TORONTO, Aug. 11, 2020 /CNW/ - Firm Capital American
Realty Partners Trust ("the "Trust"), (TSXV: FCA.U) (TSXV:
FCA.UN) is pleased to report its financial results for the three
and six months ended June 30, 2020 as
well as other various trust matters:
- TRUST NAME CHANGE:
To more reflect the investment
activities of the Trust and its focus on multi-residential
investments, the Board of Trustees has approved, subject to TSXV
and regulatory approval, a name change to "Firm Capital
Apartment Real Estate Investment Trust";
- EARNINGS:
For the three months ended June 30, 2020, Net Income was approximately
$1.4 million, a 25% increase over the
$1.1 million reported for the three
months ended March 31, 2020 and
largely in line with the $1.4 million
reported for the three months ended June 30,
2019. For the six months ended June
30, 2020, Net Income was $2.5
million, a decrease from the $3.1
million reported for the six months ended June 30, 2019;
- For the three months ended June 30,
2020, AFFO was approximately $0.5
million, largely in line with the $0.5 million reported for the three months ended
March 31, 2020 and the three months
ended June 30, 2019. For the six
months ended June 30, 2020, AFFO was
$0.9 million, in comparison to the
$1.0 million reported for the six
months ended June 30, 2019;
- Results for the three and six months ended June 30, 2020 are as follows:
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2020
|
March 31,
2020
|
June 30,
2019
|
|
June 30,
2020
|
June 30,
2019
|
|
|
Net
Income
|
$
|
1,404,620
|
$
|
1,111,310
|
$
|
1,372,969
|
|
$
|
2,515,932
|
$
|
3,117,165
|
|
|
FFO
|
$
|
1,630,223
|
$
|
1,918,861
|
$
|
510,278
|
|
$
|
3,549,089
|
$
|
947,074
|
|
|
AFFO
|
$
|
465,085
|
$
|
480,775
|
$
|
498,203
|
|
$
|
948,529
|
$
|
999,156
|
|
|
Distributions
|
$
|
498,265
|
$
|
503,151
|
$
|
409,183
|
|
$
|
1,001,416
|
$
|
818,366
|
|
|
FFO Per
Unit
|
$
|
0.19
|
$
|
0.26
|
$
|
0.07
|
|
$
|
0.49
|
$
|
0.14
|
|
|
AFFO Per
Unit
|
$
|
0.06
|
$
|
0.07
|
$
|
0.07
|
|
$
|
0.13
|
$
|
0.14
|
|
|
Distributions Per
Unit
|
$
|
0.06
|
$
|
0.06
|
$
|
0.06
|
|
$
|
0.14
|
$
|
0.13
|
- 91% RENT COLLECTIONS:
Since the beginning of Q2/2020,
the Trust has received approximately 91% of its expected rent and
is actively either collecting the remaining rent or working with
tenants who require assistance. By state, the rent collections are
as follows:
|
|
|
Rent
Collections
|
|
|
|
|
|
|
|
|
|
|
|
|
April
2020
|
May
2020
|
June
2020
|
July
2020
|
|
Weighted
Average
|
|
|
Texas
|
96%
|
95%
|
97%
|
92%
|
|
96%
|
|
|
Georgia
|
98%
|
95%
|
97%
|
95%
|
|
96%
|
|
|
Maryland
|
95%
|
92%
|
93%
|
99%
|
|
95%
|
|
|
New
Jersey
|
94%
|
94%
|
94%
|
98%
|
|
95%
|
|
|
Connecticut
|
92%
|
91%
|
94%
|
86%
|
|
91%
|
|
|
Florida
|
97%
|
84%
|
85%
|
82%
|
|
87%
|
|
|
New
York
|
87%
|
78%
|
84%
|
77%
|
|
82%
|
|
|
Weighted
Average
|
93%
|
90%
|
92%
|
89%
|
|
91%
|
- INCREASED NAV BY 11% CAGR TO $9.55 PER TRUST UNIT:
Since Q3/2017, the
Trust has increased NAV from $7.85
per Unit to $9.55 per Unit (Pro-Forma
the NCIB and accretive Trust Unit redemption as outlined below) for
a +11% Compounded Annual Growth Rate ("CAGR");
- ACCRETIVE TRUST UNIT REDEMPTION:
On July 27, 2020, the Trust redeemed 686,200 Trust
Units (representing approximately 8% of the issued and outstanding
trust units) at a price of CAD $5.35
per Trust Unit ($4.00 per Trust Unit)
per Trust Unit representing total gross proceeds of CAD
$3.7 million ($2.8 Million);
- CAD $4.7 MILLION MORTGAGE
INVESTMENTS:
During the six months ended June 30, 2020, the Trust invested in three bridge
mortgages yielding between 9.00%-9.75% as part of its short term
investment strategy to invest cash during the COVID-19
pandemic;
- NORMAL COURSE ISSUER BID ("NCIB") ACTIVITY:
Trust
Units: The Trust has purchased to date for cancellation 123,700
Trust units for total gross proceeds of $0.7
million through its NCIB; and
Convertible Debentures: The Trust purchased for cancellation
Convertible Unsecured Debentures under its NCIB having a face
amount of CAD$61,000 at a weighted
average price of $78.00 per
Debenture, or CAD $47,710;
- APPOINTMENT TO THE BOARD OF TRUSTEES:
The Trust is
pleased to announce that Jonathan
Mair has been appointed to the Board of Trustees, subject to
regulatory approval. Jonathan first joined Firm Capital Corporation
in 1997 and is COO and head of all credit strategies and lending.
Since 1999, Jonathan has been on the Board of Directors of Firm
Capital Mortgage Investment Corporation (TSX : FC), as well as
previously the CFO and currently COO. Since 2013, Jonathan has been
a member of the board of trustees of Firm Capital Property Trust
(TSXV: FCD.UN). Prior to joining Firm Capital, Jonathan was with
KPMG LLP. Jonathan holds a CPA (CA) designation and was with the
insolvency group as a Trustee in Bankruptcy, specializing in real
estate. Jonathan's vast experience in all aspects of real estate
and real estate credit will be an added benefit to the Trust;
- NEW YORK CITY JOINT
VENTURE:
The Trust's asset manager is currently completing
an arrangement with its partner in its New York City Portfolio
joint venture investment that consists of eight multi-family
buildings comprised of 127 residential units and two commercial
units to assume a 45% ownership interest (from 22.5%) for no
further cost to the Trust. The Trust plans on collapsing its
preferred and common equity investment into one direct property
investment, representing a 45% ownership interest and, subject to
completion of documentation, the Trust will account for this
investment as a pro-rata ownership under IFRS accounting rules. The
remaining 55% of the joint venture is controlled by third parties
including members of senior management and the board of trustees of
the Trust. The completion of the arrangement is expected to occur
during Q3/2020; and
- DISTRIBUTIONS:
On August 11,
2020, the Trust declared and approved quarterly
distributions of $0.059 per unit for
unitholders on record on September 30,
2020 payable on or about October 15,
2020.
For the complete financial statements including Management's
Discussion & Analysis, please visit www.sedar.com or the
Trust's website at www.firmcapital.com
ABOUT FIRM CAPITAL AMERICAN REALTY PARTNERS TRUST
Firm
Capital American Realty Partners Trust is a U.S. focused real
estate investment that pursues multi-residential income producing
real estate and related debt investments on both a wholly owned and
joint venture basis. The Trust currently has ownership interests in
a total of 2,073 apartment units diversely located in Florida, Connecticut, Texas, New
York, New Jersey,
Georgia and Maryland.
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 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 Trust holds
properties; volatility of real estate prices; 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 Trust to implement
its business strategies; competition; currency and interest rate
fluctuations and other risks. Additional risk factors that may
impact the Trust or cause actual results and performance to differ
from the forward looking statements contained herein are set forth
in the Trust's Annual Information form under the heading Risk
Factors (a copy of which can be obtained under the Trust's profile
on www.sedar.com).
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. Except as
required by applicable law, the Trust undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
Certain financial information presented in this press release
reflect certain non-International Financial Reporting Standards
("IFRS") financial measures, which include, but not limited
to 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 Trust's Management Discussion and Analysis
for the three and six months ended June 30,
2020 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 Trust