TORONTO, Aug. 12, 2014 /CNW/ - Firm Capital Property
Trust ("FCPT" or the "Trust"), (TSXV : FCD.UN)
reported today its consolidated financial results for the three and
six months ended June 30,
2014.
SECOND QUARTER AND YEAR-TO-DATE ("YTD") HIGHLIGHTS
- Q2/2014 Stabilized FFO and AFFO of $0.684 million and $0.693
million. YTD Stabilized FFO and AFFO of $1.5 million and $1.4
million;
- Q2/2014 Stabilized FFO and AFFO per Unit of $0.098 and $0.099
per Unit. YTD Stabilized FFO and AFFO per Unit of $0.213 and $0.198
per Unit;
- Q2/2014 Stabilized FFO and AFFO payout ratios of 95% and
94%;
- Q2/2014 Net Operating Income ("NOI") of $1.2 million, a 2.2% increase over Q1/2014. YTD
NOI of $2.4 million a 108.1% increase
over the six month period ended June 30,
2013;
- Strong 93% occupancy is a 110 basis point sequential increase
over the 91.9% reported at Q1/2014 and an 80 basis point increase
over the 92.2% reported at Q4/2013; and
- Announced the completion of the Centre Ice Retail Portfolio
acquisition for $23.5 million which
increased the Trust's portfolio from 30 to 55 properties and the
overall GLA of the Trust's portfolio by 24%, while improving the
overall credit quality of the Trust's entire portfolio. On a pro
forma basis, the Trust expects the Centre Ice Retail Portfolio
acquisition to reduce the AFFO payout ratio to approximately 75% on
an annualized basis, well below the Trust's targeted AFFO payout
ratio of 85%.
FINANCIAL HIGHLIGHTS
Rental revenue for the three months ended June 30, 2014 was $2,005,213 in comparison to the $2,015,208 reported for the three months ended
March 31, 2014 and the $929,668 reported for the three months ended
June 30, 2013. Rental revenue for the
six months ended June 30, 2014 was
$4,020,421 in comparison to the
$1,744,130 reported for the six
months ended June 30, 2013.
On a cash basis (i.e. excluding straight-line rent which is a
non-cash item), NOI for the three months ended June 30, 2014 was $1,224,475, a 2.2% increase over the $1,198,624 reported for the three months ended
March 31, 2014 and a 91.1% increase
over the $640,917 reported for the
three months ended June 30, 2013. On
a cash basis, NOI for the six months ended June 30, 2014 was $2,423,099, a 108.1% increase in comparison to
the $1,164,123 reported for the six
months ended June 30, 2013.
For the three months ended June 30,
2014, Stabilized FFO was $0.098 per Unit while Stabilized AFFO was
$0.099 per Unit. Stabilized FFO and
AFFO payout ratios are 95% and 94%, respectively. For the six
months ended June 30, 2014,
Stabilized FFO was $0.213 per Unit
while Stabilized AFFO was $0.198 per
Unit. Stabilized FFO and AFFO payout ratios are 87% and 94%,
respectively.
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
2014
|
March
31,
2014
|
June
30,
2013
|
|
June
30,
2014
|
June
30,
2013
|
Rental
Revenue
|
$ 2,005,213
|
$ 2,015,208
|
$ 929,668
|
|
$ 4,020,421
|
$ 1,744,130
|
Net Operating
Income (NOI) - IFRS
|
$ 1,243,669
|
$ 1,219,538
|
$ 640,917
|
|
$ 2,463,207
|
$ 1,164,123
|
Net Operating
Income (NOI) - Cash
|
$ 1,224,475
|
$ 1,198,624
|
$ 640,917
|
|
$ 2,423,099
|
$ 1,164,123
|
EBITDA
|
$ 968,785
|
$ 1,088,328
|
$ 540,611
|
|
$ 2,057,113
|
$ 1,058,991
|
|
|
|
|
|
|
|
Stabilized
FFO
|
$ 684,339
|
$ 801,756
|
$
433,555
|
|
$ 1,486,095
|
$
796,062
|
Stabilized
AFFO
|
$ 692,656
|
$ 689,491
|
$
405,989
|
|
$ 1,382,147
|
$
735,023
|
|
|
|
|
|
|
|
Stabilized FFO Per
Unit
|
$
0.098
|
$
0.115
|
$
0.099
|
|
$
0.213
|
$
0.182
|
Stabilized AFFO
Per Unit
|
$
0.099
|
$
0.099
|
$
0.093
|
|
$
0.198
|
$
0.168
|
Distributions Per
Unit
|
$
0.092
|
$
0.092
|
$
0.088
|
|
$
0.185
|
$
0.175
|
|
|
|
|
|
|
|
Stabilized FFO
Payout Ratio
|
95%
|
80%
|
89%
|
|
87%
|
96%
|
Stabilized AFFO
Payout Ratio
|
94%
|
93%
|
95%
|
|
94%
|
104%
|
|
|
|
|
|
|
|
Occupancy by
Property Type
|
|
|
|
|
|
|
Net Lease Convenience
Retail
|
96.9%
|
96.5%
|
96.5%
|
|
|
|
Core Service Provider
Office
|
96.6%
|
96.6%
|
99.4%
|
|
|
|
Industrial
Portfolio
|
90.4%
|
90.6%
|
|
|
|
|
Total
Occupancy
|
93.0%
|
91.9%
|
97.2%
|
|
|
|
|
|
|
|
|
|
|
Net Rent PSF by
Property Type
|
|
|
|
|
|
|
Net Lease Convenience
Retail
|
$ 15.66
|
$ 19.12
|
|
|
|
|
Core Service Provider
Office
|
$ 13.97
|
$ 13.96
|
|
|
|
|
Industrial
Portfolio
|
$
4.67
|
$
4.54
|
|
|
|
|
Weighted Average
Net Rent PSF
|
$
8.94
|
$
7.74
|
|
|
|
|
The sequential variance in the Stabilized AFFO per unit and the
Stabilized AFFO payout ratio in comparing the three months ended
June 30, 2014 over the three months
ended March 31, 2014 is largely due
to higher G&A and finance costs, offset by higher NOI and
interest income as well as marginal dilution from the $7.3 million issuance of trust units issued
previously. On June 25, 2014, the
Trust closed on the Centre Ice Retail Portfolio acquisition and as
such, only received marginal accretive benefit from the acquisition
for Q2/2014. On a pro forma basis, the Trust expects the Centre Ice
Retail Portfolio acquisition to reduce the AFFO payout ratio to
approximately 75% on an annualized basis, well below the Trust's
targeted AFFO payout ratio of 85%.
PROPERTY PORTFOLIO HIGHLIGHTS
The Trust's property portfolio consists of 55 properties with a
total Gross Leasable Area ("GLA") of 833,373 square feet
(830,315 square feet of Net Leasable Area). The portfolio is well
diversified across geographies with 54% of the NOI generated from
Ontario, 31% from Quebec, 16% from Nova Scotia and BC, Alberta, Manitoba and New
Brunswick (cumulatively 5%). The portfolio is equally
diversified across asset classes with 60% of NOI generated from Net
Lease Convenience Retail, 31% from Industrial and 9% from Core
Service Provider Office.
TENANT DIVERSIFICATION
The portfolio is well diversified by tenant profile with no
tenant accounting for more than 9.6% of total net rent. Further,
the top 10 tenants are largely comprised of credit worthy and large
national tenants and account for 31.9% of total net rent and 20.1%
of total NLA.
DURATION MATCHED DEBT & LEASE MATURITY PROFILE
The current portfolio has a weighted average lease term to
maturity of 3.4 years, which is duration matched with mortgage debt
with a weighted average term to maturity of 3.3 years.
OCCUPANCY & NET RENTS
For Q2/2014, occupancy was 93.0%, a 110 basis points
("bps") sequential increase over the 91.9% reported at
Q1/2014 and an 80 bps increase over the 92.2% reported at Q4/2013.
Net rent per square foot was $8.94
per square foot ("psf"), a 15.5% sequential increase over
the $7.74 psf reported at Q1/2014 and
a 15.8% increase over the $7.72 psf
reported at Q4/2013.
CENTRE ICE RETAIL PORTFOLIO ACQUISITION
On June 25, 2014, the Trust
acquired a 70% undivided interest in 25 retail buildings located
across Canada (the "Centre Ice
Retail Portfolio"). The total acquisition cost of the entire
Centre Ice Retail Portfolio was $33.8
million (including transaction costs). The acquisition cost
for the Trust's 70% interest was $23.5
million (including transaction costs). The Centre Ice Retail
Portfolio is comprised of 230,822 square feet of GLA located across
Canada with the majority of the
portfolio being located in Ontario. The Centre Ice Retail Portfolio has a
weighted average lease term of 3.3 years with the largest tenant
being PPG Industries Inc.(PPG:NYSE) an investment grade rated
entity accounting for 31% of NOI, operating predominantly under the
Dulux Paints brand. The Centre Ice Retail Portfolio is
approximately 97% occupied with no significant short term lease
maturities. The remaining 30% of the Centre Ice Retail Portfolio
was acquired by an entity that consists predominantly of senior
management and certain trustees of FCPT.
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