Firm Capital Apartment Trust Reports Strong Q3/2020 Results and Increased NAV to $9.58 Per Unit
November 11 2020 - 5:01PM
Firm Capital Apartment Real Estate Investment Trust (“the
“
Trust”), (TSXV: FCA.U), (TSXV: FCA.UN) is pleased
to report its financial results for the three and nine months ended
September 30, 2020:
EARNINGS
- For the three months ended September 30, 2020, Net Income was
approximately $0.6 million, a 45% increase over the $0.4 million
reported for the three months ended September 30, 2019. For the
nine months ended September 30, 2020, Net Income was $3.1 million,
in comparison to the $3.5 million reported for the nine months
ended September 30, 2019;
- For the three months ended September 30, 2020, AFFO was
approximately $0.5 million, largely in line with the $0.5 million
reported for the three months ended June 30, 2020 and the three
months ended September 30, 2019. For the nine months ended
September 30, 2020, AFFO was $1.4 million, in comparison to the
$1.5 million reported for the nine months ended September 30,
2019;
- Results for the three and nine months ended September 30, 2020
are as follows:
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
|
|
|
Sept 30,2020 |
June 30,2020 |
Sept 30,2019 |
|
Sept 30,2020 |
Sept 30,2019 |
Net Income |
$ |
616,536 |
$ |
1,404,620 |
$ |
424,161 |
|
$ |
3,132,466 |
$ |
3,541,322 |
FFO |
$ |
722,502 |
$ |
1,630,223 |
$ |
438,654 |
|
$ |
4,246,478 |
$ |
1,385,724 |
AFFO |
$ |
450,960 |
$ |
465,085 |
$ |
530,416 |
|
$ |
1,396,820 |
$ |
1,529,568 |
Distributions |
$ |
498,265 |
$ |
498,265 |
$ |
409,183 |
|
$ |
1,410,599 |
$ |
1,227,549 |
FFO Per Unit |
$ |
0.09 |
$ |
0.19 |
$ |
0.06 |
|
$ |
0.58 |
$ |
0.20 |
AFFO Per Unit |
$ |
0.06 |
$ |
0.06 |
$ |
0.08 |
|
$ |
0.19 |
$ |
0.22 |
Distributions Per Unit |
$ |
0.06 |
$ |
0.06 |
$ |
0.06 |
|
$ |
0.18 |
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
- 92% RENT COLLECTIONS: Since the beginning of
Q3/2020, the Trust has received approximately 92% 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 |
|
July 2020 |
August 2020 |
September 2020 |
October 2020 |
|
WeightedAverage |
Texas |
98% |
96% |
94% |
95% |
|
96% |
Georgia |
100% |
100% |
99% |
100% |
|
100% |
Maryland |
99% |
93% |
94% |
92% |
|
94% |
New Jersey |
98% |
96% |
93% |
86% |
|
93% |
Connecticut |
95% |
94% |
91% |
85% |
|
91% |
Florida |
95% |
91% |
94% |
92% |
|
93% |
New York |
86% |
86% |
80% |
72% |
|
81% |
Weighted Average |
95% |
93% |
91% |
88% |
|
92% |
|
|
|
|
|
|
|
- RENTAL RATE INCREASES ACROSS THE PORTFOLIOS WITH A
STRONG 94% OCCUPANCY Since the beginning of Q3, average
rents increased by 3.5% to $1,170 for the Wholly Owned portfolio
and by 5% for the Equity Accounted portfolio despite the COVID-19
pandemic;
- INCREASED NAV BY 13% CAGR TO $9.58 PER TRUST
UNIT: Since Q3/2017, the Trust has increased NAV from
$7.85 per Trust Unit to $9.58 per Trust Unit for a +13% Compounded
Annual Growth Rate (“CAGR”);
- ACCRETIVE $38 MILLION ACQUISITION: On
September 22, 2020, the Trust closed an equity accounted and
preferred investment to acquire a 235 unit multi-family residential
portfolio located in Hyattsvile, MD (the “North Pointe
Acquistion”). The purchase price for 100% of the North
Point Acquistion was $37.5 million (excluding transaction costs).
The North Pointe Acquistion was financed, in part with a $29.7
million, 3.0% first mortgage due on September 21, 2024. The Trust
contributed $4.0 million of preferred equity yielding 8% and $3.4
million of common equity representing a 50% ownership interest in
the investment;
- ACCRETIVE TRUST UNIT REDEMPTION AND NCIB
ACTIVITY: 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).The Trust has also
purchased to date for cancellation 124,100 Trust Units for total
gross proceeds of approximately $0.7 million through its NCIB. In
addition, 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 ($35,768);
- APPOINTMENT TO THE BOARD OF TRUSTEES: The
Trust announced the appointment of Jonathan Mair and Robert Parker
to the Board of Trustees. 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. Robert Parker
is currently the Vice, President, Investments & Asset
Management for the Muzzo Group and Pemberton Developments. Robert
is a graduate of the Faculty of Law at Queens University and has
his J.D. designation;
- CHANGES IN SENIOR MANAGEMENT: On October 22,
2020, the Trust announced the promotion of Sandy Poklar to
President and Chief Executive Officer and the appointment of Mark
Goldreich to Chief Financial Officer; and
- DISTRIBUTIONS: On November 11, 2020, the Trust
declared and approved quarterly distributions of $0.059 per unit
for unitholders on record on December 31, 2020 payable on or about
January 15, 2021.
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 APARTMENT REAL ESTATE
INVESTMENT TRUST
Firm Capital Apartment Real Estate Investment
Trust is a U.S. focused real estate investment trust that pursues
multi-residential income producing real estate and related debt
investments on both a wholly owned and joint venture basis. The
Trust has ownership interests in a total of 2,308 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 nine months ended
September 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.
For further
information, please contact: |
|
Sandy Poklar |
Mark Goldreich |
President & Chief Executive Officer |
Chief Financial Officer |
(416) 635-0221 |
(416) 635-0221 |
|
|
For Investor Relations information, please contact: |
|
Victoria Moayedi |
|
Director, Investor Relations |
|
(416) 635-0221 |
|
Firm Capital Apartment R... (TSXV:FCA.U)
Historical Stock Chart
From Jun 2024 to Jul 2024
Firm Capital Apartment R... (TSXV:FCA.U)
Historical Stock Chart
From Jul 2023 to Jul 2024