TORONTO, Aug. 6, 2015 /CNW/ - Firm Capital Property Trust
("FCPT" or the "Trust"), (TSXV : FCD.UN) reported
today its consolidated interim financial results for the three
months and six months ended June 30,
2015.
SECOND QUARTER HIGHLIGHTS
- Three Months Ended June 30, 2015
FFO and AFFO of $1.1 million and
$0.98 million is a 14% and 3%
sequential increase over the FFO and AFFO reported for the three
months ended March 31, 2015 and a 62%
and 41% increase over the FFO and AFFO reported for the three
months ended June 30, 2014;
- Six Months Ended June 30, 2015
FFO and AFFO of $2.1 million and
$1.9 million is a 40% and 39%
increase over the FFO and AFFO reported for the six months ended
June 30, 2014;
- Three months ended June 30, 2015
FFO and AFFO per Unit of $0.117 and
$0.104 per Unit, is a 10% sequential
increase and in line, respectively over the three months ended
March 31, 2015 FFO and AFFO per Unit
and a 20% and 5% increase over the three months ended June 30, 2014 FFO and AFFO per Unit;
- Six months ended June 30, 2015
FFO and AFFO per Unit of $0.224 and
$0.208 are both a 5% increase over
the six months ended June 30, 2014
FFO and AFFO per Unit;
- Three months ended June 30, 2015
FFO and AFFO payout ratios of 85% and 97%;
- Six months ended June 30, 2015
FFO and AFFO payout ratios of 89% and 96%;
- Three months ended June 30, 2015
Cash NOI of $1.7 million is a 4.2%
sequential increase over three months ended March 31, 2015 and a 41.9% increase over the
three months ended June 30, 2014. Six
months ended June 30, 2015 Cash NOI
of $3.4 million is a 40.5% increase
over the six months ended June 30,
2014;
- 89.4% and 91.9% occupancies for the commercial and
multi-residential portfolios, respectively, provide leasing
upside;
- Commercial net rent per square foot was $9.11 per square foot, largely in line with the
$9.08 psf reported for the three
months ended June 30, 2015 and a 1.9%
increase over the $8.94 psf reported
for the three months ended June 30,
2014;
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 43.4%;
FINANCIAL HIGHLIGHTS
|
|
|
|
|
%
Change
|
|
Three
Months
|
|
Six
Months
|
|
|
|
|
June 30,
2015
|
June 30,
2014
|
|
June 30,
2015
|
June 30,
2014
|
|
Three
months
|
Six
months
|
Rental
Revenue
|
$
|
2,959,424
|
$
|
2,005,213
|
|
$
|
5,949,503
|
$
|
4,020,421
|
|
48%
|
48%
|
Net Operating
Income (NOI)
|
|
|
|
|
|
|
|
|
|
|
|
|
- IFRS
Basis
|
$
|
1,785,515
|
$
|
1,243,669
|
|
$
|
3,492,058
|
$
|
2,463,207
|
|
44%
|
42%
|
- Cash
Basis
|
$
|
1,737,151
|
$
|
1,224,475
|
|
$
|
3,403,796
|
$
|
2,423,099
|
|
42%
|
40%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds From
Operations (FFO)
|
$
|
1,106,990
|
$
|
684,339
|
|
$
|
2,074,216
|
$
|
1,486,095
|
|
62%
|
40%
|
Adjusted Funds
From Operations (AFFO)
|
$
|
978,185
|
$
|
692,656
|
|
$
|
1,925,976
|
$
|
1,382,147
|
|
41%
|
39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO Per
Unit
|
$
|
0.117
|
$
|
0.098
|
|
$
|
0.224
|
$
|
0.213
|
|
20%
|
5%
|
AFFO Per
Unit
|
$
|
0.104
|
$
|
0.099
|
|
$
|
0.208
|
$
|
0.198
|
|
5%
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions Per
Unit
|
$
|
0.100
|
$
|
0.092
|
|
$
|
0.200
|
$
|
0.185
|
|
9%
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO Payout
Ratio
|
|
85%
|
|
95%
|
|
|
89%
|
|
87%
|
|
|
|
AFFO Payout
Ratio
|
|
97%
|
|
94%
|
|
|
96%
|
|
94%
|
|
|
|
- Announced significant industrial acquisition: On
July 27, 2015, the Trust announced
the purchase of a 70% interest in seven industrial buildings
located in Waterloo, Ontario. The
acquisition price for 100% of the Portfolio is approximately
$43.3 million, excluding transaction
costs. The acquisition is expected to close during Q3/2015. The
Trust will increase the size of its current portfolio by
approximately 34% to $122 million and
will grow to 60 properties;
- 5% distribution increase is third increase and 20% in
aggregate increases in less than three years: On July 27, 2015, the Trust announced that it has
declared and approved monthly distributions in the amount of
$0.033333 per Trust Unit for
unitholders of record on October 30,
2015 payable on or about November 16,
2015 and $0.035 per Trust Unit
for unitholders of record on November 30,
2015 and December 31, 2015
payable on or about December 15, 2015
and January 15, 2016, respectively,
subject to closing of the Waterloo Industrial acquisition as
outlined above. This revised distribution is expected to result in
a pro forma AFFO payout ratio of below 85% for the Trust; and
- Announced $10 million private
placement: On August 4, 2015, the
Trust announced that it is proceeding with a non-brokered private
placement in which it will raise up to $10.0
million and issue up to 1.8 million trust units of the Trust
at a price of $5.60 per Trust
Unit.
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 commercial properties with a total Gross
Leasable Area ("GLA") of 832,942 square feet (829,588 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
8.2% 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 Properties Inc., through
a structure focused on an alignment of interests with the Trust
sources, syndicates and property and asset manages investments on
behalf of the Trust.
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