TORONTO, March 24, 2016 /CNW/ - Firm Capital Property
Trust ("FCPT" or the "Trust"), (TSXV : FCD.UN)
reported today its consolidated annual financial results for the
three months and twelve months ended December 31, 2015.
FOURTH QUARTER AND 2015 HIGHLIGHTS
- Three Months Ended December 31,
2015 FFO and AFFO of $1.2
million and $1.3 million,
respectively, are a 11% and 39% increase over the amounts reported
for the three months ended December 31,
2014;
- Twelve Months Ended December 31,
2015 FFO and AFFO of $4.5
million and $4.3 million are a
30% and 35% increase over the amounts reported for the twelve
months ended December 31, 2014;
- Three Months ended December 31,
2015 FFO and AFFO per Unit of $0.105 and $0.110
per Unit;
- Twelve months ended December 31,
2015 FFO and AFFO per Unit of $0.450 and $0.427;
- Three months ended December 31,
2015 FFO and AFFO payout ratios of 96% and 92%. Twelve
months ended December 31, 2015 FFO
and AFFO payout ratios of 89% and 94%;
- Cash NOI for the three months ended December 31, 2015 was $2.2
million, a 15% sequential increase over the amount reported
for the three months ended September 30,
2015 and a 31% increase over the amount reported for the
three months ended December 31, 2014.
Cash NOI for the twelve months ended December 31, 2015 was $7.5
million, a 31% increase over the amount reported for the
twelve months ended December 31,
2014;
- Commercial portfolio occupancy was 92.0%. Multi-Residential
Occupancy was 91.9%; and
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 47.0%.
Financial Highlights
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Three
Months
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Twelve
Months
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Dec 31,
2015
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Dec 31,
2014
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Dec 31,
2015
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Dec 31,
2014
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Three
Months
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Twelve
Months
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Rental
Revenue
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$
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3,779,471
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$
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2,969,865
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$
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13,006,263
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$
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9,762,540
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27%
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33%
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NOI
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- IFRS
Basis
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$
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2,218,943
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$
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1,783,986
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$
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7,666,827
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$
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5,931,492
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24%
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29%
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- Cash
Basis
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$
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2,209,441
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$
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1,682,070
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$
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7,538,351
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$
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5,752,746
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31%
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31%
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FFO
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$
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1,205,175
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$
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1,086,571
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$
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4,524,709
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$
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3,480,220
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11%
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30%
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AFFO
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$
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1,261,456
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$
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908,695
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$
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4,298,052
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$
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3,194,838
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39%
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35%
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FFO Per
Unit
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$
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0.105
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$
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0.132
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$
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0.450
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$
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0.477
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AFFO Per
Unit
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$
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0.110
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$
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0.111
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$
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0.427
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$
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0.438
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Distributions
Per
Unit
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$
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0.102
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$
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0.097
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$
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0.402
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$
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0.375
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Payout
Ratios
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-
FFO
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96%
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74%
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89%
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79%
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-
AFFO
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92%
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88%
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94%
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86%
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- Significant Acquisition Capacity of Approximately
$50 Million: As at December 31, 2015, the Trust had $3.9 million of cash and $8.0 million of credit facility availability on
its balance sheet, providing it with approximately $30 million of acquisition capacity (assuming 60%
leverage) or 23% of investment property growth without having to
raise additional equity. With the refinancing of the Centre Ice
Portfolio that generated $4.7 million
of net cash proceeds and the sale of two unencumbered properties
from the Centre Ice Retail Portfolio that generated proceeds of
approximately $2.8 million that
occurred subsequent to year end as outlined below, the Trust now
has $11.4 million of cash and
$8.0 million of credit facility
availability on its balance sheet, providing it with approximately
$50 million of acquisition
capacity;
- 20% Total Return Makes The Trust One of The Top Returning
REITs of 2015: Including distribution reinvestment, the Trust
generated a total return for unitholders of approximately 20%,
which makes it one of the top returning REITs in Canada for 2015, well ahead of the S&P/TSX
Capped REIT Index (-3.4%) and S&P/TSX Composite Index
(-7.4%);
- 99.6% of 2015 Distributions are Tax Deferred: On
February 25, 2016, the Trust
announced that its unitholder distributions for the year ended
December 31, 2015 are 99.6%
non-taxable predominately in the form of return of capital. For
additional information, please refer to the Trust's website at
www.firmcapital.com;
- Acquired Significant Industrial Acquisition for $31.2 million: On August 27, 2015, the Trust acquired the Waterloo
Industrial Portfolio, 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;
- 20% Aggregate Distribution Increases in Less Than Three
Years: On August 27, 2015, as a
result of the acquisition of the Waterloo Industrial Portfolio, the
Trust formally increased its annualized cash distribution by 5% to
$0.42 per Trust Unit per annum or
$0.035 per Trust Unit per month from
$0.40 per Trust Unit per annum
commencing in November, 2015. Including the August 27th distribution increase, the
total increase in distributions since the Trust's inception is
20%;
- Issued $14 million of Trust
Units: During 2015, the Trust completed two non-brokered
private placements of Trust Units for gross proceeds of
approximately $14 million. 557,008
Trust Units were issued on March 24,
2015 at a price of $5.35 per
Trust Unit for gross proceeds of approximately $3.0 million, while on September 22, 2015, the Trust issued 1,961,300
Trust Units at a price of $5.60 per
Trust Unit for gross proceeds of approximately $11.0 million;
- Post Year End Disposition Generates $2.8 Million of Cash and One-Time AFFO Gain of
Approximately $0.07 Per Trust
Unit: On January 13, 2016 and
January 28, 2016, the Trust completed
the sale of its interest in two unencumbered properties from the
Centre Ice Retail Portfolio totalling 19,330 square feet to various
third parties for gross proceeds of approximately $2.8 million. The properties were unencumbered at
the time of the sale and the proceeds will be used to fund future
acquisitions. The transactions represent a one-time AFFO gain of
approximately $0.07 per Trust
Unit;
- Post Year End Accretive Refinancing Generates $4.7 Million of Cash and Annual AFFO Savings of
$0.01 Per Trust Unit: On
January 4, 2016, the Trust refinanced
the first mortgages that encumbered the Centre Ice Retail Portfolio
for one new first mortgage with a Canadian Chartered Bank. The new
$23.7 million first mortgage is a
fixed 2.92% interest rate mortgage that matures on January 4, 2021. The Trust's pro-rata share of
the new first mortgage is $16.6
million. As a result of the refinancing, the Trust received
net cash proceeds of approximately $4.7
million. The refinancing is approximately $0.01 per unit accretive to AFFO before the
deployment of the excess cash; and
- Approved Distributions for April, May and June, 2016:
The Trust announced that it has declared and approved monthly
distributions in the amount of $0.035
per Trust Unit for unitholders of record on April 29, 2016, May 31,
2016 and June 30, 2016 payable
on or about May 16, 2016,
June 15, 2016 and July 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 7.8% of total net rent. Further, the top 10 tenants are
largely comprised of credit worthy and large national tenants and
account for 28.8% 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
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 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