TORONTO, Nov. 3, 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 nine months ended September 30,
2016.
THIRD QUARTER AND YEAR-TO-DATE HIGHLIGHTS
- Rental revenue for the three months ended September 30, 2016 was $4.2 million, an 11% sequential increase and 29%
increase over June 30, 2016 and
September 30, 2015, respectively.
Rental revenue for the nine months ended September 30, 2016 was $11.7 million, a 27% increase over September 30, 2015;
- On a cash basis, NOI for the three months ended September 30, 2016 was $2.4 million, a 10% sequential increase and 27%
increase over June 30, 2016 and
September 30, 2015, respectively.
Cash NOI for the nine months ended September
30, 2016 was $6.7 million, a
26% increase over September 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 September 30,
2016 were $1.3 million and
$1.4 million, respectively, an 8% and
13% sequential increase over the three months ending June 30, 2016 and a 6% and 23% increase over the
three months ending September 30,
2015. For the nine months ended September 30, 2016, FFO and AFFO were
$3.7 million and $3.7 million, respectively, a 13% and 20%
increase over the nine months ending September 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 $0.105 and $0.108 for the three months ended September 30, 2016, respectively. For the nine
months ended September 30, 2016; FFO
and AFFO Per Unit were $0.317 and
$0.309, 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 nine months ended September 30, 2016 were $0.384 and $0.377,
respectively;
- Three Months Ended September 30,
2016 FFO and AFFO payout ratios were 100% and 97%,
respectively;
- Nine Months Ended September 30,
2016 Adjusted FFO and AFFO payout ratios were 82% and 84%,
respectively;
- Occupancy for the commercial portfolio was 92.8%, a 260 basis
point sequential increase over the 90.2% reported at June 30, 2016. Occupancy for the
multi-residential portfolio was 92.6%; and
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 49.8%.
Financial Highlights
|
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% Change
Over
|
|
|
|
|
|
|
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Three
Months
|
|
Nine
Months
|
|
Three
Months
|
Nine
Months
|
|
|
|
|
|
|
|
|
Sept 30,
2016
|
June 30,
2016
|
Sept 30,
2015
|
|
Sept 30,
2016
|
Sept 30,
2015
|
|
June 30,
2016
|
Sept 30,
2015
|
Sept 30,
2015
|
Rental
Revenue
|
$
|
4,228,005
|
$
|
3,804,157
|
$
|
3,277,289
|
|
$
|
11,671,819
|
$
|
9,226,792
|
|
11%
|
29%
|
27%
|
NOI
|
|
|
|
|
|
|
|
|
|
|
- IFRS
Basis
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$
|
2,506,220
|
$
|
2,247,672
|
$
|
1,955,829
|
|
$
|
6,819,929
|
$
|
5,447,886
|
|
12%
|
28%
|
25%
|
- Cash
Basis
|
$
|
2,439,294
|
$
|
2,209,927
|
$
|
1,925,116
|
|
$
|
6,694,262
|
$
|
5,328,912
|
|
10%
|
27%
|
26%
|
|
|
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|
|
|
|
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|
FFO
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$
|
1,317,775
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$
|
1,218,474
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$
|
1,245,318
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|
$
|
3,740,825
|
$
|
3,319,534
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8%
|
6%
|
13%
|
AFFO
|
$
|
1,364,856
|
$
|
1,209,959
|
$
|
1,110,619
|
|
$
|
3,655,244
|
$
|
3,036,596
|
|
13%
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23%
|
20%
|
|
|
|
|
|
|
|
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|
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|
Adjusted
FFO*
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$
|
1,317,775
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$
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1,218,474
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$
|
1,245,318
|
|
$
|
4,541,517
|
$
|
3,319,534
|
|
8%
|
6%
|
37%
|
Adjusted
AFFO*
|
$
|
1,364,856
|
$
|
1,209,959
|
$
|
1,110,619
|
|
$
|
4,455,936
|
$
|
3,036,596
|
|
13%
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23%
|
47%
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|
|
|
|
|
|
|
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|
FFO Per
Unit
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$
|
0.105
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$
|
0.107
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$
|
0.121
|
|
$
|
0.317
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$
|
0.345
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(2%)
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(13%)
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(8%)
|
AFFO Per
Unit
|
$
|
0.108
|
$
|
0.106
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$
|
0.107
|
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$
|
0.309
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$
|
0.316
|
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2%
|
1%
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(2%)
|
|
|
|
|
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|
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|
Adjusted
FFO/Unit*
|
$
|
0.105
|
$
|
0.107
|
$
|
0.121
|
|
$
|
0.384
|
$
|
0.345
|
|
(2%)
|
(13%)
|
11%
|
Adjusted
AFFO/Unit*
|
$
|
0.108
|
$
|
0.106
|
$
|
0.107
|
|
$
|
0.377
|
$
|
0.316
|
|
2%
|
1%
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
Distributions/Unit
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$
|
0.105
|
$
|
0.105
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$
|
0.100
|
|
$
|
0.315
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$
|
0.300
|
|
-
|
5%
|
5%
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Payout
Ratios
|
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-
FFO
|
100%
|
99%
|
83%
|
|
100%
|
87%
|
|
|
|
|
-
AFFO
|
97%
|
99%
|
93%
|
|
102%
|
95%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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- Adjusted
FFO
|
100%
|
99%
|
83%
|
|
82%
|
87%
|
|
|
|
|
- Adjusted
AFFO
|
97%
|
99%
|
93%
|
|
84%
|
95%
|
|
|
|
|
* = Includes gain on
sale of assets
|
- Closed on Thickson Place Joint Venture with First Capital
Realty: On September 29, 2016,
the Trust completed the acquisition of a 40% interest in Thickson
Place, located in Whitby, Ontario.
The acquisition price values the property at approximately
$39.5 million (at 100%), excluding
transaction costs. As a result of the acquisition, the Trust
increased the size of its investment portfolio by approximately 11%
to $157 million.
Thickson Place is a 100% occupied, 104,808 square foot retail
property anchored by Metro and LCBO. It is located at 80 Thickson
Road South, directly across from Whitby Mall, which the Trust
purchased a 40% interest in with the same joint venture partners in
June of 2016. Owning the two neighbouring centres provides a
strategic benefit and long term synergies. Thickson Place was
previously owned 100% by First Capital Realty.
The acquisition of Thickson Place was funded through the Trust's
existing cash resources and debt arranged on Whitby Mall. The joint
venture is comprised of the Trust for 40%, First Capital Realty for
50%, and 10% is held by a syndicate group. Thickson Place and
Whitby Mall will each be managed by First Capital Realty;
- Completed Three Debt Financings for $51.8 Million: During and subsequent to
quarter end, the Trust completed three debt financings for
$51.8 million. The Trust's pro-rata
share in these debt financings was $21.2
million;
- Completion of Private Placement for Gross Proceeds of
$7.1 Million: During the quarter,
the Trust closed a non-brokered private placements over two
closings for $7.1 million consisting
of 1,190,534 units of the Trust at a price of $6.00 per Trust Unit;
- Increased Distribution by 4.8%: On November 1, 2016, the Trust announced that its
Board of Trustees approved a 4.8% increase in its monthly
distributions to $0.036666 per unit
from $0.035 per unit. On an
annualized basis, this equates to anticipated distributions of
$0.44 per unit up from $0.42 per unit. These distributions will be paid
on or about December 15, 2016 and
January 15, 2017 to unitholders of
record at the close of business on November
30, 2016 and December 30,
2016, respectively. This is the Trust's fourth distribution
increase and represents a cumulative increase of 25.7%;
- Closed on 1435 Mountain Road for $4.7
Million: On November 1,
2016, the Trust acquired a 100% interest in 1435 Mountain
Road located in Moncton, New
Brunswick. The acquisition price of the property is
approximately $4.7 million, excluding
transaction costs. The property is a 100% occupied, 16,372 square
foot neighborhood retail property with a mix of national and local
tenants. The acquisition was funded through the Trust's existing
cash resources and is expected to be immediately accretive to AFFO;
and
- Approved Distributions for January, February and March,
2017: On November 3, 2016, the
Trust announced that it has declared and approved monthly
distributions in the amount of $0.036666 per Trust Unit for unitholders of
record on January 31, 2017,
February 28, 2017 and March 31, 2017 payable on or about February 15, 2017, March
15, 2017 and April 14,
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 60 commercial properties with a total Gross
Leasable Area ("GLA") of 1,369,483 square feet (1,366,094
square feet of Net Leasable Area ("NLA")) and one apartment
complex comprised of 135 units. The portfolio is diversified across
geographies with 72% of the NOI generated from Ontario, 19% from Quebec, 7% from Nova
Scotia and 2% collectively from BC, Alberta, Manitoba and New
Brunswick. The portfolio is diversified across asset classes
with 51% of NOI generated from retail, 39% from industrial, 7% from
office and 3% from multi-residential.
TENANT DIVERSIFICATION
The portfolio is well
diversified by tenant profile with no tenant accounting for more
than 5.3% of total net rent. Further, the top 10 tenants are
largely comprised of creditworthy and large national tenants and
account for 23.4% 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