TORONTO, April 3, 2017 /CNW/ - Firm Capital American
Realty Partners Corp. ("the "Company"), (TSXV : FCA.U) is
pleased to report its consolidated quarterly and annual financial
results for the three and twelve months ended December 31, 2016.
QUARTER AND YEAR-TO-DATE HIGHLIGHTS
- For the quarter ended December 31,
2016, net loss was approximately $0.3
million or a 92% improvement in comparison to the
$4.1 million loss reported at
December 31, 2015;
- For the year ended December 31,
2016, net loss was approximately $5.9
million or a 71% improvement in comparison to the
$20.0 million loss reported at
December 31, 2015;
- For the quarter ended December 31,
2016, FFO was approximately a $0.6
million loss or a 39% improvement over the $1.0 million loss reported at December 31, 2015. AFFO was approximately a
$0.4 million loss or a 60%
improvement over the $1.0 million
loss reported at December 31,
2015;
- For the year ended December 31,
2016, FFO was approximately a $5.5
million loss or an 11% improvement over the $6.1 million loss reported at December 31, 2015. AFFO was approximately a
$3.5 million loss or a 42%
improvement over the $6.0 million
loss reported at December 31,
2015;
- For the quarter ended December 31,
2016, Net loss per share was $(0.004) (($0.13)
on a post-consolidation per share basis). For the year ended
December 31, 2016, net loss per share
was $(0.09) (($2.69) on a post-consolidation per share basis).
Both are a 94% and 74% improvement over the net losses reported for
the quarter and year ended December 31,
2015, respectively;
- For the quarter ended December 31,
2016, FFO per share was $(0.01) (($0.23) on
a post-consolidation per share basis) and AFFO per share was
$(0.006) (($0.16) on a post-consolidation per share basis).
Both are a 53% and 69% improvement over the FFO and AFFO reported
for the quarter ended December 31,
2015;
- For the year ended December 31,
2016, FFO per share was $(0.08) (($2.49) on
a post-consolidation per share basis) and AFFO per share was
$(0.05) (($1.59) on a post-consolidation per share basis).
Both are a 21% and 48% improvement over the FFO and AFFO reported
for the year ended December 31,
2015;
- The Company currently has two asset portfolios:
- Investment Portfolio: A portfolio of real estate
investments with a fair value of approximately $52 million consisting of the following:
- Multi-Family Portfolio: Consisting of three mini-multi
residential buildings 66 mini-multi 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 $44.7 million;
and
- Joint Venture Investments: Consisting of two joint
venture investments: eight multi-family buildings comprised of 127
residential units and two commercial units located in New York City with a fair value of
approximately $6.1 million and eight
multi-family buildings comprised of 115 residential apartment units
located in the Washington D.C.
area with a fair value of approximately $1.0
million.
- Single Family Disposition Portfolio: Consisting of 449
single family homes located in Florida, Atlanta and New
Jersey with a fair value of approximately $24.9 million;
- Occupancy: Multi-Family Investment Portfolio occupancy
was a strong 95.0%, while Joint Venture Investment occupancy was a
strong 91.3%;
- Average Rents: Multi-Family Investment Portfolio average
monthly rents increased by 1.7% over September 30, 2016;
- $7.3 Million in Senior Secured
Note ("SSN") and New Jersey Secured Promissory Note ("NJPN")
Repayments Reduces Original Balances By 74% and Generates
$0.6 Million in Interest Expense
Savings: During the quarter, the Company repaid $3.4 million and $0.3
million of the SSN and NJPN, respectively. Subsequent to
quarter end, the Company repaid an additional $3.2 million and $0.4
million of the SSN, respectively. In total, the Company
repaid $7.3 million of the SSN and
NJPN from October 1, 2016 until
today. As a result, the SSN and NJPN balances currently stand at
approximately $4.9 million and
$2.4 million, respectively, or 26% of
the original balance. The repayments of the SSN and NJPN over this
period will generate the Company approximately $0.6 million in interest expense savings;
- $7.5 Million in Single Family
Home Sales: During the quarter ended December 31, 2016, the Company closed sales on 89
single family home units for gross proceeds of approximately
$4.8 million (net proceeds of
approximately $4.3 million).
Subsequent to quarter end, the Company closed sales on an
additional 44 single family home units for gross proceeds of
approximately $2.7 million (net
proceeds of approximately $2.3
million). In addition to closed home sales, the Company has
under contract 77 single family homes units contracted for sale for
gross proceeds of approximately $4.6
million;
- Single Family Home Inventory Update: The Company
currently has 24 single family home units available for sale in
Florida, 76 single family home
units available for sale in New
Jersey and 224 single family home units available for sale
in Atlanta. 120 of the
Atlanta single family homes are
part of a rental pool secured by a $4.0
million first mortgage due July 1,
2019 and 104 homes are currently being marketed for
sale;
- Completion of $10 Million
Rights Offering: On December 15,
2016, the Company completed its previously announced
$10 million Rights Offering to all
existing shareholders of the Company at a price of US$0.16 per Rights Share (pre-share
consolidation) or approximately $4.71
per Rights Share on a post-share consolidation basis. The Company
immediately used a portion of the net proceeds of the Rights
Offering to close the previously announced joint venture
investments in New York City and
Washington, DC (see below), along
with debt reduction and will use the remaining net proceeds for
future acquisitions and general corporate purposes;
- Executed on $6.1 Million Joint
Venture Investment in New York
City: On December 20,
2016, the Company closed on a joint venture investment that
consists of eight multi-family buildings comprised of 127
residential units and two commercial units located in New York City with an experienced local
partner. The Portfolio is currently 91% occupied and presents
significant repositioning and value enhancement opportunities. The
purchase price for 100% of the investment was $38.4 million, representing a going-in 4.5%
capitalization rate. The joint venture plans to renovate the
apartment units and increase rents over a three year repositioning
period. The Company invested $6.1
million in a combination of preferred equity ($4.6 million) and common equity ($1.5 million), which represents a 22.5% ownership
interest. The preferred equity has a fixed rate of return of 8% per
annum. The investment was funded from Rights Offering proceeds;
- Executed on $1.0 Million Joint
Venture Investment in the Washington,
DC area: On January 18,
2017, the Company closed on a joint venture investment that
consists of eight multi-family buildings comprised of 115
residential units located in the Washington, DC area with an experienced local
partner. The Portfolio is currently 92% occupied and presents
significant repositioning and value enhancement opportunities. The
purchase price for 100% of the investment was $9.8 million, representing a going-in 7.6%
capitalization rate. The joint venture plans to refurbish the
buildings, add units and apply more hands-on management in order to
increase the net rental income over a seven year time horizon. The
Company invested $1.0 million in a
combination of preferred equity ($0.7
million) and common equity ($0.3
million), which represents a blended 25% ownership interest.
The preferred equity has a fixed rate of return of 8% per annum.
The investment was funded from proceeds received from the Rights
Offering;
- Completion of Share Consolidation: On February 3, 2017, the Company completed the
consolidation of its issued and outstanding common shares on the
basis of one (1) post-consolidation common share for every 29.41
pre-consolidation common shares;
- Announced Senior Management Changes Including New Chief
Executive Officer and Director: On February 27, 2017, the Company announced the
appointment of Kursat Kacira as President, Chief Executive Officer
and a Director of the Company. Previously, on January 12, 2017, the Company announced the
appointment of Sandy Poklar as Chief
Financial Officer of the Company. Further, the Company announced
that Jonathan Mair would be
responsible for all mortgage debt underwriting and Michael Weitzner would be responsible for all
real estate acquisitions and equity underwriting initiatives as
Vice President, Investment Portfolio Management; and
- Announces Board Changes: The Company announces the
resignation of Romeo DeGasperis from
the Board of Directors. In addition, the Company announces that
Geoffrey Bledin has been appointed
to the audit committee and at the Company's Annual General Meeting
("AGM") will be appointed to Chairman of the Board of
Directors. Keith Ray will remain a
director of the Company and Chairman of the audit committee.
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. (formerly Delavaco
Residential Properties Corp.) (the "Company") focuses on
capital partnership investing in U.S. income producing real estate
and mortgage debt investments.
The Company is focused on the following investment
platforms:
- Income Producing Real Estate Investments: Acquiring
income producing real estate assets in major cities across
the United States. Acquisitions
are completed solely by the Company or in joint-venture
partnerships with local industry expert partners who retain
property management; and
- Mortgage Debt Investments: Real estate debt and equity
lending platform focused in 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 repayments, 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 and
year ended December 31, 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.