Firm Capital Property Trust Announces First Quarter Results

TORONTO, May 11, 2017 /CNW/ - Firm Capital Property Trust ("FCPT" or the "Trust"), (TSXV : FCD.UN) is pleased to report today its consolidated financial results for the three months ended March 31, 2017.

PROPERTY PORTFOLIO HIGHLIGHTS
The portfolio consists of 61 commercial properties with a total GLA of 1,398,976 square feet (1,395,597 square feet of Net Leasable Area ("NLA")) and one apartment complex comprised of 135 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 5.3% of total net rent. Further, the top 10 tenants are largely comprised of creditworthy and large national tenants and account for 23.2% of total net rent.

FIRST QUARTER HIGHLIGHTS

  • Excluding the one-time gain on sale of investment properties, net income for the three months ended March 31, 2017 was $2.2 million, or a 94% increase over the $1.1 million reported for the three months ended March 31, 2016;

  • Funds From Operations ("FFO") for the three months ended March 31, 2017 was $1.6 million, a 4% increase in comparison to the $1.5 million reported for the three months ended December 31, 2016 and a 33% increase in comparison to the $1.2 million reported for the three months ended March 31, 2016;

  • Adjusted Funds From Operations ("AFFO") for the three months ended March 31, 2017 was $1.4 million, a 1% increase in comparison to the $1.3 million reported for the three months ended December 31, 2016 and a 25% increase in comparison to the $1.1 million reported for the three months ended March 31, 2016;

  • FFO per Unit was $0.126 while AFFO per Unit was $0.106. Based on distributions paid over that period, FFO and AFFO payout ratios are 87% and 103%, respectively;

  • On an IFRS basis, Net Operating Income ("NOI") for the three months ended March 31, 2017 was $2.7 million, a 2% sequential increase in comparison to the $2.6 million reported for the three months ended December 31, 2016 and a 30% increase in comparison to the $2.1 million reported for the three months ended March 31, 2016;

  • Cash NOI for the three months ended March 31, 2017 was $2.6 million, largely in line with the $2.6 million reported for the three months ended December 31, 2016 and a 26% increase over the $2.0 million reported for the three months ended March 31, 2016;

  • Commercial occupancy was 94.7%, largely in line with the 94.9% reported at December 31, 2016, and a 629 basis point increase over the 88.4% reported at March 31, 2016;

  • Conservative leverage profile with Debt / Gross Book Value ("GBV") at 50.4%; and

  • Approved Distributions for July, August and September, 2017: The Trust announced that it has declared and approved monthly distributions in the amount of $0.036666 per Trust Unit for unitholders of record on July 31, 2017, August 31, 2017 and September 29, 2017 payable on or about August 15, 2017, September 15, 2017 and October 16, 2017.

Financial Highlights

 




% Change Over






Three Months


Three Months






Mar 31,
2017

      Dec 31,
2016

Mar 31,
2016


Dec 31,
2016

Mar 31,
2016

Rental Revenue

$

4,798,197

$

4,601,110

$

3,639,657


4%

32%

NOI







- IFRS Basis

$

2,680,278

$

2,619,801

$

2,066,037


2%

30%

- Cash Basis

$

2,568,019

$

2,566,717

$

2,045,040


0%

26%








FFO

$

1,596,731

$

1,539,054

$

1,204,574


4%

33%

AFFO

$

1,351,027

$

1,334,369

$

1,080,427


1%

25%








Adjusted FFO*

$

1,596,731

$

1,539,054

$

2,005,266


4%

(20%)

Adjusted AFFO*

$

1,351,027

$

1,334,369

$

1,881,118


1%

(28%)








FFO Per Unit

$

0.126

$

0.122

$

0.105


3%

19%

AFFO Per Unit

$

0.106

$

0.105

$

0.095


1%

13%








Adjusted FFO/Unit*

$

0.126

$

0.122

$

0.175


3%

(28%)

Adjusted AFFO/Unit*

$

0.106

$

0.105

$

0.165


1%

(35%)








Distributions Per Unit

$

0.110

$

0.108

$

0.105


2%

5%








Payout Ratios







- FFO

87%

89%

100%




- AFFO

103%

103%

111%











- Adjusted FFO

87%

89%

60%




- Adjusted AFFO

103%

103%

64%




* = Includes gain on sale of assets





 

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 Properties 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.

SOURCE Firm Capital Property Trust

For further information: please contact: Robert McKee, President & Chief Executive Officer, (416) 635-0221; Sandy Poklar, Chief Financial Officer, (416) 635-0221

RELATED LINKS
www.firmcapital.com

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