Fairview is one of the largest owners, managers and
developers of commercial real estate in North America, focusing
on high quality retail centres in Canada and the U.S., and office
properties in major Canadian cities. It owns interests in or
manages 105 properties amounting to over 50 million square feet,
including some of Canada's landmark properties such as the
Toronto Eaton Centre and Toronto-Dominion Centre in Toronto,
Pacific Centre in Vancouver and Montreal Eaton Centre in
Montreal.
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