MONTREAL, Aug. 24, 2018 (GLOBE NEWSWIRE) -- Fronsac Real Estate Investment Trust (TSX-V:FRO.UN) (“Fronsac REIT” or “Fronsac”) today announced its results for the quarter ended June 30st, 2018, and that it will make monthly cash distributions of 0.168¢ per unit, representing 2.016¢ per unit on an annualized basis, on October 31st, November 30st and December 31th, 2018 to unitholders of record on October 15th, November 15th and December 14th, 2018, respectively.
For the quarter ended June 30th, 2018, Fronsac reported recurring funds from operations ("Recurring FFO") per unit of 0.89¢ compared to 0.78¢ per unit for the quarter ended June 30th, 2017, an increase of 15%. Recurring FFO was $764,867, an increase of 53% ($498,628 in Q2 2017). During Q2 2018 the Trust’s property rental income was $1,530,968 compared to $976,412 in Q2 2017, an increase of 57%. NOI (Net operating Income) was $1,209,474 compared to $802,897 in Q2 2017, an increase of 51%. Fronsac recorded a net income attributable to unitholders of $278,795, or 0.3¢ per unit, compared to a net income of $322,928, or 0.5¢ per unit, in Q2 2017.
For the six months ended June 30th, 2018, Fronsac reported recurring funds from operations ("Recurring FFO") per unit of 1.80¢ compared to 1.63¢ per unit for the same period in 2017, an increase of 10%. Recurring FFO was $1,541,916, an increase of 53% ($1,007,742 for the same period in 2017). During the period ended June 30, 2018 the Trust’s property rental income was $2,892,720 compared to $1,946,047 for the same period in 2017, an increase of 49%. NOI (Net operating Income) was $2,298,367 compared to $1,584,028 for the same period in 2017, an increase of 45%. Fronsac recorded a net income attributable to unitholders of $1,652,149, or 1.9¢ per unit, compared to net income of $2,163,081, or 3.5¢ per unit, for the same period in 2017.
Jason Parravano President and CEO said: “So far in 2018 we have completed acquisitions that continue to diversify our tenant base as well as provide accretion to our per unit results. We have also recently announced our largest equity financing to date, which is expected to close in the coming weeks. The continued support from existing and new investors alike will help fuel Fronsac’s acquisition strategy as well as allow us to maintain a healthy balance sheet as we continue to grow.”
The tables below represent other financial highlights as well as the reconciliation from net income to FFO for the periods ended June 30th, 2018 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, 2018 and June 30th, 2017.
| SUMMARY OF SELECTED ANNUAL INFORMATION | ||||||
| 6 months | ||||||
| Periods ended June 30 | 2018 | 2017 | Δ | % | ||
| Financial info | ||||||
| Property rental income | 2,892,720 | 1,946,047 | 946,673 | 49% | ||
| Total revenue | 2,907,720 | 1,956,047 | 951,673 | 49% | ||
| NOI (1) | 2,298,367 | 1,584,028 | 714,339 | 45% | ||
| FFO (1) | 1,556,916 | 1,017,742 | 539,174 | 53% | ||
| Recurring FFO (1) | 1,541,916 | 1,007,742 | 534,174 | 53% | ||
| AFFO (1) | 1,558,185 | 1,150,184 | 408,001 | 35% | ||
| EBITDA (1) | 2,101,447 | 1,376,144 | 725,303 | 53% | ||
| Investment properties (2) | 88,701,506 | 53,416,627 | 35,284,879 | 66% | ||
| Total assets | 83,966,065 | 53,493,834 | 30,472,231 | 57% | ||
| Total mortgage/loans/long term debt (3) | 44,861,860 | 23,114,063 | 21,747,797 | 94% | ||
| Total exchangeable preferred units | - | 966,551 | (966,551) | (100%) | ||
| Total convertible debentures | 251,333 | 249,854 | 1,479 | 1% | ||
| Total equity | 37,537,332 | 27,638,975 | 9,898,357 | 36% | ||
| Weighted average units o/s - basic | 85,665,355 | 61,764,896 | 23,900,459 | 39% | ||
| Amounts on a per unit basis | ||||||
| FFO | 0.0182 | 0.0165 | 0.0017 | 10% | ||
| Recurring FFO | 0.0180 | 0.0163 | 0.0017 | 10% | ||
| AFFO | 0.0182 | 0.0186 | (0.0004) | (2%) | ||
| Distributions | 0.0101 | 0.0090 | 0.0011 | 12% | ||
| (1) Non-IFRS financial measures | ||||||
| (2) Includes value of investment properties owned through joint ventures | ||||||
| (3) Excludes convertible debentures and exchangeable preferred units | ||||||
| RECONCILIATION OF NET INCOME TO FFO | |||||||||||
| 3 months | 6 months | ||||||||||
| Periods ended June 30 | 2018 | 2017 | Δ | 2018 | 2017 | Δ | |||||
| Net income attributable | |||||||||||
| to unitholders | 278,795 | 322,928 | (44,133) | 1,652,149 | 2,163,081 | (510,932) | |||||
| Δ in value of investment properties | 504,122 | (89,172) | 593,294 | (170,705) | (1,423,923) | 1,253,218 | |||||
| Δ in value of investment | |||||||||||
| properties in joint ventures | (28,778) | (110,501) | 81,723 | 31,711 | (141,641) | 173,352 | |||||
| Unit based compensation | 21,830 | 39,550 | (17,720) | 62,910 | 68,025 | (5,115) | |||||
| Δ in liability component of | |||||||||||
| exch. preferred units & debentures | (3,381) | 7,074 | (10,455) | 752 | 21,426 | (20,674) | |||||
| Δ in fair value of derivative | |||||||||||
| financial instruments | (10,360) | 338,749 | (349,109) | (22,540) | 330,774 | (353,314) | |||||
| Income taxes | 2,639 | - | 2,639 | 2,639 | - | 2,639 | |||||
| FFO(1) - basic | 764,867 | 508,628 | 50% | 1,556,916 | 1,017,742 | 53% | |||||
| FFO per unit - basic | 0.0089 | 0.0079 | 13% | 0.0182 | 0.0165 | 10% | |||||
| Distributions paid on exchangeable preferred | |||||||||||
| units and convertible debentures (if dilutive) | - | 13,897 | (13,897) | 7,500 | 35,294 | (27,794) | |||||
| FFO - diluted | 764,867 | 522,525 | 46% | 1,564,416 | 1,053,036 | 49% | |||||
| FFO per unit - diluted | 0.0089 | 0.0078 | 15% | 0.0181 | 0.0161 | 13% | |||||
| Recurring FFO - basic | 764,867 | 498,628 | 53% | 1,541,916 | 1,007,742 | 53% | |||||
| Recurring FFO per unit - basic | 0.0089 | 0.0078 | 15% | 0.0180 | 0.0163 | 10% | |||||
| Distributions | 431,785 | 312,765 | 119,020 | 863,569 | 579,612 | 283,957 | |||||
| Distributions per unit | 0.0050 | 0.0045 | 12% | 0.0101 | 0.0090 | 12% | |||||
| FFO - basic after distributions | 0.0039 | 0.0034 | 0.0005 | 0.0081 | 0.0075 | 0.0006 | |||||
| Recurring FFO - basic after distributions | 0.0039 | 0.0033 | 0.0006 | 0.0079 | 0.0073 | 0.0006 | |||||
| Distributions as a % of | |||||||||||
| FFO - basic | 56% | 57% | (1%) | 55% | 55% | 0% | |||||
| Distributions as a % of | |||||||||||
| Recurring FFO - basic | 56% | 58% | (2%) | 56% | 55% | 1% | |||||
| Weighted avg. units o/s | |||||||||||
| Basic | 85,671,543 | 64,233,104 | 21,438,439 | 85,665,355 | 61,764,896 | 23,900,459 | |||||
| Diluted | 85,671,543 | 67,321,304 | 18,350,239 | 86,246,750 | 65,434,491 | 20,812,259 | |||||
| (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, 2018 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.