Supplemental Information Package

Transcription

1 CALLOWAY REAL ESTATE INVESTMENT TRUST Supplemental Information Package For the three months ended June 30, 2005 Calloway Real Estate Investment Trust 310, th Avenue SW Calgary, AB, T2P 3P1 Tel: (403) Fax: (403)

2 Index Distribution Reinvestment Plan... 3 Distribution History... 3 Average Unit Trading Price... 4 Average Daily Volume of Units Traded... 4 Market Capitalization Summary... 4 Units Outstanding For The Three Months Ended June 30, Geographical Distribution... 6 Area by Province... 7 Individual Property Summary... 8 Top 25 Tenants by Gross Revenue Lease Expiration Schedule Area by Age Mortgages and Loans Receivable Summary Developable Square Feet Funds from Operations ( FFO ) Capital Expenditures (non-recoverable) List of Figures Figure 1: Annual Gross Revenue by Province...6 Figure 2: Area by Province...7 Figure 3: Area by Age...14 Forward Looking Statements. Certain information contained in this Supplemental Information Package may contain forward-looking statements regarding Calloway Real Estate Investment Trust ( Calloway or REIT ) and property performance. Future results could vary materially from actual results depending on risks and uncertainties inherent in general and local real estate conditions, or competitive factors specific to the markets in which the REIT operates. The REIT assumes no obligation to update this information. 1

3 General Information Stock Exchange Listing: The Toronto Stock Exchange (TSX) Trading Symbols: Trust Units CWT.UN 6.0% Convertible Debentures CWT.DB Corporate Office: Calloway Real Estate Investment Trust #310, th Avenue SW Calgary, AB, T2P 3P1 Canada Tel: (403) Fax: (403) Senior Management: Simon Nyilassy President and CEO Mark Suchan Chief Financial Officer Keith McRae Director of Operations Transfer Agent & Registrar: Computershare Share Trust Company of Canada 100 University Avenue, 9 th Floor Toronto, ON, M5J 2Y1 Auditor: Kenway Mack Slusarchuk Stewart LLP 220, th Avenue SW Calgary, AB, T2R 1L9 Legal Counsel: Shea Nerland Calnan 1900, th Avenue SW Calgary, AB, T2P 2X6 2

4 Distribution Reinvestment Plan Unitholders who elect to participate will have their monthly cash distributions automatically reinvested in units of Calloway at a price equal to 97% of the average TSX market price over the 10 business days preceding the monthly distribution date. Calloway s DRIP will be administered by Computershare Trust Company of Canada. Interested unitholders can also obtain an information package and the necessary registration forms from, or direct any inquiries/concerns regarding the DRIP to, Computershare Trust Company of Canada via telephone at or via mail at: Calloway Real Estate Investment Trust c/o Computershare Trust Company of Canada 100 University Avenue, 9 th Floor, Toronto, ON, M5J 2Y1 Canada Attention: Dividend Reinvestment Department Per unit, paid monthly Distribution History January $ $ $ n/a February $ $ $ n/a March $ $ $ n/a April $ $ $ n/a May $ $ $ n/a June $ $ $ n/a July - $ $ n/a August - $ $ n/a September - $ $ n/a October - $ $ n/a November - $ $ $ December - $ $ $ TOTAL $ $ $ $

5 Average Unit Trading Price st Quarter $18.64 $15.28 $9.52 n/a 2 nd Quarter $20.06 $14.71 $9.59 n/a 3 rd Quarter $15.98 $10.46 n/a 4 th Quarter $17.60 $12.45 $9.77 YTD/Annual $15.73 $11.04 $9.77 Closing trading price at end of period $21.43 $18.75 $13.75 $9.85 Average Daily Volume of Units Traded st Quarter 60, ,268 5,169 n/a 2 nd Quarter 67,421 87,914 8,867 n/a 3 rd Quarter 92,322 26,003 n/a 4 th Quarter 64,560 25,145 24,917 ANNUAL 92,140 16,296 24,917 Market Capitalization Summary Date Total Units Outstanding Share Price per Unit Market Capitalization June 30, ,086,645 $21.43 $816,196,802 March 31, ,704,479 $17.65 $647,834,054 December 31, ,263,171 $18.75 $623,684,456 December 31, ,297,692 $13.75 $155,343,265 December 31, ,951,535 $9.85 $58,622,620 4

6 Units Outstanding For The Three Months Ended June 30, 2005 Description Units Options (1) Debentures (2) Deferred Units (3) Balance, March 31, 2005 Units issued pursuant to offering 36,704, ,400 53,569 51,641 Units issued pursuant to development agreements 227,112 Units issued pursuant to distribution reinvestment plan 13,998 Deferred units issued 7,462 Options exercised 30,000 <30,000> Debentures exercised 1,111,056 <18,888> Balance June 30, ,086, ,400 34,681 59,103 (1) Each option has an exercise price of $10.00 per unit. (2) Each debenture has a face value of $1,000 and is convertible into units at an exercise price of $17.00 per unit. (3) Unitholders approved Deferred Unit Plan on July 7,

7 Geographical Distribution Annualized Gross Rental Revenue by Province Province % Ontario 31.36% Quebec 16.82% British Columbia 14.57% Alberta 11.62% Manitoba 7.18% Newfoundland 6.57% Saskatchewan 4.80% New Brunswick 3.10% Nova Scotia 2.70% PEI 1.28% Annualized Gross Rental Revenue by Province 35.00% 30.00% Percentage 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% British Columbia Alberta Saskatchewan Manitoba Ontario Quebec New Brunswick Nova Scotia PEI Newfoundland Province Figure 1: Annualized Gross Revenue by Province 6

8 Area by Province Province Area % Ontario 2,592, % Quebec 1,475, % British Columbia 1,277, % Alberta 1,112, % Newfoundland 684, % Manitoba 571, % Saskatchewan 432, % New Brunswick 266, % Nova Scotia 240, % PEI 145, % Area by Province Percentage 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5. 00% 0. 00% British Columbia Alberta Saskatchewan Manitoba Ontario Quebec New Brunswick Nova Scotia PEI Newfoundland Province Figure 2: Area by Province 7

9 Individual Property Summary (June 30, 2005) Occupancy by Asset Asset Location Occupancy Owned Rentable Area Owned Rentable Anchor Area (1) Non Owned Anchors Area Anchors and Major Tenants Retail Ontario Ancaster Wal-Mart Centre Ancaster, Ontario (GTA) % 125, ,205 50,000 Wal-Mart, Canadian Tire* Barrie Wal-Mart Centre Barrie, Ontario 97.98% 201, ,548 81,373 Wal-Mart Bolton Wal-Mart Centre Bolton, Ontario % 109,910** 65, ,000 Wal-Mart, Loblaw s* Brampton North Centre Brampton, Ontario (GTA) % 27, ,855 Loblaw s Brampton East Centre Brampton, Ontario (GTA) % 17, ,270 Canadian Tire*, Home Depot* British Colonial Building Toronto, Ontario 75.18% 17, Burlington/ QEW Centre Burlington, Ontario (GTA) % 73, ,060 Home Depot*, Staples Burlington North Wal-Mart Centre Burlington, ON % 36, ,000 Wal-Mart Cobourg Wal-Mart Centre Cobourg, ON % 127, ,520 - HuntsvilleWal-Mart Centre Huntsville, ON % 111,008 84,861 70,000 Wal-Mart, Loblaw s* Kapuskasing Wal-Mart Centre Kapuskasing, Ontario % 65,592 61,087 - Wal-Mart London Argyle Wal-Mart Centre London, Ontario % 352, ,638 - Wal-Mart, Loblaws, Winners, Sport Chek Owen Sound Wal-Mart Centre Owen Sound, Ontario 93.14% 140, , ,000 Wal-Mart, Home Depot* Pembroke Wal-Mart Centre Pembroke, Ontario % 11, ,000 Wal-Mart*, Boston Pizza, Reitmans Sarnia Price Chopper Centre Sarnia, Ontario % 74,701 49,152 - Sobey s Scarborough/401 Centre Scarborough, Ontario (GTA) % 61, ,647 Home Depot* St. Catharines (W) Wal-Mart Centre St. Catharines, Ontario 91.49% 286, ,791 75,240 Wal-Mart, Loblaws*, Canadian Tire* St. Thomas Wal-Mart Centre St. Thomas, Ontario 88.01% 150, ,624 57,500 Wal-Mart, Loblaws, Canadian Tire Whitby (N) Wal-Mart Centre (2) Whitby, Ontario % 139,063** 79, ,000 Wal-Mart, Loblaw s* 8

10 Windsor Wal-Mart Centre Windsor, Ontario 94.57% 195, ,121 - Wal-Mart Woodstock Wal-Mart Centre Woodstock, Ontario 97.54% 216, ,387 79,567 Wal-Mart, Canadian Tire* Yonge Aurora Centre Aurora, Ontario (GTA) % 50,463-63,500 Winners, Canadian Tire* Quebec Anjou Home Outfitters Centre Anjou, Quebec % 42,431 40,030 - Home Outfitters Laval Power Centre Laval, Quebec (Montreal) % ** 63, ,000 Wal-Mart, Rona, Sobey s*, Canadian Tire* Montreal (Mascouche) Wal-Mart Centre Mascouche, Quebec (Montreal) 95.27% 352, , ,000 Wal-Mart, Sobey s, Rona* Montreal (Valleyfield) Wal-Mart Centre Salaberry du Valleyfield, Quebec (Montreal) % 159, ,128 - Wal-Mart Quebec City (Beauport) Wal-Mart Centre Quebec City, Quebec % 165, , ,806 Wal-Mart, Canadian Tire* Rimouski Wal-Mart Centre Rimouski, Quebec % 156, , ,500 Wal-Mart Saint-Constant Walt-Mart Centre St. Constant, Quebec % ** 74,084 95,000 Wal-Mart, Home Depot* Saint-Jean Sur Richelieu Wal-Mart Centre Saint-Jean sur Richelieu, Quebec % 157, ,356 80,000 Wal-Mart, Loblaws* Alberta Crowchild Corner Calgary, Alberta % 23, Edmonton NE Wal-Mart Centre Edmonton, Alberta % 214, ,718 Wal-Mart, Michael s Lethbridge South Wal-Mart Centre Lethbridge, Alberta % 190, ,477 95,000 Wal-Mart, Home Depot* Lloyd Mall Lloydminster, Alberta 98.23% 205, ,709 - Sears, Canada Safeway, Zellers Namao Centre Edmonton, Alberta % 33,600-50,000 Shoppers Drug Mart, Sobeys* Spruce Grove Wal-Mart Centre Spruce Grove, Alberta (Edmonton) % 60, ,000 Wal-Mart* Wal-Mart, Totem*, Save on St. Albert Wal-Mart Centre St. Albert, Alberta (Edmonton) % 159, ,159 91,737 Foods* British Columbia Courtenay Wal-Mart Centre Courtenay, BC 95.42% 232, ,642 - Wal-Mart, Future Shop Cranbrook Wal-Mart Centre Cranbrook, BC % 117, , ,556 Wal-Mart, Superstore*, Totem* Langley Wal-Mart Centre Langley, BC (Greater Vancouver) % 326, , ,161 Wal-Mart, London Drugs Kamloops Wal-Mart Centre Kamloops, BC % 217, ,609 - Wal-Mart Vernon Wal-Mart Centre Vernon, BC 94.68% 180, ,655 50,300 Wal-Mart 9

11 Sumas Way Centre Abbotsford, BC 98.9% 91,248 43,088 - Sears, Home Outfitters Manitoba Winnipeg West Wal-Mart Centre Winnipeg, Manitoba 94.44% 274, ,104 75,240 Wal-Mart, Sobeys Winnipeg (C) Wal-Mart Centre Winnipeg, Manitoba % 33, ,000 Wal-Mart*, Winnipeg South Wal-Mart Centre Winnipeg, Manitoba % 262,582** 77,579 Wal-Mart, Safeway Nova Scotia Halifax Bayers Lake Centre Halifax, Nova Scotia % 76,135** - 300,000 Loblaws*, Winners, Wal- Mart* New Minas Wal-Mart Centre New Minas, Nova Scotia % 45, ,000 Wal-Mart* Truro Wal-Mart Centre Truro, Nova Scotia 94.84% 118, ,329 - Wal-Mart Newfoundland Corner Brook Wal-Mart Centre Corner Brook, Newfoundland % 168, , ,240 Wal-Mart, Canadian Tire*, Loblaws* St. John's Wal-Mart Centre St. John s, Newfoundland % 243, , ,351 Wal-Mart, Loblaws*, Staples St. John s (Stavanger) Wal-Mart Centre St. John s, Newfoundland % 272, ,273 Wal-Mart New Brunswick Saint John Wal-Mart Centre Saint John, New Brunswick % 266, , ,122 Wal-Mart, Winners n More Saskatchewan Regina North Wal-Mart Centre Regina, Saskatchewan % 209, ,862 - Wal-Mart, Sobey s Regina East Wal-Mart Centre Regina, Saskatchewan % 222,344** 77,456 Wal-Mart, Michael s PEI Charlottetown Wal-Mart Centre Charlottetown, PEI 97.25% 145, , ,000 Wal-Mart, Canadian Tire*, Loblaws* 10

12 98.31% 8,459,166 Industrial Airtech Centre Vancouver, BC % 112, MTU Maintenance Canadian Commercial Centre Calgary, Alberta % 124, Winroc Ecco Manufacturing Warehouse Calgary, Alberta % 36, Ecco Gesco Warehouse Calgary, Alberta % 63, Gesco % 337,316 * Non-owned anchor ** CWT interest Indicates Calloway s ownership interest (CWT owns a 50% interest in the Laval Power Centre, a 49% interest in Halifax Bayers Lake Centre and 60% interest in Bolton Wal-Mart Centre, Whitby (N) Wal-Mart Centre, Saint Constant Wal-Mart Centre, Regina East Wal-Mart Centre and Winnipeg South Wal-Mart Centre) (1) Anchors are tenants in excess of 40,000 square feet 11

13 Top 25 Tenants by Gross Revenue Tenant % of Gross Rental Revenue 1 Wal-Mart 33.63% 2 Reitmans Group 4.38% 3 Winners/Home Sense 3.55% 4 Mark s Work Wearhouse 3.16% 5 Best Buy/ Future Shop 2.93% 6 HBC/Zellers 2.83% 7 Staples/Business Depot 2.55% 8 Sobey's/IGA 2.43% 9 Cara Group 2.04% 10 Payless Shoesource 1.29% 11 Reno Depot 0.93% 12 Sport Chek Intersport (Forzani s) 0.93% 13 London Drugs 0.92% 14 Everything for a Dollar 0.88% 15 Moores 0.88% 16 East Side Mario s 0.87% 17 EB Gameworld 0.83% 18 Michael s 0.81% 19 Sleep Country Canada 0.81% 20 Shoppers Drug Mart 0.78% 21 Old Navy 0.77% 22 Hallmark Cards 0.74% 23 CIBC 0.69% 24 Pier One 0.64% 25 A Buck or Two 0.64% 12

14 Expiries by Year, Area Lease Expiration Schedule Area % Area , % , % , % , % , % , % , % , % , % , % , % , % , % , % , % , % Beyond 2,811, % Vacant 143, % Weighted Average Lease Expiry by Area = Years 13

15 Area by Age Area by Age Area % Area present 8,088, % , % before , % Area by Age % 80.00% Percentage 60.00% 40.00% 20.00% 0.00% present before 1994 Period Figure 3: Area by Age 14

16 Mortgages and Loans Receivable Summary (June 30, 2005) Principal Amount Interest Rate Notes HBP Retail $1,000, % HDP Retail $600, % Whitby $3,047, % Kenora $1,870, % Laval Centre 2000 $13,350, % Stratford $4,265, % St. Laurent $7,485, % First Pro Centres (4) $11,575,170 Various Total $43,193,027 (1) (1) (2) (2) (2) (2) (2) (3) (1) (2) (3) (4) Calloway has option to purchase property when substantially completed. Calloway has option to purchase 50% interest in property when substantially completed. Loans provided to First Pro pursuant to development agreements on properties owned by Calloway. First Pro Centres refers to the nine properties acquired October 31, Developable Square Feet (June 30, 2005) Initial Under Estimate Earn out (7) Development (8) Future Adjustments (9) First Pro Centres (1) 420,338 79, , ,483 (2,927) The Centres (2) 479,377 51, , ,788 5,558 The Centres II (3) 374,938 95, , ,728 (6,128) Assigned Centres (4) 9,700 12, ,703 Phase I Centres (5) 206, ,429 30,100 3,441 Phase II Centres (6) 177,682-14, ,122 1,668, , , ,221 2,647 (1) (2) (3) (4) (5) (6) (7) (8) (9) First Pro Centres refers to the nine properties acquired October 31, The Centres refers to the twelve properties acquired February 16, The Centres II refers to the twelve properties acquired May 14, Assigned Centres refers to the interest in two properties acquired May 4, Phase I Centres refers to the six properties acquired November 30, Phase II Centres refers to the interests in eight properties acquired March 1, Tenant is in occupancy, paying rent and closing under development agreement completed. Tenant has executed offer to lease and space is under development. Adjustments are increases (decreases) to initial estimate due to certification of areas and change in site plans (due to such items as tenant requirements, zoning changes and parking considerations) 15

17 Funds from Operations ( FFO ) FFO is not defined by GAAP and is a non-gaap financial measure of operating performance widely used by the real estate industry. FFO has been calculated in accordance with the new recommendations of RealPac. FFO is defined as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable real estate and extraordinary items, plus depreciation and amortization, plus future income taxes and after adjustments for equity accounted for entities and non-controlling interests. Adjustments for equity accounted entities and joint ventures and noon-controlling interests are calculated to reflect funds from operations on the same basis as the consolidated properties. (In thousands of dollars except per unit amounts) Three Months Ended June Net Income for the period $ 4,615 $ 3,719 Add (deduct) items not affecting cash: Gain on sale of properties (1,112) - Amortization of income properties - tangible components 5,631 3,090 Amortization of income properties - intangible components 4,960 1,924 Amortization of income properties - discontinued operations Amortization - leasing costs Funds from operations $ 14,253 $ 9,267 Funds from operations per unit: Basic $ $ Diluted $ $ (In thousands of dollars except per unit amounts) Six Months Ended June Net Income for the period $ 18,395 $ 6,830 Add (deduct) items not affecting cash: Gain on sale of properties (13,338) - Amortization of income properties - tangible components 10,647 4,440 Amortization of income properties - intangible components 10,831 2,491 Amortization of income properties - discontinued operations Amortization - leasing costs Funds from operations $ 26,832 $ 14,765 Funds from operations per unit: Basic $ $ Diluted $ $

18 Capital Expenditures (non-recoverable) (Three Months Ended June 30, 2005) Income properties - total $ 96,893 Deferred leasing costs - total 353,240 Income properties excluding discontinued operations $ 21,085 Deferred leasing costs excluding discontinued operations 108,932 17