TORONTO,
May 5, 2014 /CNW/ - Firm Capital
Property Trust ("FCPT" or the "Trust"), (TSXV :
FCD.UN) reported today its consolidated financial results for the
three months ended March 31,
2014.
FIRST QUARTER HIGHLIGHTS
- Stabilized FFO and AFFO of $0.802
million and $0.689
million;
- Stabilized FFO and AFFO per Unit of $0.115 and $0.099
per Unit;
- Stabilized FFO and AFFO payout ratios of 80% and 93%;
- Net Operating Income ("NOI") of $1.2 million, in line with Q4/2013;
- Net Income of $1.3 million, which
is a 21% increase over Q4/2013 and includes a $0.469 million and $0.011
million net fair value adjustment for the real estate
portfolio and marketable securities, respectively;
- 0.3% increase in base rent over Q4/2013;
- Net rent per square foot increased by 0.3% to $7.74 per square foot over Q4/2013;
- Announced the completion of a non-brokered private placement of
Trust Units. 1,376,780 trust units were issued at $5.30 per Trust Unit for gross proceeds of
$7.3 million; and
- Conservative 41.8% debt / gross book value; which is a
significant decline over the 49.5% reported at Q4/2013, due to the
utilization of net proceeds raised from the non-brokered private
placement.
FINANCIAL HIGHLIGHTS
Rental revenue for
the three months ended March 31, 2014
was $2,015,208 in comparison to the
$2,265,159 reported for the three
months ended December 31, 2013 and
the $814,461 reported for the three
months ended March 31, 2013. NOI for
the three months ended March 31, 2014
was $1,219,538, in comparison to the
$1,266,373 reported for the three
months ended December 31, 2013 and
$523,205 reported for the three
months ended March 31, 2013. On a
cash basis (i.e. excluding straight-line rent which is a non-cash
item), NOI for the three months ended March
31, 2014 was $1,198,624, in
comparison to the $1,210,415 reported
for the three months ended December 31,
2013 and $523,205 reported for
the three months ended March 31,
2013.
For the three months ended March 31, 2014, Stabilized FFO was $0.115 per Unit while Stabilized AFFO was
$0.099 per Unit. Stabilized FFO and
AFFO payout ratios are 80% and 93%, respectively.
|
|
|
Q1/2014
|
Q4/2013
|
Q1/2013
|
Rental
Revenue
|
|
|
$
2,015,208
|
$
2,265,159
|
$
814,461
|
Net Operating
Income (NOI) - IFRS Basis
|
|
|
$
1,219,538
|
$
1,266,373
|
$
523,205
|
Net Operating
Income (NOI) - Cash Basis
|
|
|
$
1,198,624
|
$
1,210,415
|
$
523,205
|
EBITDA
|
|
|
$
1,088,328
|
$
923,818
|
$
518,379
|
|
|
|
|
|
|
Stabilized Funds
From Operations (FFO)
|
|
|
$
801,756
|
$
585,254
|
$
362,506
|
Stabilized
Adjusted Funds From Operations (AFFO)
|
$
689,491
|
$
597,546
|
$
329,033
|
|
|
|
|
|
|
Stabilized FFO Per
Unit
|
|
|
$
0.115
|
$
0.104
|
$
0.083
|
Stabilized AFFO
Per Unit
|
|
|
$
0.099
|
$
0.106
|
$
0.075
|
Distributions Per
Unit
|
|
|
$
0.092
|
$
0.089
|
$
0.088
|
|
|
|
|
|
|
Stabilized FFO
Payout Ratio
|
|
|
80%
|
86%
|
106%
|
Stabilized AFFO
Payout Ratio
|
|
|
93%
|
84%
|
117%
|
|
|
|
|
|
|
Occupancy by
Property Type
|
|
|
|
|
|
Net Lease Convenience
Retail
|
|
|
96.5%
|
96.5%
|
|
Core Service Provider
Office
|
|
|
96.6%
|
98.7%
|
|
Industrial
Portfolio
|
|
|
90.6%
|
90.8%
|
|
Total
Occupancy
|
|
|
91.9%
|
92.2%
|
|
|
|
|
|
|
|
Net Rent PSF by
Property Type
|
|
|
|
|
|
Net Lease Convenience
Retail
|
|
|
$
19.12
|
$
19.09
|
|
Core Service Provider
Office
|
|
|
$
13.96
|
$
13.91
|
|
Industrial
Portfolio
|
|
|
$
4.54
|
$
4.50
|
|
Weighted Average
Net Rent PSF
|
|
|
$
7.74
|
$
7.72
|
|
The sequential variance in the Stabilized AFFO
per unit and Stabilized AFFO payout ratio over the three months
December 31, 2013 is largely due to
lower G&A and finance costs, offset by slightly lower NOI and
interest income as well as marginal dilution from the $7.3 million issuance of trust units as outlined
below. Once the existing cash on the Trust's balance sheet is fully
deployed into accretive acquisitions, the Trust anticipates
Stabilized AFFO per unit to increase while the Stabilized AFFO
payout ratio to decline.
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 4.3
years.
OCCUPANCY & NET RENTS
For Q1/2014,
occupancy was 91.9%, largely in line with the 92.2% reported at
Q4/2013. Net rent per square foot increased by 0.3% to $7.74 per square foot over Q4/2013.
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 JULY, AUGUST AND
SEPTEMBER 2014
The Trust is
also pleased to announce monthly cash distributions of $0.030833 per Trust unit for the months of July,
August and September, 2014. These distributions will be paid on or
about August 15, 2014, September 15, 2014 and October 15, 2014 to unitholders of record at the
close of business on July 31, 2014;
August 29, 2014; and September 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 10% 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