/Not for distribution to U.S. Newswire services or for distribution in
the United States./
TORONTO, March 13, 2013 /CNW/ - Tricon Capital Group Inc. (TSX: TCN)
("Tricon" or the "Company") today announced its results for the three
months and year ended December 31, 2012 ("Q4 2012" and "fiscal 2012",
respectively). The Company's Financial Statements and Management's
Discussion and Analysis are available on the Tricon website at
www.triconcapital.com and have been filed on SEDAR. The following
information is presented in Canadian dollars rounded to the nearest
thousand, also see Note 2 below.
Highlights:
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Total Adjusted Base Revenues increased by 344% to $13,433,000 in Q4 2012
and by 178% to $31,829,000 for fiscal 2012 when compared to the
corresponding periods in 2011, primarily as a result of the
establishment of the Company's U.S. Distressed Single-Family Rental
Strategy.
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As a result, Adjusted EBITDA for Q4 2012 and fiscal 2012 were $3,363,000
and $11,400,000, respectively - approximately 180% and 136% higher than
the corresponding periods in 2011.
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Similarly, Adjusted Net Income for Q4 2012 and fiscal 2012 were $846,000
and $5,641,000, respectively - approximately 39% and 122% higher than
the corresponding periods in 2011. As a result, Adjusted Basic and
Diluted Earnings per Share for fiscal 2012 increased to $0.20 compared
to $0.14 earned for 2011.
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AUM at December 31, 2012 was $1.1 billion - approximately $62.1 million
higher than September 30, 2012 and $151.3 million higher than December
31, 2011.
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The Company's U.S. single-family platform, which was launched in Q2
2012, generated net operating income of $747,000 and $1,315,000 for Q4
2012 and for fiscal 2012, respectively, from both the sale of Inventory
Homes and income from rental properties. The average gross yield for
the portfolio is approximately 14%, above the Company's target levels
as a result of the recent Charlotte portfolio acquisition. Rental gross
operating margin for the year was 53% and is expected to improve
through 2013 as the portfolio stabilizes.
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During Q4 2012, 981 homes were purchased and 28 Inventory Homes were
sold, increasing the housing portfolio to 1,582 homes, of which 1,504
homes were rental stock and 78 homes were inventoried for sale. The
occupancy rate of our rental stock at the end of the year was
approximately 69%. For homes which have been owned for at least six
months, the occupancy rate was approximately 95%. In addition, during
Q4 2012 and fiscal 2012, the Company sold 28 and 50 Inventory Homes,
respectively, at a gross profit margin of approximately 8%, which
equates to a 32% annualized non-compounded return.
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At year-end, 21% of Tricon's single-family rental portfolio (by dollars
invested) was in Sacramento, 18% in the San Francisco Bay Area, 17% in
Southeast Florida, 16% in Charlotte, 14% in Phoenix, 10% in Southern
California and 4% in Reno, Nevada.
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On March 12, 2013, the Board of Directors declared a dividend of 6 cents
per share to shareholders of record on March 31, 2013 payable on April
15, 2013.
"As evidenced by our strong financial performance, 2012 was a momentous
and transformational year for Tricon. In our asset management
business, we successfully raised what is by far our largest Canadian
fund ever (Tricon XII), had a first close of US$125 for our new U.S.
distressed development fund Tricon XI and closed on a US$144 million
separate account to acquire the Cross Creek Ranch master-planned
community in Houston, Texas. Equally important, the investments within
our various funds continue to perform essentially in line with
expectations," said David Berman, Chairman and Chief Executive Officer.
"We also launched our U.S. distressed single-family rental platform in
the second quarter, a principal investment strategy which has thus far
exceeded our expectations. Through our 'hub and spoke' operating
model, we now own approximately 1,800 homes and we are regarded by our
peers as a major participant in this burgeoning industry. Looking
forward to 2013 and beyond, I expect that our business will continue to
grow as we take advantage of the attractive opportunities that we see
in the residential real estate market, particularly in the United
States."
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Selected Financial Summary
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At Dec. 31 2012
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At Dec. 31 2011
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Assets Under Management
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$1,115,433,000
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$964,108,000
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Three Months Ended December 31
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Year Ended December 31
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2012
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2011
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2012
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2011
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Adjusted Base Revenue
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$13,433,000
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$3,023,000
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$31,829,000
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$11,435,000
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Comprehensive Income (Loss) (1) |
($2,514,000)
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$255,000
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($4,198,000)
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$544,000
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Adjusted Base EBITDA (2) |
$3,357,000
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$1,202,000
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$11,353,000
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$4,678,000
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Adjusted EBITDA (2) |
$3,363,000
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$1,202,000
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$11,400,000
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$4,833,000
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Adjusted Net Income (2) |
$846,000
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$608,000
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$5,641,000
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$2,539,000
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Adjusted Funds From Operations (2) |
$1,715,000
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$968,000
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$6,081,000
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$3,485,000
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Net Income (Loss) - Per Share
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($0.10)
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$0.01
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($0.19)
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$0.03
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Adjusted Net Income - Per Share (2) |
$0.02
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$0.03
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$0.20
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$0.14
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Shares Outstanding (3) |
34,696,264
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18,237,404
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27,731,820
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18,240,004
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Notes:
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(1)
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Net Income includes several Non-Recurring and Non-Cash items, including
a significant LTIP accrual as mandated by IFRS. Please see MD&A for
additional detail.
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(2)
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Tricon measures the success of its business by employing several key
performance indicators which are not recognized under IFRS, including
AUM, Adjusted Base EBITDA, Adjusted EBITDA, Adjusted Net Income and
Adjusted Funds From Operations. These indicators should not be
considered an alternative to IFRS financial measures such as Net
Income. Non-IFRS financial measures do not have standardized
definitions prescribed by IFRS and are therefore unlikely to be
comparable with other issuers or companies. Refer to our MD&A for a
reconciliation of the Non-IFRS measures to the closest comparable IFRS
measures.
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(3)
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Weighted average common shares outstanding are shown for all periods.
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Conference Call and Webcast
Management will host a conference call at 10 a.m. ET on March 13, 2013,
to discuss the results. Please call 416-800-1066 or 1-866-212-4491. The
conference call will also be accessible via webcast at www.triconcapital.com (go to Investor Information - Events). A replay of the conference call
will be available until midnight March 22, 2013. To access the replay,
call 1-866-583-1035, followed by passcode 8166585#.
Forward-Looking Statements
This press release may contain forward-looking statements relating to
expected future events and financial and operating results and
projections of the Company, including statements regarding future
plans, objectives or economic performance that involve risks and
uncertainties. Forward-looking information and statements are based on
management's expectations, intentions and assumptions. If unknown risks
arise, or if any of the assumptions underlying the forward-looking
statements prove incorrect, actual results may differ materially from
management expectations as projected in such forward-looking
statements. Examples of such risks include, but are not limited to, the
risks disclosed in the Company's final long form prospectus dated May
14, 2010, the risks disclosed in the Company's final short form
prospectus dated April 24, 2012, the risks disclosed in the Company's
final short form prospectus dated July 23, 2012, the risks disclosed in
the Company's final short form prospectus dated November 27, 2012, the
risks disclosed in the Company's final short form prospectus dated
February 15, 2013 and the risks described in the Company's continuous
disclosure materials from time-to-time, as available on SEDAR at
www.sedar.com. The Company disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, unless required by
applicable law.
About Tricon Capital Group Inc.
Founded in 1988, Tricon is one of North America's leading residential
real estate investment companies with approximately $1.1 billion of
third-party assets under management and a portfolio of approximately
1,700 U.S. single-family rental homes. Tricon provides financing to
local operators or developers in select markets in the United States
and Canada, with a primary focus on for-sale housing in growing
markets. Since inception, Tricon has invested in approximately 150
transactions for development projects valued at more than $10 billion.
More information about Tricon is available at www.triconcapital.com.
SOURCE: Tricon Capital Group Inc.
