July 28, 2008 / 9:08 PM / 10 years ago

Canada property firm RioCan returns to profit

TORONTO (Reuters) - RioCan Real Estate Investment Trust (REI_u.TO) said on Monday it returned to profit in the second quarter as its portfolio expanded and it took a lower noncash charge for future income taxes.

The trust said it earned C$44.9 million ($44 million), or 21 Canadian cents a unit, in the three months ended June 30, up from a loss of C$106.1 million, or 51 Canadian cents a unit, a year earlier.

In the year-before quarter, RioCan was hit with a C$150 million noncash charge related to changes in Canada’s tax laws.

Funds from operations, a key measure used by real estate companies, were C$86.4 million, or 40 Canadian cents a unit, in the quarter, up from C$79.8 million, or 38 Canadian cents a unit, a year earlier.

The market had been expecting FFO of 35 Canadian cents a unit, according to Reuters Estimates.

    Rental revenue rose 7.3 percent to C$169.9 million from C$158.3 million. RioCan said its portfolio occupancy at the end the quarter was 97 percent.

    RioCan is Canada’s largest real estate investment trust with a total market capitalization of around C$7.6 billion.

    ($1=$1.02 Canadian)

    Reporting by John McCrank; Editing by Peter Galloway

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