MONTREAL, Aug. 23, 2019 (GLOBE NEWSWIRE) -- (TSX-V: FRO.UN) Fronsac Real Estate Investment Trust (“Fronsac REIT” or “Fronsac”) announces its results for the quarter ended June 30, 2019 and that it will make monthly cash distributions of 0.185¢ per unit, representing 2.220¢ per unit on an annualized basis, on October 31st, November 29th and December 31st, 2019 to unitholders of record on October 15th, November 15th and December 16th, 2019, respectively.

For the quarter ended June 30, 2019, Fronsac reported recurring funds from operations ("Recurring FFO") per unit of 1.03¢ compared to 0.89¢ per unit for the quarter ended June 30, 2018, an increase of 16%. Recurring FFO was $1,121,743, an increase of 47% ($764,867 in Q2 2018). During Q2 2019, the Trust’s property rental income was $2,192,484 compared to $1,530,968 in Q2 2018, an increase of 43%. NOI (Net operating Income) was $1,704,459 compared to $1,209,474 in Q2 2018, an increase of 41%. Fronsac recorded a net income attributable to unitholders of $145,694, or 0.13¢ per unit, compared to a net income of $278,795, or 0.33¢ per unit, in Q2 2018.

For the 6-month period ended June 30, 2019, Fronsac reported Recurring FFO per unit of 2.01¢ compared to 1.80¢ per unit for the same period in 2018, an increase of 12%. Recurring FFO was $2,122,227, an increase of 38% ($1,541,916 for the same period in 2018). During the 6-month period ended June 30, 2019, the Trust’s property rental income was $4,191,579 compared to $2,892,720 for the same period in 2018, an increase of 45%. Net operating Income was $3,261,215 compared to $2,298,367 for the same period in 2018, an increase of 42%. Fronsac recorded a net income attributable to unitholders of $196,564, or 0.19¢ per unit, compared to a net income of $1,652,149, or 1.93¢ per unit for the same period in 2018.

Jason Parravano President and CEO said: “I am pleased to share with you our results for the past 6 months. We once again have achieved growth in our per unit FFO and have continued to grow our portfolio. We had a busy second quarter with the closing of a $9.9M private placement in May and subsequent capital deployment to add Walmart, Dollarama and Laurentian Bank to our tenant roster.”

The tables below represent other financial highlights as well as the reconciliation from net income to FFO for the periods ended June 30th, 2019 and its comparative period. This information should be read in conjunction with the Consolidated Financials Statements and MD&A for the quarters ended June 30th, 2019 and June 30th, 2018.

 
SUMMARY OF SELECTED ANNUAL INFORMATION
 6 months    
Periods ended June 3020192018  Δ%
Financial info      
Property rental income4,191,5792,892,720  1,298,85945%
Total revenue4,191,5792,907,720  1,283,85944%
NOI (1)3,261,2152,298,367  962,84842%
FFO (1)2,122,2271,556,916  565,31136%
Recurring FFO (1)2,122,2271,541,916  580,31138%
AFFO (1)2,086,3151,555,647  530,66834%
EBITDA (1)3,014,2652,101,447  912,81843%
Investment properties (2)123,749,77588,701,506  35,048,26940%
Total assets117,063,47083,966,065  33,097,40539%
Total mortgage/loans/long term debt (3)61,397,62644,861,860  16,535,76637%
Total convertible debentures3,237,582251,333  2,986,2491,188%
Total equity49,508,11937,537,332  11,970,78732%
Weighted average units o/s - basic105,464,23885,665,355  19,798,88323%
Amounts on a per unit basis      
FFO0.02010.0182  0.001910%
Recurring FFO0.02010.0180  0.002112%
AFFO0.01980.0182  0.00169%
Distributions0.01110.0101  0.001010%
       
(1) Non-IFRS financial measures
(2) Includes value of investment properties owned through joint ventures
(3) Excludes convertible debentures
 


RECONCILIATION OF NET INCOME TO FFO
 3 months    6 months   
Periods ended June 3020192018  Δ 20192018  Δ
Net income (loss) attributable to unitholders145,694278,795  (133,101) 196,5641,652,149  (1,455,585)
Debenture issuance costs30,660-  30,660 30,660-  30,660
Δ in value of investment properties790,562504,122  286,440 1,632,799(170,705)  1,803,504
Δ in value of investment properties in joint ventures975(28,778)  29,753 77,12631,711  45,415
Unit based compensation118,40021,830  96,570 181,58062,910  118,670
Δ in liability component of convertible debentures31,850(3,381)  35,231 19,101752  18,349
Δ in fair value of derivative financial instruments5,550(10,360)  15,910 (13,655)(22,540)  8,885
Income taxes(1,948)2,639  (4,587) (1,948)2,639  (4,587)
FFO(1) - basic1,121,743764,867  47% 2,122,2271,556,916  36%
FFO per unit - basic0.01030.0089  16% 0.02010.0182  10%
Interest paid on convertible debentures (if dilutive)7,500-  7,500 49,6207,500  42,120
FFO - diluted1,129,243764,867  48% 2,171,8471,564,416  39%
FFO per unit - diluted0.00990.0089  11% 0.01970.0181  9%
Recurring FFO - basic1,121,743764,867  47% 2,122,2271,541,916  38%
Recurring FFO per unit - basic0.01030.0089  16% 0.02010.0180  12%
Distributions592,324431,785  160,540 1,156,149863,569  292,580
Distributions per unit0.00560.0050  12% 0.01110.0101  10%
FFO - basic after distributions0.00470.0039  0.0008 0.00900.0081  0.0009
Recurring FFO - basic after distributions0.00470.0039  0.0008 0.00900.0079  0.0011
Distributions as a % of FFO - basic54%56%  (2%) 55%55%  -
Distributions as a % of Recurring FFO - basic54%56%  (2%) 55%56%  (1%)
Weighted avg. units o/s           
Basic109,279,84285,671,543  23,608,299 105,464,23885,665,355  19,798,883
Diluted114,157,12285,671,543  28,485,579 110,341,51886,246,750  24,094,768
            
(1) FFO is a Non-IFRS financial measure
 

About Fronsac - Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality triple net and management-free commercial real estate properties.

Forward-Looking Statements - This press release contains forward-looking statements and information as defined by applicable securities laws. Fronsac warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence to the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new IFRS standards, as well as other risks and factors described from time to time in the documents filed by Fronsac with securities regulators, including the management report. Fronsac does not update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.

Neither the TSX Venture Exchange Inc., nor its Regulatory Services Provider (as that term is defined in the Policy of the TSX Venture Exchange and its Regulatory Services Provide) accepts any responsibility for the adequacy or accuracy of this release.

The June 30th, 2019 financial statements and management discussion & analysis of Fronsac REIT may be viewed on SEDAR at www.sedar.com.

For further information please contact Jason Parravano at (450) 536-5328.