Revenue up 90 per cent for Pure Industrial Real Estate

Pure Industrial Real Estate Trust (PIRET) of Vancouver, which has been buying property in Ontario, reported rental income for the first three months of this year was $11.331 million, up 90 per cent from $5.967 million during the first three months of 2011.

In February, PIRET closed the sale of a property in Pickering, Ontario, east of Toronto, which includes land that could allow for future expansion. That property, at 925 to 931 Brock Road, cost the firm $22.125-million.

Also in February, PIRET signed an agreement to sell $31.5 million worth of trust units, in a financing deal underwritten by a group of investment banking firms led by Canaccord Genuity Corp. and Dundee Securities Ltd.

“There continues to be a robust pipeline of quality acquisitions coming to market and PIRET continues to be one of a small number of preferred buyers,” the company stated in its management discussion and analysis for the first quarter posted to SEDAR May 17. “There is an increase of capital flowing into the real estate markets, particularly from pension fund and institution investors for the larger portfolio transactions.”

According to the financial results it posted to SEDAR May 17, net income was $3.976 million for the three months ending March 31, compared to loss of $3.857 million during the first three months of 2011. Earnings from property operations were $8.672 million during the three months ending March 31, up from $4.754 million a year earlier.

As of March 31, PIRET reported it had 66 properties across Canada, 27 of which are in Ontario, with a total gross leasable area of 4.568 million square feet.

As of December 31, 2011, 36.3 per cent of the gross leasable area was in Ontario, and by March 31, that figure rose to nearly 47 per cent.

According to its 2011 annual report, PIRET got 18.9 per cent of its revenue from TransForce. Other major tenants included Advance Engineered Products Inc., RSAC Canada Ltd., Kingspan and Industrial Containers.

For the full year of 2011, PIRET reported $34.933 million in revenue, up from $14.339 million in 2010. Funds from operations were $16.512 million in 2011, up from $5.942 million in 2010. Net income for 2011 was $13.295 million, compared to loss of $2.988 million in 2010.

PIRET says the funds from operations figure excludes charges for depreciation, amortization, future income taxes and gains and losses from property dispositions. This measure “provides a perspective of financial performance that is not immediately apparent from net earnings” determined by International Financial Reporting Standards because it shows, over time, “the impact on operations” of trends in occupancy levels, rental rates, operating costs, realty taxes, acquisition activities and interest costs.