Firm Capital Property Trust Announces Solid Second Quarter and Year To Date Results

TORONTO, Aug. 02, 2018 (GLOBE NEWSWIRE) -- Firm Capital Property Trust (“FCPT” or the “Trust”), (TSXV:FCD.UN) is pleased to report today its financial results for the three and six months ended June 30, 2018.

PROPERTY PORTFOLIO HIGHLIGHTS
The portfolio consists of 61 commercial properties with a total GLA of 2,531,739 square feet (1,506,133 square feet on an owned interest basis) and a 50% interest in one apartment complex comprised of 135 apartment units. The portfolio is well diversified in terms of geographies and property asset types.

TENANT DIVERSIFICATION
The portfolio is well diversified by tenant profile with no tenant accounting for more than 4.7% of total net rent. Further, the top 10 tenants are largely comprised of creditworthy and large national tenants and account for 23.3% of total net rent.

SECOND QUARTER AND YEAR TO DATE HIGHLIGHTS

• Net income for the three months ended June 30, 2018 was approximately $3.7 million in comparison to the $6.2 million reported for the three months ended March 31, 2018 and the $5.2 million reported for the three months ended June 30, 2017.  Excluding fair value adjustments, net income is approximately $2.0 million for the three months ended June 30, 2018, which is a 5% increase over the $1.9 million reported for the three months ended March 31, 2018 and a 33% increase over the $1.5 million reported for the three months ended June 30, 2017;
   
• Net income for the six months ended, June 30, 2018 was approximately $9.9 million, which is a 34% increase over the $7.4 million reported for the six months ended June 30, 2017;
   
• $7.01 Net Asset Value (“NAV”) per Unit based on a IFRS book value of equity of approximately $120.7 million, which is a 0.5% increase over the $6.97 NAV per unit reported at March 31, 2018;
   
• On an IFRS basis, NOI for the three months ended June 30, 2018 was approximately $3.4 million which is an 11% increase over the $3.1 million reported March 31, 2018 and a 19% increase in comparison to the $2.9 million reported for the three months ended June 30, 2017.  NOI for the six months ended June 30, 2018 was approximately $6.5 million which is a 17% increase over the $5.5 million reported for the six months ended June 30, 2017;
   
• On a cash basis (“Cash NOI”), for the three months ended June 30, 2018 was approximately $3.4 million, which is 12% increase over the $3.1 million reported for the three months ended March 31, 2018 and a 21% increase over the $2.8 million reported for the three months ended June 30, 2017.  NOI for the six months ended June 30, 2018 was approximately $6.5 million which is a 20% increase over the $5.4 million reported for the six months ended June 30, 2017;
   
• Funds From Operations (“FFO”) for the three months ended June 30, 2018 was approximately $2.0 million, which is a 5% increase over the $1.9 million reported for the three months ended March 31, 2018, and a 27% increase over the $1.5 million reported for the three months ended June 30, 2017;
   
• Adjusted Funds From Operations (“AFFO”) for the three months ended June 30, 2018 was approximately $1.9 million, which is an 17% increase over the $1.6 million reported for the three months ended March 31, 2018, and a 22% increase in comparison to the $1.6 million reported for the three months ended June 30, 2017;
   
• FFO for the six months ended June 30, 2018 was approximately $3.8 million, a 22% increase in comparison to the $3.1 million reported for the six months ended June 30, 2017. AFFO for the six months ended June 30, 2018 was $3.5 million a 21% increase in comparison to the $2.9 million reported for the six months ended June 30, 2017;
   
• FFO per Unit for the three months ended June 30, 2018 was $0.118 while AFFO per Unit was $0.116. For the six months ended June 30, 2018 FFO per Unit was $0.240 while AFFO per Unit was $0.223;
   
• For the three months ended June 30, 2018, FFO and AFFO payout ratios are 97% and 99% respectively. For the six months ended June 30, 2018, FFO and AFFO payout ratios are 96% and 103% respectively;
   
• Commercial occupancy was 94.6% while residential occupancy improved to a strong 98.5%; and
   
• Conservative leverage profile with Debt / Gross Book Value (“GBV”) at 41.2%.

FINANCIAL HIGHLIGHTS

• Mortgage Repayment Activity:  On May 4, 2018, the Trust repaid a $4.9 million and $2.3 million mortgage fully secured against the Bridgewater, Nova Scotia and Hanover, Ontario properties, respectively;
  
  
• $9.0 Million of Equity Issuance Activity: On May 30, 2018, the Trust announced that it closed the first tranche of its previously announced non-brokered private placement. On that date, the Trust closed on 1,140,040 trust units for gross proceeds of approximately $7.1 million. In addition, on July 26, 2018, the Trust closed on an additional 296,800 trust units for gross proceeds of approximately $1.9 million. In aggregate, the Trust has raised $9.0 million in Trust Units since April 1, 2018;
      
• Announces Appointment of Two New Trustees: The Trust is pleased to announce the appointment of Jeffrey Goldfarb and Victoria Granovski to the Board of Trustees of the Trust; and
  
  
• Declaration of Monthly Distributions: On August 2, 2018, the trust announced that it has declared and approved monthly distributions in the amount of $0.038333 per Trust Unit for Unitholders of record on October 31, 2018, November 30, 2018, and December 31, 2018 payable on or about November 15, 2018, December 14, 2018, and January 15, 2019.             

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 “Plan”). 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 Plan, 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 Plan to date and own approximately 7% 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 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 quarter and year ended March 31, 2018 as filed on www.sedar.com. 

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