TORONTO, Nov. 28, 2016 /CNW/ - Firm Capital American
Realty Partners Corp. ("the "Company"), (TSXV : FCA.U) is
pleased to report today its consolidated interim financial results
for the three and nine months ended September 30, 2016.
QUARTER END AND YEAR-TO-DATE HIGHLIGHTS
- Net loss was approximately $1.5
million in comparison to the $1.0
million loss reported at September
30, 2015;
- Rental revenue was approximately $1.8
million or a 9% decline over the $2.0
million reported at September 30,
2015;
- FFO was approximately a $1.0
million loss or a 18% improvement over the $1.3 million loss reported at September 30, 2015. AFFO was approximately a
$0.9 million loss or a 46%
improvement over the $1.6 million
loss reported at September 30,
2015;
- Net loss per share was $(0.03) in
comparison to the $(0.02) per share
reported as at September 30,
2015;
- FFO per share was $(0.02) and
AFFO per share was $(0.01) for the
quarter ended September 30, 2016,
respectively, both a 23% and 49% improvement over the $(0.02) and $(0.03)
per share reported as at September 30,
2015;
- As at September 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 $43.5 million; and
- Single Family Disposition Portfolio: Consisting of 538
single family homes located in Florida, Georgia and New
Jersey with a fair value of approximately $30.8 million;
- Occupancy: Retained investment portfolio occupancy was
largely unchanged at 96.3%, while the single family disposition
portfolio occupancy increased to 49.3% over the 46.7% reported at
June 30, 2016;
- Average Rents: Retained investment portfolio average
monthly rents increased by 0.6% over June
30, 2016;
- Single Family Home Sales Update: During the quarter, the
Company closed sales on 26 single family home units for gross
proceeds of approximately $1.8
million (net proceeds of approximately $1.5 million). Since September 2014, the Company has sold 262 single
family home units for gross proceeds of approximately $17 million. Subsequent to quarter end, the
Company closed sales on 36 single family home units for gross
proceeds of approximately $2.1
million (net proceeds of approximately $1.8 million). The Company also has under
contract 48 single family homes units located in South Florida for gross proceeds of
approximately $3.1 million and 15
single family home units located in Georgia for gross proceeds of approximately
$0.8 million;
- $2.3 Million in SSN
Repayments: During the quarter, the Company repaid $0.8 million of the SSN from proceeds generated
from home sales. Subsequent to quarter end, the Company repaid an
additional $1.5 million of the SSN.
As a result, the SSN balance stands at approximately $10.0 million or 40% of the original
balance;
- $0.3 Million in New Jersey
Promissory Note Repayment: Subsequent to quarter end, the
Company repaid $0.3 million of the
New Jersey Promissory Note. As a result, the balance today stands
at approximately $2.8 million;
- $10 Million Rights
Offering: On November 14, 2016,
the Company announced that it was launching a $10 million Rights Offering to all existing
shareholders of the Company at a price of US$0.16 per Rights Share. The Company is offering
rights (the "Rights") to holders of its common shares as at
the close of business on the record date of November 18, 2016, based on one Right for each
common share; and
- Announces First Investment Since Q2/2014 - $7.5 Million Joint Venture Investment: On
November 14, 2016, the Company
announced that it had agreed to invest in a joint venture that will
consist of eight multi-family buildings (the "Portfolio")
comprised of 127 residential units and two commercial units located
in New York City with a strong
local partner. The Portfolio is currently 91% occupied and presents
significant repositioning and value enhancement opportunities. The
Company will be investing in a combination of preferred and common
equity. The preferred equity has a fixed rate of return of 8% per
annum and the common equity is forecasted to generate a five year
Levered Internal Rate of Return ("IRR") of approximately 27%
per annum. On a blended basis, both the preferred and common equity
investment are forecasted to generate a five year Levered IRR of
approximately 16%. The Company's expected pro-rata share of the
joint venture investment is approximately $7.5 million and will be funded from net proceeds
received from the $10.0 million
Rights Offering. Closing of the Portfolio is expected to occur
during the fourth quarter of 2016.
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.
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 effect 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. These terms are defined in The
Company's Management Discussion and Analysis for the quarter ended
September 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.