Mr. Louis Lemire reports
THE NOBEL REIT ANNOUNCES FILING OF RESULTS FOR THE QUARTER ENDED JUNE 30, 2014
Nobel Real Estate Investment Trust has released its interim consolidated financial statements, and its management discussion and analysis report for the quarter ended June 30, 2014.
Highlights and selected financial information
The following table shows highlights and selected financial information for the three-month and six-month periods ended June 30, 2014.
As at June 30As at December 31
2014 2013
$ $
Financial position
Investment properties 14,920,939 15,061,212
Total assets 15,294,428 15,753,596
Mortgage payable 10,306,905 10,098,676
Liability related to Class B Limited Partnership units291,000 545,625
Unitholders' equity 4,283,339 4,692,200
Three-month Three-month
period ended period ended
June 30, 2014June 30, 2013
$ $
Comprehensive loss
Rental revenues from properties 485,354 170,767
Net operating income 277,023 120,580
Costs related to discontinued projects 460,965 -
Net loss before changes in fair values (510,013) (50,486)
Net loss and comprehensive loss for the period (398,438) (578,225)
Six-month Six-month
period ended period ended
June 30, 2014June 30, 2013
$ $
Comprehensive loss
Rental revenues from properties 977,015 170,767
Net operating income 564,383 120,580
Costs related to discontinued projects 460,965 -
Net loss before changes in fair values (484,024) (162,996)
Net loss and comprehensive loss for the period (353,912) (690,735)
Costs related to discontinued projects
The negative results of the second quarter of 2014 are mainly due to costs related to discontinued projects. More specifically, $358,298 of costs related to potential acquisitions of investment properties, including a $200,000 deposit, were expensed; an amount of $102,667 related to equity financing search activities was also expensed.
Subsequent events
Following the end of the quarter, the REIT completed a $10,000,000 private placement et acquired two investment properties at a purchase price of $16,000,000, partly financed by mortgages totalling $10,900,000. The REIT also completed a consolidation of its units, 10 pre-consolidation units for one post-consolidation unit.According to Jean Teasdale, Chief Executive Officer of the REIT "the Board of Trustees and Management are confident about the future. The private placement will allow the REIT to deploy its business plan and to extend its investor base".
The interim consolidated financial statements of Nobel REIT, which were prepared in accordance with IFRS, and the management discussion and analysis report for the quarter ended on June 30, 2014 have been filed on SEDAR at www.sedar.com.