STRONG SEQUENTIAL SAME-STORE NOI AND NAV GROWTH
DECLINING AFFO PAYOUT RATIO
75% OF 2024 MORTGAGE MATURITIES REFINANCED
TORONTO, May 13, 2024 (GLOBE NEWSWIRE) -- Firm Capital Property Trust ("FCPT" or the "Trust"), (TSX: FCD.UN) is pleased to report its financial results for the three months ended March 31, 2024.
PROPERTY PORTFOLIO HIGHLIGHTS
The portfolio consists of 64 commercial properties with a total gross leasable area ("GLA") of 2,545,858 square feet, five multi-residential complexes comprised of 599 units and four Manufactured Home Communities comprised of 537 units. The portfolio is well diversified and defensive in terms of geographies and property asset types, with 47% of NOI (42% of asset value) comprised of grocery anchored retail followed by industrial at 27% of NOI (31% of asset value). In addition, the portfolio is well diversified in terms of geographies with 38% of NOI (40% of asset value) comprised of assets located in Ontario, followed by Quebec at 37% of NOI (33% of asset value).
TENANT DIVERSIFICATION
The portfolio is well diversified by tenant profile with no tenant currently accounting for more than 11.2% of total net rent. Further, the top 10 tenants are comprised of large national tenants and account for 31.3% of total net rent.
75% OF 2024 MORTGAGE MATURITIES REFINANCED
At the beginning of 2024, the Trust had $92.1 million or 33% of its total mortgages, maturing in 2024. During the three months ended March 31, 2024, the Trust refinanced seven retail properties that are part of the joint arrangement within the Crombie Retail Portfolio for approximately $55.5 million, excluding transaction costs. The Trust's portion of the mortgages are approximately $27.5 million. The mortgages have a 5.34% interest rate, 30 year amortization and 4.5 year term. Subsequent to quarter end, the Trust refinanced two properties within its joint arrangement within the First Capital Retail Portfolio for approximately $110 million, excluding transaction costs. The Trust's portion of the mortgages are approximately $55 million. The mortgages have a 5.43% interest rate, 30 year amortization and 10 year term. Note that both of these new mortgages saw increased cash of approximately $12 million come to the Trust. As such, the Trust has only $23.3 million or 25% of 2024 mortgage maturities remaining.
Q1/2024 HIGHLIGHTS
Key highlights for the three months ended March 31, 2024 are as follows:
Net income was approximately $9.9 million, compared to $5.4 million net income recorded for the same period in 2023;
$7.62 Net Asset Value ("NAV") per Unit, a 1.9% increase over Q4/2023;
Net Operating Income ("NOI") was approximately $9.3 million, a 1% increase from the same period in 2023;
Same Property NOI increased 3% over Q1/2023;
Adjusted Funds From Operations ("AFFO") was approximately $4.4 million,11% higher than the same period in 2023;
AFFO per Unit for Q1/2024 increased by 11% to $0.120 over Q1/2023.
Payout ratio decreased to 108% for Q1/2024 from 121% over the same period in 2023;
Commercial occupancy was 95.2%, Multi-Residential occupancy was 99.1% while Manufactured Homes Communities was 100.0%;
The Trust closed on the sale of a retail property from the Center Ice Retail Portfolio, for gross proceeds of approximately $3.0 million. The Trust's pro-rata share of the gross proceeds was $2.1 million;
Conservative leverage profile with Debt / Gross Book Value ("GBV") at 52.2%; and
The Trust declared and approved monthly distributions in the amount of $0.0433 per Trust Unit for Unitholders of record on July 31, 2024, August 30, 2024 and September 30, 2024, payable on or about August 15, 2024, September 16, 2024 and October 15, 2024, respectively.
See chart below for additional information:
Three Months Ended | ||||
Mar 31, 2024 | Mar 31, 2023 | Change | ||
Rental Revenue | $15,013,173 | $14,209,208 | 6% | |
NOI - IFRS Basis | 9,271,592 | 9,223,015 | 1% | |
NOI - Cash Basis | 9,414,912 | 9,153,082 | 3% | |
Same-Property NOI | 9,155,904 | 8,882,947 | 3% | |
Net Income | 9,884,839 | 5,396,789 | 33% | |
FFO | 4,552,640 | 4,486,037 | 1% | |
AFFO | 4,444,140 | 3,999,237 | 11% | |
Total Assets | $639,407,795 | $638,658,302 | 0% | |
Total Mortgages | 307,886,051 | 305,337,204 | 1% | |
Credit Facility | 24,300,000 | 26,272,386 | (8%) | |
Unitholders' Equity | 296,777,652 | 296,584,638 | 0% | |
Units Outstanding (000s) | 36,926 | 37,011 | (0%) | |
FFO Per Unit | $0.123 | $0.121 | 2% | |
AFFO Per Unit | $0.120 | $0.108 | 11% | |
Distributions Per Unit | $0.130 | $0.130 | 0% | |
FFO Payout Ratio | 105% | 107% | (157) bps | |
AFFO Payout Ratio | 108% | 121% | (1,299) bps | |
Wtd. Avg. Int. Rate - Mort. Debt | 3.9% | 4.1% | (20) bps | |
Debt to GBV | 52% | 52% | (5) bps | |
GLA - Commercial, SF | 2,545,858 | 2,545,397 | 0% | |
Units - Multi-Res | 599 | 599 | 0% | |
Units - MHCs | 537 | 536 | 0% | |
Occupancy - Commercial | 95.2% | 97.1% | (190) bps | |
Occupancy - Multi-Res | 99.1% | 91.9% | 720 bps | |
Occupancy MHCs | 100.0% | 99.8% | 20 bps | |
Rent PSF - Retail | $18.96 | $18.30 | 4% | |
Rent PSF - Industrial | $8.33 | $7.86 | 6% | |
Rent per month - Multi-Res | $1,448 | $1,249 | 16% | |
Rent per month - MHCs | $624 | $611 | 2% | |
For the complete financial statements, Management's Discussion & Analysis and supplementary information, please visit or the Trust's website at
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 or control approximately 10% of the issued and outstanding trust units of the Trust.