MONTREAL, QUEBEC--(Marketwired - Nov. 7, 2017) - Fronsac Real Estate Investment Trust (TSX VENTURE:GAZ.UN) ("Fronsac REIT" or "Fronsac") today announced its results for the quarter ended September 30th, 2017 and a distribution of 0.45¢ per unit to unitholders of record on December 15th, 2017 and payable on December 29th, 2017.
For the quarter ended September 30th, 2017, Fronsac reported recurring funds from operations ("Recurring FFO") per unit of 0.84¢ compared to 0.64¢ per unit for the quarter ended September 30th, 2016, an increase of 30%. Recurring FFO was $581,433, an increase of 57% ($369,586 in Q3 2016). During Q3 2017 the Trust's property rental income was $1,096,653 compared to $713,597 in Q3 2016, an increase of 54%. NOI (Net operating Income) was $882,492 compared to $623,255 in Q3 2016, an increase of 42%. Fronsac recorded a net income attributable to unitholders of $538,675, or 0.78¢ per unit, compared to a gain of $1,474,531, or 2.57¢ per unit, in Q3 2016.
For the nine months ended September 30th, 2017, Fronsac reported recurring funds from operations ("Recurring FFO") per unit of 2.47¢ compared to 1.80¢ per unit for the period ended September 30th, 2016, an increase of 37%. Recurring FFO was $1,589,175, an increase of 76% ($902,450 in Q3 2016). During Q3 2017 the Trust's property rental income was $3,042,700 compared to $1,962,143 in Q3 2016, an increase of 55%. NOI (Net operating Income) was $2,466,520 compared to $1,843,029 in Q3 2016, an increase of 34%. Fronsac recorded a net income attributable to unitholders of $2,701,756, or 4.2¢ per unit, compared to net income of $2,517,907, or 5.03¢ per unit, in Q3 2016.
Jason Parravano President and CEO said: "2017 has been a very active year for Fronsac. We have continued to grow our per unit results as well as diversify our tenant base."
The tables below represent other financial highlights as well as the reconciliation from net income to FFO for the periods ended September 30th, 2017 and its comparative period. This information should be read in conjunction with the Consolidated Financials Statements and MD&A for the quarters ended September 30th, 2017 and September 30th, 2016.
| SUMMARY OF SELECTED ANNUAL INFORMATION | ||||||
| 9 months | ||||||
| Periods ended September 30 | 2017 | 2016 | Change | % | ||
| Financial info | ||||||
| Property rental income | 3,042,700 | 1,962,143 | 1,080,557 | 55 | % | |
| Total revenue | 3,052,700 | 2,117,493 | 935,207 | 44 | % | |
| NOI (1) | 2,466,520 | 1,843,029 | 623,491 | 34 | % | |
| FFO (1)(4) | 1,599,175 | 817,808 | 781,367 | 96 | % | |
| Recurring FFO (1)(4) | 1,589,175 | 902,450 | 686,725 | 76 | % | |
| AFFO (1) | 1,484,966 | 1,023,961 | 461,005 | 45 | % | |
| EBITDA (1) | 2,185,929 | 1,309,322 | 876,607 | 67 | % | |
| Investment properties (2) | 59,266,139 | 43,419,703 | 15,846,436 | 36 | % | |
| Total assets | 59,101,842 | 43,883,680 | 15,218,162 | 35 | % | |
| Total mortgage/loans/long term debt (3) | 29,731,526 | 20,896,070 | 8,835,456 | 42 | % | |
| Total exchangeable preferred units | 977,268 | 935,817 | 41,451 | 4 | % | |
| Total convertible debentures | 253,975 | 252,566 | 1,409 | 1 | % | |
| Total equity | 27,864,885 | 20,981,836 | 6,883,049 | 33 | % | |
| Weighted average units o/s - basic | 64,372,724 | 50,105,285 | 14,267,439 | 28 | % | |
| Amounts on a per unit basis | ||||||
| FFO | 0.0248 | 0.0163 | 0.0086 | 53 | % | |
| Recurring FFO | 0.0247 | 0.0180 | 0.0067 | 37 | % | |
| AFFO | 0.0231 | 0.0204 | 0.0026 | 13 | % | |
| Distributions | 0.0135 | 0.0120 | 0.0014 | 11 | % | |
| (1) | Non-IFRS financial measures |
| (2) | Includes value of investment properties owned through joint ventures |
| (3) | Excludes convertible debentures and exchangeable preferred units |
| (4) | Q1 2016 included revenues of $150K related to a one-time payment received for the renewal of a lease. This amount was subtracted from the Trust's FFO to arrive at the Recurring FFO for Q3 2016 |
| RECONCILIATION OF NET INCOME TO FFO | |||||||||||||
| 3 months | 9 months | ||||||||||||
| Periods ended September 30 | 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||
| Net income (loss) attributable to unitholders | 538,675 | 1,474,531 | (935,856 | ) | 2,701,756 | 2,517,907 | 183,849 | ||||||
| Change in value of investment properties | 37,050 | (1,327,506 | ) | 1,364,556 | (1,386,873 | ) | (1,804,671 | ) | 417,798 | ||||
| Change in value of investment properties in joint ventures | - |
(27,984 |
) | 27,984 |
(141,641 |
) | (27,984 |
) | (113,657 |
) | |||
| Unit based compensation | (200 | ) | - | (200 | ) | 67,825 | 41,075 | 26,750 | |||||
| Change in liability component of exchangeable preferred units | 14,838 |
13,888 |
950 |
36,264 |
33,474 |
2,790 |
|||||||
| Change in fair value of derivative financial instruments | - |
(3,100 |
) | 3,100 |
294,614 |
53,135 |
241,479 |
||||||
| Change in fair value of other financial components | (8,930 |
) | (235 |
) | (8,695 |
) | 27,230 |
4,650 |
22,580 |
||||
| Income taxes | - | - | - | - | 222 | (222 | ) | ||||||
| FFO(1) - basic | 581,433 | 129,594 | 349 | % | 1,599,175 | 817,808 | 96 | % | |||||
| FFO per unit - basic | 0.0084 | 0.0023 | 271 | % | 0.0248 | 0.0163 | 52 | % | |||||
| Distributions paid on exchangeable units (if dilutive) | 13,896 |
- |
13,896 |
49,190 |
44,635 |
4,555 |
|||||||
| FFO - diluted | 595,329 | 129,594 | 359 | % | 1,648,365 | 862,443 | 91 | % | |||||
| FFO per unit - diluted | 0.0082 | 0.0023 | 263 | % | 0.0244 | 0.0162 | 51 | % | |||||
| Recurring FFO - basic | 581,433 | 369,586 | 57 | % | 1,589,175 | 902,450 | 76 | % | |||||
| Recurring FFO per unit - basic | 0.0084 | 0.0064 | 30 | % | 0.0247 | 0.0180 | 37 | % | |||||
| Distributions | 312,765 | 241,441 | 71,324 | 892,377 | 610,356 | 282,021 | |||||||
| Distributions per unit | 0.0045 | 0.0041 | 10 | % | 0.0135 | 0.0120 | 12 | % | |||||
| FFO - basic after distributions | 0.0039 | (0.0018 | ) | 0.0057 | 0.0113 | 0.0043 | 0.0070 | ||||||
| Recurring FFO - basic after distributions | 0.0039 | 0.0024 | 0.0015 | 0.0112 | 0.0060 | 0.0052 | |||||||
| Distributions as a % of FFO - basic | 54 | % | 181 | % | (127 | %) | 54 | % | 74 | % | (19 | %) | |
| Distributions as a % of Recurring FFO - basic | 54 | % | 63 | % | (10 | %) | 55 | % | 67 | % | (12 | %) | |
| Weighted avg. units o/s | |||||||||||||
| Basic | 69,503,343 | 57,437,669 | 12,065,674 | 64,372,724 | 50,105,285 | 14,267,439 | |||||||
| Diluted | 72,591,543 | 57,437,669 | 15,153,874 | 67,460,924 | 53,193,485 | 14,267,439 | |||||||
| (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 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 September 30th, 2017 financial statements and management discussion & analysis of Fronsac REIT may be viewed on SEDAR at www.sedar.com.
Contact Information:
(450) 536-5328