BEK.B Becker Milk Co Ltd

The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the nine months ended January 31, 2019.

HIGHLIGHTS

• Total revenues for the nine months ended January 31, 2019 were $2,277,173 compared to $2,560,850 for the same period in 2018;
• Net operating income for Q3 fiscal 2019 was $1,840,617 compared to $2,139,917 in fiscal 2018;
• Net income for Q3 fiscal 2019 was $ 0.39 per share, compared to $0.61 per share in fiscal 2018.

FINANCIAL HIGHLIGHTS

Net operating income for the nine months ended January 31, 2019 decreased $299,300 compared with the previous year to $1,840,617, as a result of decreased revenue, resulting from vacancies and the sale of less desirable properties.

					Nine months ended
					January 31
						2019					2018
Property revenue					$2,204,756					$2,533,628
Finance income						72,417					27,222
Total revenues					$2,277,173					$2,560,850
Property revenue					$2,204,756					$2,533,628
Property operating expenses						(364,139		)			(393,711		)
Net operating income					$1,840,617					$2,139,917
Adjusted funds from operations					$766,017					$943,241
Net income attributable to common and special shareholders					$704,817					$1,103,368
Average common and special shares outstanding						1,808,360					1,808,360
Income per share					$0.39					$0.61

Components of the $398,551 decrease in net income for the nine months ended January 31, 2019 compared to the six months ended October 31, 2018 are:

Changes in net income - Nine months ended January 31, 2019
compared to nine months ended January 31, 2018
Decrease in net operating income					($299,300		)
Decrease in fair value adjustment						(471,156	)
Increase in administrative expenses						(58,324	)
Decrease in recovery of deferred taxes on investment properties						5,191
Decrease in loss on disposal						24,385
Decrease in strategic expenses						26,117
Increase in finance income						45,195
Decrease in current taxes						85,304
Increase in gain on expropriation settlement						244,037
Decrease in net income					($398,551		)

ADJUSTED FUNDS FROM OPERATIONS

For the nine months ended January 31, 2019 the Company recorded adjusted funds from operations of $766,017 ($0.42 per share) compared to $943,241 ($0.52 per share) in 2018.

					Nine months ended
					January 31
						2019					2018
Funds from operations					$792,111					$1,000,296
Items not affecting cash:
	Straight line rent					-					-
	Expenses related to strategic review					(1,938		)			(28,055		)
	Sustaining capital expenditures					(24,156		)			(29,000		)
	Sustaining capital expenditures
Adjusted funds from operations					$766,017					$943,241
Adjusted funds from operations per share					$0.42					$0.52

STRATEGIC REVIEW

Since 2014 the Board of Directors has been evaluating strategic directions for the Company and in discussions with potential acquirors from time to time. During this period a programme of divesting less desirable sites has resulted in the sale of 18 investment properties. The Company continues to review its strategic alternatives and will update the market as appropriate, and as required.

The Company’s interim financial statements for the nine months ended January 31, 2019, along with the Management’s Discussion and Analysis will be filed with SEDAR at www.sedar.com.

DIVIDEND

The Directors of the Company have declared a dividend on Class B Special and Common Shares of 40 cents per share.  The dividend of 40 cents will be paid to those shareholders of record as of March 20, 2019 and payable on March 28, 2019.

The dividends for Canadian tax purposes will be considered as an eligible dividend.

Readers are cautioned that although the terms “Net Operating Income”, and “Funds From Operations” are commonly used to measure, compare and explain the operating and financial performance of Canadian real estate companies and such terms are defined in the Management’s Discussion and Analysis, such terms are not recognized terms under Canadian generally accepted accounting principles.  Such terms do not necessarily have a standardized meaning and may not be comparable to similarly titled measures presented by the other publicly traded entities.

For the Board of DirectorsG.W.J. Pottow, PresidentTel: 416-698-2591