Identifying the potential of real estate, and then realizing that potential, is the core strength of Morguard. And in 2012, Morguard capitalized on a wide range of opportunities to realize impressive results for its shareholders and unitholders.
Our assets continued to generate strong revenue, our capital investment program acquired attractive new properties, our service offerings produced strong results, and our business relationships were pivotal in achieving important goals.
Morguard's management and advisory services were also front and centre. As a result of strong relationships with major institutional clients and private investors and due to the growth in our base of owned assets, total assets under management grew from $11.4 Billion in 2011 to $13.0 Billion in 2012.
Major successes were achieved not only by Morguard Corporation (TSX: MRC) itself, but also by the two publicly traded real estate investment trusts in which the Corporation holds majority interests - Morguard Real Estate Investment Trust (TSX: MRT.UN) and the new Morguard North American Residential Real Estate Investment Trust (TSX: MRG.UN).
$1.5 BILLION IN ACQUISITIONS
High-quality office, multi-unit residential and hotel properties located in major markets in Alberta, Ontario, Illinois and Florida.
$816 MILLION IN FINANCING
Completed for the owned and managed portfolio at a weighted average interest rate of 3.6% for an average term of 7.4 years.
$1.1 BILLION IN DEVELOPMENT PROJECTS
In progress for office, retail, industrial and multi-unit residential asset classes, at December 31, 2012.
$383 MILLION RAISED FROM PUBLIC OFFERINGS
Generated from the launch of the new Morguard North American Residential REIT and from Morguard REIT.
Produced significant increase in FFO and net income, in addition to generating a 51.9% total return for shareholders.
For details on the results of Morguard group of companies, I encourage you to visit Investor Relations and review the 2012 Annual Reports, as well as interim reports as they are issued.
Finally, I want to thank all of Morguard's management team and employees for their intelligent and dedicated service. I also thank our shareholders, unitholders, clients, and partners in the real estate industry for their loyalty and their faith in Morguard's abilities. We're in a great business, and we're delighted to share in the experience with you.
K. (Rai) Sahi
Chairman and Chief Executive Officer