TORONTO,
March 19, 2014 /CNW/ - Firm Capital
Property Trust ("FCPT" or the "Trust"), (TSXV :
FCD.UN) reported today its consolidated financial results for the
three and twelve months ended December 31,
2013.
FOURTH QUARTER HIGHLIGHTS
- Stabilized FFO and AFFO of $0.585
million and $0.598 million.
Stabilized AFFO is a 6% increase over Q3/2013;
- Stabilized FFO and AFFO per Unit of $0.104 and $0.106
per Unit;
- Stabilized FFO and AFFO payout ratios of 86% and 84%;
- Rental revenue of $2.3 million,
which is a 51% increase over the $1.5
million generated during Q3/2013;
- Strong 92.2% occupancy;
- Net rent per square foot increased by 1.2% to $7.72 per square foot over Q3/2013;
- Net Operating Income ("NOI") of $1.3 million, which is a 23% increase over the
$1.0 million generated during
Q3/2013;
- Net Income of $1.1 million, which
includes a $0.45 million and
$0.027 million net fair value
adjustment for the real estate portfolio and marketable securities,
respectively; and
- Announced 5.7% increase in monthly distributions to
$0.030833 per Unit
($0.37 per Unit annualized)
YEAR END HIGHLIGHTS
- Stabilized FFO and AFFO of $2.0
million and $1.9 million;
- Stabilized FFO and AFFO per Unit of $0.403 and $0.387
per Unit;
- Stabilized FFO and AFFO payout ratios of 87% and 91%, well
below the 110% and 116% recorded during Q1/2013;
- Rental revenue of $5.5 million
and NOI of $3.5 million vs.
$0.288 million and $0.189 million reported for the period ended
December 31, 2012, respectively;
- Net Income of $3.8 million, which
includes a $1.7 million and
$0.050 million net fair value
adjustment for the real estate portfolio and marketable securities,
respectively;
- Increased the asset base by 124% since the beginning of 2013 to
$61.5 million from $27.4 million, while keeping leverage at a
conservative 49.5% debt / gross book value;
- Increased the investment portfolio from four properties at the
beginning of 2013 to 30 by the end of 2013;
- Acquired our first core service provider professional building
in Barrie, ON and our first 50%
interest in an industrial portfolio located in Montreal, QC for a total of $31.3 million (including transaction costs and
working capital adjustments);
- Sold ISG Capital Corporation for a $50,000 gain, while also receiving $66,140 in income prior to the disposition;
- Raised approximately $6.4 million
of trust units at $5.10 per Unit
through a non-brokered private placement; and
- Implemented Distribution Reinvestment Plan ("DRIP") and
Unit Purchase Plan
FINANCIAL HIGHLIGHTS
Rental revenue for the three and twelve months ended December 31, 2013 was $2,265,159 and $5,514,133, respectively. NOI for the three and
twelve months ended December 31, 2013
was $1,266,373 and $3,459,742 respectively.
For the three months ended December, 2013,
Stabilized FFO per Unit was $0.104
while AFFO per Unit was $0.106. FFO
and AFFO payout ratios are 86% and 84%, respectively.
For the twelve months ended December 31, 2013, Stabilized FFO per Unit was
$0.403 while Stabilized AFFO per Unit
was $0.387. Stabilized FFO and AFFO
payout ratios are 87% and 91%, respectively. Stabilized FFO and
AFFO per Unit exclude income and the gain on sale received ISG
Capital Corporation, which is non-recurring in nature.
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Q4/2013 |
Q3/2013 |
4Q/2013 |
Rental Revenue |
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$ |
2,265,159 |
$ |
1,504,844 |
$ |
5,514,133 |
Net Operating Income (NOI) |
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$ |
1,266,373 |
$ |
1,029,246 |
$ |
3,459,742 |
EBITDA |
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$ |
923,818 |
$ |
882,890 |
$ |
2,865,699 |
Net Income & Comprehensive Income |
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$ |
1,057,578 |
$ |
1,144,667 |
$ |
3,822,015 |
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Stabilized Funds From Operations (FFO) |
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$ |
585,254 |
$ |
590,086 |
$ |
1,971,400 |
Stabilized Adjusted Funds From
Operations (AFFO) |
$ |
597,546 |
$ |
561,158 |
$ |
1,893,724 |
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FFO Per Unit |
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$ |
0.104 |
$ |
0.113 |
$ |
0.403 |
AFFO Per Unit |
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$ |
0.106 |
$ |
0.108 |
$ |
0.387 |
Distributions Per Unit |
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$ |
0.089 |
$ |
0.088 |
$ |
0.352 |
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FFO Payout Ratio |
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86% |
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78% |
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87% |
AFFO Payout Ratio |
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84% |
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81% |
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91% |
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Q vs. Q Growth |
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- Revenue Growth (%) |
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51% |
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- NOI Growth (%) |
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23% |
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- AFFO Growth (%) |
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6% |
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Occupancy by Property Type |
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Net Lease Convenience Retail |
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96.5% |
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96.5% |
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Core Service Provider Office |
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98.7% |
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99.4% |
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Industrial
Portfolio |
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90.8% |
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93.4% |
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Total
Occupancy |
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92.2% |
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94.3% |
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Net Rent PSF by Property Type |
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Net Lease Convenience Retail |
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$ |
19.09 |
$ |
19.09 |
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Core Service Provider Office |
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$ |
13.91 |
$ |
13.84 |
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Industrial
Portfolio |
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$ |
4.50 |
$ |
4.48 |
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Weighted Average
Net Rent PSF |
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$ |
7.72 |
$ |
7.63 |
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PROPERTY PORTFOLIO HIGHLIGHTS
The Trust's property portfolio consists of 30 properties with a
total Gross Leasable Area ("GLA") of 671,798 square feet
(668,740 square feet of Net Leasable Area). The portfolio is well
diversified across geographies with 40% of the NOI generated from
Ontario, 44% from Quebec and 16% from Nova Scotia. The portfolio is equally
diversified across asset classes with 44% of NOI generated from Net
Lease Convenience Retail, 44% from Industrial and 12% from Core
Service Provider Office.
TENANT DIVERSIFICATION
The portfolio is well diversified by tenant profile with no tenant
accounting for more than 5.4% of total net rent. Further, the top
10 tenants are largely comprised of credit worthy and large
national tenants and account for 33.0% of total net rent and 21.1%
of total NLA.
DURATION MATCHED DEBT & LEASE MATURITY
PROFILE
The current portfolio has a weighted average lease term to maturity
of 4.0 years, which is duration matched with mortgage debt with a
weighted average term to maturity of 4.6 years.
OCCUPANCY
For Q4/2013, occupancy was 92.2%, a slight decline over the 94.3%
reported at Q3/2013. The slight decline was largely the result of
the Montreal Industrial portfolio whose occupancy declined to 90.8%
at Q4/2013 from 93.4% at Q3/2013. Subsequent to Q4/2013, a 10 year
lease was entered into in the Montreal Industrial portfolio that's
comprised of 31,563 square feet of net leasable area (FCPT's
pro-rate interest equates to 15,782 square feet of net leasable
area) which would bring the overall occupancy of the entire
investment portfolio to approximately 93%. This new lease commences
during Q2/2014.
NET RENTS
For Q4/2013, net rent per square foot increased by 1.2% to
$7.72 per square foot over Q3/2013.
The increase is the result of FCPT's active re-leasing program at
both the Barrie medical office
property and Montreal Industrial portfolio where net rents per
square foot increased to $13.91 and
$4.50 per square foot, respectively.
Net rents for the Net Lease Convenience Retail portfolio were
unchanged at $19.09 per square
foot.
SUBSEQUENT CAPITAL RAISING ACTIVITY
On January 27, 2014 and February 7, 2014, the Trust closed the first and
second tranches of its previously announced private placement of
Trust Units. The gross proceeds raised by the Trust were
approximately $7.3 million at a
subscription price of $5.30 per Trust
Unit.
DISTRIBUTIONS FOR APRIL, MAY AND JUNE 2014
The Trust is also pleased to announce monthly cash distributions of
$0.030833 per Trust unit for the
months of April, May and June, 2014. These distributions will be
paid on or about May 15, 2014,
June 16, 2014 and July 15, 2014 to unitholders of record at the
close of business on April 30, 2014;
May 30, 2014; and June 30, 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