TORONTO, Nov. 12, 2014 /CNW/ - Firm Capital Property
Trust ("FCPT" or the "Trust"), (TSXV : FCD.UN)
reported today its consolidated financial results for the three and
nine months ended September 30,
2014.
THIRD QUARTER AND YEAR-TO-DATE HIGHLIGHTS
- Three Months Ended September 30,
2014 ("Q3/2014") Stabilized FFO and
AFFO of $0.908 million and
$0.904 million, which is a 33% and
31% sequential increase over Q2/2014 and a 54% and 61% increase
over Q3/2013;
- Nine Months Ended September 30,
2014 ("3Q/2014") Stabilized FFO and
AFFO of $2.4 million and $2.3 million; which is a 73% and 77% increase
over 3Q/2013;
- Q3/2014 Stabilized FFO and AFFO per Unit of $0.129 and $0.129
per Unit, which is a 33% and 30% sequential increase over Q2/2014
and a 14% and 20% increase over Q3/2013;
- 3Q/2014 Stabilized FFO and AFFO per Unit of $0.342 and $0.327
per Unit, which is a 15% and 18% increase over 3Q/2013;
- Q3/2014 Stabilized FFO and AFFO payout ratios of 72%, below the
Trust's targeted AFFO payout ratio of 85% and below the Trust's
anticipated Stabilized AFFO payout ratio of 75%;
- Q3/2014 Cash Net Operating Income ("NOI") of $1.6 million, a 35%
increase over Q2/2014 and a 60% increase over Q3/2013;
- 3Q/2014 Cash NOI of $4.1 million,
which is an 86% increase over 3Q/2013;
- Reasonable leverage profile with Debt / Gross Book Value
("GBV") at 53.4%;
- Announced on October 20, 2014
that the Board of Trustees approved its second distribution
increase in less than one year with an 8.1% increase in its monthly
distributions to $0.033333 per unit
from $0.030833 per unit. On an
annualized basis this equates to anticipated distributions of
$0.40 per unit up from $0.37 per unit. Including the announced
distribution increase, the total increase in distribution's since
the Trust's inception is 14.3%;
- Announced on October 27, 2014
that the Trust was proceeding with a non-brokered private placement
to raise up to $8.0 million and issue
up to 1,500,000 trust units at a price of $5.35 per Trust Unit. As a result of strong
demand, on November 3, 2014 the Trust
announced that it has increased the size of this non-brokered
private placement to up to $10.0
million and issue up to 1,870,000 trust units at a price of
$5.35 per Trust Unit;
- Announced on November 11, 2014
that it has entered into a binding agreement to acquire a 50%
interest in a 135 unit multi-residential complex located in
Ottawa, Ontario with the balance
being acquired by others that may include related parties of the
Trust. The purchase price is approximately $11.2 million (excluding closing costs), of which
the Trust will pay approximately $5.6
million (excluding closing costs) for its 50%
participation;
- Announces the Trust has declared and approved distributions in
the amount of $0.033333 per Trust
unit payable on or about February 16,
2015, March 16, 2015 and
April 15, 2015 to unitholders of
record on January 30, 2015,
February 27, 2015 and March 31, 2015 respectively; and
- Announces the Trust has renewed its Facility with a Canadian
Chartered Bank for an additional 24 month term.
For the complete financial statements, Management's Discussion
& Analysis and supplementary information, please visit
www.sedar.com or the Trust's website at www.firmcapital.com
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, 10% 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 8.7% of total net rent. Further, the top 10 tenants are
largely comprised of credit worthy and large national tenants and
account for 31.6% of total net rent and 22.3% of total NLA.
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.
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