TORONTO, March 19, 2014 /CNW/ - Firm Capital Property Trust ("FCPT" or the "Trust"), (TSXV : FCD.UN) reported today its consolidated financial results
for the three and twelve months ended December 31, 2013.
FOURTH QUARTER HIGHLIGHTS
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Stabilized FFO and AFFO of $0.585 million and $0.598 million. Stabilized
AFFO is a 6% increase over Q3/2013;
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Stabilized FFO and AFFO per Unit of $0.104 and $0.106 per Unit;
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Stabilized FFO and AFFO payout ratios of 86% and 84%;
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Rental revenue of $2.3 million, which is a 51% increase over the $1.5
million generated during Q3/2013;
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Strong 92.2% occupancy;
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Net rent per square foot increased by 1.2% to $7.72 per square foot over
Q3/2013;
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Net Operating Income ("NOI") of $1.3 million, which is a 23% increase over the $1.0 million
generated during Q3/2013;
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Net Income of $1.1 million, which includes a $0.45 million and $0.027
million net fair value adjustment for the real estate portfolio and
marketable securities, respectively; and
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Announced 5.7% increase in monthly distributions to $0.030833 per Unit
($0.37 per Unit annualized)
YEAR END HIGHLIGHTS
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Stabilized FFO and AFFO of $2.0 million and $1.9 million;
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Stabilized FFO and AFFO per Unit of $0.403 and $0.387 per Unit;
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Stabilized FFO and AFFO payout ratios of 87% and 91%, well below the
110% and 116% recorded during Q1/2013;
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Rental revenue of $5.5 million and NOI of $3.5 million vs. $0.288
million and $0.189 million reported for the period ended December 31,
2012, respectively;
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Net Income of $3.8 million, which includes a $1.7 million and $0.050
million net fair value adjustment for the real estate portfolio and
marketable securities, respectively;
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Increased the asset base by 124% since the beginning of 2013 to $61.5
million from $27.4 million, while keeping leverage at a conservative
49.5% debt / gross book value;
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Increased the investment portfolio from four properties at the beginning
of 2013 to 30 by the end of 2013;
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Acquired our first core service provider professional building in
Barrie, ON and our first 50% interest in an industrial portfolio
located in Montreal, QC for a total of $31.3 million (including
transaction costs and working capital adjustments);
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Sold ISG Capital Corporation for a $50,000 gain, while also receiving
$66,140 in income prior to the disposition;
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Raised approximately $6.4 million of trust units at $5.10 per Unit
through a non-brokered private placement; and
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Implemented Distribution Reinvestment Plan ("DRIP") and Unit Purchase Plan
FINANCIAL HIGHLIGHTS
Rental revenue for the three and twelve months ended December 31, 2013
was $2,265,159 and $5,514,133, respectively. NOI for the three and
twelve months ended December 31, 2013 was $1,266,373 and $3,459,742
respectively.
For the three months ended December, 2013, Stabilized FFO per Unit was
$0.104 while AFFO per Unit was $0.106. FFO and AFFO payout ratios are
86% and 84%, respectively.
For the twelve months ended December 31, 2013, Stabilized FFO per Unit
was $0.403 while Stabilized AFFO per Unit was $0.387. Stabilized FFO
and AFFO payout ratios are 87% and 91%, respectively. Stabilized FFO
and AFFO per Unit exclude income and the gain on sale received ISG
Capital Corporation, which is non-recurring in nature.
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Q4/2013
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Q3/2013
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4Q/2013
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Rental Revenue
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$
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2,265,159
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$
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1,504,844
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$
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5,514,133
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Net Operating Income (NOI)
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$
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1,266,373
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$
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1,029,246
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$
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3,459,742
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EBITDA
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$
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923,818
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$
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882,890
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$
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2,865,699
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Net Income & Comprehensive Income
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$
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1,057,578
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$
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1,144,667
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$
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3,822,015
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Stabilized Funds From Operations (FFO)
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$
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585,254
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$
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590,086
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$
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1,971,400
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Stabilized Adjusted Funds From Operations (AFFO)
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$
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597,546
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$
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561,158
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$
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1,893,724
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FFO Per Unit
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$
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0.104
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$
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0.113
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$
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0.403
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AFFO Per Unit
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$
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0.106
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$
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0.108
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$
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0.387
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Distributions Per Unit
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$
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0.089
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$
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0.088
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$
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0.352
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FFO Payout Ratio
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86%
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78%
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87%
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AFFO Payout Ratio
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84%
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81%
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91%
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Q vs. Q Growth
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- Revenue Growth (%)
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51%
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- NOI Growth (%)
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23%
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- AFFO Growth (%)
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6%
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Occupancy by Property Type
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Net Lease Convenience Retail
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96.5%
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96.5%
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Core Service Provider Office
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98.7%
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99.4%
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Industrial Portfolio
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90.8%
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93.4%
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Total Occupancy
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92.2%
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94.3%
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Net Rent PSF by Property Type
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Net Lease Convenience Retail
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$
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19.09
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$
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19.09
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Core Service Provider Office
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$
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13.91
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$
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13.84
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Industrial Portfolio
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$
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4.50
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$
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4.48
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Weighted Average Net Rent PSF
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$
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7.72
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$
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7.63
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PROPERTY PORTFOLIO HIGHLIGHTS
The Trust's property portfolio consists of 30 properties with a total
Gross Leasable Area ("GLA") of 671,798 square feet (668,740 square feet of Net Leasable Area).
The portfolio is well diversified across geographies with 40% of the
NOI generated from Ontario, 44% from Quebec and 16% from Nova Scotia.
The portfolio is equally diversified across asset classes with 44% of
NOI generated from Net Lease Convenience Retail, 44% from Industrial
and 12% from Core Service Provider Office.
TENANT DIVERSIFICATION
The portfolio is well diversified by tenant profile with no tenant
accounting for more than 5.4% of total net rent. Further, the top 10
tenants are largely comprised of credit worthy and large national
tenants and account for 33.0% of total net rent and 21.1% of total NLA.
DURATION MATCHED DEBT & LEASE MATURITY PROFILE
The current portfolio has a weighted average lease term to maturity of
4.0 years, which is duration matched with mortgage debt with a weighted
average term to maturity of 4.6 years.
OCCUPANCY
For Q4/2013, occupancy was 92.2%, a slight decline over the 94.3%
reported at Q3/2013. The slight decline was largely the result of the
Montreal Industrial portfolio whose occupancy declined to 90.8% at
Q4/2013 from 93.4% at Q3/2013. Subsequent to Q4/2013, a 10 year lease
was entered into in the Montreal Industrial portfolio that's comprised
of 31,563 square feet of net leasable area (FCPT's pro-rate interest
equates to 15,782 square feet of net leasable area) which would bring
the overall occupancy of the entire investment portfolio to
approximately 93%. This new lease commences during Q2/2014.
NET RENTS
For Q4/2013, net rent per square foot increased by 1.2% to $7.72 per
square foot over Q3/2013. The increase is the result of FCPT's active
re-leasing program at both the Barrie medical office property and
Montreal Industrial portfolio where net rents per square foot increased
to $13.91 and $4.50 per square foot, respectively. Net rents for the
Net Lease Convenience Retail portfolio were unchanged at $19.09 per
square foot.
SUBSEQUENT CAPITAL RAISING ACTIVITY
On January 27, 2014 and February 7, 2014, the Trust closed the first and
second tranches of its previously announced private placement of Trust
Units. The gross proceeds raised by the Trust were approximately $7.3
million at a subscription price of $5.30 per Trust Unit.
DISTRIBUTIONS FOR APRIL, MAY AND JUNE 2014
The Trust is also pleased to announce monthly cash distributions of
$0.030833 per Trust unit for the months of April, May and June, 2014.
These distributions will be paid on or about May 15, 2014, June 16,
2014 and July 15, 2014 to unitholders of record at the close of
business on April 30, 2014; May 30, 2014; and June 30, 2014,
respectively.
The policy of FCPT is to pay cash distributions on or about the 15th day
of each month to Unitholders of record on the last business day of the
preceding month. Distributions paid to Unitholders who are
non-residents of Canada will be subject to Canadian withholding tax.
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 13% of
the issued and outstanding trust units of the Trust.
For the complete financial statements and Management's Discussion &
Analysis for the period, please visit www.sedar.com or the Trust's website at www.firmcapital.com
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