TORONTO, May 11, 2017 /CNW/ - Firm Capital Property
Trust ("FCPT" or the "Trust"), (TSXV : FCD.UN) is
pleased to report today its consolidated financial results for the
three months ended March 31,
2017.
PROPERTY PORTFOLIO HIGHLIGHTS
The portfolio consists
of 61 commercial properties with a total GLA of 1,398,976 square
feet (1,395,597 square feet of Net Leasable Area ("NLA"))
and 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.
FIRST QUARTER HIGHLIGHTS
- Excluding the one-time gain on sale of investment properties,
net income for the three months ended March
31, 2017 was $2.2 million, or
a 94% increase over the $1.1 million
reported for the three months ended March
31, 2016;
- Funds From Operations ("FFO") for the three months ended
March 31, 2017 was $1.6 million, a 4% increase in comparison to the
$1.5 million reported for the three
months ended December 31, 2016 and a
33% increase in comparison to the $1.2
million reported for the three months ended March 31, 2016;
- Adjusted Funds From Operations ("AFFO") for the three
months ended March 31, 2017 was
$1.4 million, a 1% increase in
comparison to the $1.3 million
reported for the three months ended December
31, 2016 and a 25% increase in comparison to the
$1.1 million reported for the three
months ended March 31, 2016;
- FFO per Unit was $0.126 while
AFFO per Unit was $0.106. Based on
distributions paid over that period, FFO and AFFO payout ratios are
87% and 103%, respectively;
- On an IFRS basis, Net Operating Income ("NOI") for the
three months ended March 31, 2017 was
$2.7 million, a 2% sequential
increase in comparison to the $2.6
million reported for the three months ended December 31, 2016 and a 30% increase in
comparison to the $2.1 million
reported for the three months ended March
31, 2016;
- Cash NOI for the three months ended March 31, 2017 was $2.6
million, largely in line with the $2.6 million reported for the three months ended
December 31, 2016 and a 26% increase
over the $2.0 million reported for
the three months ended March 31,
2016;
- Commercial occupancy was 94.7%, largely in line with the 94.9%
reported at December 31, 2016, and a
629 basis point increase over the 88.4% reported at March 31, 2016;
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 50.4%; and
- Approved Distributions for July, August and September,
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 July 31, 2017, August 31, 2017 and September 29, 2017 payable on or about
August 15, 2017, September 15, 2017 and October 16, 2017.
Financial Highlights
|
|
|
% Change
Over
|
|
|
|
|
|
Three
Months
|
|
Three
Months
|
|
|
|
|
|
Mar 31,
2017
|
Dec 31,
2016
|
Mar 31,
2016
|
|
Dec 31,
2016
|
Mar 31,
2016
|
Rental
Revenue
|
$
|
4,798,197
|
$
|
4,601,110
|
$
|
3,639,657
|
|
4%
|
32%
|
NOI
|
|
|
|
|
|
|
- IFRS
Basis
|
$
|
2,680,278
|
$
|
2,619,801
|
$
|
2,066,037
|
|
2%
|
30%
|
- Cash
Basis
|
$
|
2,568,019
|
$
|
2,566,717
|
$
|
2,045,040
|
|
0%
|
26%
|
|
|
|
|
|
|
|
FFO
|
$
|
1,596,731
|
$
|
1,539,054
|
$
|
1,204,574
|
|
4%
|
33%
|
AFFO
|
$
|
1,351,027
|
$
|
1,334,369
|
$
|
1,080,427
|
|
1%
|
25%
|
|
|
|
|
|
|
|
Adjusted
FFO*
|
$
|
1,596,731
|
$
|
1,539,054
|
$
|
2,005,266
|
|
4%
|
(20%)
|
Adjusted
AFFO*
|
$
|
1,351,027
|
$
|
1,334,369
|
$
|
1,881,118
|
|
1%
|
(28%)
|
|
|
|
|
|
|
|
FFO Per
Unit
|
$
|
0.126
|
$
|
0.122
|
$
|
0.105
|
|
3%
|
19%
|
AFFO Per
Unit
|
$
|
0.106
|
$
|
0.105
|
$
|
0.095
|
|
1%
|
13%
|
|
|
|
|
|
|
|
Adjusted
FFO/Unit*
|
$
|
0.126
|
$
|
0.122
|
$
|
0.175
|
|
3%
|
(28%)
|
Adjusted
AFFO/Unit*
|
$
|
0.106
|
$
|
0.105
|
$
|
0.165
|
|
1%
|
(35%)
|
|
|
|
|
|
|
|
Distributions Per
Unit
|
$
|
0.110
|
$
|
0.108
|
$
|
0.105
|
|
2%
|
5%
|
|
|
|
|
|
|
|
Payout
Ratios
|
|
|
|
|
|
|
-
FFO
|
87%
|
89%
|
100%
|
|
|
|
-
AFFO
|
103%
|
103%
|
111%
|
|
|
|
|
|
|
|
|
|
|
- Adjusted
FFO
|
87%
|
89%
|
60%
|
|
|
|
- Adjusted
AFFO
|
103%
|
103%
|
64%
|
|
|
|
* = Includes gain on
sale of assets
|
|
|
|
|
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
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