TORONTO, Aug. 10, 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 and six months ended June 30,
2017.
PROPERTY PORTFOLIO HIGHLIGHTS
Based on the Trust's pro
rata interests as at June 30, 2017,
the portfolio consists of 60 commercial properties with a total GLA
of 1,394,310 square feet 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 5.4% of total net rent. Further, the top 10 tenants are
largely comprised of creditworthy and large national tenants and
account for 23.5% of total net rent.
SECOND QUARTER AND YEAR-TO-DATE HIGHLIGHTS
- Net income for the three months ended June 30, 2017 was approximately $5.2 million, a 132% sequential increase in
comparison to the $2.2 million
reported for the three months ended March
31, 2017 and a 311% increase over the $1.3 million reported for the three months ended
June 30, 2016;
- Net income for the six months ended June
30, 2017 was approximately $7.4
million, a 122% increase in comparison to the $3.3 million reported for the six months ended
June 30, 2016;
- Funds From Operations ("FFO") for the three months ended
June 30, 2017 was approximately
$1.5 million, a 26% increase in
comparison to the $1.2 million
reported for the three months ended June 30,
2016;
- Adjusted Funds From Operations ("AFFO") for the three
months ended June 30, 2017 was
approximately $1.6 million, a 16%
sequential increase in comparison to the $1.3 million reported for the three months ended
March 31, 2017 and a 29% increase in
comparison to the $1.2 million
reported for the three months ended June 30,
2016;
- FFO for the six months ended June 30,
2017 was approximately $3.1
million, a 29% increase in comparison to the $2.4 million reported for the six months ended
June 30, 2016. AFFO for the six
months ended June 30, 2017 was
$2.9 million, a 27% increase in
comparison to the $2.3 million
reported for the six months ended June 30,
2016;
- Including gains on sales of investment properties, for the
three months ended June 30, 2017,
Adjusted FFO per Unit was $0.144
while Adjusted AFFO per Unit was $0.146. For the six months ended June 30, 2017, Adjusted FFO per Unit was
$0.270 while Adjusted AFFO per Unit
was $0.253;
- For the three months ended June 30,
2017, FFO and AFFO payout ratios are 92% and 90%,
respectively. For the six months ended June
30, 2017, FFO and AFFO payout ratios are 89% and 96%,
respectively;
- For the three months ended June 30,
2017, Adjusted FFO and Adjusted AFFO payout ratios are 76%
and 75%, respectively. For the six months ended June 30, 2017, Adjusted FFO and Adjusted AFFO
payout ratios are 81% and 87%, respectively;
- On an IFRS basis, NOI for the three months ended June 30, 2017 was approximately $2.9 million, a 7% sequential increase in
comparison to the $2.7 million
reported for the three months ended March
31, 2017 and a 28% increase in comparison to the
$2.2 million reported for the three
months ended June 30, 2016. NOI for
the six months ended June 30, 2017
was approximately $5.5 million, a 29%
increase in comparison to the $4.3
million reported for the six months ended June 30, 2016;
- On a cash basis ("Cash NOI"), for the three months ended
June 30, 2017 was approximately
$2.8 million, a 10% sequential
increase in comparison to the $2.6
million reported for the three months ended March 31, 2017 and a 28% increase over the
$2.2 million reported for the three
months ended June 30, 2016. Cash NOI
for the six months ended June 30,
2017 was $5.4 million, a 27%
increase in comparison to the $4.3
million reported for the six months ended June 30, 2016;
- Commercial occupancy was a solid 92.5%;
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 48.8%;
- Disposition Generates +56% Gain over IFRS Valuation: On
May 12, 2017, the Trust completed the
sale of one of its Centre Ice Retail properties located in
North Bay, Ontario to a third
party for gross proceeds of approximately $1.1 million ($1.0
million net of closing costs). As a result, a gain of
approximately $0.4 million was
generated from the sale which translates into a +56% gain over the
IFRS valuation for this property; and
- Approved Distributions for October, November and December,
2017: The Trust is also pleased to announce that it has
declared and approved monthly distributions in the amount of
$0.036666 per Trust Unit for
unitholders of record on October 31,
2017, November 30, 2017 and
December 29, 2017 payable on or about
November 15, 2017, December 15, 2017 and January 15, 2018.
Financial Highlights
|
|
|
|
% Change Over
|
|
Three
Months
|
|
Six
Months
|
|
Three
Months
|
|
Six
Months
|
|
June 30,
2017
|
March 31,
2017
|
June 30,
2016
|
|
June 30,
2017
|
June 30,
2016
|
|
March 31,
2017
|
June 30,
2016
|
|
June 30,
2016
|
Rental
Revenue
|
$
|
4,660,305
|
$
|
4,798,197
|
$
|
3,804,157
|
|
$
|
9,458,502
|
$
|
7,443,814
|
|
(3%)
|
23%
|
|
27%
|
NOI
|
|
|
|
|
|
|
|
|
|
|
|
- IFRS
Basis
|
$
|
2,868,130
|
$
|
2,680,278
|
$
|
2,247,672
|
|
$
|
5,548,408
|
$
|
4,313,709
|
|
7%
|
28%
|
|
29%
|
- Cash
Basis
|
$
|
2,830,095
|
$
|
2,568,019
|
$
|
2,209,927
|
|
$
|
5,398,114
|
$
|
4,254,967
|
|
10%
|
28%
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
|
$
|
1,533,889
|
$
|
1,596,731
|
$
|
1,218,474
|
|
$
|
3,130,621
|
$
|
2,423,049
|
|
(4%)
|
26%
|
|
29%
|
AFFO
|
$
|
1,564,472
|
$
|
1,351,027
|
$
|
1,209,959
|
|
$
|
2,915,499
|
$
|
2,290,387
|
|
16%
|
29%
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
FFO*
|
$
|
1,840,548
|
$
|
1,596,731
|
$
|
1,218,474
|
|
$
|
3,437,280
|
$
|
3,223,741
|
|
15%
|
51%
|
|
7%
|
Adjusted
AFFO*
|
$
|
1,871,131
|
$
|
1,351,027
|
$
|
1,209,959
|
|
$
|
3,222,158
|
$
|
3,091,079
|
|
38%
|
55%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO Per
Unit
|
$
|
0.120
|
$
|
0.126
|
$
|
0.107
|
|
$
|
0.246
|
$
|
0.212
|
|
(5%)
|
13%
|
|
16%
|
AFFO Per
Unit
|
$
|
0.122
|
$
|
0.106
|
$
|
0.106
|
|
$
|
0.229
|
$
|
0.200
|
|
15%
|
16%
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
FFO/Unit*
|
$
|
0.144
|
$
|
0.126
|
$
|
0.107
|
|
$
|
0.270
|
$
|
0.282
|
|
14%
|
35%
|
|
(4%)
|
Adjusted
AFFO/Unit*
|
$
|
0.146
|
$
|
0.106
|
$
|
0.106
|
|
$
|
0.253
|
$
|
0.270
|
|
37%
|
38%
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions Per
Unit
|
$
|
0.110
|
$
|
0.110
|
$
|
0.105
|
|
$
|
0.220
|
$
|
0.210
|
|
(0%)
|
5%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Payout
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
-
FFO
|
92%
|
87%
|
99%
|
|
89%
|
99%
|
|
|
|
|
|
-
AFFO
|
90%
|
103%
|
99%
|
|
96%
|
105%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Adjusted
FFO
|
76%
|
87%
|
99%
|
|
81%
|
74%
|
|
|
|
|
|
- Adjusted
AFFO
|
75%
|
103%
|
99%
|
|
87%
|
78%
|
|
|
|
|
|
* = 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
6% 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