TORONTO, Aug. 12, 2020 /CNW/ - Firm Capital Property
Trust ("FCPT" or the "Trust"), (TSXV: FCD.UN) is
pleased to report today its financial results for the three and six
months ended June 30, 2020.
PROPERTY PORTFOLIO HIGHLIGHTS
The portfolio consists
of 76 commercial properties with a total GLA of 4,244,595 square
feet (2,350,625 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 11.8% of total net rent. Further, the top 10 tenants are
comprised of large national tenants and account for 31.2% of total
net rent.
SECOND QUARTER AND YEAR TO DATE HIGHLIGHTS
- Net income for the three months ended June 30, 2020 was approximately $3.8 million, compared to the $5.4 million net loss reported for the three
months ended March 31, 2020, and the
$9.2 million net income reported for
the three months ended June 30,
2019;
- Excluding fair value adjustments, net income for the three
months ended June 30, 2020 was
approximately $3.8 million compared
to the $4.0 million reported for the
three months ended March 31, 2020 and
the $3.0 million reported for the
three months ended June 30, 2019;
- Net loss for the six months ended June
30, 2020 was approximately $1.5
million, compared to $11.5
million net income reported for the six months ended
June 30, 2019;
- Excluding fair value adjustments, net income for the six months
ended June 30, 2020 was $7.8 million compared to the $5.1 million reported for the six months ended
June 30, 2019;
- Pro-forma $7.28 Net Asset Value
("NAV") per Unit based on a IFRS book value of equity of
approximately $218.7 million post
cancellation of Units and NCIB as outlined below. This is a slight
increase over the $7.17 NAV reported
at March 31, 2020;
- On an IFRS basis, NOI for the three months ended June 30, 2020 was approximately $6.8 million, a 3% decrease compared to the
$7.0 million reported for the three
months ended March 31, 2020, but a
22% increase in comparison to the $5.6
million reported for the three months ended June 30, 2019. NOI for the six months ended
June 30, 2020 was approximately
$13.9 million, a 47% increase over
the $9.4 million reported for the six
months ended June 30, 2019;
- On a cash basis ("Cash NOI"), for the three months ended
June 30, 2020 was approximately
$6.7 million, a 2% decrease compared
to the $6.8 million reported for the
three months ended March 31, 2020,
but a 23% increase over the $5.5
million reported for the three months ended June 30, 2019. Cash NOI for the six months ended
June 30, 2020 was approximately
$13.6 million, a 46% increase over
the $9.3 million for the six months
ended June 30, 2019;
- Funds From Operations ("FFO") for the three months ended
June 30, 2020 was approximately
$6.4 million, a 161% increase in
comparison to the $2.5 million
reported for the three months ended March
31, 2020 and an 87% increase over the $3.4 million reported for the three months ended
June 30, 2019. FFO for the six months
ended June 30, 2020 was $8.9 million, a 71% increase over the
$5.2 million reported for the six
months ended June 30, 2019;
- Adjusted Funds From Operations ("AFFO") for the three
months ended June 30, 2020 was
approximately $3.5 million, a 2%
decrease over the $3.6 million
reported for the three months ended March
31, 2020, but a 30% increase over the $2.7 million reported for the three months ended
June 30, 2019. AFFO for the six
months ended June 30, 2020 was
approximately $7.1 million, a 53%
increase over the $4.6 million
reported for the six months ended June 30,
2019;
- AFFO per Unit was $0.115 for the
three months ended June 30, 2020 in
line with the $0.117 per Unit
reported for the three months ended March
31, 2020, but a 4% increase over the $0.111 per Unit reported for the three months
ended June 30, 2019. AFFO per Unit
was $0.232 for the six months ended
June 30, 2020, a 5% increase over the
$0.221 per Unit reported for the six
months ended June 30, 2019. Prior to
bad debts as a result of the Canada Emergency Commercial Rent Assistance
program ("CECRA"), which is a one-time item, AFFO per Unit
was $0.131 and $0.245 per Unit for the three and six months
ended June 30, 2020,
respectively;
- AFFO payout ratio was 108% for the three months ended
June 30, 2020, compared to the 107%
for the three months ended March 31,
2020 and the 108% for the three months ended June 30, 2019. AFFO payout ratio was 108% for the
six months ended June 30, 2020,
compared to the 109% for the six months ended June 30, 2019. Prior to bad debts as a result of
CECRA, the AFFO payout ratio was 97% and 102% for the three and six
months ended June 30, 2020,
respectively;
- Commercial occupancy was a solid 93.5% while residential
occupancy was 99.3%; and
- Conservative leverage profile with Debt / Gross Book Value
("GBV") at 51.2%.
|
|
|
|
|
% Change
Over
|
|
Three
Months
|
|
Six
Months
|
|
Three
Months
|
|
Six
Months
|
|
Jun 30,
2020
|
Mar 31,
2020
|
Jun 30,
2019
|
|
Jun 30,
2020
|
Jun 30,
2019
|
|
Mar 31,
2020
|
Jun 30,
2019
|
|
Jun 30,
2019
|
Rental
Revenue
|
$
|
10,978,178
|
$
|
11,254,472
|
$
|
8,664,867
|
|
$
|
22,232,652
|
$
|
15,108,559
|
|
(2%)
|
27%
|
|
47%
|
NOI
|
|
|
|
|
|
|
|
|
|
|
|
- IFRS
Basis
|
$
|
6,832,758
|
$
|
7,026,986
|
$
|
5,612,287
|
|
$
|
13,859,749
|
$
|
9,447,756
|
|
(3%)
|
22%
|
|
47%
|
- Cash
Basis
|
$
|
6,719,928
|
$
|
6,848,118
|
$
|
5,481,879
|
|
$
|
13,568,051
|
$
|
9,277,166
|
|
(2%)
|
23%
|
|
46%
|
Net Income /
(Loss)
|
$
|
3,843,611
|
$
|
(5,365,029)
|
$
|
9,183,443
|
|
$
|
(1,521,414)
|
$
|
11,470,534
|
|
172%
|
(58%)
|
|
(113%)
|
FFO
|
$
|
6,407,711
|
$
|
2,458,737
|
$
|
3,429,815
|
|
$
|
8,866,454
|
$
|
5,195,319
|
|
161%
|
87%
|
|
71%
|
AFFO
|
$
|
3,519,738
|
$
|
3,587,261
|
$
|
2,706,154
|
|
$
|
7,107,007
|
$
|
4,635,366
|
|
(2%)
|
30%
|
|
53%
|
FFO Per
Unit
|
$
|
0.210
|
$
|
0.080
|
$
|
0.140
|
|
$
|
0.290
|
$
|
0.248
|
|
162%
|
50%
|
|
17%
|
AFFO Per
Unit
|
$
|
0.115
|
$
|
0.117
|
$
|
0.111
|
|
$
|
0.232
|
$
|
0.221
|
|
(1%)
|
4%
|
|
5%
|
Distributions Per
Unit
|
$
|
0.125
|
$
|
0.125
|
$
|
0.120
|
|
$
|
0.250
|
$
|
0.240
|
|
|
4%
|
|
4%
|
Payout
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
-
FFO
|
60%
|
156%
|
85%
|
|
86%
|
97%
|
|
|
|
|
|
-
AFFO
|
108%
|
107%
|
108%
|
|
108%
|
109%
|
|
|
|
|
|
FINANCIAL HIGHLIGHTS
- $16 Million of Cash Represents
$50 Million of Acquisitions:
Based on $16 million of cash and
credit facility availability, the Trust has the ability to acquire
up to $50 million of real estate;
- Accretive Cancellation of Trust Units: Since the
beginning of Q2, the Trust has purchased for cancellation 939,000
Trust Units for gross proceeds of approximately $4.3 million consisting of the NCIB (439,000
Trust Units) and a 500,000 Trust Unit redemption from a significant
unitholder. The weighted average repurchase price is approximately
$4.58 per Trust Unit versus a
pro-forma NAV of $7.28 per Trust
Unit. The result of these cancellations is an annual increase of
$0.3 million net cash due to a lower
distribution payout and an increase to NAV of $0.03 per Trust Unit;
- 88% of April – July Gross Rent Collected: The Trust is
pleased to report that they have collected 88% of the April – July
gross rents to date;
- Mortgage Repayment Activity: On February 1, 2020, the Trust repaid $11.1 million of its existing mortgage, which
represents the Trust's 50% interest in a mortgage fully secured
against the Merivale Mall Property;
- Acquisition of Two Industrial Buildings in Edmonton and Leduc,
Alberta: On March 18,
2020, the Trust closed on an acquisition of a 50% interest
in two industrial properties located in Edmonton and Leduc,
Alberta (the "Edmonton Industrial Properties"). The
acquisition price for the Trust's portion of the portfolio was
$5.4 million (including transaction
costs);
- Mortgage Refinancing Generates $14.4
Million of Net Cash Flow: On April 30, 2020, the Trust completed two upward
financings on its Waterloo Industrial Portfolio and Whitby Mall
Property. The result of these upward financings are an additional
net cash flow of approximately $14.4
million (net of transaction costs); and
- Declaration of Monthly Distributions: The Trust is
pleased to announce declared and approved monthly distributions in
the amount of $0.041667 per Trust
Unit for Unitholders of record on August 31,
2020, September 30, 2020 and
October 30, 2020 payable on or about
September 15, 2020, October 15, 2020 and November 16, 2020, respectively.
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 "UPP"). 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 UPP, 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 UPP 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 own as well
as 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
three and six months ended June 30,
2020 as filed on www.sedar.com.
SOURCE Firm Capital Property Trust