MISSISSAUGA, Ont. – TransGlobe Apartment Real Estate Investment Trust (TSX:TGA.UN), a growing owner and operator of apartments and townhouses, reported continuing improvements in its quarterly income and revenues on Monday.
The Ontario-based company with properties in urban centres in Alberta, Ontario, Quebec, New Brunswick and Nova Scotia, said it had net and comprehensive income of $43.6 million in the three months ended June 30, while property revenues in the second quarter were $32.9 million.
The REIT only began operations in mid-May 2010 and no directly comparable 2010 quarterly figures were available.
However, TransGlobe said property revenues for the three months ended June 30 were up 14 per cent from the three months ended March 31. That was due primarily to the full-quarter contribution of acquisitions completed in the first quarter of 2011 and acquisitions completed in the second quarter as well as improved occupancy rates and average monthly rents.
On July 21, 2011, the REIT entered into agreements that will see it internalize its asset and property management functions and acquire a portfolio of 7,518 apartment suites as well as instalment notes in a $740.4-million deal.
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The portfolio of 57 real estate properties in Alberta, Ontario, Quebec and Nova Scotia, comprise an aggregate of 33 highrise, 31 mid-rise and 30 low-rise residential buildings, three townhouse complexes and a commercial building, each currently operated and owned or co-owned by affiliates of TransGlobe Investment Management Inc.
After completion of the acquisition, TransGlobe Investment will hold an approximate 21 per cent effective interest in the REIT through its ownership of various units, including special voting units.
“Upon completion of the proposed acquisitions and internalization, the REIT will become one of Canada’s largest residential landlords with a total portfolio of over 20,000 apartment suites that are well diversified in major markets across the country,” said CEO Kelly Hanczyk.
“Going forward, we will capitalize on the significant increase in our size and scale to further enhance organic growth through higher occupancies and average monthly rents, and efficiently manage our costs. We will also continue to grow our asset base through accretive acquisitions that further strengthen and diversify our portfolio.”
TransGlobe Apartment units were up 45 cents at $10.51 Tuesday on the Toronto Stock Exchange.
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