Winnipeg Free Press
Saturday May 28 2005
Winnipeg's newest public company released quarterly results for the first time yesterday. Huntingdon Real Estate Investment Trust reported a net loss of $49,822 for the period ended March 31 on total revenue of $855,092.
These numbers represent about five weeks of operations, because the REIT didn't come into existence until Feb. 23. Since then, it has spent more than $40 million in acquiring 10 properties.
Gino Romagnoli, manager of investor relations at Huntingdon, said things have been going so well the REIT has decided to try to raise another $20 million to finance another wave of acquisitions.
"We're pleasantly surprised. We were ambitious and always confident we would be able to place the money quickly but it has gone even quicker than we had planned," Romagnoli said, noting three investment houses will be selling a private placement of units and convertible debentures on its behalf.
Huntingdon's sister REIT, Lanesborough Real Estate Investment Trust, was also active this week, agreeing to buy a 129-suite, highrise apartment property in Prince Albert, Sask., for $6.2 million.
Romagnoli said the Marquis Towers marks the sixth property Lanesborough has purchased in Prince Albert. He said when company officials were in the city recently doing due diligence on several other properties it eventually bought, the building struck them as the most attractive apartment building in town.
"When it came up for sale we bid on it and lo and behold we have a purchase contract," he said, noting the deal is expected to close by the end of August.
Lanesborough units (LRT.UN/TSX Venture Exchange) were unchanged at $5.50 yesterday on volume of 24,800. There was no trading of Huntingdon units (HNT.UN/TSX Venture Exchange). Their previous close was $2.90.
-- Staff