Dundee International REIT sees increases in Q4, yearly revenue and earnings

TORONTO – A “transformative year” helped Dundee International REIT (TSX:DI.UN) book higher earnings and revenue in its fourth quarter and year-end, the Toronto-based trust reported Thursday.

Dundee said that its investment properties revenue rose to $35.9 million in the three-month period ended Dec. 31, 2012, compared with $31.7 million in the same period in 2011.

Funds from operations were $12.3 million, up from $10.2 million for the fourth quarter of 2011.

The company defines FFO as net income adjusted for items including fair value adjustments on investment properties and financial instruments, gains on sale and amortization of equipment.

Dundee had funds from operations of 19 cents per unit in the quarter, slightly down from 20 cents in the same quarter in 2011.

For the full 2012 year, Dundee International REIT saw its investment properties revenue surge by 155 per cent to $138.6 million from $54.2 million in 2011.

Funds from operations also went up by 147 per cent to $48.3 million compared with $18.1 million from the previous year.

In Febuary, the REIT announced that it was buying a 1.5 million square-foot portfolio of office properties in Germany for $568 million. The deal is being financed through $354 million in new mortgage debt and cash, as well as a major equity offering.

It already has two properties under contract in Berlin and Munich valued at $81 million.

In 2012, the REIT said it acquired $259 million worth of office space in Germany. For this year, it said it has $788 million of acquisitions closed or under contract.

“The last twelve months have been transformative for Dundee International REIT,” said Jane Gavan, CEO of the REIT in a release.

“With our key focus on growth and diversification, our acquisitions closed and under contract will add over $1 billion of assets in excellent locations while improving our risk profile and the quality of our cash flow.”

The trust currently has a portfolio of 13.6 million square feet of office, industrial and mixed used properties in Germany.

Shares in Dundee International REIT closed Thursday at $11.04, down four cents on the Toronto Stock Exchange.