Firm Capital Apartment Trust Reports 2020 Results and Increased NAV to $9.84 Per Unit
11 March 2021 - 11:41AM
Firm Capital Apartment Real Estate Investment Trust (the
“
Trust”), (TSXV: FCA.U), (TSXV: FCA.UN) is pleased
to report its financial results for the year ended December 31,
2020:
ATTRACTIVE VALUATION RELATIVE TO
PEERS
Based on the current trading price of $6.15 per
Trust Unit, the Trust trades at a 38% discount to its NAV of $9.84
per Trust Unit and has one of the highest distribution yields of
3.8% in the Multi-Residential REIT sector, while maintaining a
conservative 74% AFFO Payout Ratio.
EARNINGS
- For the three months ended December 31, 2020, Net Income was
approximately $2.5 million, in comparison to the $3.5 million
reported for the three months ended December 31, 2019. For the year
ended December 31, 2020, Net Income was $5.6 million in comparison
to the $7.1 million reported for the year ended December 31, 2019.
For the year ended December 31, 2020, excluding Fair Value
Adjustments, Net Income was $2.0 million, in comparison to the $1.2
million reported for the year ended December 31, 2019;
- For the three months ended December 31, 2020, AFFO was
approximately $0.6 million, an increase compared to the $0.2
million reported for the three months ended December 31, 2019. For
the year ended December 31, 2020, AFFO was $2.0 million, a 16%
increase compared to the $1.7 million reported for the year ended
December 31, 2019;
- Results for the three months and year ended December 31, 2020
are as follows:
|
Three Months Ended |
|
Twelve Months Ended |
|
Dec 31,2020 |
|
Dec 31,2019 |
|
|
Dec 31,2020 |
|
Dec 31,2019 |
|
Net Income |
$ |
2,471,888 |
|
$ |
3,514,541 |
|
|
$ |
5,604,354 |
|
$ |
7,055,862 |
|
FFO |
$ |
468,125 |
|
$ |
8,611 |
|
|
$ |
4,739,715 |
|
$ |
1,394,335 |
|
AFFO |
$ |
616,601 |
|
$ |
202,342 |
|
|
$ |
2,013,423 |
|
$ |
1,731,910 |
|
Distributions |
$ |
455,170 |
|
$ |
409,183 |
|
|
$ |
1,911,984 |
|
$ |
1,636,731 |
|
FFO
Per Unit |
$ |
0.06 |
|
$ |
0.00 |
|
|
$ |
0.60 |
|
$ |
0.20 |
|
AFFO
Per Unit |
$ |
0.08 |
|
$ |
0.03 |
|
|
$ |
0.26 |
|
$ |
0.25 |
|
Distributions Per Unit |
$ |
0.06 |
|
$ |
0.06 |
|
|
$ |
0.24 |
|
$ |
0.24 |
|
AFFO
Payout Ratio |
|
74 |
% |
|
202 |
% |
|
|
95 |
% |
|
95 |
% |
- 93% RENT COLLECTIONS:Since the beginning of
Q4/2020, the Trust has received approximately 93% of its expected
rent and is actively either collecting the remaining rent or
working with tenants who require assistance;
- 100% RETURN OF CAPITAL ON 2020
DISTRIBUTIONS:The Trust’s distributions for 2020 were tax
efficient to unitholders as it delivered a 100% return of capital.
The 100% return of capital is in excess of the 85% projected when
the Trust converted from a Corporation at the beginning of
2020;
- INCREASED NAV BY 13% CAGR TO $9.84 PER TRUST
UNIT:Since Q3/2017, the Trust has increased NAV from $7.85
per Trust Unit to $9.84 per Trust Unit for a +13% Compounded Annual
Growth Rate (“CAGR”);
- $21.6 MILLION BRONX, NY MORTGAGE
REFINANCING:On February 25, 2021, the first mortgage on
the Bronx, NY joint venture was refinanced for gross proceeds of
$21.6 million. With the $3.6 million net proceeds received from the
refinance and the $1.6 million of capital contributed by Common
Shareholders, the Preferred Equity was repaid in full. The mortgage
is a 3.51%, $21.6 million first mortgage with a 12-year term
amortizing over 30 years;
- ACCRETIVE $38 MILLION ACQUISITION:On September
22, 2020, the Trust closed an equity accounted and preferred
investment to acquire a 235 unit multi-family residential portfolio
located in Hyattsvile, MD (the “North Pointe
Acquistion”). The purchase price for 100% of the North
Point Acquistion was $40.5 million (including transaction costs).
The North Pointe Acquistion was financed, in part with a $29.7
million, 3.0% first mortgage due on September 21, 2024. The Trust
contributed $4.0 million of preferred equity yielding 8% and $3.4
million of common equity representing a 50% ownership interest in
the investment;
- SALE OF BRIDGEPORT, CT JOINT VENTURE:On
December 23, 2020, the Trust completed a sale of its interest in
fourteen multi-family buildings located in Bridgeport, Connecticut
to its joint venture partner (the “Bridgeport
Sale”). The Trust received net proceeds of approximately
$4.5 million from the Bridgeport Sale consisting of a repayment of
its preferred equity (inclusive of accrued interest) of $2.8
million and $1.7 million of common equity, respectively;
- ACCRETIVE TRUST UNIT REDEMPTION AND NCIB
ACTIVITY:On July 27, 2020, the Trust redeemed 686,200
Trust Units (representing approximately 8% of the issued and
outstanding Trust Units) at a price of CAD $5.35 per Trust Unit
($4.00 per Trust Unit) per Trust Unit representing total gross cost
of CAD $3.7 million ($2.8 million);
- The Trust has also purchased to date for cancellation 128,100
Trust Units for total gross cost of approximately $0.7 million
through its NCIB. In addition, the Trust purchased for cancellation
Convertible Unsecured Debentures under its NCIB having a face
amount of CAD$61,000 at a weighted average price of $78.00 per
Debenture, or CAD $47,710 ($35,768); and
- DISTRIBUTIONS:On March 10, 2021, the Trust
declared and approved quarterly distributions of $0.059 per unit
for unitholders on record on March 31, 2021 payable on or about
April 15, 2021.
For the complete financial statements including
Management’s Discussion & Analysis, please visit www.sedar.com
or the Trust’s website at www.firmcapital.com
ABOUT FIRM CAPITAL APARTMENT REAL ESTATE
INVESTMENT TRUST
- Firm Capital Apartment Real Estate Investment Trust is a U.S.
focused real estate investment trust that pursues multi-residential
income producing real estate and related debt investments on both a
wholly owned and joint venture basis. The Trust has ownership
interests in a total of 1,846 apartment units diversely located in
Florida, Connecticut, Texas, New York, New Jersey, Georgia and
Maryland.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
Certain information in this news release
constitutes forward-looking statements under applicable securities
law. Any statements that are contained in this news release that
are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate",
"expect", "intend" and similar expressions.
Forward-looking statements necessarily involve
known and unknown risks, including, without limitation, risks
associated with general economic conditions; adverse factors
affecting the U.S. real estate market generally or those specific
markets in which the Trust holds properties; volatility of real
estate prices; inability to access sufficient capital from internal
and external sources, and/or inability to access sufficient capital
on favourable terms; industry and government regulation; changes in
legislation, income tax and regulatory matters; the ability of the
Trust to implement its business strategies; competition; currency
and interest rate fluctuations and other risks. Additional risk
factors that may impact the Trust or cause actual results and
performance to differ from the forward looking statements contained
herein are set forth in the Trust's Annual Information form under
the heading Risk Factors (a copy of which can be obtained under the
Trust's profile on www.sedar.com).
Readers are cautioned that the foregoing list is
not exhaustive. Readers are further cautioned not to place undue
reliance on forward-looking statements as there can be no assurance
that the plans, intentions or expectations upon which they are
placed will occur. Such information, although considered reasonable
by management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. Except as
required by applicable law, the Trust undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
Certain financial information presented in this
press release reflect certain non-International Financial Reporting
Standards (“IFRS”) financial measures, which
include, but not limited to NOI, FFO and AFFO. These measures are
commonly used by real estate investment companies as useful metrics
for measuring performance, however, they do not have standardized
meaning prescribed by IFRS and are not necessarily comparable to
similar measures presented by other real estate investment
companies. These terms are defined in the Trust’s Management
Discussion and Analysis for the year ended December 31, 2020 filed
on www.sedar.com.
Neither the Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For further information, please contact: |
Sandy Poklar |
Mark Goldreich |
President & Chief Executive Officer |
Chief Financial Officer |
(416) 635-0221 |
(416) 635-0221 |
|
|
For Investor Relations information, please
contact: |
Victoria Moayedi |
|
Director, Investor Relations |
|
(416) 635-0221 |
|
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