TORONTO, Aug. 17, 2017 /CNW/ - Firm Capital American
Realty Partners Corp. ("the "Company"), (TSXV : FCA.U),
(TSXV : FCA), (TSXV : FC.WT.U) is pleased to report its
consolidated interim quarterly financial results for the three and
six months ended June 30, 2017:
QUARTER AND YEAR-TO-DATE HIGHLIGHTS
- For the three months ended June 30,
2017, net income was approximately $0.1 million, or a significant improvement over
the $0.2 million loss reported for
the three months ended March 31, 2017
and $1.4 million loss reported for
the three months ended June 30,
2016;
- For the six months ended June 30,
2017, net loss was approximately $0.1
million, or a significant improvement over the $4.0 million net loss reported for the six months
ended June 30, 2016;
- For the three months ended June 30,
2017, net income was $0.03 per
share, which is a significant improvement over the $0.05 net loss per share reported for the three
months ended March 31, 2017 and
$0.70 net loss per share reported for
the three months ended June 30,
2016;
- For the six months ended June 30,
2017, net loss was $0.02 per
share, which was is a significant improvement over the $2.04 net loss per share reported for the six
months ended June 30, 2016;
- For the three month period ended June
30, 2017, FFO was approximately a $0.3 million loss or a 72% improvement over the
$1.2 million loss reported at
June 30, 2016. AFFO was approximately
a $0.2 million loss or a 79%
improvement over the $1.0 million
loss reported at June 30, 2016;
- For the six month period ended June 30,
2017, FFO was approximately a $1.0
million loss or a 75% improvement over the $3.8 million loss reported at June 30, 2016. AFFO was approximately a
$0.6 million loss or a 70%
improvement over the $2.2 million
loss reported at June 30, 2016;
- For the three month period ended June
30, 2017, FFO per share was $(0.07) and AFFO per share was $(0.05). Both are 87% and 91% improvements,
respectively, over the FFO and AFFO per share amounts reported for
the three month period ended June 30,
2016;
- For the six month period ended June 30,
2017, FFO per share was $(0.22) and AFFO per share was $(0.15). Both are 89% and 87% improvements,
respectively, over the FFO and AFFO per share amounts reported for
the six month period ended June 30,
2016;
- As at June 30, 2017, the Company
had two asset portfolios:
- Investment Portfolio: A portfolio of real estate
investments with a fair value of approximately $53.2 million consisting of the following:
-
- Multi-Family Investment Portfolio: Consisting of 66
mini-multi units located across three buildings in Florida and 311 multi-family apartment units
located across three buildings in Florida (one building) and Texas (two buildings) with a fair value of
approximately $46.0 million; and
- Joint Venture Investments: Consisting of two joint
venture investments in eight multi-family buildings comprised of
127 residential units and two commercial units located in
New York City and 115 residential
units located in the Washington,
DC area with a combined fair value of approximately
$7.2 million;
- Single Family Disposition Portfolio: Consisting of 237
homes comprised of 319 units located in Florida, Atlanta and New
Jersey with a fair value of approximately $18.2 million;
- Occupancy: Multi-Family Investment Portfolio occupancy
was 93.4%, while Joint Venture Investment occupancy was 89.3%,
- Average Rents: Multi-Family and Joint Venture Investment
Portfolio average monthly rents increased by 1% over March 31, 2017;
- $9.8 Million in Senior Secured
Note ("SSN") and New Jersey Secured Promissory Note ("NJPN")
Repayments Reduce Original Balances By 96%. SSN Fully Repaid:
For the six months ended June 30,
2017, the Company repaid approximately $7.2 million and $1.7
million of the SSN and NJPN, respectively. Subsequent to
quarter end, the Company repaid an additional $0.9 million of the SSN. In total, the Company
has repaid $9.8 million of the SSN
and NJPN from the beginning of 2017. As at August 16, 2017, the Company has fully repaid the
SSN and the NJPN stands at approximately $1.1 million, respectively;
- $8.4 Million in Single Family
Home Dispositions: For the six months ended June 30, 2017, the Company closed sales on 120
single family homes comprised of 130 units for gross proceeds of
approximately $7.3 million (net
proceeds of approximately $6.3
million). Subsequent to quarter end, the Company closed
sales on an additional 18 single family home units for gross
proceeds of approximately $1.1
million (net proceeds of approximately $0.9 million);
- $2.8 Million in Conditional
Single Family Home Sales Expected to Fully Repay the NJPN and
Commence Repayment of the Convertible Unsecured Debentures (the
"Convertible Debentures"): The Company has under contract 19
single family properties comprised of 49 units for gross proceeds
of approximately $2.8 million. These
home sales are anticipated to close during the third quarter of
2017 and the net proceeds generated are anticipated to fully repay
the NJPN and provide partial repayments of the Convertible
Debentures;
- Single Family Home Inventory Held For Sale Update:
Beyond the conditional home sales as outlined above, the Company
currently has 78 properties not sold, comprised of 12 single family
homes available for sale in Florida, 14 properties comprised of 67 units
available for sale in New Jersey
and 52 single family homes available for sale in Atlanta. With the exception of a 120 single
family home rental portfolio located in Atlanta subject to a $4.0 million first mortgage, all of the remaining
single family homes are currently listed for sale with various
agents;
- Completed $6.3 Million
Offering of Common Shares and Warrants: On May 29, 2017, the Company closed a public
offering (the "Offering") of 850,160 units (the "Offered
Units") of the Company. The Company completed the Offering at a
price of $7.50 per Offered Unit
(C$10.24 per Offered Unit). Each
Offered Unit consisted of one common share of the Company and one
common share purchase warrant of the Company (an "Offered
Warrant"). Each Offered Warrant entitles the holder to purchase
one common share of the Company at an exercise price of
$8.50 for a period of 36 months from
the closing date of the Offering. The Company raised gross proceeds
of approximately $6.3 million;
- Disposition of Florida Mini-Multi Portfolio for a 14%
Premium over IFRS Values: Subsequent to June 30, 2017, the Company has entered into three
conditional all cash purchase and sale agreements with one
unrelated third party to dispose of its entire Florida mini-multi portfolio for gross cash
proceeds (before transaction costs) of approximately $4.2 million. The disposition price represents a
14% premium over the IFRS value of approximately $3.7 million, as reported on the Company's
financial statements on March 31,
2017. The Company completed the sale of one of the
properties on August 4, 2017 for
gross cash proceeds (before transaction costs) of approximately
$1.1 million. The Company anticipates
closing the remaining transactions during the third quarter of
2017. Net cash proceeds generated from the transactions will be
used for repayment of the Convertible Debentures;
- Completed Joint Venture Acquisition: On August 16, 2017, the Company completed the
acquisition of a 50% ownership interest in a joint venture with
a third party funded by way of common and preferred equity.
The venture acquired a multi-family residential portfolio
in Bridgeport, Connecticut,
comprised of 14 buildings and 462 apartment units for a purchase
price (excluding transaction costs) of approximately $30.5 million representing a going-in
capitalization rate of approximately 6.1%, or approximately
US$66,100 per apartment unit;
- Options Issuance: On August 17,
2017, the Company approved the grant of stock options (the
"Options") in accordance with the terms and conditions of
the Company's stock option plan, which was most recently
re-approved at the Company's annual special and general meeting of
shareholders, held on June 8, 2017.
The Options were issued to certain officers, directors and
employees, to purchase an aggregate of 437,373 common shares of the
Company. The Options are exercisable for a period of 10 years from
the date of grant at a price of $7.50
per share and will vest immediately; and
- Adoption of Inaugural Dividend Policy: On August 17, 2017, the Company announced the
adoption of its previously announced dividend policy (the
"Policy"), pursuant to which it will pay U.S. dollar cash
dividends (on both the U.S. dollar and Canadian dollar common
shares) to shareholders of the Company as of each quarterly
dividend record date, targeted to be the last day of each calendar
quarter. The Policy will be implemented and become effective as of
September 1, 2017. Accordingly, the
Company's first dividend will be pro-rated for the quarter ended
September 30, 2017 and the first full
quarterly dividend will be payable for the quarter ended
December 31, 2017. As a result, the
Company has declared and approved dividends in the amount of U.S.
$0.01875 per common share for
shareholders of record on September 30,
2017, payable on or about October 16,
2017, and U.S. $0.05625 per
common share for shareholders of record on December 31, 2017, payable on or about
January 15, 2018. On an annual basis,
the Policy equates to a dividend of U.S. $0.2250 per common share, or a 3.0% annual
dividend yield based on the U.S. $7.50 price per the Company's public offering of
common shares and warrants completed on May
29, 2017.
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. (the "Company") is a
U.S. focused real estate investment entity that pursues real estate
and debt investments through the following 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 partnership
with local industry expert partners who retain property management
responsibilities; and
- Mortgage Debt Investments: Real estate debt and equity
lending platform 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.
