TORONTO, May 5, 2016 /CNW/ - Firm Capital Property Trust
("FCPT" or the "Trust"), (TSXV : FCD.UN) reported
today its financial results for the three months ended March
31, 2016.
FIRST QUARTER HIGHLIGHTS
- Including a gain on sale generated from the sale of two
properties from the Centre Ice Retail Portfolio, three months ended
March 31, 2016 FFO and AFFO of
$2.0 million and $1.9 million, respectively, are a 66% and 49%
increase over the three months ended December 31, 2015 and a 107% and 98% increase
over the three months ended March 31,
2015;
- Including a gain on sale generated from the sale of two
properties from the Centre Ice Retail Portfolio, three months ended
March 31, 2016 FFO and AFFO Per Unit
of $0.175 and $0.165, respectively, are a 66% and 49% increase
over December 31, 2015 and a 65% and
58% increase over March 31, 2015;
- Distributions Per Unit were $0.105, which is a 3% increase over December 31, 2015 and a 5% increase over
March 31, 2015;
- Including a gain on sale generated from the sale of two
properties from the Centre Ice Retail Portfolio, three months ended
March 31, 2016 FFO and AFFO payout
ratios were 60% and 64%;
- Cash NOI for the three months ended March 31, 2016 was $2.0
million, a 7% sequential decrease over December 31, 2015, but a 23% increase over
March 31, 2015;
- Commercial net rent per square foot was $8.39 per square foot, in line with the
$8.34 reported at December 31, 2015. Average monthly rent for
the multi-residential portfolio was $848 per month, in line with the $843 per month reported at December 31, 2015;
- Commercial portfolio occupancy was 88.4%. Multi-Residential
Occupancy was 94.1%; and
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 48.2%.
Financial Highlights
|
|
|
|
|
|
|
%
Change
|
|
|
|
|
Three
Months
|
|
|
Over
|
|
|
March 31,
2016
|
Dec 31,
2015
|
March 31,
2015
|
|
Dec 31,
2015
|
March 31,
2015
|
Rental
Revenue
|
|
$
|
3,639,657
|
$
|
3,779,471
|
$
|
2,990,079
|
|
(4%)
|
22%
|
NOI
|
|
|
|
|
|
|
|
|
|
|
- IFRS
Basis
|
|
$
|
2,066,037
|
$
|
2,218,943
|
$
|
1,706,542
|
|
(7%)
|
21%
|
- Cash
Basis
|
|
$
|
2,045,040
|
$
|
2,209,441
|
$
|
1,666,645
|
|
(7%)
|
23%
|
|
|
|
|
|
|
|
|
|
|
|
FFO
|
|
$
|
1,204,574
|
$
|
1,205,175
|
$
|
967,226
|
|
(0%)
|
25%
|
AFFO
|
|
$
|
1,080,426
|
$
|
1,261,456
|
$
|
947,792
|
|
(14%)
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
FFO
|
|
$
|
2,005,266
|
$
|
1,205,175
|
$
|
967,226
|
|
66%
|
107%
|
Adjusted
AFFO
|
|
$
|
1,881,118
|
$
|
1,261,456
|
$
|
947,792
|
|
49%
|
98%
|
|
|
|
|
|
|
|
|
|
|
|
FFO Per
Unit
|
|
$
|
0.105
|
$
|
0.105
|
$
|
0.107
|
|
0%
|
(1%)
|
AFFO Per
Unit
|
|
$
|
0.095
|
$
|
0.110
|
$
|
0.104
|
|
(14%)
|
(9%)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted FFO Per
Unit
|
|
$
|
0.175
|
$
|
0.105
|
$
|
0.107
|
|
66%
|
65%
|
Adjusted AFFO Per
Unit
|
|
$
|
0.165
|
$
|
0.110
|
$
|
0.104
|
|
49%
|
58%
|
|
|
|
|
|
|
|
|
|
|
|
Distributions Per
Unit
|
|
$
|
0.105
|
$
|
0.102
|
$
|
0.100
|
|
3%
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
Payout
Ratios
|
|
|
|
|
|
|
|
|
|
|
-
FFO
|
|
|
100%
|
|
96%
|
|
94%
|
|
|
|
-
AFFO
|
|
|
111%
|
|
92%
|
|
96%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Adjusted
FFO
|
|
|
60%
|
|
96%
|
|
94%
|
|
|
|
- Adjusted
AFFO
|
|
|
64%
|
|
92%
|
|
96%
|
|
|
|
- Significant Acquisition Capacity of Approximately
$45 Million: As at March 31, 2016, the Trust had $10.4 million of cash and $8.0 million of credit facility availability on
its balance sheet, providing it with approximately $45 million of acquisition capacity (assuming 60%
leverage) or approximately 35% of investment property growth
without having to raise additional equity;
- Disposition Generates $2.7
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 net proceeds of approximately $2.7 million (net of closing costs). The
properties were unencumbered at the time of the sale and the
proceeds will be used to fund future acquisitions. The transactions
represented a one-time AFFO gain of approximately $0.07 per Trust Unit;
- 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 July, August and September,
2016: The Trust also announced that it has declared and
approved monthly distributions in the amount of $0.035 per trust unit for unitholders of record
on July 29, 2016, August 31, 2016 and September 30, 2016 payable on or about
August 15, 2016, September 15, 2016 and October 17, 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 portfolio
consists of 58 commercial properties with a total GLA of 1,174,864
square feet (1,171,475 square feet of Net Leasable Area
("NLA")) and one apartment complex comprised of 135
apartment units. The portfolio is diversified across geographies
with 66% of the NOI generated from Ontario, 24% from Quebec, 7.5% from Nova Scotia and 2.5% collectively from BC,
Alberta, Manitoba and New
Brunswick. The portfolio is diversified across asset classes
with 47% of NOI generated from Industrial, 43% 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 6.7% of total net rent. Further, the top 10 tenants are
largely comprised of creditworthy and large national tenants and
account for 28.6% 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