Bitcoin has rebounded from major losses before, and its long-term growth remains impressive. Before the pandemic boom in crypto prices, its value hovered well below $10,000. True believers, who call themselves Bitcoin maximalists, remain adamant that the cryptocurrency will eventually break from its correlation with risk assets.

Michael Saylor, the chief executive of the business-intelligence company MicroStrategy, has spent billions of his firm’s money on Bitcoin, building up a stockpile of more than 125,000 coins. As the price of Bitcoin has cratered, the company’s stock has dropped roughly 75 percent since November.

In an email, Mr. Saylor blamed the crash on “traders and technocrats” who don’t appreciate Bitcoin’s long-term potential to transform the global financial system.

“In the near term, the market will be dominated by those with less appreciation of the virtues of Bitcoin,” he said. “Over the long term, the maximalists will be proven correct, because billions of people need this solution, and awareness is spreading to millions more each month.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Elvira Nabiullina, Head of the Central Bank, Is Guiding Russia’s Economy

“She’s well-trusted in the government and by the president,” said Sofya Donets, an economist at Renaissance Capital in Moscow who worked at the central bank from 2007 to 2019. In recent years, it was quite evident that all kinds of policy questions in the financial sphere were delegated to the central bank, she added.

This trust was built up while Ms. Nabiullina was buttressing Russia’s economy against Western sanctions, especially from the long reach of American penalties. In 2014, the United States cut off many major Russian companies from its capital markets. But these companies had large amounts of foreign currency debt, raising alarms over how they would service their debts.

Ms. Nabiullina set about squeezing as many U.S. dollars from the economy as possible, so that companies and banks would be less vulnerable if Washington further restricted access to the country’s use of dollars.

She also shifted the bank’s reserves, which grew to be worth more than $600 billion, toward gold, the euro and the Chinese renminbi. Over her tenure, the share of dollars in the reserves fell to about 11 percent, from more than 40 percent, Ms. Nabiullina told Parliament last month. Even after sanctions froze the bank’s overseas reserves, the country has “sufficient” reserves in gold and renminbi, she told lawmakers.

Other protections against sanctions included an alternative to SWIFT, the global banking messaging system, developed in recent years. And the bank changed the payments infrastructure to process credit card transactions in the country so even the exit of Visa and Mastercard would have minimal effect.

In March, Bloomberg News and The Wall Street Journal, citing unidentified sources, reported that Ms. Nabiullina had tried to resign after the Ukraine invasion, and had been rebuffed by Mr. Putin. The central bank rejected those reports.

Last month, the Canadian government placed her under sanctions for being a “close associate of the Russian regime.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Dream Office REIT Reports Q1 2022 Results

TORONTO–(BUSINESS WIRE)–DREAM OFFICE REAL ESTATE INVESTMENT TRUST (D.UN-TSX) or (“Dream Office REIT”, the “Trust” or “we”) today announced its financial results for the three months ended March 31, 2022 and provided a business update related to the COVID-19 pandemic.

OPERATIONAL HIGHLIGHTS

(unaudited)

As at

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

2022

 

 

2021

 

 

2021

Total properties(1)

 

 

 

 

 

 

 

 

Number of active properties

 

29

 

 

29

 

 

28

Number of properties under development

 

1

 

 

1

 

 

2

Gross leaseable area (“GLA”) (in millions of sq. ft.)

 

5.5

 

 

5.5

 

 

5.5

Investment properties value

$

2,596,240

 

$

2,569,002

 

$

2,473,123

Total portfolio(2)

 

 

 

 

 

 

 

 

Occupancy rate – including committed (period-end)

 

85.0%

 

 

85.5%

 

 

87.2%

Occupancy rate – in-place (period-end)

 

81.7%

 

 

82.9%

 

 

85.8%

Average in-place and committed net rent per square foot (period-end)

$

23.25

 

$

23.25

 

$

23.26

Weighted average lease term (“WALT”) (years)

 

5.4

 

 

5.2

 

 

5.0

See footnotes at end.

 

 

Three months ended

 

 

March 31,

 

 

March 31,

 

 

2022

 

 

2021

Operating results

 

 

 

 

 

Net income

$

52,282

 

 

10,146

Funds from operations (“FFO”)(3)

 

21,043

 

 

21,309

Net rental income

 

25,863

 

 

26,271

Comparative properties net operating income (“NOI”)(4)

 

27,320

 

 

28,710

Per unit amounts

 

 

 

 

 

FFO (diluted)(5)

$

0.39

 

 

0.38

Distribution rate

 

0.25

 

 

0.25

See footnotes at end.

“Our business has continued to navigate through uncertainties in the economy and recovery from the pandemic with resilience,” said Michael Cooper, Chief Executive Officer of Dream Office REIT. “We think our strategy of focusing on our best assets to improve their quality, reducing carbon emissions, animating the retail and common areas and making our office communities more inclusive will be very well received by our tenants as they return to work and will add value to the portfolio.”

BUSINESS UPDATE

As at March 31, 2022, the Trust had approximately $280 million of available liquidity(6), $170 million of unencumbered assets(7) and a level of debt (net total debt-to-net total assets)(8) of 41.9%. As at March 31, 2022, the Trust had $2.6 billion of investment properties, $8.3 million of cash and cash equivalents, $271.3 million of undrawn credit facilities, $3.1 billion of total assets and $1.3 billion of total debt.

The novel coronavirus (“COVID-19”) pandemic continues to disrupt the Canadian economy. Repeated states of emergency and lockdowns as a result of emerging variants, most recently public health measures due to the Omicron variant in December 2021 and January 2022, have made it difficult for businesses to plan for the future. The full impact that these disruptions will have on the market for office space in the near term and the wider economy in general is unclear and difficult to predict. However, we believe that there will continue to be demand for high-quality and well-located office space in urban markets in Canada, especially in Toronto, when the economy normalizes. The Trust has ample financial resources to absorb near-term operational challenges and a program to drive value in the business through capital improvements and redevelopments to deliver best-in-class boutique office space to our tenants.

The COVID-19 pandemic delayed the construction timelines for the planned Bay Street corridor revitalization, but we are near completion of the interior renovation work, and façade improvements are scheduled to be finished this year. Since 2020, our successful redevelopment program has completed two projects on time and on budget that have significantly increased the value of the redeveloped properties and delivered significant incremental income to the Trust. 357 Bay Street in Toronto downtown was completed in Q4 2020 and in Q1 2022 contributed $3.0 million of annualized comparative properties NOI. Q3 2021 marked the completion of 1900 Sherwood Place in Regina, Saskatchewan, and the commencement of the 25-year Co-operators lease at the property. 1900 Sherwood Place generated $5.2 million of annualized NOI over Q1 2022. We are currently in the process of revitalizing 366 Bay Street in Toronto by fully modernizing the building’s systems, improving the building’s floorplates and upgrading the quality of the common areas. We are targeting a LEED Gold certification, among other certifications, as part of this development project. In addition, we have received zoning approval for 250 Dundas Street West in Toronto, have a zoning application underway for our property at Eglinton Avenue East and Birchmount Road in Scarborough, and are working on a development plan for 212 and 220 King Street West in Toronto.

We hold a stake in Dream Industrial REIT which continues to provide a meaningful contribution to our FFO as a result of the REIT’s successful European expansion and value-add strategy and the monthly distributions provide steady, predictable cash flow to the Trust at a time of uncertainty.

The effect of public health measures put in place as a response to the Omicron variant resulted in fewer property tours, lower building traffic and reduced parking lot utilization relative to Q4 2021. However, we believe that these effects are transitory and that the improvements in the latter half of 2021 will re-emerge during 2022.

During Q1 2022, the Trust executed leases totalling approximately 159,000 square feet across our portfolio. In Toronto downtown, the Trust executed 131,000 square feet of leases including the 54,000 square foot flexible workspace lease discussed previously. The remaining 78,000 square feet of leases were executed at a weighted average net rent of $32.07 per square foot, or 26.0% higher than the weighted average prior net rent per square foot on the same space, with a weighted average lease term of 5.2 years.

In the Other markets region we executed leases totalling 28,000 square feet at a weighted average net rent of $19.42 per square foot, an increase of 0.7% from the weighted average prior net rent on the same space, with a weighted average lease term of 7.2 years. To date, the Trust has secured commitments for approximately 659,000 square feet, or 82%, of 2022 full-year natural lease expiries, consistent with pre-COVID leasing trends. In Toronto downtown, 63,000 square feet, or approximately 1.8% of the region’s gross leaseable area, was being held intentionally vacant for retail repositioning and property improvement purposes as at March 31, 2022 of which the Trust has deals that were subsequently completed, are conditional or are in an advanced state of negotiation totalling 19,000 square feet.

Approximately 2% of the Trust’s total portfolio is currently sublet, with a weighted average in-place net rent of just over $25 per square foot.

The following table summarizes selected operational statistics with respect to the trailing four quarters and the month of April 2022 as at May 5, 2022, all presented as a percentage of recurring contractual gross rent:

 

Cash

Deferral

 

 

collected

arrangements*

Outstanding

Q2 2021

98.4%

0.3%

1.3%

Q3 2021

98.5%

0.2%

1.3%

Q4 2021

98.4%

—%

1.6%

Q1 2022

97.8%

—%

2.2%

April 2022

98.0%

0.1%

1.9%

* Deferral arrangements are presented net of subsequently received cash receipts.

Over the course of the COVID-19 pandemic, we have worked collaboratively with our tenants to help them manage the challenges within their businesses and be set up for long-term success when the pandemic has passed. The Canadian Emergency Rent Subsidy program ended during Q4 2021 and the Hardest-Hit Business Recovery Program was introduced. While the new program is harder for tenants to qualify for, we have not seen any significant change in rent collection patterns since its introduction. In certain instances, the Trust has granted deferrals and rent repayment arrangements to select tenants on a case-by-case basis.

For the three months ended March 31, 2022, the Trust recorded COVID-related provisions totalling approximately $0.6 million which are included in the line item “COVID-related provisions and adjustments” within net rental income. These provision balances represent an estimate of potential credit losses on our trade receivables for all uncollected rent during the three months ended March 31, 2022.

CAPITAL HIGHLIGHTS

KEY FINANCIAL PERFORMANCE METRICS

 

 

 

As at

(unaudited)

 

March 31,

 

December 31,

 

 

2022

 

2021

Financing

 

 

 

 

Weighted average face rate of interest on debt (period-end)(9)

 

3.37%

 

3.28%

Interest coverage ratio (times)(10)

 

2.9

 

3.0

Net total debt-to-normalized adjusted EBITDAFV ratio (years)(11)

 

10.4

 

9.8

Level of debt (net total debt-to-net total assets)(8)

 

41.9%

 

41.8%

Average term to maturity on debt (years)

 

3.4

 

3.6

Undrawn credit facilities, available liquidityand unencumbered assets

 

 

 

 

Undrawn credit facilities

$

271.3

$

192.4

Available liquidity (in millions)(6)

 

279.6

 

201.1

Unencumbered assets (in millions)(7)

 

169.6

 

178.3

Capital (period-end)

 

 

 

 

Total number of REIT A and LP B units (in millions)(12)

 

52.3

 

53.3

Net asset value (“NAV”) per unit(13)

$

32.63

$

31.49

See footnotes at end.

“Our partnership with the Canada Infrastructure Bank provides the Trust with a great source of capital to continue to improve our assets to a higher standard while doing our part to reduce greenhouse gas emissions in our portfolio,” said Jay Jiang, Chief Financial Officer of Dream Office REIT. “The facility will also enhance our liquidity and flexibility of our balance sheet so that we are able to reduce risk while remaining opportunistic.”

CONFERENCE CALL

Dream Office REIT holds semi-annual conference calls following the release of second and fourth quarter results.

OTHER INFORMATION

Information appearing in this press release is a selected summary of results. The condensed consolidated financial statements and Management’s Discussion and Analysis (“MD&A”) of the Trust are available at www.dreamofficereit.ca and on www.sedar.com.

Dream Office REIT is an unincorporated, open-ended real estate investment trust. Dream Office REIT is a premier office landlord in downtown Toronto with over 3.5 million square feet owned and managed. We have carefully curated an investment portfolio of high-quality assets in irreplaceable locations in one of the finest office markets in the world. We intend to enhance these properties to elevate their desirability to tenants and investors and improve the overall community experience. For more information, please visit our website at www.dreamofficereit.ca.

FOOTNOTES

(1)

Excludes joint ventures that are equity accounted at the end of each period.

(2)

Excludes properties under development and joint ventures that are equity accounted at the end of each period.

(3)

FFO is a non-GAAP financial measure. The most directly comparable financial measure to FFO is net income. The tables included in the Appendices section of this press release reconcile FFO for the three months ended March 31, 2022 and March 31, 2021 to net income. For further information on this non-GAAP measure please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release.

(4)

Comparative properties NOI is a non-GAAP financial measure. The most directly comparable financial measure to comparative properties NOI is net rental income. The tables included in the Appendices section of this press release reconcile comparative properties NOI for the three months ended March 31, 2022 and March 31, 2021 to net rental income. For further information on this non-GAAP measure please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release.

(5)

Diluted FFO per unit is a non-GAAP ratio. Diluted FFO per unit is calculated as FFO (a non-GAAP financial measure) divided by weighted average number of units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release. A description of the determination of the weighted average number of units can be found in the Trust’s Management’s Discussion and Analysis for the three months ended March 31, 2022 in the section “Supplementary Financial Measures and Other Disclosures” under the heading “Weighted average number of units”.

(6)

Available liquidity is a non-GAAP financial measure. The most directly comparable financial measure to available liquidity is undrawn credit facilities. The tables included in the Appendices section of this press release reconcile available liquidity to undrawn credit facilities as at March 31, 2022 and December 31, 2021. For further information on this non-GAAP financial measure please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release.

(7)

Unencumbered assets is a supplementary financial measure. For further information on this supplementary financial measure, please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release.

(8)

Level of debt (net total debt-to-net total assets) is a non-GAAP ratio. Net total debt-to-net total assets comprises net total debt (a non-GAAP financial measure) divided by net total assets (a non-GAAP financial measure). The tables in the appendices section reconcile net total debt and net total assets to total debt and total assets, respectively, as at March 31, 2022 and December 31, 2021. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release.

(9)

Weighted average face rate of interest on debt is calculated as the weighted average face rate of all interest-bearing debt balances excluding debt in joint ventures that are equity accounted.

(10)

Interest coverage ratio (times) is a non-GAAP ratio. Interest coverage ratio comprises trailing 12-month adjusted EBITDAFV divided by trailing 12-month interest expense on debt. Adjusted EBITDAFV, trailing 12-month Adjusted EBITDAFV and trailing 12-month interest expense on debt are non-GAAP measures. The tables in the Appendices section reconcile adjusted EBITDAFV to net income for the three months ended March 31, 2022 and March 31, 2021 and for the year ended December 31, 2021 and trailing 12-month adjusted EBITDAFV and trailing 12-month interest expense to adjusted EBITDAFV and interest expense, respectively, for the trailing 12-month period ended March 31, 2022. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP Financial Measures and Ratios and Supplementary Financial Measures” in this press release.

(11)

Net total debt-to-normalized adjusted EBITDAFV ratio (years) is a non-GAAP ratio. Net total debt-to-normalized adjusted EBITDAFV comprises net total debt (a non-GAAP financial measure) divided by normalized adjusted EBITDAFV (a non-GAAP financial measure). Normalized adjusted EBITDAFV comprises adjusted EBITDAFV (a non-GAAP measure) adjusted for NOI from sold properties in the quarter. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP Financial Measures and Ratios and Supplementary Financial Measures” in this press release.

(12)

Total number of REIT A and LP B units includes 5.2 million LP B Units which are classified as a liability under IFRS.

(13)

NAV per unit is a non-GAAP ratio. NAV per unit is calculated as Total equity (including LP B Units) divided by the total number of REIT A and LP B units outstanding as at the end of the period. Total equity (including LP B Units) is a non-GAAP measure. The most directly comparable financial measure to total equity (including LP B Units) is equity. The tables included in the appendices section of this press release reconcile total equity (including LP B Units) to equity as at March 31, 2022 and December 31, 2021. For further information on this non-GAAP measure please refer to the statements under the heading “Non-GAAP Financial Measures, Ratios and Supplementary Financial Measures” in this press release.

NON-GAAP FINANCIAL MEASURES, RATIOS AND SUPPLEMENTARY FINANCIAL MEASURES

The Trust’s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this press release, as a complement to results provided in accordance with IFRS, the Trust discloses and discusses certain non-GAAP financial measures, including FFO, comparative properties NOI and available liquidity, and non-GAAP ratios, including diluted FFO per unit, level of debt (net total debt-to-net total assets), interest coverage ratio, net total debt-to-normalized adjusted EBITDAFV and NAV per unit, as well as other measures discussed elsewhere in this release. These measures and ratios are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. The Trust has presented such non-GAAP measures and non-GAAP ratios as Management believes they are relevant measures of the Trust’s underlying operating and financial performance. Certain additional disclosures such as the composition, usefulness and changes, as applicable, of the non-GAAP financial measures and ratios included in this press release have been incorporated by reference from the management’s discussion and analysis of the financial condition and results from operations of the Trust for the three months ended March 31, 2022, dated May 5, 2022 (the “MD&A for the first quarter of 2022”) and can be found under the section “Non-GAAP Financial Measures and Ratios” and respective sub-headings labelled “Funds from operations and diluted FFO per unit”, “Comparative properties NOI”, “Level of debt (net total debt-to-net total assets)”, “Net total debt-to-normalized adjusted EBITDAFV ratio (years)”, “Interest coverage ratio”, “Available liquidity” and “Net asset value (“NAV”) per Unit”. The composition of supplementary financial measures included in this press release have been incorporated by reference from the MD&A for the first quarter of 2022 and can be found under the section “Supplementary financial measures and ratios and other disclosures”. The MD&A for the first quarter of 2022 is available on SEDAR at www.sedar.com under the Trust’s profile and on the Trust’s website at www.dreamofficereit.ca under the Investors section. Non-GAAP measures should not be considered as alternatives to net income, net rental income, cash flows generated from (utilized in) operating activities, cash and cash equivalents, total assets, non-current debt, total equity, or comparable metrics determined in accordance with IFRS as indicators of the Trust’s performance, liquidity, leverage, cash flow, and profitability. Reconciliations to the nearest comparable financial measure are contained at the end of this press release.

FORWARD-LOOKING INFORMATION

This press release may contain forward-looking information within the meaning of applicable securities legislation, including, but not limited to, statements regarding our objectives and strategies to achieve those objectives, our ability to increase the desirability, occupancy and liquidity of our buildings; the effect of building improvements on tenant experience and building quality and performance; our expectations regarding the COVID-19 pandemic and the timing of current and prospective tenants return to the office and its effect on our business and financial metrics, including in respect of leasing, building traffic and our revenues; our expectations regarding future demand for office space in urban markets in Canada; our ability to achieve building certifications; anticipated financial performance of tenants with percentage rent arrangements; our development, redevelopment and intensification plans and timelines, and the effect of these plans on the value and quality of our portfolio; our future capital requirements and ability to meet those requirements; our asset management strategies and prospective leasing activity and our overall financial performance, profitability and liquidity for future periods and years. Forward-looking statements generally can be identified by words such as “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “could”, “likely”, “plan”, “project”, “budget”, or “continue” or similar expressions suggesting future outcomes or events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dream Office REIT’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the impact of the COVID-19 pandemic on the Trust; the effect of government restrictions on leasing and building traffic; employment levels; mortgage and interest rates and regulations; the uncertainties around the timing and amount of future financings; leasing risks, including those associated with the ability to lease vacant space; rental rates on future leasing; and interest and currency rate fluctuations. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, interest rates remain stable, conditions within the real estate market remain consistent, that government restrictions due to COVID-19 on the ability of us and our tenants to operate their businesses at our properties will continue to ease and will not be re-imposed in any material respects, competition for acquisitions remains consistent with the current climate, and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. Dream Office REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in Dream Office REIT’s filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dream Office REIT’s website at www.dreamofficereit.ca.

APPENDICES

Funds from operations and diluted FFO per unit

 

 

Three months ended March 31,

 

 

 

2022

 

 

2021

Net income for the period

 

$

52,282

 

$

10,146

Add (deduct):

 

 

 

 

 

 

Share of net income from investment in Dream Industrial REIT

 

 

(42,899)

 

 

(13,950)

Share of FFO from investment in Dream Industrial REIT

 

 

5,847

 

 

5,034

Depreciation and amortization

 

 

2,986

 

 

3,079

Costs (recovery) attributable to sale of investment properties(1)

 

 

(12)

 

 

1,074

Interest expense on subsidiary redeemable units

 

 

1,308

 

 

1,308

Fair value adjustments to investment properties

 

 

(19,379)

 

 

6,139

Fair value adjustments to investment properties held in joint ventures

 

 

(23)

 

 

(13)

Fair value adjustments to financial instruments and DUIP included in G&A expenses

 

 

20,340

 

 

8,026

Internal leasing costs

 

 

517

 

 

390

Principal repayments on finance lease liabilities

 

 

(13)

 

 

(12)

Deferred income taxes expense (recovery)

 

 

89

 

 

88

FFO for the period

$

21,043

 

$

21,309

Diluted weighted average number of units(2)

 

 

53,688

 

 

56,768

FFO per unit – diluted

 

$

0.39

 

$

0.38

(1)

Includes both continuing and discontinued operations.

(2)

Diluted weighted average number of units includes the weighted average of all REIT A Units, LP B Units, vested but unissued and unvested deferred trust units and associated income deferred trust units.

Comparative properties NOI

 

Three months ended

Change

in

weighted

average

occupancy %

Change

in

in-place

net rents

%

 

March 31,

 

March 31,

 

 

Change

 

2022

 

2021

 

 

Amount

 

%

Toronto downtown

$

21,630

 

$

23,511

 

$

(1,881)

 

(8.0)

 

(8.2)

 

3.4

Other markets

 

5,690

 

 

5,199

 

 

491

 

9.4

 

4.3

 

(4.0)

Comparative properties NOI

 

27,320

 

 

28,710

 

 

(1,390)

 

(4.8)

 

(3.9)

 

0.5

1900 Sherwood Place

 

1,289

 

 

10

 

 

1,279

 

 

 

 

 

 

Property under development

 

(55)

 

 

(43)

 

 

(12)

 

 

 

 

 

 

Property management and other service fees

 

431

 

 

326

 

 

105

 

 

 

 

 

 

COVID-related provisions and adjustments

 

(602)

 

 

169

 

 

(771)

 

 

 

 

 

 

Straight-line rent

 

129

 

 

27

 

 

102

 

 

 

 

 

 

Amortization of lease incentives

 

(2,902)

 

 

(2,930)

 

 

28

 

 

 

 

 

 

Lease termination fees and other

 

253

 

 

(28)

 

 

281

 

 

 

 

 

 

Sold properties

 

 

 

30

 

 

(30)

 

 

 

 

 

 

Net rental income from continuing operations

$

25,863

 

$

26,271

 

$

(408)

 

 

 

 

 

 

Available liquidity

 

 

As at

 

 

March 31,

 

December 31,

 

 

2022

 

2021

Undrawn credit facilities

$

271,337

$

192,355

Cash and cash equivalents

 

8,302

 

8,763

Available liquidity

$

279,639

$

201,118

Level of debt (net total debt-to-net total assets)

 

Amounts included in condensed consolidated financial statements

 

March 31,

 

December 31,

 

 

2022

 

 

2021

Non-current debt

$

1,236,423

 

$

1,206,734

Current debt

 

79,203

 

 

76,539

Total debt

 

1,315,626

 

 

1,283,273

Less: Cash on hand

 

(6,627)

 

 

(5,556)

Net total debt

$

1,308,999

 

$

1,277,717

Total assets

 

3,127,608

 

 

3,065,560

Less: Cash on hand

 

(6,627)

 

 

(5,556)

Net total assets

$

3,120,981

 

$

3,060,004

Net total debt-to-net total assets

 

41.9%

 

 

41.8%

Adjusted EBITDAFV

 

Three months ended

 

Year ended

 

March 31,

 

March 31,

 

December 31,

 

 

2022

 

 

2021

 

 

2021

Net income for the period

$

52,282

 

$

10,146

 

$

154,207

Add (deduct):

 

 

 

 

 

 

 

 

Interest – debt

 

11,259

 

 

10,884

 

 

43,372

Interest – subsidiary redeemable units

 

1,308

 

 

1,308

 

 

5,234

Current and deferred income taxes expense (recovery), net

 

124

 

 

88

 

 

(203)

Depreciation on property and equipment

 

130

 

 

242

 

 

897

Fair value adjustments to investment properties

 

(19,379)

 

 

6,139

 

 

(47,926)

Fair value adjustments to financial instruments

 

20,282

 

 

8,152

 

 

29,922

Share of net income from investment in Dream Industrial REIT

 

(42,899)

 

 

(13,950)

 

 

(90,645)

Distributions received from Dream Industrial REIT

 

4,655

 

 

4,655

 

 

18,622

Share of net loss from investment in joint ventures

 

72

 

 

16

 

 

340

Non-cash items included in investment properties revenue(1)

 

2,773

 

 

2,903

 

 

11,217

Government assistance and COVID-related provisions

 

602

 

 

(169)

 

 

482

Lease termination fees and other

 

(253)

 

 

28

 

 

(836)

Net losses (gains) on transactions and other items(2)

 

505

 

 

1,464

 

 

3,732

Adjusted EBITDAFV for the period

$

31,461

 

$

31,906

 

$

128,415

(1)

Includes adjustments for straight-line rent and amortization of lease incentives.

(2)

Includes both continuing and discontinued operations.

Trailing 12-month Adjusted EBITDAFV and trailing 12-month interest expense on debt

 

Trailing 12-month period

 

ended March 31, 2022

Adjusted EBITDAFV for the three months ended March 31, 2022

 

$

31,461

Add: Adjusted EBITDAFV for the year ended December 31, 2021

 

 

128,415

Less: Adjusted EBITDAFV for the three months ended March 31, 2021

 

 

(31,906)

Trailing 12-month Adjusted EBITDAFV

 

$

127,970

 

Trailing 12-month period

 

ended March 31, 2022

Interest expense on debt for the three months ended March 31, 2022

 

$

11,259

Add: Interest expense on debt for the year ended December 31, 2021

 

 

43,372

Less: Interest expense on debt for the three months ended March 31, 2021

 

 

(10,884)

Trailing 12-month interest expense on debt

 

$

43,747

Interest coverage ratio (times)

 

For the trailing 12-month period ended

 

March 31,

 

 

December 31,

 

2022

 

 

2021

Trailing 12-month Adjusted EBITDAFV

$

127,970

 

$

128,415

Interest expense on debt

$

43,747

 

$

43,372

Interest coverage ratio (times)

 

2.9

 

 

3.0

Net total debt-to-normalized adjusted EBITDAFV ratio (years)

 

March 31,

December 31,

 

 

2022

 

2021

Non-current debt

 

$

1,236,423

$

1,206,734

Current debt

 

 

79,203

 

76,539

Total debt

 

 

1,315,626

 

1,283,273

Less: Cash on hand(1)

 

 

(6,627)

 

(5,556)

Net total debt

 

$

1,308,999

$

1,277,717

Adjusted EBITDAFV – quarterly

 

 

31,461

 

32,534

Less: NOI of disposed properties for the quarter

 

 

 

(4)

Normalized adjusted EBITDAFV – quarterly

 

$

31,461

$

32,530

Normalized adjusted EBITDAFV – annualized

 

$

125,844

$

130,120

Net total debt-to-normalized adjusted EBITDAFV ratio (years)

 

 

10.4

 

9.8

(1)

Cash on hand represents cash on hand at period-end, excluding cash held in co-owned properties and joint ventures that are equity accounted.

NAV per unit

 

 

 

Unitholders’ equity

 

 

 

March 31, 2022

 

December 31, 2021

 

 

 

Number of Units

 

 

Amount

 

Number of Units

 

 

Amount

Unitholders’ equity

 

 

47,029,715

 

$

1,857,974

 

48,034,754

 

$

1,883,653

Deficit

 

 

 

 

(298,149)

 

 

 

(338,593)

Accumulated other comprehensive income (loss)

 

 

 

 

(347)

 

 

 

3,268

Equity per condensed consolidated financial statements

47,029,715

 

 

1,559,478

 

48,034,754

 

 

1,548,328

Add: LP B Units

 

 

5,233,823

 

 

145,867

 

5,233,823

 

 

128,909

Total equity (including LP B Units)

 

 

52,263,538

 

$

1,705,345

 

53,268,577

 

$

1,677,237

NAV per unit

 

 

 

 

$

32.63

 

 

 

$

31.49

 

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Live Updates: Russia Moves More Troops to Front; Ukraine Faces Fuel Shortages

Russia is calling in troops based in its far east to join the battle in Ukraine, the Ukrainian military high command said on Saturday, as Moscow seeks to reinforce its war-fighting force amid heavy losses and signs that its drive to seize eastern Ukraine has stalled.

Adding to the sense that both sides appeared to be girding for a war of attrition, Ukrainians on Saturday lined up at gas stations across the country as the government struggled to deal with a fuel shortage caused by Russian attacks on oil infrastructure.

“Queues and rising prices at gas stations are seen in many regions of our country,” President Volodymyr Zelensky of Ukraine said Friday in his nightly address. “The occupiers are deliberately destroying the infrastructure for the production, supply and storage of fuel.”

He said a Russian blockade of Ukrainian seaports meant that replacement stocks could not come in by tanker. The war has also paralyzed grain harvests in Ukraine, known as Europe’s breadbasket, disrupting global food supplies and worsening a food crisis in East Africa.

As Western allies have poured more heavy weapons into Ukraine, Slovakia and Poland, both NATO countries, reached an agreement that could presage the transfer of MIG-29 warplanes to Ukraine. Slovakia said that Polish F-16 jets would patrol its skies, freeing up a Slovak fleet of the Soviet-made MIGs.

After a meeting between the two countries’ defense ministers on Friday, Poland said its air force would begin patrols over Slovakia as part of their joint efforts to help Ukraine.

Credit…Marko Djurica/Reuters

Slovakia did not say explicitly that it would send its MIGs to Ukraine, but it has raised the possibility of doing so — provided that it can find an alternative way to protect its airspace, which the agreement with Poland would seem to achieve.

Poland last month declined to provide its own fleet of MIG-29s to Ukraine directly, instead offering to fly the planes to a United States military base in Germany, where they could then be flown to Ukraine. Washington, worried about provoking Russia, declined the offer.

Russia’s foreign minister, Sergey V. Lavrov, contended that the United States and the European Union, by supplying more powerful weapons to Ukraine, were waging a proxy battle against Russia, regardless of the cost in civilian lives.

The flow of weapons from the West, Mr. Lavrov said, had nothing to do with supporting Ukraine’s sovereignty, but rather would enable the United States and the European Union to battle Russia “to the last Ukrainian.”

The fuel shortages in Ukraine followed Russian attacks this week on Ukraine’s main producer of fuel products and other large refineries. Russia said it had also hit storage facilities for petroleum products used by the Ukrainian military.

A senior Pentagon official said these types of attacks were intended to undercut the Ukrainian military’s ability to “replenish their own stores and to reinforce themselves.”

In response, officials in Kyiv, Ukraine’s capital, urged residents to use public transportation rather than private vehicles to save fuel. “We need to keep in mind the needs of the military and our defenders,” the city’s administration said.

The Kremlin’s deployment of troops from eastern Russia to the battle front in Ukraine suggested that Moscow could be trying to regain momentum in what the Pentagon has described as a “plodding” offensive in eastern Ukraine.

Credit…Finbarr O’Reilly for The New York Times

The Ukrainian military said that the additional Russian forces were being sent first to a Russian city near the Ukrainian border and then to the northeastern Ukrainian city of Izium, where the Russians have met fierce resistance. It did not say how many troops were being deployed.

Western analysts have said Russia’s offensive in the east has slowed as it struggles to overcome many of the same logistical problems involving shipments of food, fuel, weapons and ammunition that hampered the initial phase of its invasion more than two months ago.

On Saturday, the British Defense Ministry said Russia was trying to fix issues that had constrained its invasion by geographically concentrating combat power, shortening supply lines and simplifying command and control.

But Russia “still faces considerable challenges,” the ministry said in its latest intelligence update on the war. “It has been forced to merge and redeploy depleted and disparate units from the failed advances in northeast Ukraine. Many of these units are likely suffering from weakened morale.”

The fighting in eastern Ukraine has exacted an increasingly heavy toll on both militaries. The Russian Defense Ministry said on Saturday that its forces had fired on 389 targets across Ukraine, including facilities housing soldiers, killing 120 Ukrainians.

Ukraine said its Special Forces struck a command center near Izium, destroying dozens of tanks and armored vehicles.

In a measure of the rising toll on civilians, the Ukrainian authorities said the police had received more than 7,000 reports of missing people since the start of the invasion on Feb. 24, with half of the cases still unsolved.

Credit…Lynsey Addario for The New York Times

Ukrainian officials called the number “unprecedented in modern history,” and they appealed to allies to send forensic experts and specialists in managing missing-persons registries.

In a long-awaited but frequently frustrated development in Mariupol, the ruined southern Ukrainian port occupied by Russian forces, about 20 women and children were evacuated from the Azovstal steel plant where the city’s last Ukrainian fighters have been holed up along with hundreds of increasingly desperate civilians.

The news, from Capt. Svyatoslav Palamar, the deputy commander of the Azov regiment, came amid United Nations-backed efforts to broker a cease-fire to allow the trapped civilians and Ukrainian fighters to escape the plant.

Captain Palamar said in a video posted to Telegram that an evacuation column had arrived in the evening to bring the civilians to a safe place, adding that he hoped wounded soldiers would be given safe passage as well.

He did not provide further details, though Russia’s TASS news agency said one of its correspondents on the scene reported that 25 people — including six children — had walked out of the plant. It was not immediately clear whether they were free to seek safety in Ukraine or were being held by Russian forces.

Nearly a million Ukrainians have been moved from Ukraine to Russia, Mr. Lavrov said in an interview published by Chinese state news media on Saturday. He described the moves as voluntary “evacuations,” a claim that contradicted witnesses, Ukrainian officials and Western observers who have said that many Ukrainians have been forcibly deported.

Mr. Lavrov’s claim echoed the false assertions in Russian propaganda that its forces are liberating ethnic Russians and others in Ukraine from what President Vladimir V. Putin of Russia calls the “openly neo-Nazi” Ukrainian government.

Ukraine has argued that Russia is carrying out the forcible migration of its citizens, which is a war crime, to be used as leverage in any peace talks.

Credit…Andrey Borodulin/Agence France-Presse — Getty Images

Ukraine has also accused Russian forces of stealing cultural artifacts from occupied cities.

In Mariupol, city officials said Russian forces had taken more than 2,000 items — including icons, medals and works by Russian painters — from the city’s museums to Donetsk, the capital of an eastern region controlled by Moscow-backed separatists.

In the southern Ukrainian city of Melitopol, local officials said that a mysterious man in a white lab coat had used long tweezers and gloves to extract scores of gold artifacts more than 2,300 years old from cardboard boxes in a local museum, as a squad of Russian soldiers stood behind him with guns, watching eagerly. The items were from the Scythian empire and dated back to the fourth century B.C.

“The orcs have taken hold of our Scythian gold,” declared Melitopol’s mayor, Ivan Fyodorov, using a derogatory term many Ukrainians reserve for Russian soldiers. “This is one of the largest and most expensive collections in Ukraine, and today we don’t know where they took it.”

A series of explosions inside Russia in recent weeks have also increased concerns about the war spilling beyond Ukraine’s borders and set off the first air-raid siren on Russian soil since World War II.

The incidents include a Russian fuel depot that burst into flames moments after surveillance video captured bright streaks of rockets fired from low-flying helicopters, and a fire that broke out at a military research institute near Moscow.

Russia has accused Ukraine of carrying out the helicopter strike, while military analysts have suggested that Ukrainian sabotage was probably responsible for other fires. Ukraine has responded with deliberate ambiguity.

Credit…Pavel Kolyadin/BelPressa, via Reuters

“We don’t confirm, and we don’t deny,” Oleksei Arestovych, an adviser to Mr. Zelensky’s chief of staff, said in an interview.

Mr. Arestovych described the policy as a strategic stance, and he compared it with Israel’s longstanding policy of ambiguity on nuclear arms, another issue of extraordinary geopolitical sensitivity.

“After what has been happening,” he said, “officially we don’t say yes and we don’t say no, just like Israel.”

Reporting was contributed by Steven Erlanger, Andrew Higgins, Maria Varenikova, John Ismay, Dave Philipps, Valeriya Safronova, Lauren McCarthy, Victoria Kim, Christiaan Triebert, Aleksandra Koroleva, Andrew E. Kramer, Jeffrey Gettleman, Michael Schwirtz and Christine Hauser.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Crucial Russian sovereign bond payment received by JPMorgan, processed -source, article with image

>>> Don’t Miss Today’s BEST Amazon Deals!<<<<

File Photo: A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar

Register now for FREE unlimited access to Reuters.com

NEW YORK, March 17 (Reuters) – Coupon payments on Russian sovereign bonds due this week were received by correspondent bank JPMorgan (JPM.N), processed and the bank then made an onwards credit to the paying agent Citi (C.N), a source familiar with the situation said on Thursday, an indicator that the country may have averted default.

The payment received was a U.S. dollar payment, the source said. After being credited to the paying agent, it would be checked and distributed on to various bondholders, the source said.

Russia said on Thursday it had made debt payments that were due this week. Russia was due to pay $117 million in coupon payments on Wednesday on two dollar-denominated sovereign bonds and some creditors had received payments, market sources separately told Reuters, also indicating it avoided what would have been its first external bond default in a century. read more

Register now for FREE unlimited access to Reuters.com

The payments were widely seen as the first test of whether Moscow would meet its obligations after Western sanctions hobbled its financial dealings.

The source said that JPMorgan’s obligation as a foreign correspondent bank was to process payments, but that given the circumstances, also to check with authorities before doing so.

Sanctions imposed over Moscow’s invasion of Ukraine have cut Russia off from the global financial system and blocked the bulk of its gold and foreign exchange reserves, while Moscow has in turn retaliated – all of which complicate payments.

The bank checked with authorities before processing, the source said. Not to process the payment would have harmed bondholders, the source said.

Under the sanctions and restrictions announced last month, in response to Russia’s invasion of Ukraine, U.S. banks were prohibited from correspondent banking – allowing banks to make payments between one another and move money around the globe – with Russia’s largest lender, Sberbank, within 30 days. Washington and its partners also started barring some Russian banks from the SWIFT international payment system – a step that will stop lenders from conducting most of their financial transactions worldwide. read more

A March 2020 report by the Bank for International Settlements showed that correspondent banks have been “paring back their cross-border banking relations for the past decade.” The number of correspondent banks fell by 20% between 2011 and 2018, even as the value of payments increased, the report said.

Register now for FREE unlimited access to Reuters.com

Reporting by Megan Davies;
Editing by Chizu Nomiyama and Andrea Ricci

Our Standards: The Thomson Reuters Trust Principles.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Factbox: Commodity supplies at risk after Russia invades Ukraine, article with image

>>> Don’t Miss Today’s BEST Amazon Deals!<<<<

LONDON, March 4 (Reuters) – Russia’s invasion of Ukraine and the imposition of new Western sanctions against Russia have fuelled fears about supplies of key commodities produced and exported by Russian companies.

See for a Factbox on commodity price gains since the close on Feb. 23, the day before the invasion started.

Following are some details about Russia’s major commodity exports.

Register now for FREE unlimited access to Reuters.com

CRUDE OIL

Russia is the world’s third largest oil producer after the United States and Saudi Arabia with output of 11 million barrels per day (bpd).

It rivals Saudi Arabia for the title of the world’s largest oil exporter with around 7 million bpd of crude and oil products exported abroad, of which Asia takes around a half while Europe, the United States and the rest of the world take the rest.

GAS

Russia is the world’s second largest gas producer after the United States and the largest exporter, with flows going predominantly to Europe and covering 40% of the continent’s gas needs.

COAL

Russia is the world’s sixth largest coal producer with output of 400 million tonnes of coal, amounting to more than 5% of global production.

It is the world’s third largest exporter, shipping more than half its output overseas, with China being the main destination.

ALUMINIUM

Most Russian metal producers have so far escaped sanctions imposed by the West since Moscow annexed the Crimea in 2014.

One exception is the world’s largest aluminium producer outside China, Rusal , under sanctions imposed by the United States between April 2018 and early 2019.

Rusal produced 3.8 million tonnes of aluminium in 2021, about 6% of the estimated world production.

Europe, Asia and North America are Rusal’s main markets. Miner and commodity trader Glencore (GLEN.L) has a long-term deal running until 2025 to buy primary aluminium from Rusal.

COBALT

Data from U.S. Geological Survey (USGS) shows Russia produced 7,600 tonnes of cobalt last year, more than 4% of the global total.

Russia was the second largest producer, far behind the Democratic Republic of Congo which produced 120,000 tonnes.

Nornickel (GMKN.MM) is the largest producer in Russia, selling 5,000 tonnes in 2021. Nornickel sells most of its output to Europe.

COPPER

Russia produced 920,000 tonnes of refined copper last year, about 3.5% of the world total, according to USGS, out of which Nornickel produced 406,841 tonnes.

Asia and Europe are the main export markets.

NICKEL

Nornickel is the world’s top producer of refined nickel. It produced 193,006 tonnes in 2021 or about 7% of global mine production estimated at 2.7 million tonnes. It sells to global industrial consumers under long-term contracts.

PALLADIUM AND PLATINUM

Nornickel is also the world’s largest producer of palladium and a major producer of platinum.

It produced 2.6 million troy ounces of palladium last year or 40% of global mine production and 641,000 ounces of platinum or about 10% of total mine production.

GOLD

Russia is the world’s third largest producer of gold after Australia and China and accounts for about 10% of global mine production, which according to the World Gold Council totalled 3,500 tonnes last year.

Russian gold is produced by companies that include Polyus (PLZL.MM) and Polymetal (POLYP.L). Russian miners mainly sell their gold to the country’s commercial banks which then export it.

TITANIUM

Russia’s VSMPO-Avisma (VSMO.MM) supplies titanium to Boeing and Airbus. read more

Data from USGS shows Russia produced 27,000 tonnes of titanium sponge and Ukraine 5,400 tonnes last year, 15% of the global total at 210,000 tonnes.

STEEL

Russia produced 76 million tonnes of steel or nearly 4% of the global total, according to the World Steel Association.

Severstal (CHMF.MM), NLMK (NLMK.MM), Evraz (EVRE.L), MMK (MAGN.MM) and Mechel (MTLR.MM) are Russia’s main producers. They export about half of their production, mainly to Europe.

DIAMONDS

State-controlled Alrosa (ALRS.MM), the world’s largest producer of rough diamonds, produced 32.4 million carats in 2021, about 30% of the global total. It exports mostly to Belgium, India and the United Arab Emirates.

FERTILISERS

Russia is a major producer of potash, phosphate and nitrogen containing fertilisers – key crop and soil nutrients. It produces more than 50 million tonnes a year of the fertilisers, 13% of the global total.

Phosagro (PHOR.MM), Uralchem, Uralkali, Acron (AKRN.MM) and Eurochem are the biggest players.

They export to Asia and Brazil.

GRAINS/OILSEEDS

Russia and Ukraine are both major wheat suppliers, accounting for a combined 29% of global exports, the bulk of which go through ports in the Black Sea.

The movement of vessels on the smaller Azov Sea has already been suspended and if shipments are disrupted from the Black Sea it will leave major importers, particularly in the Middle East and North Africa, scrambling to find alternative supplies.

Ukraine is one of the world’s top four corn (maize) exporters along with the United States, Argentina and Brazil.

The two countries also account for about 80% of global exports of sunflower oil.

Register now for FREE unlimited access to Reuters.com

Reporting by Pratima Desai, Moscow newsroom, Nigel Hunt and Dmitry Zhdannikov;
Editing by Susan Fenton

Our Standards: The Thomson Reuters Trust Principles.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<