*All amounts stated in USD, unless otherwise
stated.
TORONTO, April 26, 2016 /CNW/ - Delavaco Residential
Properties Corp. ("Delavaco" or the "Company") (TSXV:
DVO.U) today announced its results for the fourth quarter and year
ended December 31, 2015.
FINANCIAL HIGHLIGHTS
- Funds From Operations ("FFO") for the quarter ended
December 31, 2015 improved by
$307,825 or 24% over the quarter
ended September 30, 2015 and improved
by $1,367,661 or 59% over the quarter
ended December 31, 2014;
- Adjusted Funds From Operations ("AFFO") for the quarter
ended December 31, 2015 improved by
$624,604 or 38% over the quarter
ended September 30, 2015 and improved
by $1,225,393 or 55% over the quarter
ended December 31, 2014;
- FFO per share for the quarter ended December 31, 2015 was $(0.02) per share, in line with September 30, 2015, but a 50% improvement over
the $(0.04) per share reported at
December 31, 2014;
- AFFO per share for the quarter ended December 31, 2015 was $(0.02) per share, a 33% improvement over the
$(0.03) per share reported as at
September 30, 2015, and a 50%
improvement over the $(0.04) per
share reported at December 31,
2014;
- FFO for the year ended December 31,
2015 improved by $1,819,092 or
23% over the year ended December 31,
2014;
- AFFO for the year ended December 31,
2015 improved by $1,007,473 or
14% over the year ended December 31,
2014;
- FFO per share for the year ended December 31, 2015 improved to $(0.11) per share, which is a 27% improvement
over the $(0.15) per share reported
at December 31, 2014; and
- AFFO per share for the year ended December 31, 2015 improved to $(0.10) per share, which is a 23% improvement
over the $(0.13) per share reported
at December 31, 2014.
PORTFOLIO HIGHLIGHTS
- Fair value of investment properties and assets held for sale as
at December 31, 2015, was
$81,020,716, of which $43,622,125 is the single-family portfolio and
$37,398,591 is the multi-family
portfolio;
- Aggregate portfolio occupancy as at December 31, 2015, was 64%. Single-family
portfolio occupancy was 49% while multi-family portfolio occupancy
was 97%;
- Average monthly rent for the aggregate portfolio was
$949. Single-family average rent was
$893 while average rent for the
multi-family portfolio was $1,067;
and
- Sold 113 single-family units located in Florida for an aggregate sale price of
approximately $7,366,329 for the year
ended.
CORPORATE HIGHLIGHTS
- On December 29, 2015, the Company
announced a transformative rebranding and revised business strategy
with Firm Capital Realty Partners Advisors Inc. and its affiliated
and/or associated entities (collectively "Firm Capital").
This included a new asset management agreement with Firm Capital, a
single family property disposition program, the restructuring of
the Company's debt structure and following completion of a certain
level of single family home sales and the achievement of specified
debt repayment milestones, the rebranding of the Company as
"Firm Capital American Realty Partners Corp.", along with a
new independent board and new business focus. The Company is
pleased to report that progress has been made on this
transformation and further updates will be provided in due course;
and
- During the course of the year, the Company repaid $7.5 million of its senior secured debt
facility.
SUBSEQUENT EVENTS
- From January 1, 2016, to
April 18, 2016, Delavaco sold 42
single-family units located in Florida for an aggregate sale price of
approximately $2.9 million. As such,
as of April 18, 2016, the Company had
106 remaining homes in Florida to
dispose, of which 30 properties are under contract for disposition
that should generate proceeds of approximately $2.6 million. Subsequent to these home sales, the
Company will be left with 76 homes to sell in Florida at which point it will turn its
attention to the Atlanta portfolio
and begin disposing of these assets;
- On February 18, 2016, Delavaco
completed a $2.5 million partial
redemption of its original $25
million 7.50% secured notes, leaving $15.0 million in principal remaining;
- On February 29, 2016, the
Company, with the approval of the convertible debenture holders,
agreed to convert 20% of the $21.6
million convertible debentures into common shares at a price
of $0.51 per common share for a total
of 8,411,764 common shares issued. This reduced the total amount
payable under the convertible debentures to $17,310,000. The Company also amended the terms
of the remaining convertible debenture such that the interest rate
was reduced from 7% to 5.5% for a period of 12 months, following
which the interest rate shall automatically revert back to 7% per
annum. The maturity date of the convertible debentures was amended
from July 31, 2018 to July 31, 2019;
- On March 10, 2016, the TSX
Venture Exchange ("TSXV") formally approved the appointment
of Firm Capital as asset manager under the asset management
agreement, the continuation of its previously announced single
family property disposition program; and the adoption of new
investment policies for the Company in line with its future
anticipated areas of business; and
- On April 26, 2016, the Company
received conditional approval to reduce the repayments on its
$15 million, 7.5% Senior Secured
Notes ("SSN") from $2.5
million per repayment to $100,000. The approval is conditional on certain
documentation being completed which is anticipated to occur no
later than the first week of May, 2016. The Company currently has
approximately $1.8 million held in
escrow from Florida home sales
that will be used to repay the SSN principal and accrued interest
over the short term, thus bringing the SSN balance down to
approximately $13.5 million.
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 in this news release
include, but are not limited to, statements regarding the
arrangements described above with Firm Capital, including the
property management arrangements, Single Family Property
Disposition Program and Debt Restructuring, which may not be
completed within the estimated time frames specified above or at
all. In the event that such steps are not completed to the
satisfaction of Firm Capital, the rebranding, Board
restructuring and new business focus described above will likely be
subject to amendment or may not proceed, which could have a
material adverse effect upon the Company. Failure to complete the
steps or any delays in their implementation may have a material
adverse affect upon the business of the Company and its market
value.. There is no assurance that the Company will be able to
complete the disposition of the Single Property Disposition
Portfolio at anticipated values or at all or that market conditions
will support the debt and equity raises contemplated by the
Company. Failure to achieve these objectives will have a material
and adverse effect upon the ability of the Company to complete the
announced terms of the Debt Restructuring. There is no assurance
that the amounts owed by the Company's former CEO will be repaid in
accordance with their terms or at all. There is no assurance that
the implementation of the steps, even if completed as described
above, will increase the market value of the Company's securities,
which is subject to numerous factors beyond the Company's
control.
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
Company holds properties; volatility of real estate prices;
inability to complete the Single Family Property Disposition
Program or Debt Restructuring in a timely manner; 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 Delavaco to implement
its business strategies; competition; currency and interest rate
fluctuations and other risks.
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.
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 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. Delavaco believes that FFO and AFFO are
important measures of operating performance. The IFRS measurement
most directly comparable to AFFO is net income. These terms are
defined in Delavaco's Management Discussion and Analysis for the
Quarter Ended December 31, 2015 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.
Additional information about Delavaco Residential Properties
Corp. is available at www.delavacoproperties.com or
www.sedar.com.
SOURCE Delavaco Residential Properties Corp