TORONTO, Nov. 5, 2013 /CNW/ - Firm Capital Property Trust
("FCPT" or the "Trust"), (TSXV : FCD.UN) reported
today its condensed interim consolidated financial results for the
three and nine months ended September 30,
2013.
FINANCIAL HIGHLIGHTS
Rental revenue for the three and nine months ended September 30, 2013 was $1,504,844 and $3,248,974, respectively. Net Operating Income
("NOI") for the three and nine months ended September 30, 2013 was $1,029,246 and $2,193,369 respectively. NOI margin for the three
and nine months ended September 30,
2013 was 68%.
For the three months ended September 30, 2013, FFO per Unit was $0.123 while AFFO per Unit was $0.117. FFO and AFFO payout ratios are 71% and
75%, respectively. For the nine months ended September 30, 2013, FFO per Unit was $0.319 while AFFO per Unit was $0.302. FFO and AFFO payout ratios are 82% and
87%, respectively. Excluding non-recurring items, FFO on a
stabilized basis for the three and nine months ended September 30, 2013 would decrease to $0.114 and $0.294
per Unit, respectively. This results in an FFO payout ratio of 77%
and 89%, respectively. Likewise, AFFO on a stabilized basis for the
three and nine months ended September 30,
2013 would decrease to $0.108
and $0.277 per Unit, respectively.
This results in an AFFO payout ratio of 81% and 95%,
respectively.
PROPERTY PORTFOLIO HIGHLIGHTS
The Trust's property portfolio consists of 30 properties with a
total Gross Leasable Area ("GLA") of 671,798 square feet, a
94.3% occupancy rate and a weighted average net rent per square
foot ("PSF") of $6.27 PSF.
Debt/Gross Book Value ("GBV") stands at 50.6%.
The portfolio is well diversified across
geographies with 42% of the NOI generated from Ontario, 42% from Quebec and 16% from Nova Scotia. The portfolio is equally
diversified across asset classes with 46% of NOI generated from Net
Lease Convenience Retail, 42% from Industrial and 12% from Core
Service Provider.
ACQUISITION ACTIVITY
On August 1, 2013, the Trust closed
the previously announced acquisition of a 50% participation in 25
industrial buildings located in Montreal. The total purchase price of 100% of
the portfolio was $48.8 million,
including closing costs and working capital adjustments. The
portfolio is comprised of 1,029,898 square feet of GLA and is
currently 93% occupied. The portfolio was financed with proceeds
from two new first mortgage financings and from a private placement
of trust units. 50% of the Portfolio was acquired by the Trust,
while the remaining 50% was acquired by an entity associated with
the Trust's asset manager that consists predominantly of senior
management and trustees of FCPT. The funding required by the Trust
for its 50% interest came from a combination of existing cash
resources, new mortgage financing and a $6.4
million non-brokered private placement at $5.10 per trust unit.
As a result of this acquisition, the Trust
increased the size of its current portfolio from five properties at
the end of Q3/2013 to 30 properties with a current value of
approximately $60 million. In
addition, the acquisition improved the diversification of the
current portfolio through the addition of the industrial asset
class to the existing retail and medical office asset classes.
DISTRIBUTION INCREASE
On October 31, 2013, the Trust
announced that its Board of Trustees approved a 5.7% increase in
its monthly distributions to $0.030833 per unit from $0.029166 per unit. On an annualized basis
this equates to anticipated distributions of $0.37 per unit up from $0.35.
The previously announced cash distributions of
$0.029166 per unit for the months of
November and December, 2013 have been amended to $0.030833 per unit to account for the change to
the Trust's monthly distributions. These distributions will
be paid on or about December 16, 2013
and January 15, 2014 to unitholders
of record at the close of business on November 29, 2013 and December 31, 2013, respectively.
The increase in the Trust's monthly
distributions is a result of FCPT's improved financial performance
and the recent growth of its real estate portfolio. We anticipate
this revised distribution will result in an AFFO payout ratio of
approximately 85% over the following 12 months.
DISTRIBUTIONS FOR JANUARY, FEBRUARY AND
MARCH 2014
The Trust is also pleased to announce monthly cash distributions of
$0.030833 per Trust unit for the
months of January, February and March, 2014. These distributions
will be paid on or about February 17,
2014, March 17, 2014 and
April 15, 2014 to unitholders of
record at the close of business on January
31, 2014; February 28, 2014;
and March 31, 2014, respectively.
The policy of FCPT is to pay cash distributions
on or about the 15th day of each month to Unitholders of record on
the last business day of the preceding month. Distributions paid to
Unitholders who are non-residents of Canada will be subject to Canadian withholding
tax.
DISTRIBUTION REINVESTMENT PLAN & UNIT
PURCHASE PLAN
The Trust has in place a Distribution Reinvestment Plan
("DRIP") and Unit Purchase Plan (the "Plan"). Under
the terms of the DRIP, FCPT's Unitholders may elect to
automatically reinvest all or a portion of their regular monthly
distributions in additional Units, without incurring brokerage fees
or commissions. Under the terms of the Plan, FCPT's Unitholders may
purchase a minimum of $1,000 of Units
per month and maximum purchases of up to $12,000 per annum. Management and trustees have
not participated in the DRIP or Plan to date and own approximately
13% of the issued and outstanding trust units of the Trust.
For the complete financial statements and
Management's Discussion & Analysis for the period, please visit
www.sedar.com or the Trust's website at www.firmcapital.com
ABOUT FIRM CAPITAL PROPERTY TRUST
Firm Capital Property Trust is focused on creating long-term value
for Unitholders, through capital preservation and disciplined
investing to achieve stable distributable income. In partnership
with management and industry leaders, The Trust's plan is to co-own
a diversified property portfolio of multi-residential, flex
industrial, net lease convenience retail, and core service provider
professional space. In addition to stand alone accretive
acquisitions, the Trust will make joint acquisitions with strong
financial partners and acquisitions of partial interests from
existing ownership groups, in a manner that provides liquidity to
those selling owners and professional management for those
remaining as partners. Firm Capital Realty Partners Inc.,
through a structure focused on an alignment of interests with the
Trust, will source, syndicate and participate in investments.
FORWARD LOOKING INFORMATION
This press release may contain forward-looking statements. In some
cases, forward-looking statements can be identified by the use of
words such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", "potential",
"continue", and by discussions of strategies that involve risks and
uncertainties. The forward-looking statements are based on certain
key expectations and assumptions made by the Trust regarding, among
other things, the use of the net proceeds from the Offering, the
closing of the Offering, and the closing of the Acquisition. By
their nature, forward-looking statements involve numerous
assumptions, inherent risks and uncertainties, both general and
specific, that contribute to the possibility that the predictions,
forecasts, projections and various future events will not occur.
Although management of the Trust believes that the expectations
reflected in the forward-looking statements are reasonable, there
can be no assurance that future results, levels of activity,
performance or achievements will occur as anticipated. Neither the
Trust nor any other person assumes responsibility for the accuracy
and completeness of any forward-looking statements, and no one has
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or such other
factors which affect this information, except as required by
law.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, which may be made
only by means of a prospectus, nor shall there be any sale of the
Units in any state, province or other jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under securities laws of any such state, province
or other jurisdiction. The Units of the Firm Capital Property Trust
have not been, and will not be registered under the U.S. Securities
Act of 1933, as amended, and may not be offered, sold or delivered
in the United States absent
registration or an application for exemption from the registration
requirements of U.S. securities laws.
SOURCE Firm Capital Property Trust