TORONTO, Nov. 12, 2014 /CNW/ - Firm Capital Property Trust ("FCPT" or the "Trust"), (TSXV : FCD.UN) reported today its consolidated financial results for the three and nine months ended September 30, 2014.
THIRD QUARTER AND YEAR-TO-DATE HIGHLIGHTS
- Three Months Ended September 30, 2014 ("Q3/2014") Stabilized FFO and AFFO of $0.908 million and $0.904 million, which is a 33% and 31% sequential increase over Q2/2014 and a 54% and 61% increase over Q3/2013;
- Nine Months Ended September 30, 2014 ("3Q/2014") Stabilized FFO and AFFO of $2.4 million and $2.3 million; which is a 73% and 77% increase over 3Q/2013;
- Q3/2014 Stabilized FFO and AFFO per Unit of $0.129 and $0.129 per Unit, which is a 33% and 30% sequential increase over Q2/2014 and a 14% and 20% increase over Q3/2013;
- 3Q/2014 Stabilized FFO and AFFO per Unit of $0.342 and $0.327 per Unit, which is a 15% and 18% increase over 3Q/2013;
- Q3/2014 Stabilized FFO and AFFO payout ratios of 72%, below the Trust's targeted AFFO payout ratio of 85% and below the Trust's anticipated Stabilized AFFO payout ratio of 75%;
- Q3/2014 Cash Net Operating Income ("NOI") of $1.6 million, a 35% increase over Q2/2014 and a 60% increase over Q3/2013;
- 3Q/2014 Cash NOI of $4.1 million, which is an 86% increase over 3Q/2013;
- Strong 92.6% occupancy;
- Reasonable leverage profile with Debt / Gross Book Value ("GBV") at 53.4%;
- Announced on October 20, 2014 that the Board of Trustees approved its second distribution increase in less than one year with an 8.1% increase in its monthly distributions to $0.033333 per unit from $0.030833 per unit. On an annualized basis this equates to anticipated distributions of $0.40 per unit up from $0.37 per unit. Including the announced distribution increase, the total increase in distribution's since the Trust's inception is 14.3%;
- Announced on October 27, 2014 that the Trust was proceeding with a non-brokered private placement to raise up to $8.0 million and issue up to 1,500,000 trust units at a price of $5.35 per Trust Unit. As a result of strong demand, on November 3, 2014 the Trust announced that it has increased the size of this non-brokered private placement to up to $10.0 million and issue up to 1,870,000 trust units at a price of $5.35 per Trust Unit;
- Announced on November 11, 2014 that it has entered into a binding agreement to acquire a 50% interest in a 135 unit multi-residential complex located in Ottawa, Ontario with the balance being acquired by others that may include related parties of the Trust. The purchase price is approximately $11.2 million (excluding closing costs), of which the Trust will pay approximately $5.6 million (excluding closing costs) for its 50% participation;
- Announces the Trust has declared and approved distributions in the amount of $0.033333 per Trust unit payable on or about February 16, 2015, March 16, 2015 and April 15, 2015 to unitholders of record on January 30, 2015, February 27, 2015 and March 31, 2015 respectively; and
- Announces the Trust has renewed its Facility with a Canadian Chartered Bank for an additional 24 month term.
PROPERTY PORTFOLIO HIGHLIGHTS
The Trust's property portfolio consists of 55 properties with a total Gross Leasable Area ("GLA") of 833,373 square feet (830,315 square feet of Net Leasable Area). The portfolio is well diversified across geographies with 54% of the NOI generated from Ontario, 31% from Quebec, 10% from Nova Scotia and BC, Alberta, Manitoba and New Brunswick (cumulatively 5%). The portfolio is equally diversified across asset classes with 60% of NOI generated from Net Lease Convenience Retail, 31% from Industrial and 9% from Core Service Provider Office.
The portfolio is well diversified by tenant profile with no tenant accounting for more than 8.7% of total net rent. Further, the top 10 tenants are largely comprised of credit worthy and large national tenants and account for 31.6% of total net rent and 22.3% of total NLA.
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 10% 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, will source, syndicate and participate in investments.
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 regarding, among other things, the use of the net proceeds from the Offering, the closing of the Offering, and the closing of the Acquisition. 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