TORONTO, Aug. 10, 2016 /CNW/ - Firm Capital Property
Trust ("FCPT" or the "Trust"), (TSXV : FCD.UN) is
pleased to report today its consolidated interim financial results
for the three and six months ended June 30,
2016.
SECOND QUARTER AND YEAR-TO-DATE HIGHLIGHTS
- Rental revenue for the three months ended June 30, 2016 was $3.8
million, a 5% sequential increase and 29% increase over
March 31, 2016 and June 30, 2015, respectively. Rental revenue for
the six months ended June 30, 2016
was $7.4 million, a 25% increase over
June 30, 2015;
- On a cash basis, NOI for the three months ended June 30, 2016 was $2.2
million, an 8% sequential increase and 27% increase over
March 31, 2016 and June 30, 2015, respectively. Cash NOI for the six
months ended June 30, 2016 was
$4.3 million, a 25% increase over
June 30, 2015;
- Excluding a gain on sale generated from the sale of two
properties from the Centre Ice Retail Portfolio, FFO and AFFO for
the three months ended June 30, 2016
were both $1.2 million, respectively,
a 10% and 24% increase over the three months ending June 30, 2015. For the six months ended
June 30, 2016, FFO and AFFO were
$2.4 million and $2.3 million, respectively, a 17% and 19%
increase over the three months ending June
30, 2015;
- Excluding a gain on sale generated from the sale of two
properties from the Centre Ice Retail Portfolio, FFO and AFFO Per
Unit were $0.107 and $0.106 for the three months ended June 30, 2016, respectively. For the six months
ended June 30, 2016; FFO and AFFO Per
Unit were $0.212 and $0.200, respectively;
- Including a gain on sale generated from the sale of two
properties from the Centre Ice Retail Portfolio, Adjusted FFO and
AFFO Per Unit for the six months ended June
30, 2016 were $0.282 and
$0.270, respectively;
- Three Months Ended June 30, 2016
FFO and AFFO payout ratios were both 99%;
- Six Months Ended June 30, 2016
Adjusted FFO and AFFO payout ratios were 74% and 78%;
- Commercial portfolio occupancy was 90.2%, a 180 basis point
("bp") increase over the 88.4% reported at March 31, 2016, and an 80 bp increase over the
89.4% reported at June 30, 2015.
Occupancy for the multi-residential portfolio was 94.1%, unchanged
over March 31, 2016, but a 220 bp
increase over the 91.9% occupancy reported at June 30, 2015; and
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 49.8%.
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
% Change Over
|
|
|
Three Months
|
Six Months
|
Three Months
|
Six Months
|
|
|
June 30,
2016
|
Mar 31,
2016
|
June 30,
2015
|
|
June 30,
2016
|
June 30,
2015
|
|
Mar 31,
2016
|
June 30,
2015
|
June 30,
2015
|
Rental Revenue
|
$
|
3,804,157
|
$
|
3,639,657
|
$
|
2,959,424
|
$
|
7,443,814
|
$
|
5,949,503
|
|
5%
|
29%
|
25%
|
NOI
|
|
|
|
|
|
|
|
|
|
|
|
|
- IFRS Basis
|
$
|
2,247,672
|
$
|
2,066,037
|
$
|
1,785,515
|
$
|
4,313,709
|
$
|
3,492,058
|
|
9%
|
26%
|
24%
|
|
- Cash Basis
|
$
|
2,209,927
|
$
|
2,045,040
|
$
|
1,737,151
|
$
|
4,254,967
|
$
|
3,403,796
|
|
8%
|
27%
|
25%
|
FFO
|
$
|
1,218,474
|
$
|
1,204,574
|
$
|
1,106,990
|
$
|
2,423,049
|
$
|
2,074,216
|
|
1%
|
10%
|
17%
|
AFFO
|
$
|
1,209,959
|
$
|
1,080,426
|
$
|
978,185
|
$
|
2,290,387
|
$
|
1,925,976
|
|
12%
|
24%
|
19%
|
Adjusted FFO*
|
$
|
1,218,474
|
$
|
2,005,266
|
$
|
1,106,990
|
$
|
3,223,741
|
$
|
2,074,216
|
|
NM
|
10%
|
55%
|
Adjusted AFFO*
|
$
|
1,209,959
|
$
|
1,881,118
|
$
|
978,185
|
$
|
3,091,079
|
$
|
1,925,976
|
|
NM
|
24%
|
60%
|
FFO Per Unit
|
$
|
0.107
|
$
|
0.105
|
$
|
0.117
|
$
|
0.212
|
$
|
0.224
|
|
1%
|
(9%)
|
(5%)
|
AFFO Per Unit
|
$
|
0.106
|
$
|
0.095
|
$
|
0.104
|
$
|
0.200
|
$
|
0.208
|
|
12%
|
2%
|
(4%)
|
Adjusted FFO Per
Unit*
|
$
|
0.107
|
$
|
0.175
|
$
|
0.117
|
$
|
0.282
|
$
|
0.224
|
|
NM
|
(9%)
|
26%
|
Adjusted AFFO Per
Unit*
|
$
|
0.106
|
$
|
0.165
|
$
|
0.104
|
$
|
0.270
|
$
|
0.208
|
|
NM
|
2%
|
30%
|
Distributions Per
Unit
|
$
|
0.105
|
$
|
0.105
|
$
|
0.100
|
$
|
0.210
|
$
|
0.200
|
|
-
|
5%
|
5%
|
Payout Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
- FFO
|
|
99%
|
100%
|
85%
|
|
99%
|
89%
|
|
|
|
|
|
- AFFO
|
|
99%
|
111%
|
97%
|
|
105%
|
96%
|
|
|
|
|
|
- Adjusted FFO
|
|
99%
|
60%
|
85%
|
|
74%
|
89%
|
|
|
|
|
|
- Adjusted
AFFO
|
|
99%
|
64%
|
97%
|
|
78%
|
96%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM = Not Meaningful
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|
|
|
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|
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*
= Includes gain on sale of assets
|
|
|
|
|
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- Announced Joint Venture with First Capital Realty with the
Acquisition of Two Retail Properties: On June 9, 2016, the Trust announced the acquisition
of a 40% interest in The Whitby Mall and Thickson Place, two
predominantly retail properties located in Whitby, Ontario. The acquisition price for
100% of these assets is approximately $75.3
million, excluding transaction costs. The properties are
located directly across from each other providing a strategic
benefit and long term synergies.
The Whitby Mall which is located at 1615 Dundas Street East,
Whitby Ontario is a 378,917 square
foot mixed use commercial property anchored by Sobeys with a strong
mix of retail, office and medical tenants together with future
repositioning opportunities. Thickson Place which is located at 80
Thickson Road South, Whitby
Ontario is a 104,808 square foot retail property anchored by
Metro and the LCBO.
The acquisitions of both properties are expected to be immediately
accretive to AFFO. Management of the Trust expects the AFFO payout
ratio of the Trust to drop below 85% and the leverage of the Trust
to increase slightly to approximately 53% of Gross Book Value.
On June 9, 2016, the Trust closed on
the acquisition of The Whitby Mall through existing cash resources
and through the Trust's revolving credit facility for $14.7 million (incl. transaction costs). The
acquisition of Thickson Place which is expected to close during the
third quarter of 2016 will be funded through debt to be arranged on
The Whitby Mall and Thickson Place.
- Increased Credit Facility To $10
Million: On June 9, 2016,
the Trust received approval from its lender, a Canadian Chartered
Bank, to increase its Credit Facility from $8.0 million to $10.0
million. In addition, the maturity date was extended to
May 31, 2018;
- Announces $6.0 Million
Non-Brokered Private Placement; Upsizes to $10.2 Million Due To Strong Demand: On
July 12, 2016, the Trust announced a
non-brokered private placement in which it would raise up to
$6.0 million and issue up to 1.0
million Trust Units at a price of $6.00 per Trust Unit. On August 3, 2016, the Trust announced that it had
closed the first tranche of this non-brokered private placement of
approximately 1.1 million Trust Units for gross proceeds of
approximately $6.3 million. As a
result of strong demand, the Trust announced that it was increasing
the amount of the non-brokered private placement to up to
approximately 1.7 million Trust Units for gross proceeds of upwards
of approximately $10.2 million;
and
- Approved Distributions for October, November and December,
2016: On August 10, 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 October 31, 2016, November
30, 2016 and December 30, 2016
payable on or about November 15,
2016, December 15, 2016 and
January 16, 2017.
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 59 commercial properties with a total Gross
Leasable Area ("GLA") of 1,328,001 square feet (1,324,612
square feet of Net Leasable Area ("NLA")) and one apartment
complex comprised of 135 units. The portfolio is diversified across
geographies with 70% of the NOI generated from Ontario, 21% from Quebec, 7% from Nova
Scotia and 2% collectively from BC, Alberta, Manitoba and New
Brunswick. The portfolio is diversified across asset classes
with 46% of NOI generated from Retail, 42% from Industrial, 8% from
Office and 4% from Multi-Residential.
TENANT DIVERSIFICATION
The portfolio is well
diversified by tenant profile with no tenant accounting for more
than 5.7% of total net rent. Further, the top 10 tenants are
largely comprised of creditworthy and large national tenants and
account for 25.1% 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