TORONTO, March 23, 2017 /CNW/ - Firm Capital Property
Trust ("FCPT" or the "Trust"), (TSXV : FCD.UN) is
pleased to report today its consolidated annual financial results
for the three and nine twelve ended December
31, 2016.
FOURTH QUARTER AND 2016 HIGHLIGHTS
- Net income before fair value adjustments for the three months
ended December 31, 2016 was
$1.5 million, or a 17% increase over
the $1.3 million reported for the
three months ended September 30, 2016
and a 28% increase over the $1.2
million reported for the three months ended December 31, 2015;
- Net income before fair value adjustments for the twelve months
ended December 31, 2016 was
$5.1 million or a 14% increase over
the $4.5 million reported for the
twelve months ended December 31,
2015;
- Net income for the three months ended December 31, 2016 was $3.3
million, in comparison to the $1.3
million reported for the three months ended September 30, 2016 and $1.7 million reported for the three months ended
December 31, 2015. The variance over
December 31, 2015 was due to higher
positive fair value adjustments for the quarter ended December 31, 2016 in comparison to the comparable
quarters;
- Net income for the twelve months ended December 31, 2016 was $8.0
million in comparison to the $9.4
million reported for the twelve months ended December 31, 2015. The variance over December 31, 2015 was due to lower positive fair
value adjustments for the year ended December 31, 2016 in comparison to the year ended
December 31, 2015;
- Three Months Ended December 31,
2016 Funds From Operations ("FFO") and Adjusted Funds
From Operations ("AFFO") of $1.5
million and $1.3 million, are
a 17% increase and in line over the amounts reported for the three
months ended September 30, 2016, but
a 28% and 6% increase over the amounts reported for the three
months ended December 31, 2015;
- Twelve Months Ended December 31,
2016 FFO and AFFO of $5.3
million and $5.0 million are a
17% and 16% increase, respectively, over the amounts reported for
the twelve months ended December 31,
2015;
- Three Months ended December 31,
2016 FFO and AFFO per Unit of $0.122 and $0.105;
- Twelve months ended December 31,
2016 FFO and AFFO per Unit of $0.439 and $0.415;
- Three months ended December 31,
2016 FFO and AFFO payout ratios of 89% and 103%;
- Twelve months ended December 31,
2016 FFO and AFFO payout ratios of 96% and 102%. Including a
gain on sale generated from the disposition of two properties from
the Centre Ice Retail Portfolio, the FFO and AFFO payout ratios are
84% and 88%, respectively;
- Cash NOI for the three months ended December 31, 2016 was $2.6
million, a 5% sequential increase over the amount reported
for the three months ended September 30,
2016 and a 16% increase over the amount reported over
December 31, 2015;
- Cash NOI for the twelve months ended December 31, 2016 was $9.3
million, a 23% increase over the amount reported for the
twelve months ended December 31,
2015;
- Commercial portfolio occupancy was 94.9%, a 205 basis point
increase over September 30, 2016, and
a 282 bps increase over December 31,
2015; and
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 50.5%.
Financial Highlights
|
|
|
|
|
% Change
Over
|
|
Three
Months
|
|
Twelve
Months
|
|
Three
Months
|
Twelve
Months
|
|
Dec 31,
2016
|
Dec 31,
2015
|
|
Dec 31,
2016
|
Dec 31,
2015
|
|
Dec 31,
2016
|
Dec 31,
2016
|
Rental
Revenue
|
$
|
4,601,110
|
$
|
3,779,471
|
|
$
|
16,272,929
|
$
|
13,006,263
|
|
22%
|
25%
|
NOI
|
|
|
|
|
|
|
|
|
- IFRS
Basis
|
$
|
2,619,801
|
$
|
2,218,943
|
|
$
|
9,439,730
|
$
|
7,666,827
|
|
18%
|
23%
|
- Cash
Basis
|
$
|
2,566,717
|
$
|
2,209,441
|
|
$
|
9,260,979
|
$
|
7,538,351
|
|
16%
|
23%
|
|
|
|
|
|
|
|
|
|
FFO
|
$
|
1,539,054
|
$
|
1,205,175
|
|
$
|
5,279,875
|
$
|
4,524,709
|
|
28%
|
17%
|
AFFO
|
$
|
1,334,369
|
$
|
1,261,456
|
|
$
|
4,989,610
|
$
|
4,298,052
|
|
6%
|
16%
|
|
|
|
|
|
|
|
|
|
Adjusted
FFO*
|
$
|
1,539,054
|
$
|
1,205,175
|
|
$
|
6,080,567
|
$
|
4,524,709
|
|
28%
|
34%
|
Adjusted
AFFO*
|
$
|
1,334,369
|
$
|
1,261,456
|
|
$
|
5,790,302
|
$
|
4,298,052
|
|
6%
|
35%
|
|
|
|
|
|
|
|
|
|
FFO Per
Unit
|
$
|
0.122
|
$
|
0.105
|
|
$
|
0.439
|
$
|
0.450
|
|
15%
|
(2%)
|
AFFO Per
Unit
|
$
|
0.105
|
$
|
0.110
|
|
$
|
0.415
|
$
|
0.427
|
|
(5%)
|
(3%)
|
|
|
|
|
|
|
|
|
|
Adjusted
FFO/Unit*
|
$
|
0.122
|
$
|
0.105
|
|
$
|
0.506
|
$
|
0.450
|
|
15%
|
12%
|
Adjusted
AFFO/Unit*
|
$
|
0.105
|
$
|
0.110
|
|
$
|
0.481
|
$
|
0.427
|
|
(5%)
|
13%
|
|
|
|
|
|
|
|
|
|
Distributions Per
Unit
|
$
|
0.108
|
$
|
0.102
|
|
$
|
0.423
|
$
|
0.402
|
|
6%
|
5%
|
|
|
|
|
|
|
|
|
|
Payout
Ratios
|
|
|
|
|
|
|
|
|
-
FFO
|
89%
|
96%
|
|
96%
|
89%
|
|
|
|
-
AFFO
|
103%
|
92%
|
|
102%
|
94%
|
|
|
|
- Adjusted
FFO
|
89%
|
96%
|
|
84%
|
89%
|
|
|
|
- Adjusted
AFFO
|
103%
|
92%
|
|
88%
|
94%
|
|
|
|
* = Includes gain on
sale of assets
|
|
|
|
|
|
|
|
- 92% of 2016 Distributions are Tax Deferred: For the year
ended December 31, 2016, the Trust's
distributions are 91.98% non-taxable predominately in the form of
return of capital.
- Three Significant Retail Acquisitions for $35.7 million: During 2016, the Trust
acquired three interests in three retail and commercial properties
(The Whitby Mall, Thickson Place and Moncton retail property) for $35.7 million, two of which involved joint
ventures with First Capital Realty;
- Distribution Increases of 26% in Less Than Three Years:
On November 1, 2016, as a result of
the acquisitions of The Whitby Mall, Thickson Place and the
Moncton retail property, the Trust
announced its fourth distribution increase of 4.8% 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. Including the November 1st distribution increase, the total
increase in distributions since the Trust's inception is 25.7%;
- Issued $7 Million of Trust
Units: During 2016, the Trust completed two non-brokered
private placements of Trust Units for gross proceeds of
approximately $7.1 million. 951,634
Trust Units were issued on July 28,
2016 at a price of $6.00 per
Trust Unit for gross proceeds of approximately $5.7 million, while on August 31, 2016, the Trust issued 238,900 Trust
Units at a price of $6.00 per Trust
Unit for gross proceeds of approximately $1.4 million;
- Non-Core Disposition Generates $2.8
Million of Cash Proceeds 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 were used to fund
acquisitions. The transactions represent a one-time AFFO gain of
approximately $0.07 per Trust Unit;
and
- Approved Distributions for April, May and June, 2017:
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 April 28, 2017,
May 31, 2017 and June 30, 2017 payable on or about May 15, 2017, June 15,
2017 and July 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 portfolio consists
of 61 commercial properties with a total GLA of 2,435,409 square
feet (1,398,987 square feet on an owned interest basis) and a 50%
interest in one apartment complex comprised of 135 apartment units.
The portfolio is well diversified in terms of geographies and
property asset types.
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 23.2% 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 Corporation