Al Mawani, President & CEO of Calloway Real Estate Investment Trust (the "Trust"), said, "I am pleased with our strong fourth quarter results. Our portfolio of 113 mostly Walmart-anchored retail centres continues to deliver reliable performance and steady growth. We have grown our portfolio in a balanced way with a combination of building out 472,000 square feet of new spaces for existing and new tenants at an average investment yield of 7.5% and acquiring 400,000 square feet in two Calloway-quality centres from third parties at a 6% yield. We have started 2013 having renewed 900,000 square feet of 2013 lease expires. This represents 55% of the 1.6 million square feet of space that is up for renewal in 2013 with average rental uplift of 8% with virtually no inducement payments. 2013 will be an exciting year with the opening of the Toronto Premium Outlets®, construction commencement of the KPMG Tower in Vaughan and the Montreal Premium Outlets® and progress on future phases of the Vaughan Metropolitan Centre development."
The following table summarizes the Trust's portfolio information:
December 31, December 31, 2012 2011 Improvement--------------------------------------------------------------------------------------------------------------------------------------------------------Fair value of real estate portfolio (in millions of dollars) (3) 6,209.8 5,655.8 554.0Weighted average stabilized capitalization rate 6.02% 6.41% -0.39--------------------------------------------------------------------------------------------------------------------------------------------------------Built gross leasable area 25.9 million square feetFuture developable area 3.6 million square feetNumber of retail properties 113Number of other operating properties 2Number of development properties 11Developments completed during the year are as follows:----------------------------------------------------------------------------Leasable area 472,268 square feetCost $ 127.9 millionYield 7.5%--------------------------------------------------------------------------------------------------------------------------------------------------------
Quarterly Results
On December 7, 2012, the Trust and SmartCentres entered into a joint venture to develop 6.0 million square feet on 53 acres of development land with SmartCentres acquiring a 50% interest in the existing retail component and undeveloped lands that were owned by the Trust but subject to development management agreements in favour of SmartCentres. As part of the arrangement, the Trust was released from existing development management agreements for the property and corresponding Earnout options and became a 50% joint venture partner in the build-out of mixed-use density on the site, which resulted in an increase in the development value of Calloway's 50% interest and its future pipeline. The first new development by the joint venture will be a 300,000 square foot office building with KPMG as lead tenant. The site will contain the terminus of the Spadina-York University subway extension. The subway stop is expected to open in 2016.
