Annual Report 2011 - Dundee International REIT

More documents

Recommendations

Info

Contents 1 Letter to unitholders 3 Management’s discussion and analysis 3 SECTION I — OVERVIEW AND FINANCIAL HIGHLIGHTS 4 Basis of presentation 5 Background 5 Our objectives 5 Our strategy 6 Our assets 8 Tenants 9 Market overview — Germany 10 Outlook 11 SECTION II — EXECUTING THE STRATEGY 11 Our operations 14 Our resources and financial condition 15 Our capital 21 Our results of operations 26 SECTION III — DISCLOSURE CONTROLS AND PROCEDURES 27 SECTION IV — RISKS AND OUR STRATEGY TO MANAGE 32 SECTION V — CRITICAL ACCOUNTING POLICIES 32 Critical accounting estimates and changes in accounting policies 33 Management’s responsibility for financial statements 34 Independent auditor’s report 35 Consolidated financial statements 39 Notes to the consolidated financial statements 66 Appendix 71 Trustees and officers IBC Corporate information
Letter to unitholders I am very pleased to present the first annual report of Dundee International REIT. Dundee International REIT was created for the purpose of building an international real estate business managed by a team with a strong history, track record and reputation in the Canadian public markets. DUNDEE INTERNATIONAL 2011 Annual Report P. JANE GAVAN President and Chief Executive Officer Dundee Corporation and Dundee Realty, the founders of Dundee International REIT, recognized an opportunity to export the disciplined REIT structure and management style developed by the same leadership team to real estate ownership outside of Canada. There is no doubt that returns from Canadian real estate, as supported by a strong Canadian economy, have been impressive over the last 15 years. As a result, relative property valuations in Canada as compared to those in Europe have been higher, making investment opportunities outside of Canada very attractive. Last year, we identified a portfolio of properties in Germany, predominantly occupied by Deutsche Post, that we were able to acquire at a reasonable price. This allowed us to provide our investors with a desirable return, even after paying all of the costs of creating the business. Since going public in August 2011, the spread in capitalization rates between Canada and Europe for our target assets has increased while interest rates have continued to decline. As a result, the opportunities to make attractive investments in Europe are even more compelling now than they were at the time of our IPO. The Dundee Group invested $120 million in Dundee International, at the same time and at the same price as other investors, and our IPO last August was one of the most successful REIT IPOs completed in Canada. Since then, we have expanded our operating platform in Germany and Luxembourg and made some key additions to our management team in Germany. We have met with our largest tenant, Deutsche Post, many times and at various levels of their organization. We continue to make progress in leasing our properties to new tenants and re-leasing space to Deutsche Post. In February, we completed the first acquisition since the IPO and we are very pleased with the quality of the asset and the value it brings to the portfolio. We are currently at various stages of due diligence with respect to a number of property acquisitions that would provide attractive returns to our unitholders. The goal for 2012 is to diversify our business by properties, by lenders and by tenants in order to enhance the composition of the entire portfolio and significantly reduce our reliance on the initial portfolio of assets. As we diversify away from the single tenant nature of our portfolio, we believe that our business will become even more valuable. To achieve this diversification, we will continue to lease space within the original portfolio to tenants other than Deutsche Post, focus on refinancing a portion of our original debt with other PAGE 1
Page 1: DUNDEE INTERNATIONAL REIT 2011 Annu
Page 5 and 6: Management’s discussion and analy
Page 7 and 8: DUNDEE INTERNATIONAL 2011 Annual Re
Page 13 and 14: SECTION II — EXECUTING THE STRATE
Page 21 and 22: On April 21, 2011, 800,000 Units we
Page 29 and 30: SECTION IV — RISKS AND OUR STRATE
Page 35 and 36: Management’s responsibility for f
Page 37 and 38: Consolidated balance sheet DUNDEE I
Page 39 and 40: Consolidated statement of changes i
Page 41 and 42: Notes to the consolidated financial
Page 53 and 54:
DUNDEE INTERNATIONAL 2011 Annual Re
Page 55 and 56:
For the period from April 21, 2011,
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Fair value of financial instruments
Page 69 and 70:
December 31, 2011 CITY STATE GLA OC
Page 71 and 72:
December 31, 2011 CITY STATE GLA OC
Page 73 and 74:
Trustees and officers Trustees 1, 2
Page 75 and 76:
Concept and Design: THE WORKS DESIG
show all

Annual Report 2011 - Dundee International REIT

Create successful ePaper yourself

Delete template?

Save as template?