TORONTO, Nov. 6, 2018 /CNW/ - Firm Capital Property
Trust ("FCPT" or the "Trust"), (TSXV: FCD.UN) is
pleased to report its financial results for the three and nine
months ended September 30, 2018.
4.3% DISTRIBUTION INCREASE
The Trust is pleased
to announce its sixth distribution increase in six years of 4.3% to
$0.48 per Trust Unit on an annualized
basis or $0.04 per month commencing
January 2019. As a result, the Trust is pleased to announce
that it has declared and approved monthly distributions in the
amount of $0.04 per Trust Unit for
unitholders of record on January 31,
2019, February 28, 2019 and
March 29, 2019 payable on or about
February 15, 2019, March 15, 2019 and April
15, 2019.
PROPERTY PORTFOLIO HIGHLIGHTS
The portfolio consists
of 61 commercial properties with a total GLA of 2,519,761 square
feet (1,497,581 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. The portfolio is also well diversified by
tenant profile with no tenant accounting for more than 5.0% of
total net rent. Further, the top 10 tenants are largely comprised
of creditworthy and large national tenants and account for 24.5% of
total net rent.
THIRD QUARTER AND YEAR TO DATE HIGHLIGHTS
- Net income for the three months ended September 30, 2018 was approximately $3.1 million in comparison to the $3.7 million reported for the three months ended
June 30, 2018 and the $3.7 million reported for the three months ended
September 30, 2017. Excluding fair
value adjustments, net income is approximately $1.9 million for the three months ended
September 30, 2018 compared to the
$2.0 million reported for the three
months ended June 30, 2018 but a 30%
increase over the $1.4 million
reported for the three months ended September 30, 2017;
- Net income for the nine months ended September 30, 2018 was approximately $13.1 million, which is an 18% increase over the
$11.1 million reported for the nine
months ended September 30, 2017;
- $7.05 Net Asset Value
("NAV") per Unit based on a IFRS book value of equity of
approximately $123.6 million and is a
0.6% increase over the $7.01 NAV per
Unit reported at June 30, 2018;
- On an IFRS basis, NOI for the three months ended September 30, 2018 was approximately $3.3 million largely in line with the
$3.4 million reported June 30, 2018, but a 14% increase in comparison
to the $2.9 million reported for the
three months ended September 30,
2017. NOI for the nine months ended September 30, 2018 was approximately $9.8 million which is a 16% increase over the
$8.4 million reported for the nine
months ended September 30, 2017;
- On a cash basis ("Cash NOI"), for the three months ended
September 30, 2018 was approximately
$3.3 million, largely in line with
the $3.4 million reported for the
three months ended June 30, 2018, but
a 16% increase over the $2.8 million
reported for the three months ended September 30, 2017. Cash NOI for the nine months
ended September 30, 2018 was
approximately $9.7 million which is a
19% increase over the $8.2 reported
for the nine months ended September 30,
2017;
- Funds From Operations ("FFO") for the three months ended
September 30, 2018 was approximately
$1.9 million, compared to the
$2.0 million reported for the three
months ended June 30, 2018, but a 28%
increase over the $1.5 million
reported for the three months ended September 30, 2017;
- Adjusted Funds From Operations ("AFFO") for the three
months ended September 30, 2018 was
approximately $1.8 million, compared
to the $1.9 million reported for the
three months ended June 30, 2018, but
a 24% increase in comparison to the $1.4
million reported for the three months ended September 30, 2017;
- FFO for the nine months ended September
30, 2018 was approximately $5.7
million, a 24% increase in comparison to the $4.6 million reported for the nine months ended
September 30, 2017. AFFO for the nine
months ended September 30, 2018 was
$5.3 million, a 22% increase in
comparison to the $4.3 million
reported for the nine months ended September
30, 2017;
- FFO per Unit for the three months ended September 30, 2018 was $0.107 while AFFO per Unit was $0.101. For the nine months ended September 30, 2018 FFO per Unit was $0.347 while AFFO per Unit was $0.323;
- Commercial and residential occupancy improved to 95.0% and
98.8%, respectively; and
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 42.2%.
|
|
|
|
|
% Change
Over
|
|
Three
Months
|
|
Nine
Months
|
|
Three
Months
|
|
Nine
Months
|
|
Sept 30,
2018
|
June 30,
2018
|
Sept 30,
2017
|
|
Sept 30,
2018
|
Sept 30,
2017
|
|
June 30,
2018
|
Sept 30,
2017
|
|
Sept 30,
2017
|
Rental
Revenue
|
$
|
5,423,802
|
$
|
5,546,678
|
$
|
4,835,094
|
|
$
|
16,433,972
|
$
|
14,293,596
|
|
(2%)
|
12%
|
|
15%
|
NOI
|
|
|
|
|
|
|
|
|
|
|
|
- IFRS
Basis
|
$
|
3,269,870
|
$
|
3,411,330
|
$
|
2,867,718
|
|
$
|
9,751,076
|
$
|
8,416,126
|
|
(4%)
|
14%
|
|
16%
|
- Cash
Basis
|
$
|
3,258,543
|
$
|
3,420,534
|
$
|
2,809,432
|
|
$
|
9,738,253
|
$
|
8,207,546
|
|
(5%)
|
16%
|
|
19%
|
Net
Income
|
$
|
3,117,455
|
$
|
3,715,744
|
$
|
3,704,461
|
|
$
|
13,064,528
|
$
|
11,103,703
|
|
(16%)
|
(16%)
|
|
18%
|
FFO
|
$
|
1,874,298
|
$
|
1,950,304
|
$
|
1,460,940
|
|
$
|
5,684,771
|
$
|
4,591,562
|
|
(4%)
|
28%
|
|
24%
|
AFFO
|
$
|
1,772,699
|
$
|
1,904,121
|
$
|
1,426,579
|
|
$
|
5,301,706
|
$
|
4,342,076
|
|
(7%)
|
24%
|
|
22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO Per
Unit
|
$
|
0.107
|
$
|
0.118
|
$
|
0.114
|
|
$
|
0.347
|
$
|
0.360
|
|
(9%)
|
(6%)
|
|
(4%)
|
AFFO Per
Unit
|
$
|
0.101
|
$
|
0.116
|
$
|
0.111
|
|
$
|
0.323
|
$
|
0.340
|
|
|
(9%)
|
|
(5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions Per
Unit
|
$
|
0.115
|
$
|
0.115
|
$
|
0.110
|
|
$
|
0.345
|
$
|
0.330
|
|
|
5%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Payout
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
-
FFO
|
108%
|
97%
|
96%
|
|
100%
|
92%
|
|
|
|
|
|
-
AFFO
|
114%
|
99%
|
99%
|
|
107%
|
97%
|
|
|
|
|
|
FINANCIAL HIGHLIGHTS
- $1.9 Million of Equity
Issuance Activity: On July 27,
2018, the Trust announced that it closed the final tranche
of its previously announced non-brokered private placement. The
Trust closed on 296,800 trust units for gross proceeds of
approximately $1.9 million;
- Cash Generating Refinancing Activity: On August 13, 2018, the Trust refinanced its
existing mortgage on its Montreal Industrial Portfolio with a
Canadian Chartered Bank (the "Bank"). The principal balance of the
mortgage at maturity was $29.4
million, while the Trust's portion was $14.7 million. The new mortgage is a $42.0 million first mortgage fixed at an interest
rate of 4.0% with a 25 year amortization. In addition a
$1.0 million revolving credit
facility was also provided by the Bank that is fully secured
against the Montreal Industrial Portfolio with an interest rate
based on a calculated formula using the Bank's prime lending rate.
The Trust's portion of this new mortgage is $21.0 million and $0.5
million for the revolving credit facility, respectively. Net
cash received from the refinancing of approximately $6.3 million (pre closing costs) will be used for
future acquisitions and for working capital purposes; and
- Acquisition of a Single Tenanted Industrial Building in
Montreal, Quebec: On
October 15, 2018, the Trust announced
the closing of a 50% interest in a 159,164 square foot single
tenant industrial building located in Montreal, Quebec. The acquisition price is
approximately $11.0 million,
excluding transaction costs. The property will be part of the
current Montreal portfolio with
all of the existing investors participating in their pro rata
share. The Property is being acquired at a 7.5% capitalization
rate, is located in the Mount
Royal industrial market and is 100% leased to Le Chateau
Inc. until April 30, 2026.
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 Realty Partners 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.
Certain financial information presented in this press release
reflect certain non- International Financial Reporting Standards
("IFRS") financial measures, which include NOI, FFO and AFFO. These
measures are commonly used by real estate investment entities as
useful metrics for measuring performance and cash flows, however,
they do not have standardized meaning prescribed by IFRS and are
not necessarily comparable to similar measures presented by other
real estate investment entities. These terms are defined in the
Trust's Management Discussion and Analysis ("MD&A") for the
quarter and year ended March 31, 2018
as filed on www.sedar.com.
Neither the Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release. Additional information about the Trust is available at
www.firmcapital.com or www.sedar.com.
SOURCE Firm Capital Property Trust