Firm Capital American Realty Partners Trust Continues 2019 Momentum With Solid Start to 2020 and Announces April/May Rent Col...
May 19 2020 - 7:00AM
Firm Capital American Realty Partners Trust (“the
“
Trust”), (TSXV: FCA.U), (TSXV: FCA.UN) is pleased
to report its financial results for the three months ended March
31, 2020 as well as April and May rent collections.
APRIL AND MAY RENT COLLECTIONS
- As of May 19, 2020, the Trust has
collected 93% and 71% of April and May rents, respectively and is
actively either collecting the remaining rent or working with
tenants who require assistance.
FIRST QUARTER HIGHLIGHTS
- For the three months ended March
31, 2020, net income was approximately $1.1 million, in comparison
to the $1.7 million reported for the three months ended March 31,
2019;
- For the three months ended March
31, 2020, AFFO was approximately $0.5 million, largely in line with
the $0.5 million reported for the three months ended March 31,
2019; and
- $8.95 Net Asset Value
(“NAV”) per Unit, in comparison to the $9.39 NAV
per Unit as reported at December 31, 2019.
- Results for the three months ended
March 31, 2020 are as follows:
|
|
|
|
Three Months Ended |
|
|
March 31, 2020 |
December 31, 2019 |
March 31, 2019 |
|
Net Income |
$ |
1,111,310 |
$ |
3,514,541 |
$ |
1,744,195 |
|
FFO |
$ |
1,918,861 |
$ |
8,612 |
$ |
436,793 |
|
AFFO |
$ |
480,775 |
$ |
202,343 |
$ |
500,950 |
|
Distributions |
$ |
503,151 |
$ |
409,183 |
$ |
409,183 |
|
FFO
Per Unit |
$ |
0.26 |
$ |
- |
$ |
0.06 |
|
AFFO
Per Unit |
$ |
0.07 |
$ |
0.03 |
$ |
0.07 |
|
Distributions Per Unit |
$ |
0.06 |
$ |
0.06 |
$ |
0.06 |
|
|
|
|
|
|
|
|
|
- Increased NAV by a +9% CAGR
to $8.95 Per Unit: Since Q3/2017, the Trust has increased
NAV from $7.85 per Unit to $8.95 per Unit for a +9% Compounded
Annual Growth Rate (“CAGR”) through a combination
of accretive investments, debt reduction, new capital and other
value-creation initiatives that have ultimately generated higher
earnings for the Trust;
- $27.9 Million Houston, TX
Acquisition: On January 31, 2020, the Trust closed an
equity accounted and preferred investment to acquire the Woodglen
Village, a 250-unit multi-family residential portfolio located in
Houston, TX (the “Woodglen Acquisition”). The
purchase price for 100% of the Woodglen Acquisition was $27.9
million (including transaction costs). The Woodglen Acquisition was
financed, in part with a $22.1 million, 4.6% first mortgage due on
January 30, 2024. The Trust contributed $3.6 million (100%
ownership) of preferred equity yielding 9% and $1.4 million of
common equity representing a 50% ownership stake in the
investment;
- $12.8 Million Equity
Financing: On March 13, 2020, the Trust closed a marketed
offering of 1,590,000 Trust Units at a price of $8.20 (CAD $10.90
per unit based on the Bank of Canada daily noon rate of exchange of
$1.3745). The Trust raised total gross proceeds of approximately
$12.6 million;
- Successful Conversion into
Real Estate Investment Trust: Effective January 1, 2020,
the Trust completed its plan of arrangement to convert into a Real
Estate Investment Trust and commenced operating under the name Firm
Capital American Realty Partners Trust. The units of the Trust
began trading on TSXV on January 8, 2020, under symbols FCA.U and
FCA.UN. Under the terms of the Arrangement, each outstanding common
unit of the Trust was exchanged for one unit of the Trust.
- New Independent
Trustee: On February 12, 2020, the Trust announced the
appointment of Ms. Valentina Kalyk to the Board of Trustees. Ms.
Kalyk brings over 20 years of capital markets experience. Until her
recent retirement, she spent 15 years with Canaccord Genuity where
she was a Managing Director in the Real Estate Capital
Markets.
- Normal Course Issuer
Bid: On April 28, 2020, the Trust received approval from
the TSX Venture Exchange to commence a Normal Course Issuer Bid or
NCIB to purchase up to 645,442 of its own Trust Units.
Subsequently, the Trust purchased 65,400 Trust Units costing
approximately $0.3 million; and
- Distributions: The
Trust declared and approved quarterly distributions of $0.059 per
unit for unitholders on record on June 30, 2020 payable on or about
July 15, 2020.
For the complete financial statements including
Management’s Discussion & Analysis, please visit www.sedar.com
or the Trust’s website at www.firmcapital.com
ABOUT FIRM CAPITAL AMERICAN REALTY
PARTNERS TRUST
Firm Capital American Realty Partners Trust (the
“Trust”) is a U.S. focused real estate investment
entity that pursues real estate and debt investments through the
following platforms:
- Income Producing Real
Estate Investments:
-
- Core Markets Wholly Owned
Investments: The Trust is focused on growing its wholly
owned multi-residential property portfolio in large core markets
with attention to cities located in Texas, Florida, New Jersey,
North and South Carolina, Colorado, Georgia and New York.
- Core and Non-Core Markets:
Joint Venture Investments: The Trust will also purchase in
both core and non-core markets where it lacks knowledge or
experience, partial ownership interests in multi-residential
properties with industry leaders as partners. These partners bring
both expertise in operations and knowledge, especially in non-core
markets. The Trust strives to have a minimum 50% ownership interest
and will fund the equity in a combined preferred/common equity
investment structure. The preferred equity provides a fixed rate of
return for investors in the Trust, resulting in a secured structure
ahead of the partners ownership interest, while the common equity
provides investors an upside return for investors as the investment
meets its targeted objectives.
- Mortgage Debt
Investments: The Trust, using Firm Capital’s 30-year plus
experience as a leader in the mortgage lending industry, provides
bridge lending of mortgage and preferred capital secured by
residential/multi-residential properties.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
Certain information in this news release
constitutes forward-looking statements under applicable securities
law. Any statements that are contained in this news release that
are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate",
"expect", "intend" and similar expressions.
Forward-looking statements necessarily involve
known and unknown risks, including, without limitation, risks
associated with general economic conditions; adverse factors
affecting the U.S. real estate market generally or those specific
markets in which the Trust holds properties; volatility of real
estate prices; inability to access sufficient capital from internal
and external sources, and/or inability to access sufficient capital
on favourable terms; industry and government regulation; changes in
legislation, income tax and regulatory matters; the ability of the
Trust to implement its business strategies; competition; currency
and interest rate fluctuations and other risks. Additional risk
factors that may impact the Trust or cause actual results and
performance to differ from the forward looking statements contained
herein are set forth in the Trust's Annual Information form under
the heading Risk Factors (a copy of which can be obtained under the
Trust's profile on www.sedar.com).
Readers are cautioned that the foregoing list is
not exhaustive. Readers are further cautioned not to place undue
reliance on forward-looking statements as there can be no assurance
that the plans, intentions or expectations upon which they are
placed will occur. Such information, although considered reasonable
by management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. Except as
required by applicable law, the Trust undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise
Certain financial information presented in this
press release reflect certain non-International Financial Reporting
Standards (“IFRS”) financial measures, which
include, but not limited to NOI, FFO and AFFO. These measures are
commonly used by real estate investment companies as useful metrics
for measuring performance, however, they do not have standardized
meaning prescribed by IFRS and are not necessarily comparable to
similar measures presented by other real estate investment
companies. These terms are defined in the Trust’s Management
Discussion and Analysis for the three months ended March 31, 2020
filed on www.sedar.com.
Neither the Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For further information, please contact:
Eli DadouchPresident & Chief Executive
Officer(416) 635-0221
Sandy PoklarChief Financial Officer(416)
635-0221
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