Primaris Retail REIT (PMZ_UN.TO: Quote, PMZFF.PK), Thursday reported a decline in funds from operations, or FFO, for the fourth quarter, hurt by fluctuations in the recording of investment properties at fair value, as well as one-time takeover charges.
The Canada-based developer of retail properties reported fourth-quarter FFO of C$29.7 million or C$0.307 per unit, a decline from C$34.7 million or C$0.407 per unit last year.
Results for the recent quarter includes C$10.5 million of charges related to a takeover. Excluding the charges, Operating FFO for the quarter was C$40.3 million or C$0.415 per unit.
Meanwhile, net income for the quarter was lower at C$61 million, compared with C$156.4 million a year ago. This was due to mainly a decline in fair value adjustment on investment properties to C$44 million from C$134 million last year. REIT companies include amortization and other items that usually reduce their net earnings.
Revenues for the quarter increased to C$109.5 million from C$104 million last year.
Primaris said that its portfolio occupancy was 97.7% at December 2012, compared with 97.1% in the previous year.
At December 2012 Primaris had C$1,727.4 million of outstanding debt.
In February, Primaris entered into an Arrangement Agreement and various conditional sales agreements whereby the assets of Primaris will be purchased by a KingSett Capital-led consortium and H&R REIT (HR_UN.TO: Quote, HRUFF.PK) and Primaris will become a subsidiary of H&R REIT.
Primaris closed Thursday at C$27.25, down 0.15%, on the Toronto Stock Exchange.
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by RTT Staff Writer
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