November 14, 2011

Toronto commercial real estate firm Gazit America reports third-quarter loss

Real estate firm Gazit America Inc. (TSX:GAA) of Toronto released its third-quarter financial results Monday, reporting a $2.98 million loss for the three months ending September 30.

Gazit, which recently acquired a 40,000-square-foot commercial building in Toronto, said its rental revenue for the latest quarter was $4.209 million, up from $1.042 million during the same period in 2010. Third-quarter loss increased year-over year from $1.64 million to $2.988 million. As of Sept. 30, Gazit America reported it had $4.561 million in cash on its balance sheet.

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“The third quarter 2011 results reflect the additional net operating income from newly acquired properties of $1.8 million, higher income from Equity One of approximately $1.8 million as compared to the same period in 2010, offset by a $3.0 million unrealized loss on foreign exchange compared to a gain of $1.3 million in the same period in 2010,” the firm stated in a press release. It was referring to Equity One Inc., a U.S. real estate investment trust of which Gazit America owns 12.5 per cent.

Rental revenues for the nine months ending Sept. 30 were $10 million, up from $2.914 million in 2010.

The firm has interest in 10 retail, medical and other commercial properties in Edmonton, Ottawa, Montreal, Longueuil, Quebec and Cambridge, Mississauga and London, Ontario.

Earlier this month, Gazit America acquired for $12.4 million a 40,000-square-foot, five-storey office building on the west side of Bayview Avenue south of Eglinton Avenue in Toronto. Tenants include the Bank of Montreal and some medical clinics and offices.

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Gazit America also said it anticipates the closure during the fourth quarter of an agreement to purchase a 47,000-square-foot medical office building in Kitchener, Ontario.

DCN DIGITAL MEDIA

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