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, 2023 as well as provide an update regarding the previously
announced Strategic Review:
EARNINGS
- For the three months ended March 31, 2023, net loss was
approximately $4.9 million, in comparison to the $0.3 million net
loss reported for the three months ended March 31, 2022 and the
$2.0 million net loss reported for the three months ended December
31, 2022;
- Excluding non-cash fair value adjustments, net income was $0.2
million for the three months ended March 31, 2023, in comparison to
the $0.5 million reported for the three months ended March 31, 2022
and the $0.3 million reported for the three months ended December
31, 2022;
- AFFO was approximately $0.2 million, in comparison to the $0.4
million reported for the three months ended March 31, 2022 and the
$0.1 million reported for the three months ended December 31,
2022;
|
Three Months Ended |
|
|
Mar 31, 2023 |
|
Dec 31, 2022 |
Mar 31, 2022 |
|
Net Loss |
$ |
(4,901,727 |
) |
|
$ |
(2,037,316 |
) |
$ |
(345,345 |
) |
|
Net Income Before Fair Value Adjustments |
$ |
160,560 |
|
|
$ |
262,641 |
|
$ |
532,100 |
|
|
FFO |
$ |
(571,581 |
) |
|
$ |
1,783,066 |
|
$ |
290,189 |
|
|
AFFO |
$ |
154,444 |
|
|
$ |
145,119 |
|
$ |
446,352 |
|
|
NAV AT
$7.52
PER TRUST UNIT (CAD
$10.18):
For the three months
ended March 31, 2023, the Trust reported NAV at $7.52 per Trust
Unit (CAD $10.18);
AVERAGE RENT INCREASES ACROSS INVESTMENT
PORTFOLIO:
Wholly-Owned
Real Estate Investments Portfolio: For the three months
ended March 31, 2023, average rents saw a slight increase of 1.4%
to $1,206 per unit from the $1,189 per unit reported for the three
months ended December 31, 2022; Joint Venture Real Estate
Investments Portfolio: For the three months ended March
31, 2023, average rents saw a decrease to $1,576 per unit from the
$1,589 per unit reported for the three months ended December 31,
2022;
STRATEGIC REVIEW On November
15, 2022, the Board of Trustees initiated a strategic review
process to identify, evaluate and pursue a range of strategic
alternatives with the goal of maximizing unitholder value (the
“Strategic Review”).
By way of update, the Board is pleased to report
on the following:
WHOLLY OWNED ASSET
DISPOSITIONS: The Trust has listed for sale all its Wholly
Owned Real Estate Investments and is pleased to report on the
following:
Texas: The Trust has a Purchase and Sale Agreement
(“PSA”) in place for one of its properties located
in Austin, Texas. The disposition price for the property is
approximately $12.6 million. Net of associated mortgage debt and
closing costs, the sale would generate net cash of approximately
$8.8 million. Expected closing of the sale is anticipated to be
prior to the end of Q2/2023. The property disposition has a sales
price in line with its IFRS value. The Trust has one other property
in Austin, Texas and two properties in Houston, Texas which are in
various stages of sale;
New
Jersey: The Trust has a PSA in place for its property
located in New Jersey. The disposition price for the property is
approximately $19.5 million. Net of associated mortgage debt and
closing costs, the sale would generate net cash of approximately
$5.6 million. The expected closing of the sale is anticipated to be
prior to the end of Q2/2023. The property disposition has a sales
price in line with its IFRS value; and
Florida: The Trust’s property in Florida is under
negotiations to be sold.
JOINT VENTURE ASSET
DISPOSITIONS: The Trust has listed for sale its Joint
Venture Real Estate Investments located in Maryland as both the
Trust and its partners have decided it was an appropriate time to
exit the respective investments. As of today, one of the Maryland
properties is under negotiations and one is being actively
marketed. In terms of the remaining joint venture properties
located in New York, Connecticut and Georgia, the Trust has decided
with its partners to hold these investments until such time that
the respective investment can be adequately monetized.
PREFERRED CAPITAL INVESTMENTS:
As at March 31, 2023, the Trust has two Preferred Capital
Investments located in Texas and South Dakota that aggregate
approximately $5.1 million. The Trust continues to hold these
investments and earns income at 10% and 12%, respectively. Both
investments are current in terms of their interest payments.
The Board will continue to assess matters on a
quarterly basis and determine if the Trust should: (i) distribute
excess income; (ii) distribute net proceeds from asset sales, after
debt repayment; (iii) reinvest net proceeds into other investments;
(iv) distribute proceeds as a return of capital or special
distribution; and/or (v) use excess proceeds to repurchase Trust
units in the marketplace. It is the Trust’s current intention not
to disclose developments with respect to the Strategic Review
unless and until it is determined that disclosure is necessary or
appropriate, or as required under applicable securities laws.
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, the completion of the Strategic Review;
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, 2023
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 |
|
Claudia
Alvarenga |
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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