TORONTO, May 9, 2019 /CNW/ - Firm Capital Property Trust
("FCPT" or the "Trust"), (TSXV: FCD.UN) is pleased to
report today its financial results for the three months ended
March 31, 2019.
PROPERTY PORTFOLIO HIGHLIGHTS
The portfolio consists
of 68 commercial properties with a total GLA of 2,964,159 square
feet (1,715,989 square feet on an owned interest basis) and
interests in two apartment complexes comprised of 204 apartment
units. The portfolio is well diversified in terms of geographies
and property asset types.
TENANT DIVERSIFICATION
The portfolio is well
diversified by tenant profile with no tenant accounting for more
than 16% of total net rent. Further, the top 10 tenants are largely
comprised of creditworthy and large national tenants and account
for 35% of total net rent. Subsequent to the completion of
the First Capital Realty Inc. acquisition, no tenant accounts for
more than 10% of total net rent with the top 10 tenants accounting
for 29% of total net rent.
FIRST QUARTER HIGHLIGHTS 2019
- Net income for the three months ended March 31, 2019 was approximately $2.3 million in comparison to the $2.8 million reported for the three months ended
December 31, 2018 and the
$6.2 million reported for the three
months ended March 31, 2018;
- $7.04 Net Asset Value
("NAV") per Unit based on a IFRS book value of equity of
approximately $133.1 million;
- On an IFRS basis, NOI for the three months ended March 31, 2019 was approximately $3.8 million, which is a 14% increase over the
$3.4 million reported for the three
months ended December 31, 2018 and a
25% increase in comparison to the $3.1
million reported for the three months ended March 31, 2018.
- On a cash basis ("Cash NOI"), for the three months ended
March 31, 2019 was approximately
$3.8 million, which is a 13% increase
over the $3.4 million reported for
the three months ended December 31,
2018 and a 24% increase over the $3.1
million reported for the three months ended March 31, 2018.
- Funds From Operations ("FFO") for the three months
ended March 31, 2019 was
approximately $1.8 million compared
to the $2.1 million reported for the
three months ended December 31, 2018
and the $1.9 million reported for the
three months ended March 31,
2018;
- Adjusted Funds From Operations ("AFFO") for the three
months ended March 31, 2019 was
approximately $1.9 million, a 9%
increase over the $1.8 million
reported for the three months ended December
31, 2018 and a 19% increase over the $1.6 million reported for the three months ended
March 31, 2018;
- AFFO per Unit was $0.110 for the
three months ended March 31, 2019 a
9% increase compared to the $0.101
the three months ended December 31,
2018 and a 4% increase over the $0.106 for the three months ended March 31, 2018.
- FFO per Unit was $0.100 for the
three months ended March 31, 2019
compared to $0.119 for the three
months ended December 31, 2018 and
$0.122 for the three months ended
March 31, 2018.
- Commercial occupancy improved to 95.5% while residential
occupancy improved to 99.0%; and
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 49.1%.
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Three
Months
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Three
Months
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Mar 31,
2019
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Dec 31,
2018
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Mar 31,
2018
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Dec 31,
2018
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Mar 31,
2018
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Rental
Revenue
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$
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6,443,690
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$
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5,626,549
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$
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5,463,490
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15%
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18%
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NOI
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- IFRS
Basis
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$
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3,835,465
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$
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3,370,036
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$
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3,069,874
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14%
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25%
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- Cash
Basis
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$
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3,795,287
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$
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3,369,792
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$
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3,059,174
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13%
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24%
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Net
Income
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$
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2,287,088
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$
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2,764,360
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$
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6,231,326
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(17%)
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(63%)
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FFO
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$
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1,765,500
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$
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2,088,395
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$
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1,860,165
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(15%)
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(5%)
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AFFO
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$
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1,929,209
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$
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1,769,007
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$
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1,624,880
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9%
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19%
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FFO Per
Unit
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$
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0.100
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$
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0.119
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$
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0.122
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(16%)
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(18%)
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AFFO Per
Unit
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$
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0.110
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$
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0.101
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$
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0.106
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9%
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4%
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Distributions Per
Unit
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$
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0.120
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$
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0.115
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$
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0.115
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4%
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Payout
Ratios
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-
FFO
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119%
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97%
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94%
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|
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-
AFFO
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109%
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114%
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108%
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FINANCIAL HIGHLIGHTS
- $187 Million in
Acquisitions: Since the beginning of 2019, the Trust has
completed the following acquisitions:
-
- On January 4, 2019, the Trust
closed on an acquisition of a 100% interest in a 69 unit
multi-residential property located in Dartmouth, Nova Scotia. The acquisition
price for the property was approximately $11.2 million (including transaction costs);
- On February 5, 2019, the Trust
closed on an acquisition of a 50% interest in a seven retail
property portfolio totaling 296,376 square feet. The
properties are located in Alberta,
Nova Scotia, Saskatchewan, Ontario and Quebec. The acquisition
price for 100% of the portfolio was approximately $84.8 million (including transaction
costs). The Trust's portion of the purchase price was
approximately $42.4 million; and
- On May 9, 2019, the Trust closed
on an acquisition from First Capital Realty Inc. and an affiliate
thereof a 50% non-managing interest in six net-leased primarily
grocery anchored shopping centres located in Ontario and Quebec. The acquisition
price for 100% of the portfolio is approximately $266 million, excluding transaction costs.
The Trust's portion of the acquisition price is approximately
$133 million;
- $54 Million of Equity
Issued: Since the beginning of 2019, the Trust has
completed the following equity raising activity:
-
- On March 26, 2019, the Trust
issued $8.7 million of Trust Units
through a non-brokered private placement;
- On April 24, 2019, the Trust
issued $16.3 million of Trust Units
through a non-brokered private placement and $26.2 million of Trust Units through a marketed
offering;
- On April 30, 2019, the Trust
issued an additional $2.1 million of
Trust Units as part of the marketed offering as described above;
and
- On May 1, 2019, the Trust issued
an additional $1.0 million of Trust
Units as part of the non-brokered private placement as described
above.
- $95 Million of New Mortgage
Financing: Since the beginning of 2019, the Trust has
completed the following new mortgage financing:
-
- On January 14, 2019, the Trust
completed an upward financing of its Montreal Portfolio with a
Canadian Chartered Bank. The new principal balance is
$49.0 million in comparison to the
previous balance of $41.7
million. The Trust's portion of this financing is
$24.5 million. The terms are
unchanged from the original loan at an interest rate of 4.0% with a
25 year amortization;
- On February 5, 2019, the Trust
financed five new mortgages totaling $21.0
million and supplemented one assumed mortgage by
$1.0 million as part of the Crombie
Retail portfolio acquisition as described above. The
mortgages have interest rates with a weighted average of 3.72% with
ranges of between 3.29% and 4.41%, amortizes and mature between
December 1, 2023 and February 5, 2024;
- On February 28, 2019, the Trust
refinanced its existing mortgage on its Portland property. The principal balance
is $7.0 million which is 100% the
trust's portion. The new mortgage is fixed at a 2.65%
interest rate with a 25 year amortization; and
- On May 9, 2019, the Trust
financed two new mortgages totaling $52.8
million and supplemented one assumed mortgage by
$9.6 million as part of the First
Capital Realty portfolio acquisition as described above. The
mortgages have interest rates with a weighted average of 3.30% with
ranges of between 3.26% and 3.50% with a 25 year amortization;
- Declaration of Monthly Distributions: On
May 9, 2019, the Trust announced that
it has declared and approved monthly distributions in the amount of
$0.04 per Trust Unit for Unitholders
of record on July 31, 2019,
August 30, 2019 and September 30, 2019 payable on or about
August 15, 2019, September 16, 2019 and October 15, 2019.
For the complete financial statements, Management's Discussion
& Analysis and supplementary information, please visit
www.sedar.com or the Trust's website at www.firmcapital.com
DISTRIBUTION REINVESTMENT PLAN & UNIT PURCHASE
PLAN
The Trust has in place a Distribution Reinvestment Plan
("DRIP") and Unit Purchase Plan (the "Plan"). Under
the terms of the DRIP, FCPT's Unitholders may elect to
automatically reinvest all or a portion of their regular monthly
distributions in additional Units, without incurring brokerage fees
or commissions. Under the terms of the Plan, FCPT's Unitholders may
purchase a minimum of $1,000 of Units
per month and maximum purchases of up to $12,000 per annum. Management and trustees have
not participated in the DRIP or Plan to date and own approximately
7% of the issued and outstanding trust units of the Trust.
ABOUT FIRM CAPITAL PROPERTY TRUST
Firm Capital Property Trust is focused on creating long-term
value for Unitholders, through capital preservation and disciplined
investing to achieve stable distributable income. In partnership
with management and industry leaders, The Trust's plan is to co-own
a diversified property portfolio of multi-residential, flex
industrial, net lease convenience retail, and core service provider
professional space. In addition to stand alone accretive
acquisitions, the Trust will make joint acquisitions with strong
financial partners and acquisitions of partial interests from
existing ownership groups, in a manner that provides liquidity to
those selling owners and professional management for those
remaining as partners. Firm Capital Realty Partners Inc.,
through a structure focused on an alignment of interests with the
Trust sources, syndicates and property and asset manages
investments on behalf of the Trust.
FORWARD LOOKING INFORMATION
This press release may contain forward-looking statements. In
some cases, forward-looking statements can be identified by the use
of words such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", "potential",
"continue", and by discussions of strategies that involve risks and
uncertainties. The forward-looking statements are based on certain
key expectations and assumptions made by the Trust. By their
nature, forward-looking statements involve numerous assumptions,
inherent risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions, forecasts,
projections and various future events will not occur. Although
management of the Trust believes that the expectations reflected in
the forward-looking statements are reasonable, there can be no
assurance that future results, levels of activity, performance or
achievements will occur as anticipated. Neither the Trust nor any
other person assumes responsibility for the accuracy and
completeness of any forward-looking statements, and no one has any
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or such other
factors which affect this information, except as required by
law.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, which may be made only by means of
a prospectus, nor shall there be any sale of the Units in any
state, province or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under securities laws of any such state, province or
other jurisdiction. The Units of the Firm Capital Property Trust
have not been, and will not be registered under the U.S. Securities
Act of 1933, as amended, and may not be offered, sold or delivered
in the United States absent
registration or an application for exemption from the registration
requirements of U.S. securities laws.
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 entities as
useful metrics for measuring performance and cash flows, however,
they do not have standardized meaning prescribed by IFRS and are
not necessarily comparable to similar measures presented by other
real estate investment entities. These terms are defined in the
Trust's Management Discussion and Analysis ("MD&A") for the
quarter and year ended March 31,
2019 as filed on www.sedar.com.
SOURCE Firm Capital Property Trust