November 10, 2011

Income up for Quebec City commercial and industrial real estate trust Cominar

Cominar Real Estate Investment Trust (TSX: CUF.UN) of Quebec City released Thursday its financial statements for the quarter ending September 30, reporting a six-per-cent increase in net income year-over year.

Net income for the three months ending September 30 was $27.9 million, up from $26.3 million during the same period in 2010.

The firm owns and manages 269 properties including 53 office buildings, 55 retail buildings and 161 industrial and mixed-use buildings covering 21 million square feet in the Quebec City, Montreal and Ottawa-Gatineau areas as well as in the Atlantic Provinces.

Operating revenues during the latest quarter, which was comprised of rental revenue from investment properties, were $78 million, up from $69 million during the same period in 2010.

In a press release, the firm noted its operating income grew 12.7 per cent year-over-year to $47.3 million. The operating income is the income before financial expenses, trust administrative expenses, transaction costs of business combination and income taxes are deducted, according to the interim report posted to Cominar’s website.

For the first nine months of the year, Cominar had net income of $81.758 million on revenues of $239.758 million.

During the quarter ending September 30, Cominar reported four industrial and commercial property major acquisitions.

On July 29, 2011, Cominar acquired three properties in Atlantic Canada for a total “aggregate consideration” of $13.1 million. Those included:

• an industrial and mixed-use building in the area of Moncton, New Brunswick, covering an area of 11,000 square feet, for a consideration of $1.145 million;

• an office building located in Saint John, New Brunswick, covering an area of 41,000 square feet, for a consideration of $6.485 million, consisting of $5.045 million for the assumption of a mortgage payable and $1,440 million in cash; and

• a retail building located in Halifax, Nova Scotia, covering an area of 41,000 square feet, for a consideration of $5,.455 million in cash.

On September 30, Cominar acquired an industrial and mixed-use building located in Montreal, with 43,000 square feet of leasable area for a consideration of $3.4 million, consisting of $2.6 million in cash and $800,000 as balance of sales price.

DCN DIGITAL MEDIA

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