Kilroy Realty Corporation Reports First Quarter Financial Results

Published

5 years ago

May 6, 2019

Reading Time: 12 minutes

LOS ANGELES–(BUSINESS WIRE)–Kilroy Realty Corporation (NYSE: KRC) today reported
financial results for its first quarter ended March 31, 2019.

First Quarter Highlights

Financial Results

Net income available to common stockholders per share of $0.36
Funds from operations available to common stockholders and unitholders
(“FFO”) per share of $0.95
- FFO for the first quarter 2019 included a positive $0.03 per share
  impact related to the improved credit quality of a tenant for
  which the company recorded a bad debt reserve in 2018
- The adoption of the new lease accounting standard requires
  expensing of internal leasing costs and third-party legal fees
  which had the impact of lowering first quarter FFO by $0.02 per
  share when compared to what the results would have been under the
  prior standard
Revenues of $201.2 million

Stabilized Portfolio

Stabilized portfolio was 92.5% occupied and 96.2% leased at March 31,
2019
Signed approximately 203,000 square feet of new or renewing leases

Development

In March, commenced construction on Phase I of Kilroy Oyster Point in
South San Francisco and 9455 Towne Centre Drive in the University
Towne Center submarket of San Diego
- Phase I of Kilroy Oyster Point encompasses approximately 630,000
  square feet of office and lab space and represents a total
  estimated investment of $600.0 million
- 9455 Towne Centre Drive encompasses approximately 160,000 square
  feet of office and lab space and represents a total estimated
  investment of $125.0 million
In March, transferred the $95.0 million retail component of One Paseo,
encompassing 96,000 square feet in the Del Mar submarket of San Diego,
from under construction to the tenant improvement phase. The retail
component is currently 92% leased

Finance

In February, repaid at par a mortgage note for $74.3 million due June
2019
In March and April, executed 12-month forward equity sale agreements
under the ATM program for 1,201,204 shares at a weighted average sales
price of $75.92
As of the date of this report, the company had not drawn down any
portion of the shares sold under the forward equity agreements,
including the transaction executed in August 2018

Results for the Quarter Ended March 31, 2019

For the first quarter ended March 31, 2019, KRC reported net income
available to common stockholders of $36.9 million, or $0.36 per share,
including a $0.03 per share decrease related to the expensing of
indirect leasing costs in connection with the adoption of the new lease
accounting standard compared to $36.2 million, or $0.36 per share, in
the first quarter of 2018. FFO in the first quarter of 2019 was
$99.8 million, or $0.95 per share, including a $0.02 per share decrease
related to the expensing of indirect leasing costs in connection with
the new lease accounting standard adoption, compared to $96.3 million,
or $0.94 per share, in the year-earlier quarter. Net income available to
common stockholders and FFO for the first quarter 2019 also included a
positive $0.03 per share impact related to the improved credit quality
of a tenant for which we recorded a bad debt reserve in 2018.

All per share amounts in this report are presented on a diluted basis.

Net Income Available to Common Stockholders / FFO Guidance and
Outlook

The company has updated its guidance range of NAREIT-defined FFO per
diluted share for its fiscal year 2019 to $3.64 to $3.78 per share, with
a midpoint of $3.71 per share, reflecting management’s views on current
and future market conditions, including assumptions with respect to
rental rates, occupancy levels, and the earnings impact of events
referenced in this press release.



	Full Year 2019 Range
	Low End			High End
Net income available to common stockholders per share – diluted	$	1.49		$	1.63

Weighted average common shares outstanding – diluted ⁽¹⁾	105,700			105,700

Net income available to common stockholders	$	157,000		$	172,000
Adjustments:
Net income attributable to noncontrolling common units of the Operating Partnership	3,200			3,600
Net income attributable to noncontrolling interests in consolidated property partnerships	17,000			20,000
Depreciation and amortization of real estate assets	241,000			241,000
Gains on sales of depreciable real estate	—			—
Funds From Operations attributable to noncontrolling interests in consolidated property partnerships	(26,500		)	(29,500		)
Funds From Operations ⁽²⁾	$	391,700		$	407,100

Weighted average common shares/units outstanding – diluted ⁽³⁾	107,700			107,700

Funds From Operations per common share/unit – diluted ⁽²⁾⁽³⁾	$	3.64		$	3.78

Key 2019 assumptions include:

Dispositions of approximately $150.0 million to $350.0 million
Flat same store cash net operating income
Year-end occupancy of 94.0% to 95.0%
Total remaining development spending of approximately $400.0 million
to $500.0 million

________________________

(1)		Calculated based on estimated weighted average shares outstanding including non-participating share-based awards.
(2)		See management statement for FFO at end of release.
(3)		Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of stock options, contingently issuable shares, and shares issuable under forward equity sale agreements and assuming the exchange of all common limited partnership units outstanding. Reported amounts are attributable to common stockholders, common unitholders and restricted stock unitholders.

The company’s guidance estimates for the full year 2019, and the
reconciliation of net income available to common stockholders per share
– diluted and FFO per share and unit – diluted included within this
press release, reflect management’s views on current and future market
conditions, including assumptions with respect to rental rates,
occupancy levels, and the earnings impact of the events referenced in
this press release. Although these guidance estimates reflect the impact
on the company’s operating results of an assumed range of future
disposition activity, these guidance estimates do not include any
estimates of possible future gains or losses from possible future
dispositions because the magnitude of gains or losses on sales of
depreciable operating properties, if any, will depend on the sales price
and depreciated cost basis of the disposed assets at the time of
disposition, information that is not known at the time the company
provides guidance, and the timing of any gain recognition will depend on
the closing of the dispositions, information that is also not known at
the time the company provides guidance and may occur after the relevant
guidance period. We caution you not to place undue reliance on our
assumed range of future disposition activity because any potential
future disposition transactions will ultimately depend on the market
conditions and other factors, including but not limited to the company’s
capital needs, the particular assets being sold and the company’s
ability to defer some or all of the taxable gain on the sales. These
guidance estimates also do not include the impact on operating results
from potential future acquisitions, possible capital markets activity,
possible future impairment charges or any events outside of the
company’s control. There can be no assurance that the company’s actual
results will not differ materially from these estimates.

Conference Call and Audio Webcast

KRC management will discuss updated earnings guidance for fiscal year
2019 during the company’s May 7, 2019 earnings conference call. The call
will begin at 10:00 a.m. Pacific Time and last approximately one hour.
Those interested in listening via the Internet can access the conference
call at https://services.choruscall.com/links/krc190425.html.
It may be necessary to download audio software to hear the conference
call. Those interested in listening via telephone can access the
conference call at (866) 312-7299. International callers should dial
(412) 317-1070. In order to bypass speaking to the operator on the day
of the call, please pre-register anytime at http://dpregister.com/10126352.
A replay of the conference call will be available via telephone on May
7, 2019 through May 14, 2019 by dialing (877) 344-7529 and entering
passcode 10126352. International callers should dial (412) 317-0088 and
enter the same passcode. The replay will also be available on our
website at http://investors.kilroyrealty.com/CustomPage/Index?KeyGenPage=1073743647.

About Kilroy Realty Corporation

Kilroy Realty Corporation (KRC), a publicly traded real estate
investment trust and member of the S&P MidCap 400 Index, is one of the
West Coast’s premier landlords. The company has over 70 years of
experience developing, acquiring and managing office and mixed-use real
estate assets. The company provides physical work environments that
foster creativity and productivity and serves a broad roster of dynamic,
innovation-driven tenants, including technology, entertainment, digital
media and health care companies.

At March 31, 2019, the company’s stabilized portfolio totaled
approximately 13.2 million square feet of office space located in the
coastal regions of Los Angeles, Orange County, San Diego, the San
Francisco Bay Area and Greater Seattle and 200 residential units located
in the Hollywood submarket of Los Angeles. The stabilized portfolio was
92.5% occupied and 96.2% leased. In addition, KRC had under construction
five projects totaling approximately 2.1 million square feet of office
space that was 26% leased and 801 residential units. KRC also had three
projects in the tenant improvement phase totaling approximately 1.2
million square feet of office, PDR and retail space of which the office
components of the projects are fully leased to Adobe and Dropbox.

The company’s commitment and leadership position in sustainability has
been recognized by various industry groups across the world. In
September 2018, the company was recognized by GRESB both as North
American leader across all asset classes and a global leader among all
publicly traded real estate companies. Other sustainability accolades
include NAREIT’s Leader in the Light award for the past five years, the
EPA’s highest honor of Sustained Excellence and winner of Energy Star
Partner of the Year for the past six years. The company is listed in the
Dow Jones Sustainability World Index. At the end of the first quarter,
the company’s stabilized portfolio was 63% LEED certified and 76% of
eligible properties were ENERGY STAR certified. More information is
available at http://www.kilroyrealty.com.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on our current expectations,
beliefs and assumptions, and are not guarantees of future performance.
Forward-looking statements are inherently subject to uncertainties,
risks, changes in circumstances, trends and factors that are difficult
to predict, many of which are outside of our control. Accordingly,
actual performance, results and events may vary materially from those
indicated or implied in the forward-looking statements, and you should
not rely on the forward-looking statements as predictions of future
performance, results or events. Numerous factors could cause actual
future performance, results and events to differ materially from those
indicated in the forward-looking statements, including, among others:
global market and general economic conditions and their effect on our
liquidity and financial conditions and those of our tenants; adverse
economic or real estate conditions generally, and specifically, in the
States of California and Washington; risks associated with our
investment in real estate assets, which are illiquid, and with trends in
the real estate industry; defaults on or non-renewal of leases by
tenants; any significant downturn in tenants’ businesses; our ability to
re-lease property at or above current market rates; costs to comply with
government regulations, including environmental remediation; the
availability of cash for distribution and debt service and exposure to
risk of default under debt obligations; increases in interest rates and
our ability to manage interest rate exposure; the availability of
financing on attractive terms or at all, which may adversely impact our
future interest expense and our ability to pursue development,
redevelopment and acquisition opportunities and refinance existing debt;
a decline in real estate asset valuations, which may limit our ability
to dispose of assets at attractive prices or obtain or maintain debt
financing, and which may result in write offs or impairment charges;
significant competition, which may decrease the occupancy and rental
rates of properties; potential losses that may not be covered by
insurance; the ability to successfully complete acquisitions and
dispositions on announced terms; the ability to successfully operate
acquired, developed and redeveloped properties; the ability to
successfully complete development and redevelopment projects on schedule
and within budgeted amounts; delays or refusals in obtaining all
necessary zoning, land use and other required entitlements, governmental
permits and authorizations for our development and redevelopment
properties; increases in anticipated capital expenditures, tenant
improvement and/or leasing costs; defaults on leases for land on which
some of our properties are located; adverse changes to, or enactment or
implementations of, tax laws or other applicable laws, regulations or
legislation, as well as business and consumer reactions to such changes;
risks associated with joint venture investments, including our lack of
sole decision-making authority, our reliance on co-venturers’ financial
condition and disputes between us and our co-venturers; environmental
uncertainties and risks related to natural disasters; and our ability to
maintain our status as a REIT. These factors are not exhaustive and
additional factors could adversely affect our business and financial
performance. For a discussion of additional factors that could
materially adversely affect our business and financial performance, see
the factors included under the caption “Risk Factors” in our annual
report on Form 10-K for the year ended December 31, 2018 and our other
filings with the Securities and Exchange Commission. All forward-looking
statements are based on currently available information and speak only
as of the dates on which they are made. We assume no obligation to
update any forward-looking statement made in this press release that
becomes untrue because of subsequent events, new information or
otherwise, except to the extent we are required to do so in connection
with our ongoing requirements under federal securities laws.

KILROY REALTY CORPORATION SUMMARY OF QUARTERLY RESULTS Advertisement (unaudited, in thousands, except per share data)

	Three Months Ended March 31,
	2019			2018
Revenues ⁽¹⁾	$	201,202		$	182,822

Net income available to common stockholders ⁽¹⁾	$	36,903		$	36,246

Weighted average common shares outstanding – basic	100,901			98,744
Weighted average common shares outstanding – diluted	101,443			99,214

Net income available to common stockholders per share – basic ⁽¹⁾	$	0.36		$	0.36
Net income available to common stockholders per share – diluted ⁽¹⁾	$	0.36		$	0.36

Funds From Operations ^(1)(2)(3)	$	99,812		$	96,285

Weighted average common shares/units outstanding – basic⁽⁴⁾	104,062			102,030
Weighted average common shares/units outstanding – diluted⁽⁵⁾	104,603			102,499

Funds From Operations per common share/unit – basic ⁽¹⁾⁽³⁾	$	0.96		$	0.94
Funds From Operations per common share/unit – diluted ⁽¹⁾⁽³⁾	$	0.95		$	0.94

Common shares outstanding at end of period	100,967			98,840
Common partnership units outstanding at end of period	2,023			2,071
Total common shares and units outstanding at end of period	102,990			100,911


Stabilized office portfolio occupancy rates: ⁽⁶⁾
Greater Los Angeles	95.6		%	93.9		%
Orange County	90.3		%	89.6		%
San Diego County	90.2		%	98.0		%
San Francisco Bay Area	92.5		%	95.1		%
Greater Seattle	88.8		%	90.2		%
Weighted average total	92.5		%	94.3		%

Total square feet of stabilized office properties owned at end of period: ⁽⁶⁾
Greater Los Angeles	3,956			4,182
Orange County	272			272
San Diego County	2,046			2,043
San Francisco Bay Area	5,160			5,303
Greater Seattle	1,802			2,066
Total	13,236			13,866

________________________

(1)		Effective January 1, 2019, the company adopted ASC 842 “Leases.” Please refer to our consolidated statements of operations for a description of the changes made to our consolidated financial statements. In accordance with the adoption of the new standard, previously reported periods are not restated for the impact of the standard.
(2)		Reconciliation of Net income available to common stockholders to Funds From Operations available to common stockholders and unitholders and management statement on Funds From Operations are included after the Consolidated Statements of Operations.
(3)		Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders.
(4)		Calculated based on weighted average shares outstanding including participating share-based awards (i.e. nonvested stock and certain time based restricted stock units) and assuming the exchange of all common limited partnership units outstanding.
(5)		Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of stock options, contingently issuable shares, and shares issuable under forward equity sale agreements and assuming the exchange of all common limited partnership units outstanding.
(6)		Occupancy percentages and total square feet reported are based on the company’s stabilized office portfolio for the periods presented. Occupancy percentages and total square feet shown for March 31, 2018 include the office properties that were sold subsequent to March 31, 2018.

KILROY REALTY CORPORATION CONSOLIDATED BALANCE SHEETS Advertisement (unaudited, in thousands)

	March 31, 2019			December 31, 2018
ASSETS
REAL ESTATE ASSETS:
Land and improvements	$	1,184,496		$	1,160,138
Buildings and improvements	5,300,313			5,207,984
Undeveloped land and construction in progress	2,131,358			2,058,510
Total real estate assets held for investment	8,616,167			8,426,632
Accumulated depreciation and amortization	(1,441,506		)	(1,391,368		)
Total real estate assets held for investment, net	7,174,661			7,035,264

Cash and cash equivalents	49,693			51,604
Restricted cash	6,300			119,430
Marketable securities	24,098			21,779
Current receivables, net	28,016			20,176
Deferred rent receivables, net	280,756			267,007
Deferred leasing costs and acquisition-related intangible assets, net	187,309			197,574
Right of use ground lease assets ⁽¹⁾	82,794			—
Prepaid expenses and other assets, net	50,360			52,873
TOTAL ASSETS	$	7,883,987		$	7,765,707

LIABILITIES AND EQUITY
LIABILITIES:
Secured debt, net	$	259,878		$	335,531
Unsecured debt, net	2,552,883			2,552,070
Unsecured line of credit	185,000			45,000
Accounts payable, accrued expenses and other liabilities	373,691			374,415
Ground lease liabilities ⁽¹⁾	87,247			—
Accrued dividends and distributions	47,676			47,559
Deferred revenue and acquisition-related intangible liabilities, net	138,973			149,646
Rents received in advance and tenant security deposits	55,457			60,225
Total liabilities	3,700,805			3,564,446

EQUITY:
Stockholders’ Equity
Common stock	1,010			1,007
Additional paid-in capital	3,976,204			3,976,953
Distributions in excess of earnings	(62,690		)	(48,053		)
Total stockholders’ equity	3,914,524			3,929,907
Noncontrolling Interests
Common units of the Operating Partnership	78,413			78,991
Noncontrolling interests in consolidated property partnerships	190,245			192,363
Total noncontrolling interests	268,658			271,354
Total equity	4,183,182			4,201,261
TOTAL LIABILITIES AND EQUITY	$	7,883,987		$	7,765,707

________________________

(1) Effective January 1, 2019, the company adopted ASC 842 “Leases,”
which requires right of use assets and liabilities for leases in which
the company is the lessee to be presented on the company’s consolidated
balance sheets.

KILROY REALTY CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share data)

	Three Months Ended March 31,
	2019			2018
REVENUES ⁽¹⁾
Rental income	$	199,382		$	162,871
Tenant reimbursements	—			19,150
Other property income	1,820			801
Total revenues	201,202			182,822

EXPENSES
Property expenses ⁽¹⁾	38,149			31,671
Real estate taxes ⁽¹⁾	18,639			17,146
Provision for bad debts ⁽¹⁾	—			(265		)
Ground leases ⁽¹⁾	1,972			1,561
General and administrative expenses	23,341			15,559
Leasing costs ⁽¹⁾	1,757			—
Depreciation and amortization	66,135			62,715
Total expenses	149,993			128,387

OTHER (EXPENSES) INCOME
Interest income and other net investment gain	1,828			34
Interest expense	(11,243		)	(13,498		)
Total other (expenses) income Advertisement	(9,415		)	(13,464		)

NET INCOME	41,794			40,971

Net income attributable to noncontrolling common units of the Operating Partnership	(700		)	(751		)
Net income attributable to noncontrolling interests in consolidated property partnerships	(4,191		)	(3,974		)
Total income attributable to noncontrolling interests	(4,891		)	(4,725		)

NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	36,903		$	36,246

Weighted average common shares outstanding – basic	100,901			98,744
Weighted average common shares outstanding – diluted	101,443			99,214

Net income available to common stockholders per share – basic	$	0.36		$	0.36
Net income available to common stockholders per share – diluted	$	0.36		$	0.36

________________________

(1)		Effective January 1, 2019, the company adopted ASC 842 “Leases,” which required the following changes for all periods beginning and subsequent to January 1, 2019. In accordance with the adoption of the new standard under the modified retrospective method, previously reported periods are not restated for the impact of the standard.
		– All lease related revenue required to be reported as a single component within rental income. For the three months ended March 31, 2019, rental income includes $27.5 million of tenant reimbursements and $3.3 million of lease termination fees.
		– Rental income to be presented net of provision for bad debts. For the three months ended March 31, 2019, rental income includes a recovery of provision for bad debts of $3.5 million.
		– All property expenses paid directly by the company and reimbursed by the tenant to be presented on a gross basis. For the three months ended March 31, 2019, rental income and property expenses both include $3.0 million of additional tenant reimbursements and the related property expenses, which were previously shown net in property expenses in prior periods. This change has no impact to net income, Net Operating Income or Funds From Operations.
		– Non-tenant parking income to be presented in other property income instead of rental income since recognized under ASC 606 “Revenue from Contracts with Customers” and outside the scope of ASC 842 “Leases.”
		– Real estate taxes for properties where the company is a lessee under ground leases to be presented in ground leases instead of real estate taxes. For the three months ended March 31, 2019, ground leases includes $0.5 million of property taxes for properties where the company is a lessee.
		– Indirect leasing costs to be expensed as incurred and reported in leasing costs.

Contacts

Tyler H. Rose
Executive Vice President
and Chief Financial
Officer
(310) 481-8484
or
Michelle Ngo
Senior Vice
President
and Treasurer
(310) 481-8581

Read full story here

Germany

IMC Germany Announces Outstanding Preliminary Q3, 2024 Performance with 50% Growth Over Q2

Published

1 day ago

October 2, 2024

CISION (PR Newswire)

imc-germany-announces-outstanding-preliminary-q3,-2024-performance-with-50%-growth-over-q2

TORONTO and GLIL YAM, Israel, Oct. 2, 2024 /PRNewswire/ — IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) (the “Company“, “IMCannabis“, or “IMC“), a leading medical cannabis company with operations in Israel and Germany, is pleased to announce that the preliminary sales results in Germany by its German subsidiary, Adjupharm GmbH (“IMC Germany“), for the third quarter of 2024 have significantly exceeded expectations, showing a remarkable 50% increase in revenue compared to the second quarter, where IMC Germany sold about CAD$ 3.5M. This outstanding growth demonstrates IMC Germany’s successful execution of its strategic initiatives and strong market demand for its products.

Since the partial legalization of cannabis in Germany came into effect in April 2024, the demand for cannabis products in pharmacies has increased significantly, emphasizing the importance of a robust, reliable supply chain.

“Since April 1^st, one of our key objectives was to ensure a supply chain strong enough to meet the increase in demand. This preliminary 50% growth is testament, in part, to delivering on this objective,” said Oren Shuster, CEO of IMC. “We are thrilled with our Q3 performance, which not only surpassed our own targets but also highlights the dedication and hard work of our entire team.”

About IM Cannabis Corp.

IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in Israel and Germany, two of the largest medical cannabis markets. The Company has focused its resources to achieve sustainable and profitable growth in its highest value markets, Israel and Germany. The Company leverages a transnational ecosystem powered by a unique data-driven approach and a globally sourced product supply chain. With an unwavering commitment to responsible growth and compliance with the strictest regulatory environments, the Company strives to amplify its commercial and brand power to become a global high-quality cannabis player.

The IMC ecosystem operates in Israel through its commercial relationship with Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies, online platforms, distribution centers, and logistical hubs in Israel that enable the safe delivery and quality control of IMC products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients.

Disclaimer for Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements under applicable Canadian and U.S. securities laws (collectively, “forward-looking statements”). All information that addresses activities or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. In the press release, such forward-looking statements include, but are not limited to, statements relating to statements relating to compliance with Nasdaq’s continued listing requirements, and timing and effect thereof; the potential outcome of the Licensing Agreement and the effect of collaboration with Carmel in the Israeli market and the potential exclusive launch of the BLKMKT^TM brand this year in Germany.

The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward-looking statements due to a number of factors and risks. These include: the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the Company’s ability to continue to meet the listing requirements of the Canadian Securities Exchange and the NASDAQ Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and Focus Medical (collectively, the “Group”) to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group’s obligations; the Group’s possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group’s cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt and war, conflict and civil unrest in Eastern Europe and the Middle East.

Any forward-looking statement included in this press release is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward-looking information is made. The Company does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

CAUTIONARY NOTE REGARDING FUTURE ORIENTED FINANCIAL INFORMATION

This press release may contain future oriented financial information (“FOFI”) within the meaning of Canadian securities legislation, about prospective results of operations, financial position or cash flows, based on assumptions about future economic conditions and courses of action, which FOFI is not presented in the format of a historical balance sheet, income statement or cash flow statement.

The FOFI has been prepared by management to provide an outlook of the Company’s activities and results and has been prepared based on a number of assumptions including the assumptions discussed under the heading above entitled “Cautionary Note Regarding Future Oriented Financial Information” and assumptions with respect to the costs and expenditures to be incurred by the Company, capital expenditures and operating costs, taxation rates for the Company and general and administrative expenses. Management does not have, or may not have had at the relevant date, firm commitments for all of the costs, expenditures, prices or other financial assumptions which may have been used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, the complete financial effects of all of those costs, expenditures, prices and operating results are not, or may not have been at the relevant date of the FOFI, objectively determinable.

Importantly, the FOFI contained in this press release and the documents incorporated by reference herein, are, or may be, based upon certain additional assumptions that management believes to be reasonable based on the information currently available to management, including those assumptions discussed under the heading “Disclaimer for Forward-Looking Statements” and assumptions about: (i) the future pricing for the Company’s products, (ii) the future market demand and trends within the jurisdictions in which the Company may from time to time conduct the Company’s business, and (iii) the Company continued ability to maintain its capital to fund its ongoing business development and future growth.

The FOFI or financial outlook contained in this press release do not purport to present the Company’s financial condition in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in any such document, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments as at the applicable date. However, because this information is highly subjective and subject to numerous risks including the risks discussed under the heading above entitled “Cautionary Note Regarding Future Oriented Financial Information”, FOFI or financial outlook within this in this press release should not be relied on as necessarily indicative of future results.

Company Contact:

Anna Taranko, Director Investor & Public Relations
IM Cannabis Corp.
+49 157 80554338
[email protected]

Oren Shuster, CEO
IM Cannabis Corp.
[email protected]

Logo – https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg

View original content:https://www.prnewswire.co.uk/news-releases/imc-germany-announces-outstanding-preliminary-q3-2024-performance-with-50-growth-over-q2-302265523.html

Gedeon

Gedeon Richter presents analysis on cannabis usage among patients with schizophrenia: a new medical solution to a severe issue might be available

Published

1 week ago

September 25, 2024

CISION (PR Newswire)

A novel psychiatric scale developed by colleagues of Gedeon Richter Plc. in collaboration with academia was also presented at the 37^th ECNP conference

BUDAPEST, Hungary, Sept. 25, 2024 /PRNewswire/ — During the 37^th Annual Meeting of the European College of Neuropsychopharmacology (ECNP), held between 21-24 September 2024, new analyses of cariprazine studies were presented by Gedeon Richter Plc. First of all, cariprazine seems to be an effective treatment option for patients with schizophrenia and comorbid cannabis use disorder, according to one of the five posters presented at the congress. Furthermore, during an industry sponsored session, a new transdiagnostic scale for quantifying and visualizing symptom severity of patients with different psychiatric conditions was also presented, that was developed by the medical team of Gedeon Richter Plc. and recognized professors.

Schizophrenia often co-occurs with cannabis use disorder however, available antipsychotic treatments frequently fail to address both disorders. In a scientific poster showcased by Gedeon Richter at ECNP in Milan, cariprazine was presented to be a potentially effective treatment option for patients with first-episode schizophrenia and comorbid cannabis use disorder according to the results of a 6-month observational study. Four other scientific posters were also presented at the congress by Gedeon Richter about the role of cariprazine in the treatment of schizophrenia such as the efficacy of cariprazine in patients who develop akathisia as a side effect or the impact of functioning on the risk of relapse in patients treated with cariprazine vs placebo. Cariprazine is a 3^rd generation antipsychotic medication with a unique receptor profile and proven efficacy in schizophrenia, including negative symptoms.

Lacking biomarkers in psychiatry calls for valid and reliable assessments of psychopathology across mental disorders that are easy to use, bridge research and clinical care, and that can capture clinician and patient perspectives. Recognizing this problem, the Gedeon Richter medical team together with experienced psychiatric professors developed a scale to handle this challenge. Using this new transdiagnostic scale called the Transdiagnostic Global Impression – Psychopathology (TGI-P) scale could help CNS professionals and psychologists to quickly assess and visualize symptoms in several psychiatric conditions. During an industry sponsored session, the details and the usability of the tool were shown to the audience.

About Richter and About Cariprazine

View original content:https://www.prnewswire.co.uk/news-releases/gedeon-richter-presents-analysis-on-cannabis-usage-among-patients-with-schizophrenia-a-new-medical-solution-to-a-severe-issue-might-be-available-302258335.html

Cannabis

Bioplastic Packaging Market Size Expected to Reach USD 87.98 Bn by 2033

Published

2 weeks ago

September 20, 2024

GlobeNewswire

Ottawa, Sept. 20, 2024 (GLOBE NEWSWIRE) — The global bioplastic packaging market size was valued at USD 17.99 billion in 2023 and is predicted to increase from USD 21.09 billion in 2024 to USD 87.98 billion by 2033, a study published by Towards Packaging a sister firm of Precedence Statistics.

Key Takeaways: Leading Factors of the Bioplastic Packaging Market

Use of renewable resources due to growing sustainable demand is the major factor that drives the market.
Eco-friendly alternatives perceive growth in North America due to growing environmental concerns.
Food and beverage industry is the dominating sector in the market due to the increasing consumption of packed food.
Limited infrastructure for bioplastic processing is an unceasing challenge for the market.

Download Statistical Data: https://www.towardspackaging.com/download-statistics/5215

Bioplastic Packaging Market: At a Glance

The bioplastic packaging market revolves around adoption renewable packaging which can be used multiple times and which is an alternative to the fossil fuel-derived plastics. Along with this, resource depletion, reduction of carbon footprint and material waste are the leading objectives of the market. The demand for sustainable packaging solution and the increasing plastic waste has increased the demand of the market.

The bio-degradable feature attributes to the reusable function of bioplastic packaging. The consumer demand for sustainable packaging has also increased the demand of the bioplastic packaging, given the reason it provides resistance and prevents denting as well. The bioplastic material tends to degrade easily which also reduces landfill waste.

Regional Insights

Europe thrives with its vision of sustainable packaging demand

Europe is the dominating region in bioplastic packaging market. The sustainability focus of Europeans has sustained the environment and the alternative packaging solutions have increased the popularity of eco-friendly packaging. The European vision of preserving sustainability is also about turning packaging materials into recyclable or reusable material by 2030 and this has increased exploration of alternative materials, design strategies and mostly importantly waste management system.

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Europe targets to reduce unnecessary packaging by 10% in 2035 and by 15% in 2040. The demand for bioplastic as an alternative increase as Europe has strict regulations against plastic usage which aims to reduce the utilization of single use-plastic to prevent environmental hazards, especially, in marine environment and human health. In addition, European Union also aims at promoting circular economy and innovative sustainable packaging solutions with specific targets which are 77% separate collection target for plastic bottles by 2025 and will be increased to 90% by 2029. Furthermore, 25% of recycled plastic will be incorporated in PET beverage bottles from 2025 and will be increased by 30% in all plastic beverage bottles from 2030.

In January 2024, European retailers were relived to watch the inflation slow down as it had decreased the consumer rate by 0.1%. Despite the increasing rates and fleeting number of consumers, shopkeepers were committed to the sustainable drive. The UK consumer survey stated that 62% believed that high prices are pulling them back from being sustainable and 52% said that sustainable alternatives should have affordable prices.

North America is a steady region for the bioplastic packaging market due to its sustainable packaging demand which is also the growing consumer requirement. The impact of conventional plastic adds to the ocean litter hazard and as an alternative to reduce carbon print, sustainable solutions are being adopted. Although the American consumers worry more about convenience, price and quality given the increased purchasing rates and the tax-paying lifestyle, 40% of consumers pay more attention to the provided sustainable packaging.

The use of compostable packaging allows circular economy in the US and the companies are innovating new alternatives to support the sustainable drive and to increase their profit margin. According to U.S Environmental Protection Agency, reuse of plastic materials circulates the economy and reduces environmental impact if the material is in constant use instead of manufacturing new one. According to PEW’s research, reuse of plastics can accomplish 30% of reduction, substitution efforts by 17%, improved innovations in recycling by 20% and proper management at end-of-life can achieve a 23% reduction of plastic pollution in the environment.

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In November 2023, Knox County, a startup had announced the of AgroRenew LLC and had also planned to build $83 million processing facility which was designed to convert food waste into eco-friendly bioplastics. The company had expected to establish itself in early 2024 and had aimed to produce 150,000 tons of bioplastic annually.

Asia-Pacific is the fastest growing region in bioplastic packaging market with its large population as a contributor and its rapidly increasing industrial sector. The packed food consumption and the boom of e-commerce also gave preference to sustainable packaging due to strict regulations and subsidies provided to promote the compostable packaging. According to Department of Biotechnology, Ministry of Science & Technology, Government of India, the usage of single-use plastic (SUPs) was intended to stop by December 2022. The policy of Government of India (GOI) was changed to promote the development of biodegradable plastic products instead of single-use plastic.

The method used for testing substances should be able to demonstrate biodegradability as per national and international standards and should also be interim approved and receive provisional certification of biodegradability. China having a large industrial production had signed the Paris agreement to reduce carbon footprint and oil dependency as well.

Although the National Development and Reform Commission and Ministry of Ecology and Environment had plans to reduce plastic garbage, the limited infrastructure for recycling and manufacturing biodegradable plastic came as a challenge. The Chinese Government had implemented ban on plastic recycled and prohibition of non-biodegradable single-use plastic.

In February 2024, Balrampur Chini Mills Limited (BCML), which is a leading integrated sugar mill Kolkata-based company had announced a project with integration of ₹2,000 crore and it was going be the first industrial bioplastic plant in India. The company also stated that it had well-aligned sustainable goals to combat the climate change.

Driver

Government regulations drive the bioplastic packaging market

The major driving factor is the environmental regulations due to increasing plastic waste production which is a problem for the eco-system. The growing concern for climate change, increasing plastic pollution and landfill waste has led to the utilization of bioplastic packaging which is reliable and bio-degradable. The government policies promote the use of biodegradable and bioplastic packaging as it reduces the use of plastic and also its generation.

The government initiatives will increase sales, improve brand perception and also contribute to cost-savings. According to the Consumer Brands Association, FMCG manufacturers have adopted 100% recycled packaging by 2030.

Restraint

Limited infrastructure and higher costs of materials hinder the market growth

The leading challenges which hinder the growth of bioplastic packaging market is high material costs and limited infrastructure. The manufacturing process and raw materials can affect the production of biodegradable packaging. The limited infrastructure also poses as a challenge for the manufacturing and recycling processes.

Opportunity

Integration of Artificial Intelligence

The technological advancement offers new trends which are development of raw materials like algae, mushroom mycelium, and agricultural waste which poses as an emerging alternative. The major factor which technology can contribute is in biodegradability which will enhance the decomposing process of plastic and it also offers upcoming features like the antimicrobial properties which are significant for medical applications, use of UV resistance for outdoor use, and improved barrier properties for food packaging. Collaboration among leading industries can create more innovate and ground-breaking effective solutions for the bioplastic packaging market.

Top Companies Leading the Bioplastic Packaging Market

Amcor plc
Novamont S.p.A
NatureWorks, LLC
Coveris
Sealed Air
Alpha Packaging
Constantia Flexibles Group GmbH
Mondi plc
Truegreen
Transcontinental Inc.
ALPLA
Envigreen
Nature’s Bio Plastic
Raepak Ltd.
Tipa-corp Ltd.
Treemera GmbH
Element Packaging Ltd
Alpagro Packaging

Recent Development

Company	Balrampur Sugar Mills Firm
Headquarters	Uttar Pradesh, India
Recent Development	In June 2024, the Uttar Pradesh Government had announced to build a bioplastic park in the Lakhimpur Kheri district which aimed at increasing local economy. The bioplastic park was designed to promotes the usage of bioplastic plastics.

Company	Praj Industries
Headquarters	Maharashtra
Recent Development	In February 2024, Praj Industries had announced that its pilot plant for polylactic acid (PLA) will be completed by April 2024. The company will develop renewable chemicals which is a part of R&D push. The Union Budget had also contemplated a policy for bio-manufacturing and bio foundry.

Segmental Insights

By Type

The flexible segment is the dominating segment in the bioplastic packaging market. It is dominating due to its properties which are conserving resources and contributing to the sustainability. The flexible segment provides convenience, strong protection and reduces wastage of food and can also resist denting and breakage. Apart from this, it also increases shelf life of the products and the packaging is in demand due to its features like multi-layer construction and eco-friendly packaging solution. Lightness, safety and resistance are the factors which increase the demand of bioplastic packaging.

The rigid segment is the fastest growing segment in the bioplastic packaging market. It will dominate the market due to its properties which are providing protection, resistance and preserving product quality. The rigid segment offers a durable and reliable packaging which makes it preferred among the consumers. Customization and exceptional product protection are the essential features of the rigid segment.

By Application Type

The food and beverage segment are the dominating segment in the bioplastic packaging market. The segment dominates due extended shelf life provided to the food products and long-lasting convenience and visibility. The bioplastic packaging depends upon the type of packaging it provides which provides string barrier against external elements like oxygen, moisture and prevents food spoilage as well. Th global consumption of containers like boxes, bags, jars and pouches has increased the bioplastic packaging demand in food sector.

The consumer and goods segment are the fastest growing segment in the bioplastic films packaging market. The segment dominates due to sealed packaging and robust protection by bioplastic packaging.

More Insights of Towards Packaging

The global end-of-line packaging market size is estimated to reach USD 9.50 billion by 2033, up from USD 6.14 billion in 2023, at a compound annual growth rate (CAGR) of 4.60% from 2024 to 2033.
The global surgical instruments packaging market size reached US$ 24.8 billion in 2023 and is projected to hit around US$ 49.1 billion by 2034, expanding at a CAGR of 6.55% during the forecast period from 2024 to 2033.
The global cannabis packaging market size reached USD 2.32 billion in 2023 and is projected to hit around USD 22.10 billion by 2034, expanding at a CAGR of 22.74% during the forecast period from 2024 to 2034.
The global clinical trial packaging market size reached USD 2.95 billion in 2023 and is projected to hit around USD 9.12 billion by 2034, expanding at a CAGR of 10.80% during the forecast period from 2024 to 2033.
The global panel level packaging market size is estimated to reach USD 11.13 billion by 2033, up from USD 0.43 billion in 2023, at a compound annual growth rate (CAGR) of 38.60% from 2024 to 2033.
The global hazardous goods packaging market size reached US$ 11.50 billion in 2023 and is projected to hit around US$ 21.38 billion by 2034, expanding at a CAGR of 5.80% during the forecast period from 2024 to 2033.
The global rigid tray market size reached US$ 11.65 billion in 2024 and is projected to hit around US$ 14.72 billion by 2034, expanding at a CAGR of 2.37% during the forecast period from 2024 to 2034.
The global cider packaging market size is estimated to reach USD 7.05 billion by 2033, up from USD 4.08 billion in 2023, at a compound annual growth rate (CAGR) of 5.77% from 2024 to 2033.
The global boxboard packaging market size is estimated to reach USD 117.61 billion by 2033, up from USD 65.73 billion in 2023, at a compound annual growth rate (CAGR) of 6.12% from 2024 to 2033.
The global corrugated plastic tray market size reached US$ 665.47 million in 2023 and is projected to hit around US$ 1190.73 million by 2034, expanding at a CAGR of 5.14% during the forecast period from 2024 to 2034.

Bioplastic Packaging Market Segment

By Material

Biodegradable
- Polylactic Acid
- Starch Blends
- Polybutylene Adipate Terephthalate (PBAT)
- Polybutylene Succinate (PBS)
- Others
Non-biodegradable
- Bio Polyethylene
- Bio Polyethylene Terephthalate
- Bio Polyamide
- Others

By Type

Flexible
Rigid

By Application

Food & Beverages
Consumer Goods
Cosmetic & Personal Care
Pharmaceuticals
Others

By Region

North America
- U.S.
- Canada
Europe
- Germany
- UK
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
Latin America
- Brazil
- Mexico
- Argentina
Middle East and Africa (MEA)
- South Africa
- UAE
- Saudi Arabia
- Kuwait

View Bioplastic Packaging Market Full TOC: https://www.towardspackaging.com/table-of-content/bioplastic-packaging-market-sizing

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Towards Packaging is a leading global consulting firm specializing in providing comprehensive and strategic research solutions. With a highly skilled and experienced consultant team, we offer a wide range of services designed to empower businesses with valuable insights and actionable recommendations. We stay abreast of the latest industry trends and emerging markets to provide our clients with an unrivalled understanding of their respective sectors. We adhere to rigorous research methodologies, combining primary and secondary research to ensure accuracy and reliability. Our data-driven approach and advanced analytics enable us to unearth actionable insights and make informed recommendations. We are committed to delivering excellence in all our endeavours. Our dedication to quality and continuous improvement has earned us the trust and loyalty of clients worldwide.

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