Edgefront Real Estate Investment Trust Announces Stable Q1 Results and June Distribution - Seite 2

Property revenue increased to $3,724,541 in the quarter as compared to $2,714,375 in the same quarter of 2015, and $3,585,247 in the fourth quarter of 2015. Net operating income grew to $3,150,355 in the quarter as compared to $2,203,093 in same quarter of 2015, and $2,935,455 in the fourth quarter of 2015. The growth in net operating income is primarily attributable to the impact of acquisitions completed in the second half of 2015. Total contractual rental increases of $43,000 in the quarter, of which $9,000 was straight-line adjusted; property revenue and net operating income increased by approximately $34,000 from contractual rental increases based on the consumer price index.

In connection with an acquisition completed on January 14, 2014, $300,000 was placed into escrow by the vendors to fund anticipated environmental monitoring costs. Over a two-year escrow period, the REIT incurred monitoring costs, net of tenant reimbursements, amounting to $43,472, and on release of the $300,000 escrow on January 29, 2016, $256,528 of other income was recognized. Normalized FFO and Normalized AFFO for the first quarter of 2016 exclude the impact of this other income.

The REIT generated normalized FFO and normalized AFFO of $1,875,792 and $2,112,375 respectively, in the quarter, with normalized FFO per unit and normalized AFFO per unit of $0.047 and $0.053, respectively. Normalized FFO per unit and normalized AFFO per unit increased 7.8% and 2.7%, respectively, as compared to FFO and AFFO, respectively, in the same quarter of 2015.

Distributions of $0.04 per unit were declared for the quarter. The normalized AFFO payout ratio for the quarter was 75.7%.

Balance Sheet and Liquidity

The REIT's debt to total assets ratio was 49.6% at March 31, 2016. The REIT intends to maintain a debt to total assets ratio of less than 55%.

Earnings Call

Kelly Hanczyk, President and Chief Executive Officer of the REIT, and Robert Chiasson, Chief Financial Officer, will host a conference call at 1:00 PM Eastern Standard Time on Monday May 30, 2016 to review the financial results and operations.

To participate in the conference call, please dial 416-340-2216 or 1-866-223-7781 (toll free in Canada and the US) at least 10 minutes prior to the commencement of the call and ask to join the Edgefront REIT conference call.

A recording of the conference call will be available until June 13, 2016. To access the recording, please dial 905-694-9451 or 1-800-408-3053 (toll free in Canada and the US) and enter passcode 4686659.