TORONTO, Nov. 5, 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 nine months
ended September 30, 2015.
THIRD QUARTER HIGHLIGHTS
- Three Months Ended September 30,
2015 FFO and AFFO of $1.2
million and $1.1 million is a
12% and 14% sequential increase over the amounts reported for the
three months ended June 30, 2015 and
a 37% and 23% increase over the amounts reported for the three
months ended September 30, 2014;
- Nine Months Ended September 30,
2015 FFO and AFFO of $3.3
million and $3.0 million are a
39% and 33% increase over the amounts reported for the nine months
ended September 30, 2014;
- Three Months ended September 30,
2015 FFO and AFFO per Unit of $0.121 and $0.107
per Unit, is a 3% and 4% sequential increase over the three months
ended June 30, 2015;
- Nine months ended September 30,
2015 FFO and AFFO per Unit of $0.345 and $0.316
are largely unchanged over the nine months ended September 30, 2014;
- Three months ended September 30,
2015 FFO and AFFO payout ratios of 83% and 93%. Nine months
ended September 30, 2015 FFO and AFFO
payout ratios of 87% and 95%;
- Three months ended September 30,
2015 Cash NOI of $1.9 million
is an 11% sequential increase over the three months ended
June 30, 2015 and a 17% increase over
the three months ended September 30,
2014. Nine months ended September 30,
2015 Cash NOI of $5.3 million
is a 31% increase over the nine months ended September 30, 2014;
- Commercial portfolio occupancy was 93.4%, a 400 bp increase
over June 30, 2015 and a 78 bp
increase over September 30, 2014.
Multi-Residential Occupancy was 94.1%, a 222 bp increase over
June 30, 2015;
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 47.5%
FINANCIAL HIGHLIGHTS
|
|
|
|
%
Change
|
|
Three
Months
|
|
Nine
Months
|
|
|
|
Sept 30,
2015
|
Sept 30,
2014
|
|
Sept 30,
2015
|
Sept 30,
2014
|
Three
months
|
Nine
months
|
Rental
Revenue
|
$
|
3,277,289
|
$
|
2,772,254
|
|
$
|
9,226,792
|
$
|
6,792,675
|
18%
|
36%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating
Income (NOI)
|
|
|
|
|
|
|
|
|
|
|
|
- IFRS
Basis
|
$
|
1,955,829
|
$
|
1,685,256
|
|
$
|
5,447,886
|
$
|
4,147,506
|
16%
|
31%
|
- Cash
Basis
|
$
|
1,925,116
|
$
|
1,648,534
|
|
$
|
5,328,912
|
$
|
4,070,676
|
17%
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds From
Operations (FFO)
|
$
|
1,245,318
|
$
|
907,553
|
|
$
|
3,319,534
|
$
|
2,393,648
|
37%
|
39%
|
Adjusted Funds
From Operations (AFFO)
|
$
|
1,110,619
|
$
|
903,995
|
|
$
|
3,036,596
|
$
|
2,286,142
|
23%
|
33%
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO Per
Unit
|
$
|
0.121
|
$
|
0.129
|
|
$
|
0.345
|
$
|
0.342
|
(7%)
|
1%
|
AFFO Per
Unit
|
$
|
0.107
|
$
|
0.129
|
|
$
|
0.316
|
$
|
0.327
|
(17%)
|
(3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions Per
Unit
|
$
|
0.100
|
$
|
0.092
|
|
$
|
0.300
|
$
|
0.277
|
9%
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO Payout
Ratio
|
|
83%
|
|
72%
|
|
|
87%
|
|
81%
|
|
|
AFFO Payout
Ratio
|
|
93%
|
|
72%
|
|
|
95%
|
|
85%
|
|
|
- Closed significant industrial acquisition for $31.2 million: On August 27, 2015, the Trust acquired a 70%
undivided interest in seven industrial buildings located in
Waterloo, Ontario for $31.2 million (including transaction costs). As a
result of the acquisition, the Trust increased the size of its
current portfolio to 61 properties;
- 5% distribution increase is third increase and 20% in
aggregate increases in less than three years: As a result of
the closing of the acquisition of the industrial portfolio in
Waterloo, the Trust 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. This revised distribution is
expected to result in a pro forma AFFO payout ratio of below 85%
for the Trust;
- Closed $11 million
non-brokered private placement: On September 22, 2015, the Trust announced the
closing of its previously announced non-brokered private placement
for gross proceeds of approximately $11
million. The Trust issued 1,961,300 trust units at a price
of $5.60 per trust unit. The Trust
used the net proceeds to repay the revolving credit facility and to
fund future acquisitions; and
- Approved distributions for January, February and March,
2016: The Trust also announces that it had declared and
approved monthly distributions in the amount of $0.035 per trust unit for unitholders of record
on January 29, 2016, February 26, 2016 and March 31, 2016 payable on or about February 15, 2016, March
15, 2016 and April 15,
2016.
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 60 commercial properties with a total Gross
Leasable Area ("GLA") of 1,189,965 square feet (1,186,576
square feet of Net Leasable Area) and one apartment complex
comprised of 135 apartment units. The portfolio is diversified
across geographies with 66% of the NOI generated from Ontario, 23% from Quebec, 8% from Nova
Scotia and 3% collectively from BC, Alberta, Manitoba and New
Brunswick. The portfolio is diversified across asset classes
with 46% of NOI generated from Industrial, 44% from Net Lease
Convenience Retail, 6% from Core Service Provider Office and 4%
from Multi-Residential.
TENANT DIVERSIFICATION
The portfolio is well
diversified by tenant profile with no tenant accounting for more
than 6.9% of total net rent. Further, the top 10 tenants are
largely comprised of credit worthy and large national tenants and
account for 27.5% 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
6.8% of the issued and outstanding trust units of the Trust.
APPROVED AMENDMENTS TO ASSET MANAGEMENT AGREEMENT
On
October 20, 2015, the independent
board of trustees approved the following amendments to the Asset
Management Agreement with the asset manager, a party related to the
property manager. These changes are reflective of the current
operations which are focused on smaller multi-tenanted properties
and which require significant management resources to operate:
Asset Management Fees: The Trust will pay the following
fees annually:
|
I.
|
|
0.75% of the first
$300 million of the Gross Book Value of the Properties;
and
|
|
II.
|
|
0.50% of the Gross
Book Value of the Properties in excess of $300 million.
|
Acquisition Fees: The Trust will pay the following
acquisition fees:
|
I.
|
|
0.75% of the first
$300 million of aggregate Gross Book Value in respect of new
properties acquired in a particular year;
|
|
II.
|
|
0.65% of the next
$200 million of aggregate Gross Book Value in respect of new
properties acquired in such year; and thereafter
|
|
III.
|
|
0.50% of the
aggregate Gross Book Value of new properties acquired in such
year.
|
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