Firm Capital Property Trust Announces Fourth Quarter Results and $8.24/Unit NAV
10 Mars 2022 - 11:07PM
Firm Capital Property Trust (“
FCPT” or the
“
Trust”), (TSX: FCD.UN) is pleased to report its
financial results for the year ended December 31, 2021.
PROPERTY PORTFOLIO HIGHLIGHTS
The portfolio consists of 65 commercial properties with a total
gross leasable area (“GLA”) of 2,420,168 square feet, four
multi-residential complexes comprised of 464 units and two
Manufactured Home Community comprised of 423 units. The portfolio
is well diversified and defensive in terms of geographies and
property asset types, with 57% of NOI (43% of asset value)
comprised of grocery anchored retail followed by industrial at 23%
of NOI (30% of asset value).
TENANT DIVERSIFICATION The
portfolio is well diversified by tenant profile with no tenant
currently accounting for more than 12.2% of total net rent.
Further, the top 10 tenants are comprised of large national tenants
and account for 32.6% of total net rent.
FOURTH QUARTER AND 2021
HIGHLIGHTS
- Net income for the three months
ended December 31, 2021 was approximately $6.6 million, in
comparison to the $13.4 million net income for the three months
ended December 31, 2020. Excluding fair value adjustments, net
income for the three months ended December 31, 2021 was
approximately $4.3 million, a 10% increase over the $3.9 million
reported for the three months ended December 31, 2020.
- Net income for the year ended
December 31, 2021 was approximately $58.4 million, a 269% increase
in comparison to the $15.8 million in net income reported for the
year ended December 31, 2020. Excluding fair value adjustments, net
income was approximately $14.8 million, a 7% decrease over the
$16.0 million reported for the year ended December 31, 2020;
- $8.24 Net Asset Value
(“NAV”) per Unit, a 0.4% increase in comparison to
the $8.21 NAV per unit reported in Q3/2021;
- Net Operating Income
(“NOI”) for the three months ended December 31,
2021 was approximately $7.9 million, an 11% increase in comparison
to the $7.1 million reported for the three months ended December
31, 2020. NOI for the year ended December 31, 2021 was
approximately $30.2 million, a 6% increase over the $28.5 million
reported for the year ended December 31, 2020;
- On a cash basis (“Cash
NOI”) for the three months ended December 31, 2021 was
approximately $7.8 million, a 11% increase compared to the $7.0
million reported for the three months ended December 31, 2020. Cash
NOI for the year ended December 31, 2021 was approximately $29.9
million, a 6% increase over the $28.1 million for the year ended
December 31, 2020;
- Adjusted Funds From Operations
(“AFFO”) for the three months ended December 31,
2021 was approximately $3.9 million, a 15% increase over the $3.4
million reported for the three months ended December 31, 2020. AFFO
for the year ended December 31, 2021 was approximately $15.2
million, a 4% increase over the $14.6 million reported for the year
ended December 31, 2020. Including gains on sales, AFFO was $24.8
million for the year ended December 31, 2021;
- AFFO per Unit was $0.114 for the
three months ended December 31, 2021 and $0.477 for the year ended
December 31, 2021, in comparison to the $0.115 per Unit reported
for the three months ended December 31, 2020 and the $0.486 per
Unit reported for the year ended December 31, 2020. Including gains
on sales, AFFO per Unit was $0.776 for the year ended December 31,
2021;
- AFFO Payout Ratio was 112% for the
three months ended December 31, 2021 and 107% for the year ended
December 31, 2021, compared to the 109% for the three months ended
December 31, 2020 and 103% for the year ended December 31, 2020.
Including gains on sales, AFFO Payout Ratio was 66% for the year
ended December 31, 2021;
- Commercial occupancy was 95.9%,
Multi-Residential occupancy was 93.6% while Manufactured Homes
Communities was 99.1%; and
- Conservative leverage profile with Debt / Gross Book Value
(“GBV”) at 45.9%.
|
|
|
% Change Over |
|
Three Months |
Twelve Months Ended |
Three Months |
TwelveMonthsEnded |
|
Dec 31, 2021 |
Sep 30, 2021 |
Dec 31, 2020 |
Dec 31, 2021 |
Dec 31, 2020 |
Sep 30, 2021 |
Dec 31, 2020 |
Dec 31, 2020 |
Rental Revenue |
$
11,954,312 |
$
11,861,170 |
$
10,990,587 |
$
46,430,420 |
$
44,536,342 |
1% |
9% |
4% |
NOI |
|
|
|
|
|
|
|
|
-
IFRS Basis |
7,898,791 |
8,055,672 |
7,087,092 |
30,215,936 |
28,536,608 |
(2%) |
11% |
6% |
-
Cash Basis |
7,756,945 |
8,012,051 |
7,000,818 |
29,874,111 |
28,143,252 |
(3%) |
11% |
6% |
Net
Income |
6,566,305 |
9,826,281 |
13,419,177 |
58,387,894 |
15,831,127 |
(33%) |
(51%) |
269% |
|
|
|
|
|
|
|
|
|
FFO |
3,134,372 |
5,162,097 |
3,268,721 |
14,767,066 |
16,413,435 |
(39%) |
(4%) |
(10%) |
AFFO |
3,869,233 |
4,331,519 |
3,375,880 |
15,224,751 |
14,601,418 |
(11%) |
15% |
4% |
|
|
|
|
|
|
|
|
|
FFO
Per Unit |
0.092 |
0.152 |
0.111 |
0.462 |
0.547 |
(39%) |
(17%) |
(15%) |
AFFO
Per Unit |
0.114 |
0.128 |
0.115 |
0.477 |
0.486 |
(11%) |
(1%) |
(2%) |
|
|
|
|
|
|
|
|
|
Distributions Per Unit |
0.128 |
0.128 |
0.125 |
0.510 |
0.500 |
(0%) |
2% |
2% |
|
|
|
|
|
|
|
|
|
FFO
Payout Ratio |
138% |
84% |
112% |
110% |
91% |
|
|
|
AFFO
Payout Ratio |
112% |
100% |
109% |
107% |
103% |
|
|
|
|
|
|
% Change Over |
|
Three Months |
Twelve Months Ended |
Three Months |
TwelveMonthsEnded |
Including Gain on Sale from Real Estate
Properties: |
Dec 31, 2021 |
Sep 30, 2021 |
Dec 31, 2020 |
Dec 31, 2021 |
Dec 31, 2020 |
Sep 30, 2021 |
Dec 31, 2020 |
Dec 31, 2020 |
|
|
|
|
|
|
|
|
|
FFO |
$ |
2,783,212 |
|
$ |
8,281,285 |
|
$ |
3,268,721 |
|
$ |
24,322,675 |
|
$ |
16,413,435 |
|
(66%) |
|
(15%) |
|
48% |
|
AFFO |
|
3,518,073 |
|
|
7,450,708 |
|
|
3,375,880 |
|
|
24,780,360 |
|
|
14,601,418 |
|
(53%) |
|
4% |
|
70% |
|
|
|
|
|
|
|
|
|
|
FFO/Unit |
|
0.082 |
|
|
0.244 |
|
|
0.111 |
|
|
0.761 |
|
|
0.547 |
|
(66%) |
|
(26%) |
|
39% |
|
AFFO/Unit |
|
0.103 |
|
|
0.219 |
|
|
0.115 |
|
|
0.776 |
|
|
0.486 |
|
(53%) |
|
(10%) |
|
59% |
|
|
|
|
|
|
|
|
|
|
FFO
Payout Ratio |
|
156% |
|
|
52% |
|
|
112% |
|
|
67% |
|
|
91% |
|
|
|
|
AFFO
Payout Ratio |
|
123% |
|
|
58% |
|
|
109% |
|
|
66% |
|
|
103% |
|
|
|
|
2021 FINANCIAL AND TRANSACTIONAL
HIGHLIGHTS
- Ninth Consecutive
Distribution Increase. +2% Increase in Monthly Distributions
Commencing in 2022: The Trust announced that its Board of
Trustees approved a 2% increase in its monthly distributions to
$0.0433 per Trust Unit from $0.0425 per Trust Unit commencing in
2022. On an annualized basis, this equates to annual distributions
of $0.52 per Unit, up from $0.51 per Unit. This was the Trust’s
ninth distribution increase in nine years and represents a
cumulative increase of 48.6% since the Trust’s inception in 2012;
- 75% Return of Capital for
2021 Distributions: The Trust is pleased to report that
distributions for 2021 were 75% Return of Capital;
- +8% NAV Growth since the
Beginning of 2021: The Trust is pleased to report another
quarter of NAV growth, with NAV at $8.24 per Unit, a 0.4% increase
over Q3/2021 and a 8% increase since the beginning of 2021;
- $28 Million of Capital
Recycling: For the year ended December 31, 2021 the Trust
completed the sale of twelve retail properties from the Centre Ice
Portfolio with gross proceeds of approximately $21.9 million. In
addition, the Trust also completed the sale of it’s 100% whole owed
commercial retail centre in Hanover, Ontario for gross proceeds of
approximately $6.0 million;
- $164 Million in Acquisitions: During the year
the Trust was involved with $164 million of acquisitions or $124
million on a pro-rata basis:
- On March 16, 2021, the Trust closed
the acquisition of a 50% interest in a 181 site Manufactured
Housing Community named Mountview Mobile Home Park
(“Mountview”) located in Calgary, Alberta. The
acquisition price for 100% of Mountview was $16.9 million
(excluding transaction costs). The acquisition price for the
Trust’s portion was $8.5 million. On April 30, 2021, Mountview was
financed with a $11.3 million first mortgage with a Canadian
Chartered Bank. The interest only mortgage carries a 2.5% interest
rate and a 1 year term. The Trust's portion of the mortgage was
approximately $5.7 million;
- On May 3, 2021, the Trust closed
the acquisition of a 70% interest in 128 units in two
multi-residential buildings (the “Edmonton
Properties”). The acquisition price for 100% of the
Edmonton Properties was $25.0 million (excluding transaction
costs). The acquisition price for the Trust’s portion was $17.5
million (excluding transaction costs). The Edmonton Properties were
financed with a new $17.0 million mortgage (the Trust’s pro-rata
share was approximately $11.9 million) with a Canadian Chartered
Bank for an interest rate of approximately 2.5%, term of five years
and a 30 year amortization;
- On May 5, 2021, the Trust closed
the acquisition of a 70% interest in 132 units in three
multi-residential buildings (the “Lower Sackville
Properties”). The acquisition price for 100% of the Lower
Sackville Properties was $18.0 million (excluding transaction
costs). The acquisition price for the Trust’s portion was $12.6
million (excluding transaction costs). The Lower Sackville
Properties were financed with a new $13.7 million mortgage (the
Trust’s pro-rata share was approximately $9.6 million) with a
Canadian Chartered Bank for an interest rate of approximately 2.4%,
term of five years and a 30 year amortization;
- On August 4, 2021, the Trust closed
the acquisition of a 50% interest in a 242 condominium unit
Manufactured Housing Community named Hidden Creek Condominium
(“Hidden Creek”) located in McGregor, Ontario. The
acquisition price for 100% of Hidden Creek was approximately $10.7
million (excluding transaction costs). The acquisition price for
the Trust’s portion was $5.4 million;
- On September 28, 2021, the Trust
completed the acquisition of a 40% interest in a 11,246 square foot
single tenant retail property located in Toronto, Ontario. The
acquisition price for the property is approximately $23.8 million
(excluding transaction costs). The Trust's portion of the
acquisition price is approximately $9.5 million. The property is
100% occupied by Rexall;
- On November 3, 2021, the Trust
announced the acquisition of a multi-residential building
consisting of 135 units located in Pointe Claire, Quebec (the
“Montreal Property”). The acquisition price for
the Montreal Property is approximately $55.0 million (excluding
transaction costs). The Montreal Property will be financed with a
new first mortgage and the Trust’s existing cash resources
(including the Trust’s credit facilities). Closing of the Montreal
Property occurred on February 14, 2022.
- On December 7, 2021, the Trust
completed the acquisition of three industrial properties. One of
the properties is located in Woodstock, Ontario and two are located
in Stratford, Ontario (the
“Portfolio”). The acquisition
price for the Portfolio was $15.0 million, (excluding transaction
costs). The Portfolio is 100% occupied and is being acquired from
the tenant as part of a sale leaseback. Subsequently, on January
20, 2022, the Trust closed a $9.8 million first mortgage with a
Canadian Chartered Bank for the Portfolio. Terms of the mortgage
are a 3.95% interest rate and a 10 year amortization due June 10,
2032.
- $29 Million Public Equity
Offering: On June 8, 2021, the Trust completed a public
equity offering of Trust Units. 4,107,800 Trust Units were issued
at a price of $7.00 per Trust Unit for gross proceeds of
approximately $28.8 million ($27.1 million, net of closing
costs).
2022 FINANCIAL AND TRANSACTIONAL
HIGHLIGHTS
- $250 Million Short Form
Base Shelf Prospectus Filing: On January 11, 2022, the
Trust filed a final short form base shelf prospectus with the
securities regulatory authorities in all provinces and territories
of Canada that allows the Trust to offer and issue up to $250
million of trust units, debt securities, subscription receipts,
warrants or units, or any combination of such securities, over a
25-month period;
- $6.3 Million Quebec
Industrial Acquisition: On February 7, 2022, the Trust
entered into an agreement to acquire a 50% interest in a
multi-tenant industrial property located in Saint Laurent, QC. The
acquisition price for 100% of the property is approximately $6.3
million, excluding transaction costs. The Trust’s pro-rata portion
of the transaction is $3.2 million, excluding transaction costs;
- $36.5 Million Edmonton
Industrial Portfolio Acquisition: On March 8, 2022, the
Trust announced the acquisition of a 50% interest in six
multi-tenant industrial properties located in Edmonton, Alberta
(the “Edmonton Industrial
Portfolio”). The acquisition price for 100% of the
Edmonton Industrial Portfolio is approximately $36.5 million,
excluding transaction costs. The acquisition of the Edmonton
Industrial Portfolio will be financed, in part, with a new $23.7
million first mortgage from a Canadian Chartered Bank. Closing of
the Edmonton Industrial Portfolio is anticipated during the second
quarter of 2022;
- Toronto Stock Exchange
(“TSX”) Graduation and Listed: On March 10, 2022, the
Trust graduated to the TSX its Trust Units under the trading symbol
“FCD.UN”; and
- Distribution
Declaration: On March 10, 2022, the Trust declared and
approved monthly distributions in the amount of $0.0433 per Trust
Unit for Unitholders of record on April 28, 2022, May 31, 2022 and
June 30, 2022, payable on or about May 16, 2022, June 15, 2022 and
July 15, 2022, respectively.
For the complete financial statements,
Management’s Discussion & Analysis and supplementary
information, please visit www.sedar.com or the Trust’s website at
www.firmcapital.com
DISTRIBUTION REINVESTMENT PLAN &
UNIT PURCHASE PLAN The Trust has in place a Distribution
Reinvestment Plan (“DRIP”) and Unit Purchase Plan
(the “UPP”). 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
UPP, 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 UPP to
date and own approximately 8% 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 own as well as 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 sources, syndicates and property and asset
manages investments on behalf of the Trust.
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. 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.
Certain financial information presented in this
press release reflect certain non- International Financial
Reporting Standards (“IFRS”) financial measures, which include NOI,
FFO and AFFO. These measures are commonly used by real estate
investment entities as useful metrics for measuring performance and
cash flows, however, they do not have standardized meaning
prescribed by IFRS and are not necessarily comparable to similar
measures presented by other real estate investment entities. These
terms are defined in the Trust’s Management Discussion and Analysis
(“MD&A”) for the year ended December 31, 2021, as filed on
www.sedar.com.
For further information, please contact: |
|
|
Robert McKee |
Sandy Poklar |
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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