Firm Capital Apartment REIT Reports Q1/2021 Results and Cumulative NAV Increase to $9.40 Per Unit
May 13 2021 - 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 months ended March
31, 2021:
EARNINGS
- For the three months ended March 31, 2021, net loss was
approximately $2.9 million, in comparison to the $1.1 million net
income reported for the three months ended March 31, 2020.
Excluding non-cash fair value adjustments, net income was $0.5
million, in line with the $0.5 million reported for the three
months ended March 31, 2020;
- For the three months ended March 31, 2021, AFFO was
approximately $0.5 million, in line with the $0.5 million reported
for the three months ended March 31, 2020;Results for the three
months ended March 31, 2021 are as follows:
|
Three Months Ended |
|
Mar 31, 2021 |
Dec 31, 2020 |
Mar 31, 2020 |
Net Income/(Loss) |
$ |
(2,945,917 |
) |
$ |
2,471,888 |
|
$ |
1,111,310 |
|
FFO |
$ |
(2,114,359 |
) |
$ |
468,125 |
|
$ |
1,918,861 |
|
AFFO |
$ |
507,952 |
|
$ |
616,601 |
|
$ |
480,775 |
|
Distributions |
$ |
455,166 |
|
$ |
455,170 |
|
$ |
503,151 |
|
AFFO
Per Unit |
$ |
0.07 |
|
$ |
0.08 |
|
$ |
0.07 |
|
Distributions Per Unit |
$ |
0.06 |
|
$ |
0.06 |
|
$ |
0.06 |
|
AFFO
Payout Ratio |
|
90 |
% |
|
74 |
% |
|
105 |
% |
- 92% RENT COLLECTIONS AND 6% INCREASE
IN AVERAGE RENTS:Since COVID-19
began in March 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. In addition,
the Trust’s monthly average rents have increased by 6% over the
same period;
- INCREASED NAV BY 11% CAGR TO $9.40 PER TRUST
UNIT: Since Q3/2017, the Trust has increased NAV from
$7.85 per Trust Unit to $9.40 per Trust Unit for a +11% Compounded
Annual Growth Rate (“CAGR”);
- $21.6 MILLION BRONX, NY MORTGAGE REFINANCING:
On February 25, 2021, the first mortgage on the Bronx, NY Equity
Accounted Investment was refinanced for gross proceeds of $21.6
million. With the $3.1 million net proceeds received from the
refinancing and the $2.0 million of capital contributed by the
Trust and its third-party investors, the $5.1 million of Preferred
Equity was repaid in full. The mortgage is a 3.51%, $21.6 million
first mortgage with a 12-year term amortizing over 30 years;
- $2 MILLION CREDIT FACILITY:On April 6, 2021,
the Trust entered into a $2.0 Million Revolving Operating Facility
(the “Facility”) with a Canadian Chartered Bank. The Facility is a
$2.0 million demand credit facility under which the Trust may
obtain on a revolving basis US Dollar overdrafts, LIBOR Loans and
Letters of Credit;
- ACQUISTION OF 50% INTEREST IN IRVINGTON, NEW JERSEY
EQUITY ACCOUNTED INVESTMENT:Subsequent to the quarter
ended March 31, 2021, the Trust has agreed in principle to purchase
the remaining 50% interest of its Equity Accounted Investment in
Irvington, New Jersey for $2.5 million. This transaction is subject
to customary closing conditions and is expected to close before the
year ended December 31, 2021;
- HYATTSVILLE, MD ACQUISITON
UPDATE:As previously announced, the Trust
has been pursuing a Joint Venture to acquire a multi- residential
property located in the Washington D.C. Metro Area. This
acquisition was subject to various closing conditions which were
not met. As a result, the Trust is no longer pursuing this
acquisition and is focusing on other opportunities; and
- DISTRIBUTIONS:On May 13, 2021, the Trust
declared and approved quarterly distributions of $0.059 per unit
for unitholders on record on June 30, 2021 payable on or about July
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 1,846 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 months ended March 31, 2021
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 |
|
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