TORONTO, Aug. 25, 2016 /CNW/ - Firm Capital American
Realty Partners Corp. (formerly Delavaco Residential Properties
Corp.) ("the "Company"), (TSXV : FCA.U) is pleased to report
today its consolidated interim financial results for the three and
six months ended June 30, 2016.
QUARTER END AND YEAR-TO-DATE HIGHLIGHTS
- For the quarter ended June 30,
2016, FFO was approximately a $1.2
million loss or a 42% improvement over the $2.1 million loss reported at June 30, 2015. AFFO was approximately a
$1.0 million loss or a 48%
improvement over the $2.0 million
loss reported at June 30,
2015;
- FFO and AFFO per share for the quarter ended June 30, 2016 were both $(0.02) per share, respectively, both a 47% and
53% improvement over the $(0.04) per
share reported as at June 31,
2015;
- As at June 30, 2016, the Company
had two asset portfolios:
- Retained Investment Portfolio: Consisting of 66
mini-multi units (of which 44 units are residential condominium
units) located across three buildings in Florida and 311 multi-family apartment units
located across three buildings in Florida (1 building) and Texas (two buildings) with a fair value of
approximately $42.6 million; and
- Single Family Disposition Portfolio: Consisting of 565
single family homes located in Florida, Georgia and New
Jersey with a fair value of approximately $33.8 million;
- Occupancy: Occupancy for the retained investment
portfolio was 96.8%, while the single family disposition portfolio
had a 46.7% occupancy rate, as these properties are being
sold;
- Single Family Home Sales: During the quarter, 57 single
family home units were sold for an aggregate sale price of
approximately $2.8 million, bringing
total sales since September 2014 to
226 single-family units for approximately $14.7 million. Subsequent to the end of the
quarter, the Company sold four single family home units in
Florida for an aggregate sales
price of approximately $0.3 million
and currently has 58 single family home units in Florida with conditional sales in place
totaling approximately $3.6
million;
- $3.2 Million in SSN
Repayments: During the quarter, the Company repaid $2.7 million of the SSN from proceeds generated
from home sales. Subsequent to the end of the quarter, the Company
repaid an additional $0.5 million of
the SSN. As a result, the SSN balance went from $12.3 million at June 30,
2016 to approximately $11.8
million or 47% of the original balance;
- SSN Maturity Date Extension: On July 4, 2016, the Company announced the
completion of the SSN maturity date extension from June 30, 2016 to December
31, 2017;
- New Senior Management Team and Board of Directors with
Significant Ownership: On July 20,
2016, the Company formally changed its senior management and
board of directors. This core group of individuals are dedicated to
seeing the Company being transformed. This group collectively
directly or indirectly control or have discretion of approximately
30% of the issued and outstanding common shares of the Company and
as such, are fully aligned with investors; and
- Corporate Name and Ticker Symbol Change: On August 2, 2016, the Company formally changed the
corporate name and TSXV Ticker Symbol to 'Firm Capital American
Realty Partners Corp." and "FCA.U", respectively.
For the complete financial statements including Management's
Discussion & Analysis, please visit www.sedar.com or the
Company's website at www.firmcapital.com
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS CORP.
Firm
Capital American Realty Partners Corp. focuses on capital
partnership investing in U.S. income producing real estate &
mortgage debt investments.
The Company is focused on the following investment
platforms:
- Income Producing Real Estate Investments: Acquiring
income producing U.S. real estate assets in major cities across
the United States. Acquisitions
are completed solely by the Company or in joint-venture partnership
with local industry expert partners who retain property management;
and
- Mortgage Debt Investments: Real estate debt and equity
lending platform focused on major cities across the United States. Focused on providing all
forms of bridge mortgage loans and joint venture capital.
Prior to commencing its business plan, the goal of the Company
is to dispose of the "Single Family Disposition Portfolio".
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
Certain information in this news release
constitutes forward-looking statements under applicable securities
law. Any statements that are contained in this news release that
are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate",
"expect", "intend" and similar expressions. Forward-looking
statements in this news release include, but are not limited to,
statements regarding the Company's single family property
disposition program and Debt Restructuring, which may not be
completed within the estimated time frames specified above or at
all. Failure to complete the steps described above or any delays in
their implementation may have a material adverse affect upon the
business of the Company and its market value. There is no assurance
that the Company will be able to complete the disposition of the
single property disposition portfolio at anticipated values or at
all or that market conditions will support the debt and equity
raises contemplated by the Company. There is no assurance that the
implementation of the steps described above, even if completed as
described above, will increase the market value of the Company's
securities, which is subject to numerous factors beyond the
Company's control.
Forward-looking statements necessarily involve known and unknown
risks, including, without limitation, risks associated with general
economic conditions; adverse factors affecting the U.S. real estate
market generally or those specific markets in which the Company
holds properties; volatility of real estate prices; inability to
complete the Company's single family property disposition program
or Debt Restructuring in a timely manner; inability to access
sufficient capital from internal and external sources, and/or
inability to access sufficient capital on favourable terms;
industry and government regulation; changes in legislation, income
tax and regulatory matters; the ability of the Company to implement
its business strategies; competition; currency and interest rate
fluctuations and other risks.
Readers are cautioned that the foregoing list is not exhaustive.
Readers are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
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
companies as useful metrics for measuring performance, however,
they do not have standardized meaning prescribed by IFRS and are
not necessarily comparable to similar measures presented by other
real estate investment companies. The Company believes that FFO and
AFFO are important measures of operating performance. The IFRS
measurement most directly comparable to AFFO is net income. These
terms are defined in The Company's Management Discussion and
Analysis for the quarter ended June 30,
2016 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.
SOURCE Firm Capital American Realty Partners Corp.