Stock Name: MIM
Amount: CAD 0.50
Announcement Date: 09/05/2012
Record Date: 23/05/2012
Dividend Detail:
AURORA, ON, May 9, 2012 /CNW/ - MI Developments Inc. (TSX/NYSE: MIM) ("MID" or the "Company") today announced its results for the
three-month period ended March 31, 2012.
"Our revenue and operating results for the first quarter were solid and
in line with our expectations.�� The Company continues to focus on all
components of its strategic plan.�� We believe that steps taken on
several fronts during this first quarter with respect to our people,
our properties and our relationship with Magna have strengthened the
Company overall," commented Tom Heslip, Chief Executive Officer.
MID's consolidated results for the three-month periods ended March 31,
2012 and 2011 are summarized below (all figures are in Canadian
("Cdn.") dollars):
�� | �� | �� | |||||
(in thousands, except per share figures) �� | �� | �� | ��Three months ended ��March 31, | ||||
�� | �� | �� | �� | �� | �� | �� | �� |
�� | �� | �� | �� | �� | �� 2012 | ������������������������������2011 | |
�� | �� | �� | �� | (previously reported in US dollars) | |||
Revenues(1) | �� | �� | �� | $ 45,660 | $ 44,231 | ||
�� | �� | �� | �� | �� | �� | ||
Income from continuing operations(1) | �� | �� | �� | $ 18,563 | $ 12,689 | ||
Income from discontinued operations(1) | �� | �� | �� | ����� | ��10,765 | ||
Net income | �� | �� | �� | $ ��18,563 | $ ��23,454 | ||
�� | �� | �� | �� | �� | �� | �� | |
Diluted earnings per share from: | �� | �� | �� | �� | �� | ||
�� - continuing operations | �� | �� | �� | $ 0.40 | $ ��0.27 | ||
�� - ��discontinued operations | �� | �� | �� | �� ��� | �� ��0.23 | ||
Diluted earnings per share | �� | �� | �� | $ 0.40 | $ 0.50 | ||
�� | �� | �� | �� | �� | �� | ||
Funds from operations ("FFO")(2) | �� | �� | �� | $ 29,406 | $ 23,136 | ||
Diluted FFO per share (2) | �� | �� | �� | $ ��0.63 | $ 0.49 | ||
�� | �� | �� | �� | �� | �� | �� | �� |
__________________________
(1)�� | Following the close of business on June 30, 2011, the Racing & Gaming Business, substantially all of the Company's lands held for development, a property in the United States and an income producing property in Canada (the "Arrangement Transferred Assets & Business") were transferred to entities owned by Mr. Frank Stronach and his family (the "Stronach Shareholder") in consideration for the elimination of MID's dual class share structure.�� The operating results of the Arrangement Transferred Assets & Business have been presented as discontinued operations.�� Income from continuing operations pertains to the Company's income producing property portfolio. |
�� | �� |
(2)�� | FFO and diluted FFO per share are measures widely used by analysts and investors in evaluating the operating performance of real estate companies.�� However, FFO does not have a standardized meaning under U.S. generally accepted accounting principles and therefore may not be comparable to similar measures presented by other companies.�� The Company determines FFO using the definition prescribed in the United States by the National Association of Real Estate Investment Trusts��.�� For a reconciliation of FFO to income from continuing operations, please refer to the section titled "Reconciliation of Funds from Operations to Income from Continuing Operations". |
�� | �� |
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CURRENCY CHANGE FOR FINANCIAL REPORTING
The consolidated financial statements for previous periods were reported
using the U.S. dollar. As a result of the Company's shareholder base
becoming increasingly Canadian and the Company's stated intention of
becoming a Canadian Real Estate Investment Trust ("REIT") and to
mitigate the impact of foreign exchange fluctuations on our reported
results, effective January 1, 2012, the Company's reporting currency
was changed to the Cdn. dollar. All comparative financial information
contained in this press release, the unaudited interim consolidated
financial statements and Management's Discussion and Analysis for the
three-months ended March 31, 2012, has been recast to reflect the
Company's results as if the information had been historically reported
in Cdn. dollars.�� As a result of the change in reporting currency,
dividends will be declared in Cdn. dollars commencing with the dividend
declared today. Please refer to the section titled "Dividends". The
Company continues to report in accordance with U.S. generally accepted
accounting principles.
MID CONSOLIDATED FINANCIAL RESULTS
The results of operations of the Company for the three-month periods
ended March 31, 2012 and 2011 include those from continuing operations
and discontinued operations.
Continuing Operations
For the three-month period ended March 31, 2012, rental revenues
increased by $1.5 million from $44.2 million in the first quarter of
2011 to $45.7 million in the first quarter of 2012 primarily due to
completed projects coming on-stream as well as the additional rent
earned from contractual rent increases.
The Company's income from continuing operations was $18.6 million in the
first quarter of 2012 compared to $12.7 million in the prior year
period. The increase in income from continuing operations of $5.9
million was primarily due to (i) an increase in rental revenue of $1.5
million for the reasons described above and (ii) a decrease in general
and administrative expenses of $6.6 million primarily due to a
reduction in advisory costs, decreased compensation expense pertaining
to director retainer and meeting fees and reduced insurance expense
primarily related to reduced Directors' and Officers' liability
insurance premiums, partially offset by (iii) an increase in property
operating costs of $0.4 million resulting primarily from appraisal and
valuation costs associated with the proposed REIT conversion, (iv) an
increase in income tax expense of $1.6 million resulting from higher
pre-tax income, changes in the mix of income earned in the various
countries in which the Company operates and changes in statutory income
tax rates and (v) an increase in depreciation and amortization expense
of $0.4 million, primarily due to additional depreciation charges
related to various expansion and improvement projects that were
completed in 2011.
FFO for the first quarter of 2012 increased $6.3 million from $23.1
million in the prior year period to $29.4 million in the current period
primarily due to the increased income from continuing operations of
$5.9 million and the increased add back of depreciation and
amortization expense of $0.4 million.
Discontinued Operations
For the three-month period ended March 31, 2012, the Company's results
of operations were not impacted by the Arrangement Transferred Assets &
Business as they were transferred to the Stronach Shareholder effective
June 30, 2011. Income from discontinued operations for the three-month
period ended March 31, 2011 primarily comprised of net income from the
Racing & Gaming Business and was generally reflective of the
seasonality of when the racetracks hold live racing.
Net Income
Net income of $18.6 million for the first quarter of 2012 decreased by
$4.9 million from $23.5 million in the prior year period.�� The decrease
was due to the reduction in income from discontinued operations of
$10.8 million, partially offset by an increase in income from
continuing operations of $5.9 million.
A more detailed discussion of MID's consolidated financial results for
the three-month periods ended March 31, 2012 and 2011 is contained in
MID's Management's Discussion and Analysis of Results of Operations and
Financial Position and the unaudited interim consolidated financial
statements and notes thereto, which are available through the internet
on Canadian Securities Administrators' Systems for Electronic Document
Analysis and Retrieval (SEDAR) and can be accessed at www.sedar.com and on the United States Securities and Exchange Commission's
Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which
can be accessed at www.sec.gov.
RECONCILIATION OF FUNDS FROM OPERATIONS TO INCOME FROM CONTINUING
OPERATIONS
�� | �� | �� | �� | Three months ended March 31, | ||
(in thousands, except per share information) | �� | �� | �� | ���� 2012 | 2011 | |
�� | �� | �� | �� | �� | �� | (previously reported in US dollars) |
Income from continuing operations | �� | �� | �� | $�������������� 18,563 | $ �������� 12,689 | |
Add back depreciation and amortization | �� | �� | �� | ������������������ 10,843 | �������������� 10,447 | |
Funds from operations | �� | �� | �� | $���������� �� 29,406 | $������ �� 23,136 | |
�� | �� | �� | �� | �� | �� | �� |
Basic funds from operations per share | �� | �� | �� | $������������ ������ 0.63 | $������������������ 0.50 | |
Diluted funds from operations per share | �� | �� | �� | $�������������������� 0.63 | $������������������ 0.49 | |
�� | �� | �� | �� | �� | �� | �� |
Basic number of shares outstanding | �� | �� | �� | ������������������ 46,884 | ���������������� 46,708 | |
Diluted number of shares outstanding | �� | �� | �� | ������������������ 46,906 | ���������������� 46,947 | |
�� | �� | �� | �� | �� | �� | |
DIVIDENDS
MID's Board of Directors has declared a Cdn. dollar denominated dividend
of $0.50 per share on MID's Common Shares for the first quarter ended
March 31, 2012.�� The dividend is payable on or about June 14, 2012 to
shareholders of record at the close of business on May 25, 2012. The
Common Shares will begin trading on an ex-dividend basis at the opening
of trading on May 23, 2012.
Unless indicated otherwise, MID has designated the entire amount of all
past and future taxable dividends paid since January 1, 2006 to be an
"eligible dividend" for purposes of the Income Tax Act (Canada).��
CONFERENCE CALL
MID will hold a conference call on Thursday, May 10, 2012 at 8:30 a.m.
Eastern time.�� The number to use for this call is 1-800-741-3792.��
Overseas callers should use +1-416-981-9031.�� Please call in at least
10 minutes prior to start time.��The conference call will be chaired by
Tom Heslip, Chief Executive Officer.���� For anyone unable to listen to
the scheduled call, the rebroadcast numbers will be: North America -
1-800-558-5253 and Overseas - +1-416-626-4100 (enter reservation number
21588446) and will be available until Thursday, May 17, 2012.
ABOUT MID
MID is a Canadian-based real estate company engaged primarily in the
acquisition, development, construction, leasing, management and
ownership of a predominantly industrial rental portfolio of properties
in North America and Europe leased primarily to the automotive
operating subsidiaries of Magna International Inc.
OTHER INFORMATION
Additional property statistics have been posted to MID's website at http://www.midevelopments.com/uploads/file/propertystatistics.pdf.�� Copies of financial data and other publicly filed documents are
available through the internet on Canadian Securities Administrators'
Systems for Electronic Document Analysis and Retrieval (SEDAR) which
can be accessed at www.sedar.com and on the United States Securities and Exchange Commission's
Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which
can be accessed at www.sec.gov.��For further information about MID, please see our website.
FORWARD-LOOKING STATEMENTS
This press release may contain statements that, to the extent they are
not recitations of historical fact, constitute "forward-looking
statements" within the meaning of applicable securities legislation,
including the United States Securities Act of 1933 and the United
States Securities Exchange Act of 1934.�� Forward-looking statements may
include, among others, statements regarding the Company's future plans,
goals, strategies, intentions, beliefs, estimates, costs, objectives,
economic performance or expectations, or the assumptions underlying any
of the foregoing.�� In particular, this press release contains
forward-looking statements regarding a strategic plan and a proposed
conversion to a REIT. Words such as "may", "would", "could", "will",
"likely", "expect", "anticipate", "believe", "intend", "plan",
"forecast", "project", "estimate" and similar expressions are used to
identify forward-looking statements.�� Forward-looking statements should
not be read as guarantees of future events, performance or results and
will not necessarily be accurate indications of whether or the times at
or by which such future performance will be achieved.�� Undue reliance
should not be placed on such statements. In particular, MID cautions
that the timing or completion of the strategic plan and the timing or
completion of the REIT conversion process cannot be predicted with
certainty, and there can be no assurance at this time that all required
or desirable approvals and consents to effect the plan and a REIT
conversion will be obtained in a timely manner or at all.
Forward-looking statements are based on information available at the
time and/or management's good faith assumptions and analyses made in
light of our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe are
appropriate in the circumstances, and are subject to known and unknown
risks, uncertainties and other unpredictable factors, many of which are
beyond the Company's control, that could cause actual events or results
to differ materially from such forward-looking statements.�� Important
factors that could cause such differences include, but are not limited
to, the risk of changes to tax or other laws that may adversely affect
the REIT conversion; inability of MID to implement a suitable structure
for the REIT conversion; the inability to obtain all required consents
and approvals for the REIT conversion; and the risks set forth in the
"Risks Factors" section in the Company's Annual Information Form for
2011, filed on SEDAR at www.sedar.com and attached as Exhibit 1 to the Company's Annual Report on Form 40-F
for the year ended December 31, 2011, which investors are strongly
advised to review. The "Risks Factors" section also contains
information about the material factors or assumptions underlying such
forward-looking statements.�� Forward-looking statements speak only as of the date the statements were
made and unless otherwise required by applicable securities laws, the
Company expressly disclaims any intention and undertakes no obligation
to update or revise any forward-looking statements contained in this
press release to reflect subsequent information, events or
circumstances or otherwise.
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For further information:
Tom Heslip, Chief Executive Officer, at 905-726-7639 or Michael Forsayeth, Chief Financial Officer, at 905-726-7600
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