TORONTO, March 25, 2015 /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,
2014.
FOURTH QUARTER AND 2014 HIGHLIGHTS
- Three Months Ended December 31,
2014 ("Q4/2014") FFO and AFFO of
$1.1 million and $0.9 million, which is an 86% and 52% increase
over Q4/2013;
- Twelve Months Ended December 31,
2014 ("4Q/2014") FFO and AFFO of
$3.5 million and $3.2 million; which is a 77% and 69% increase
over 4Q/2013;
- 4Q/2014 FFO and AFFO per Unit of $0.477 and $0.438
per Unit, which is an 18% and 13% increase over 4Q/2013;
- Q4/2014 FFO and AFFO payout ratios of 74% and 88%, in line with
the Trust's targeted AFFO payout ratio of 85%;
- Q4/2014 Cash Net Operating Income ("NOI") of $1.7 million, a 2%
sequential increase over Q3/2014 and a 39% increase over
Q4/2013;
- 4Q/2014 Cash NOI of $5.8 million,
which is a 69% increase over 4Q/2013;
- Solid 90.4% and 93.3% occupancies for the commercial and
multi-residential portfolios, respectively;
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 46.6%;
- Closed Two Significant Acquisitions for $29.2 million during 2014;
- Issued $17.3 million of Trust
Units during 2014;
- Exceeded Annual AFFO Performance Incentive
Fee Threshold: 4Q/2014 AFFO per Unit is well above FCPT's
annual AFFO Performance Incentive Fee threshold of $0.40 per Unit (8% AFFO return from the Trust's
initial equity issuance) and has been achieved after only its
second full year of operation;
- Creates Geographically and Asset Class
Diversified Portfolio: With the acquisition of the Centre Ice
Portfolio and Ottawa Apartment Complex during 2014, the Trust
generates cash flow from all of its targeted asset classes and is
geographically diversified, with properties located in the majority
of all Canadian provinces;
- Announced Second Distribution
Increase: 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;
- 10.9% Total Return Ahead of All Major
Indices: Including distribution reinvestment, FCPT Trust Units
delivered a 10.9% total return to Unitholders for all of 2014. This
return is ahead of the S&P/TSX Capped REIT Index of 10.2% and
the TSX Composite Index of 10.6%.
- 98.2% Tax Deferral of Distributions:
Announces that the 2014 tax deferral of unitholder distributions is
98.2%, which is well above the 2013 tax deferral of unitholder
distributions of 83.3%. For additional information, please refer to
the Trust's website at www.firmcapital.com;
- Renewed Credit Facility: Announced the
Trust renewed its Bank Indebtedness Credit Facility (the
"Facility") with a Canadian Chartered Bank
for an additional 24 month term; and
- Distribution Announcement: Announces
the Trust has declared and approved distributions in the amount of
$0.033333 per Trust unit payable on
or about May 15, 2015, June 15, 2015 and July 15,
2015 to unitholders of record on April 30, 2015, May 29,
2015 and June 30, 2015
respectively.
- Closed $3.0
million Private Placement of Trust Units: On
March 24, 2015, the Trust closed a
non-brokered private placement of 557,008 trust units at a price of
$5.35 per Trust Unit for gross
proceeds of approximately $3.0
million.The Trust will use the net proceeds of the offering
to strengthen the Trust's balance sheet and to fund future
acquisitions.
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 56 commercial properties with a total Gross
Leasable Area ("GLA") of 833,373 square feet (830,315 square
feet of Net Leasable Area) and one apartment complex comprised of
135 apartment units. The portfolio is diversified across
geographies with 56% of the NOI generated from Ontario, 30% from Quebec, 9% from Nova
Scotia and 5% collectively from BC, Alberta, Manitoba and New
Brunswick. The portfolio is diversified across asset classes
with 57% of NOI generated from Net Lease Convenience Retail, 30%
from Industrial, 8% from Core Service Provider Office and 5% from
Multi-Residential.
TENANT DIVERSIFICATION
The portfolio is well
diversified by tenant profile with no tenant accounting for more
than 9.9% of total net rent. Further, the top 10 tenants are
largely comprised of credit worthy and large national tenants and
account for 33.2% of total net rent.
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
8.7% 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 and syndicate 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. 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