Source: Canadian Net Real Estate Investment Trust.
Fronsac Announces Its Results for the Quarter Ended June 30, 2019 and Monthly Distributions for the Months of October, November and December 2019
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 30 | 2019 | 2018 | Δ | % | ||
| Financial info | ||||||
| Property rental income | 4,191,579 | 2,892,720 | 1,298,859 | 45% | ||
| Total revenue | 4,191,579 | 2,907,720 | 1,283,859 | 44% | ||
| NOI (1) | 3,261,215 | 2,298,367 | 962,848 | 42% | ||
| FFO (1) | 2,122,227 | 1,556,916 | 565,311 | 36% | ||
| Recurring FFO (1) | 2,122,227 | 1,541,916 | 580,311 | 38% | ||
| AFFO (1) | 2,086,315 | 1,555,647 | 530,668 | 34% | ||
| EBITDA (1) | 3,014,265 | 2,101,447 | 912,818 | 43% | ||
| Investment properties (2) | 123,749,775 | 88,701,506 | 35,048,269 | 40% | ||
| Total assets | 117,063,470 | 83,966,065 | 33,097,405 | 39% | ||
| Total mortgage/loans/long term debt (3) | 61,397,626 | 44,861,860 | 16,535,766 | 37% | ||
| Total convertible debentures | 3,237,582 | 251,333 | 2,986,249 | 1,188% | ||
| Total equity | 49,508,119 | 37,537,332 | 11,970,787 | 32% | ||
| Weighted average units o/s - basic | 105,464,238 | 85,665,355 | 19,798,883 | 23% | ||
| Amounts on a per unit basis | ||||||
| FFO | 0.0201 | 0.0182 | 0.0019 | 10% | ||
| Recurring FFO | 0.0201 | 0.0180 | 0.0021 | 12% | ||
| AFFO | 0.0198 | 0.0182 | 0.0016 | 9% | ||
| Distributions | 0.0111 | 0.0101 | 0.0010 | 10% | ||
| (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 30 | 2019 | 2018 | Δ | 2019 | 2018 | Δ | |||||
| Net income (loss) attributable to unitholders | 145,694 | 278,795 | (133,101) | 196,564 | 1,652,149 | (1,455,585) | |||||
| Debenture issuance costs | 30,660 | - | 30,660 | 30,660 | - | 30,660 | |||||
| Δ in value of investment properties | 790,562 | 504,122 | 286,440 | 1,632,799 | (170,705) | 1,803,504 | |||||
| Δ in value of investment properties in joint ventures | 975 | (28,778) | 29,753 | 77,126 | 31,711 | 45,415 | |||||
| Unit based compensation | 118,400 | 21,830 | 96,570 | 181,580 | 62,910 | 118,670 | |||||
| Δ in liability component of convertible debentures | 31,850 | (3,381) | 35,231 | 19,101 | 752 | 18,349 | |||||
| Δ in fair value of derivative financial instruments | 5,550 | (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) - basic | 1,121,743 | 764,867 | 47% | 2,122,227 | 1,556,916 | 36% | |||||
| FFO per unit - basic | 0.0103 | 0.0089 | 16% | 0.0201 | 0.0182 | 10% | |||||
| Interest paid on convertible debentures (if dilutive) | 7,500 | - | 7,500 | 49,620 | 7,500 | 42,120 | |||||
| FFO - diluted | 1,129,243 | 764,867 | 48% | 2,171,847 | 1,564,416 | 39% | |||||
| FFO per unit - diluted | 0.0099 | 0.0089 | 11% | 0.0197 | 0.0181 | 9% | |||||
| Recurring FFO - basic | 1,121,743 | 764,867 | 47% | 2,122,227 | 1,541,916 | 38% | |||||
| Recurring FFO per unit - basic | 0.0103 | 0.0089 | 16% | 0.0201 | 0.0180 | 12% | |||||
| Distributions | 592,324 | 431,785 | 160,540 | 1,156,149 | 863,569 | 292,580 | |||||
| Distributions per unit | 0.0056 | 0.0050 | 12% | 0.0111 | 0.0101 | 10% | |||||
| FFO - basic after distributions | 0.0047 | 0.0039 | 0.0008 | 0.0090 | 0.0081 | 0.0009 | |||||
| Recurring FFO - basic after distributions | 0.0047 | 0.0039 | 0.0008 | 0.0090 | 0.0079 | 0.0011 | |||||
| Distributions as a % of FFO - basic | 54% | 56% | (2%) | 55% | 55% | - | |||||
| Distributions as a % of Recurring FFO - basic | 54% | 56% | (2%) | 55% | 56% | (1%) | |||||
| Weighted avg. units o/s | |||||||||||
| Basic | 109,279,842 | 85,671,543 | 23,608,299 | 105,464,238 | 85,665,355 | 19,798,883 | |||||
| Diluted | 114,157,122 | 85,671,543 | 28,485,579 | 110,341,518 | 86,246,750 | 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.