Firm Capital Apartment REIT Reports Q2/2021 Results, USD $9.45 (CAD $11.71) NAV Per Unit and Strategic Direction Update
August 16 2021 - 4:01PM
Firm Capital Apartment Real Estate Investment Trust (“the
“
Trust”), (TSXV: FCA.U), (TSXV: FCA.UN) is pleased
to report its financial results for the three months ended June 30,
2021:
EARNINGS
- For the three months ended June 30,
2021, net income was approximately $0.8 million, in comparison to
the $2.9 million net loss reported for the three months ended March
31, 2021, and the $1.4 million net income reported for the three
months ended June 30, 2020. For the six months ended June 30, 2021,
net loss was $2.2 million, in comparison to the $2.5 million net
income reported for the six months ended June 30, 2020.
- Excluding non-cash fair value
adjustments, net income was $0.6 million for the three months ended
June 30, 2021, a 27% increase over the $0.5 million reported for
the three months ended March 31, 2021 and June 30, 2020. Excluding
non-cash fair value adjustments, net income was $1.1 million for
the six months ended June 30, 2021, a 15% increase over the $1.0
million reported for the six months ended June 30, 2020;
- For the three months ended June 30,
2021, AFFO was approximately $0.6 million, in line with the $0.5
million reported for the three months ended March 31, 2020 and $0.5
million reported for the three months ended June 30, 2020. For the
six months ended June 30, 2021, AFFO was $1.1 million, a 15%
increase over the $0.9 million reported for the six months ended
June 30, 2020;
Results for the three months ended June 30, 2021
are as follows:
|
Three Months Ended |
|
Six Months Ended |
|
Jun 30, 2021 |
|
Mar 31, 2021 |
|
Jun 30, 2020 |
|
|
Jun 30, 2021 |
|
June 30, 2021 |
|
Net Income/(Loss) |
$ |
753,511 |
|
$ |
(2,945,917 |
) |
$ |
1,404,620 |
|
|
$ |
(2,192,406 |
) |
$ |
2,515,932 |
|
FFO |
$ |
(393,047 |
) |
$ |
(2,114,359 |
) |
$ |
1,630,223 |
|
|
$ |
(2,507,407 |
) |
$ |
3,549,089 |
|
AFFO |
$ |
585,498 |
|
$ |
507,952 |
|
$ |
465,085 |
|
|
$ |
1,093,450 |
|
$ |
945,861 |
|
Distributions |
$ |
452,624 |
|
$ |
455,166 |
|
$ |
498,265 |
|
|
$ |
907,790 |
|
$ |
1,001,416 |
|
AFFO
Per Unit |
$ |
0.08 |
|
$ |
0.07 |
|
$ |
0.06 |
|
|
$ |
0.14 |
|
$ |
0.14 |
|
Distributions Per Unit |
$ |
0.06 |
|
$ |
0.06 |
|
$ |
0.06 |
|
|
$ |
0.12 |
|
$ |
0.12 |
|
AFFO
Payout Ratio |
|
77 |
% |
|
90 |
% |
|
107 |
% |
|
|
83 |
% |
|
106 |
% |
|
|
|
|
|
|
|
-
92% RENT
COLLECTIONS AND 3%
INCREASE IN AVERAGE RENTS: Since COVID-19 began in March
2020, the Trust has received approximately 92% of its expected rent
and is actively either collecting the remaining rent or working
with tenants who require assistance. In addition, the Trust’s
monthly average rents have increased by 3% over the same
period;
- INCREASED NAV BY 11% CAGR
TO $9.45 (CAD $11.71) PER TRUST UNIT: Since Q3/2017, the
Trust has increased NAV from $7.85 (CAD $9.80) per Trust Unit to
$9.45 (CAD $11.71) per Trust Unit for a +11% Compounded Annual
Growth Rate (“CAGR”);
- NORMAL COURSE ISSUER
BID:On June 14, 2021, The Trust received approval from the
TSXV to commence a Normal Course Issuer Bid (“NCIB”) to purchase up
to 619,750 of Trust Units, being equal to 10% of the public float.
The NCIB commenced on June 16, 2021 and will end on the earlier of
June 15, 2022, or at such time as the NCIB has been completed.
Subsequent to the commencement, the Trust purchased 110,300 Trust
Units costing approximately $0.7 million; and
- DISTRIBUTIONS:On
August 16, 2021, the Trust declared and approved quarterly
distributions of $0.059 per unit for unitholders on record on
September 30, 2021 payable on or about October 15, 2021.
For the complete financial statements including
Management’s Discussion & Analysis, please visit www.sedar.com
or the Trust’s website at www.firmcapital.com
STRATEGIC DIRECTION
Firm Capital Apartment REIT’s strategy is to
increase unitholder value and create sustainable and growing
distributions through acquisition, ownership, and preferred capital
investment in US Multi-Family Apartments. The REIT’s primary
objective is to use the proven industry experience of management,
board of trustees, and joint venture partners to acquire, and
invest capital, in a portfolio of apartments to grow Net Asset
Value per Unit and generate attractive total unitholder returns,
while maintaining a conservative balance sheet.
The REIT’s portfolio consists of (i) joint
venture and wholly owned apartments; and (ii) preferred capital
investments.
The REIT has successfully utilized a joint
venture strategy with partners who bring strong, local expertise in
its core markets. The joint venture strategy de-risks the
REIT’s investment. We have the privilege, based on where the market
place is, to shift between buying wholly owned apartments and
formulating joint venture ownerships with strong industry partners
who seek out solid investments in their specialized markets, giving
us the opportunity to benefit from their expertise.
Preferred capital investments continue to
provide attractive, risk adjusted returns for the REIT.
Preferred capital ranks ahead of common shares, and behind first
mortgage debt in the capital structure of a real estate investment.
These types of investments typically generate a higher yield and an
overall better risk-adjusted return for the REIT than the
underlying real estate when real estate valuations are at a
premium. In the near term, the REIT expects to continue to increase
this investment class.
Over the medium to long term, the REIT’s target
is a portfolio mix of 50/50 wholly owned vs. joint venture partner
ownership, while continuing to grow its Preferred Capital
investments that provide enhanced returns secured by asset classes
we own.
The REIT will opportunistically acquire wholly
owned assets on an accretive basis and when the REIT’s cost of
equity is compelling. Any growth of the scale as outlined above
will require the REIT to raise additional capital through either
the private and/or public debt and equity capital markets.
ABOUT FIRM CAPITAL APARTMENT REAL ESTATE
INVESTMENT TRUST
Firm Capital Apartment Real Estate Investment
Trust is a U.S. focused real estate investment trust that pursues
multi-residential income producing real estate and related debt
investments on both a wholly owned and joint venture basis. The
Trust has ownership interests in a total of 1,846 apartment units
diversely located in Florida, Connecticut, Texas, New York, New
Jersey, Georgia and Maryland.
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 June 30, 2021
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: |
Sandy
Poklar |
Mark
Goldreich |
President & Chief Executive Officer |
Chief Financial Officer |
(416) 635-0221 |
(416) 635-0221 |
|
|
For Investor Relations information, please
contact: |
Victoria Moayedi |
|
Director, Investor Relations |
|
(416) 635-0221 |
|
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