MONTREAL, QUEBEC--(Marketwired - May 29, 2013) - Fronsac real estate investment trust (TSX VENTURE:GAZ.UN) ("Fronsac REIT") today released its unaudited consolidated financial statements for its first quarter ended March 31, 2013 of which the highlights are presented in the following tables:
On the same date, the Board of Directors of Fronsac REIT adopted a distribution policy for the year 2013: a semi-annual distribution for the first half of 2013 and a quarterly distribution from the second half of 2013 and future years.
The Board of Directors of Fronsac REIT also approved the increase of the annual distribution to $ 0.0135 per unit, which represents an increase of 8.00% ($ 0.0125 in 2012). The Board thereby declared a semi-annual distribution of $ 0.00675 per unit to unitholders registered on June 14th, 2013, which will be payable on June 30th, 2013.
| Results | March 31, 2013 | March 31, 2012 | |||
| AFFO/FFO - basic | $ | 128,946 | $ | 76,986 | |
| AFFO/FFO - diluted | $ | 133,869 | $ | 76,986 | |
| AFFO/FFO per unit - basic | 0.40 ¢/u | 0.38¢/u | |||
| AFFO/FFO per unit - diluted | 0.38 ¢/u | 0.38¢/u | |||
| Weighted average number of units outstanding | |||||
| - basic | 32,616,083 | 20,514,000 | |||
| - diluted | 35,030,530 | 20,514,000 | |||
| Interest coverage ratio | 3.9 | 3.2 | |||
| Debt service ratio | 2.5 | 2.3 | |||
| Financial position | March 31, 2013 | Dec 31, 2012 | ||||
| Investment properties (at fair value) | $ | 13,744,144 | $ | 11,521,954 | ||
| Investments in joint ventures (at fair value) | $ | 707,079 | - | |||
| Total assets | $ | 15,602,117 | $ | 14,333,024 | ||
| Total liabilities | $ | 5,928,454 | $ | 4,832,944 | ||
| Leverage Ratio | 38.0 | % | 33.7 | % | ||
| Weighted Average Cost of Debt | 4.87 | % | 4.91 | % |
The Trust uses the "funds from operations" (FFO) measurement to assess the performance of its operations. This measurement, which is a non-IFRS measurement, provides a better evaluation of the performance of the operations of the Trust and is largely used in the commercial real estate industry. The reconciliation of net income to FFO is presented below. For the quarters ending March 31, 2013 and March 31, 2012, FFO and AFFO were equal.
| March 31, 2013 | March 31, 2012 | |||
| Net income and comprehensive income attributable to unitholders | 184,709 | 94,514 | ||
| (Increase) decrease of fair value of investment properties | (68,158 | ) | - | |
| (Increase) decrease of fair value of investments in joint ventures | (39,580 | ) | - | |
| Unit-based compensation | 4,450 | (10,394 | ) | |
| Increase of liability component of the convertible preferred units | 2,683 | 421 | ||
| Variation of fair value of derivative financial instrument | 10,000 | (20,000 | ) | |
| Unrealized (gains) losses on interest rates swaps | (1,500 | ) | (7,300 | ) |
| Variation of fair value of warrants | 1,440 | (906 | ) | |
| Amortization intangible assets | 1,851 | 1,851 | ||
| Deferred income taxes | 33,051 | 18,800 | ||
| FFO - basic | 128,946 | 76,986 | ||
| Interests expenses on dilutive convertible preferred units | 4,923 | - | ||
| FFO - diluted | 133,869 | 76,986 | ||
| Weighted average number of units outstanding - basic | 32,616,083 | 20,514,000 | ||
| Weighted average number of units outstanding - diluted | 35,030,530 | 20,514,000 | ||
| FFO per unit - basic | 0.0040 | 0.0038 | ||
| FFO per unit - diluted | 0.0038 | 0.0038 |
The March 31, 2013 financial statements of Fronsac REIT may be viewed on SEDAR at www.sedar.com
Neither the TSX Venture Exchange Inc., nor its Regulatory Services Provider (as that term is defined in the Policy of the TSX Venture Exchange) accept any responsibility for the adequacy or accuracy of this release.
Contact Information:
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(450) 536-5328