Computing Regular Equivalence: Practical and ... - CiteSeerX

171 Front Street West in Toronto is another good example of the need to collaborate. As a Class A developmentopportunity, it’s not something that falls squarely within our sphere of competence, so we’ve evaluated potentialcollaborators with proven expertise in developing Class A office buildings with a view to entering into a 50/50joint venture to execute on the opportunity. We expect to finalize this process by year-end.Some value-creation opportunities are best pursued on our own. Our solo activity has also accelerated thisyear, with the addition of a large upgrade opportunity in Montréal, the acquisition of a redevelopment projectin Calgary and the advancement of four urban intensification opportunities in Toronto, including the pendinglaunch of full construction at QRC West.We also established a new and promising avenue of growth earlier this year, the expansion of our telcom andIT facilities through the long-term lease of space at 250 Front Street West in Toronto. We own approximately340,000 square feet of specialized space for telcom and IT tenants, all of which is leased or in the final stages ofnegotiation. The facility at 250 Front will have similar attributes once we complete a $30 million upgrade nextyear, at which time we’ll lease it to telcom and IT tenants on financial terms similar to those achievable at 151Front. We expect the facility to be very accretive to our annual AFFO per unit from 2014 onward.outlookWe expect our FFO and AFFO per unit to continue to grow over the remainder of the year, and we expect thedemand for space across our target markets to remain strong. Looking forward, we’re determined to broaden anddeepen our urban office platform through continued consolidation of ownership in our target markets. We’realso determined to build a value-creation pipeline that in time will make a recurring, annual contribution tothe growth of our business. We believe that our conservative balance sheet, low debt ratio, moderate mortgagematurity schedule and abundant liquidity will provide stability and facilitate growth going forward. All of this ispart of our ongoing effort to establish the basis for above-average FFO and AFFO per unit growth in the comingyears.We’ll keep you apprised of our progress. In the meantime, if you have any questions or comments, please don’thesitate to call me at (416) 977-0643 or e-mail me at memory@alliedreit.com.Yours truly,Michael R. Emorypresident and chief executive officer