AURORA, ON, May 7 /PRNewswire-FirstCall/ - MI Developments Inc. (TSX: MIM.A - News, MIM.B - News; NYSE: MIM - News; "MID" or the "Company") today announced its results for the three months ended March 31, 2008. All figures are in U.S. dollars.------------------------------------------------------------------------- (in thousands, except per share figures) REAL ESTATE BUSINESS(1) Three months ended March 31, ------------------------ 2008 2007 ----------- ----------- Revenues $ 54,035 $ 44,758 Net income $ 30,984 $ 23,671 Funds from operations ("FFO")(2) $ 43,897 $ 34,203 Diluted FFO per share(2) $ 0.94 $ 0.71 ------------------------------------------------------------------------- (in thousands, except per share figures) MID CONSOLIDATED(1) Three months ended March 31, ------------------------ 2008 2007 ----------- ----------- Revenues Real Estate Business $ 54,035 $ 44,758 Magna Entertainment Corp. ("MEC")(3) 230,828 254,217 Eliminations (8,108) (4,862) ----------- ----------- $ 276,755 $ 294,113 ----------- ----------- ----------- ----------- Net income (loss) Real Estate Business $ 30,984 $ 23,671 MEC - continuing operations (7,373) 35,496 Eliminations 266 (34,844) ----------- ----------- Income from continuing operations 23,877 24,323 Discontinued operations(4) (17,280) (1,040) ----------- ----------- $ 6,597 $ 23,283 ----------- ----------- ----------- ----------- Diluted earnings per share from continuing operations $ 0.51 $ 0.50 Diluted earnings per share $ 0.14 $ 0.48 ------------------------------------------------------------------------- (1) Transactions between the Real Estate Business and MEC have not been eliminated in the presentation of each segment's results of operations. However, the effects of transactions between these two segments are eliminated in the consolidated results of operations of the Company. (2) FFO and diluted FFO per share are measures widely used by analysts and investors in evaluating the operating performance of real estate companies. However, FFO does not have a standardized meaning under Canadian generally accepted accounting principles ("GAAP") and therefore may not be comparable to similar measures presented by other companies. Please refer to "Reconciliation of Non-GAAP to GAAP Financial Measures" below. (3) Excludes revenues from MEC's discontinued operations. (4) Discontinued operations represent MEC's discontinued operations, net of certain related consolidation adjustments. MEC's discontinued operations for the three-month periods ended March 31, 2008 and 2007 include the operations of Remington Park, Thistledown, Portland Meadows, Great Lakes Downs and Magna Racino(TM). ------------------------------------------------------------------------- REAL ESTATE BUSINESS OPERATING HIGHLIGHTS -----------------------------------------
In respect of our core rental portfolio of Magna International Inc. ("Magna") facilities, during the first quarter of 2008 we brought on-stream two expansion projects in Germany, representing an aggregate of 85 thousand square feet of leaseable area, at a cost of $11.7 million.
During the first quarter of 2008, in conjunction with Magna's continuing effort to rationalize its global manufacturing footprint, MID and Magna agreed to terminate the lease on an office property located in Canada, representing 39 thousand square feet of leaseable area and annualized lease payments of approximately $0.8 million. In conjunction with the lease termination, Magna agreed to pay the Company a fee of $3.9 million, which amount has been included in the results of operations for the first quarter of 2008. At the same time, the Company has re-leased the property to a Canadian subsidiary of Cardinal Health, Inc. The new lease includes an expansion of approximately 10 thousand square feet, estimated to be completed by MID in November 2008. Under the new lease, rent commences on November 1, 2008 and continues to October 31, 2018.
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