Firm Capital Property Trust Announces Solid Quarterly Results

TORONTO, Aug. 6, 2015 /CNW/ - Firm Capital Property Trust ("FCPT" or the "Trust"), (TSXV : FCD.UN) reported today its consolidated interim financial results for the three months and six months ended June 30, 2015.

SECOND QUARTER HIGHLIGHTS

  • Three Months Ended June 30, 2015 FFO and AFFO of $1.1 million and $0.98 million is a 14% and 3% sequential increase over the FFO and AFFO reported for the three months ended March 31, 2015 and a 62% and 41% increase over the FFO and AFFO reported for the three months ended June 30, 2014;

  • Six Months Ended June 30, 2015 FFO and AFFO of $2.1 million and $1.9 million is a 40% and 39% increase over the FFO and AFFO reported for the six months ended June 30, 2014;

  • Three months ended June 30, 2015 FFO and AFFO per Unit of $0.117 and $0.104 per Unit, is a 10% sequential increase and in line, respectively over the three months ended March 31, 2015 FFO and AFFO per Unit and a 20% and 5% increase over the three months ended June 30, 2014 FFO and AFFO per Unit;

  • Six months ended June 30, 2015 FFO and AFFO per Unit of $0.224 and $0.208 are both a 5% increase over the six months ended June 30, 2014 FFO and AFFO per Unit;

  • Three months ended June 30, 2015 FFO and AFFO payout ratios of 85% and 97%;

  • Six months ended June 30, 2015 FFO and AFFO payout ratios of 89% and 96%;

  • Three months ended June 30, 2015 Cash NOI of $1.7 million is a 4.2% sequential increase over three months ended March 31, 2015 and a 41.9% increase over the three months ended June 30, 2014. Six months ended June 30, 2015 Cash NOI of $3.4 million is a 40.5% increase over the six months ended June 30, 2014;

  • 89.4% and 91.9% occupancies for the commercial and multi-residential portfolios, respectively, provide leasing upside;

  • Commercial net rent per square foot was $9.11 per square foot, largely in line with the $9.08 psf reported for the three months ended June 30, 2015 and a 1.9% increase over the $8.94 psf reported for the three months ended June 30, 2014;

  • Conservative leverage profile with Debt / Gross Book Value ("GBV") at 43.4%;

 

FINANCIAL HIGHLIGHTS






% Change


Three Months


Six Months





June 30, 2015

June 30, 2014


June 30, 2015

June 30, 2014


Three months 

Six months

Rental Revenue

$

2,959,424

$

2,005,213


$

5,949,503

$

4,020,421


48%

48%

Net Operating Income (NOI) 













 - IFRS Basis

$

1,785,515

$

1,243,669


$

3,492,058

$

2,463,207


44%

42%

 - Cash Basis

$

1,737,151

$

1,224,475


$

3,403,796

$

2,423,099


42%

40%














Funds From Operations (FFO)

$

1,106,990

$

684,339


$

2,074,216

$

1,486,095


62%

40%

Adjusted Funds From Operations (AFFO)

$

978,185

$

692,656


$

1,925,976

$

1,382,147


41%

39%














FFO Per Unit

$

0.117

$

0.098


$

0.224

$

0.213


20%

5%

AFFO Per Unit

$

0.104

$

0.099


$

0.208

$

0.198


5%

5%














Distributions Per Unit

$

0.100

$

0.092


$

0.200

$

0.185


9%

8%














FFO Payout Ratio


85%


95%



89%


87%




AFFO Payout Ratio


97%


94%



96%


94%




 

  • Announced significant industrial acquisition: On July 27, 2015, the Trust announced the purchase of a 70% interest in seven industrial buildings located in Waterloo, Ontario. The acquisition price for 100% of the Portfolio is approximately $43.3 million, excluding transaction costs. The acquisition is expected to close during Q3/2015. The Trust will increase the size of its current portfolio by approximately 34% to $122 million and will grow to 60 properties;

  • 5% distribution increase is third increase and 20% in aggregate increases in less than three years: On July 27, 2015, the Trust announced that it has declared and approved monthly distributions in the amount of $0.033333 per Trust Unit for unitholders of record on October 30, 2015 payable on or about November 16, 2015 and $0.035 per Trust Unit for unitholders of record on November 30, 2015 and December 31, 2015 payable on or about December 15, 2015 and January 15, 2016, respectively, subject to closing of the Waterloo Industrial acquisition as outlined above. This revised distribution is expected to result in a pro forma AFFO payout ratio of below 85% for the Trust; and

  • Announced $10 million private placement: On August 4, 2015, the Trust announced that it is proceeding with a non-brokered private placement in which it will raise up to $10.0 million and issue up to 1.8 million trust units of the Trust at a price of $5.60 per Trust Unit.

 

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

PROPERTY PORTFOLIO HIGHLIGHTS
The Trust's property portfolio consists of 55 commercial properties with a total Gross Leasable Area ("GLA") of 832,942 square feet (829,588 square feet of Net Leasable Area) and one apartment complex comprised of 135 apartment units. The portfolio is diversified across geographies with 56% of the NOI generated from Ontario, 30% from Quebec, 9% from Nova Scotia and 5% collectively from BC, Alberta, Manitoba and New Brunswick. The portfolio is diversified across asset classes with 57% of NOI generated from Net Lease Convenience Retail, 30% from Industrial, 8% from Core Service Provider Office and 5% from Multi-Residential.

TENANT DIVERSIFICATION
The portfolio is well diversified by tenant profile with no tenant accounting for more than 9.9% of total net rent. Further, the top 10 tenants are largely comprised of credit worthy and large national tenants and account for 33.2% of total net rent.

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 8.2% 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: 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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