Fronsac Real Estate Investment Trust
TSX VENTURE : GAZ.UN

Fronsac Real Estate Investment Trust

May 26, 2017 15:59 ET

Fronsac REIT Announces Strong Growth in the Results for the Quarter Ended March 31st, 2017 and the June 30th, 2017 Regular Quarterly Distribution

MONTREAL, QUEBEC--(Marketwired - May 26, 2017) - Fronsac Real Estate Investment Trust ("Fronsac REIT" or "Fronsac") (TSX VENTURE:GAZ.UN) today announced its results for the quarter ended March 31st, 2017 and a distribution of 0.45¢ per unit to unitholders of record on June 16th, 2017 and payable on June 30th, 2017.

For the quarter ended March 31st, 2017, Fronsac reported recurring funds from operations ("Recurring FFO") per unit of 0.86¢ compared to 0.58¢ per unit for the quarter ended March 31st, 2016, an increase of 49%. Recurring FFO was $509,113, an increase of 90% ($268,236 in Q1 2016). For Q1 2017, During Q1 2017 the Trust's property rental income was $969,635 compared to $601,740 in Q1 2016, an increase of 61%. NOI (Net operating Income) was $781,131 compared to $662,469 in Q1 2016, an increase of 18%. Fronsac recorded a net income attributable to unitholders of $1,840,152, or 3.1¢ per unit, compared to net income of $1,528,631, or 3.3¢ per unit, in Q1 2016.

Jason Parravano President and CEO said: "Q1 2017 was another great quarter for Fronsac. We continued our expansion plans with our first joint venture with Odacité Development. Subsequent to the end of the quarter we closed another $5,000,000 round of financing which will allow us to further pursue our growth initiatives."

The tables below represent other financial highlights as well as the reconciliation from net income to FFO for the periods ended March 31st, 2017 and its comparative period. This information should be read in conjunction with the Consolidated Financials Statements and MD&A for the quarters ended March 31st, 2017 and March 31st, 2016.

SUMMARY OF SELECTED ANNUAL INFORMATION
3 months
Periods ended March 31 2017 2016 Change %
Financial info
Property rental income 969,635 601,740 367,895 61 %
Total revenue 969,635 751,740 217,895 29 %
NOI (1) 781,131 662,469 118,662 18 %
FFO (1) 509,113 418,236 90,877 22 %
Recurring FFO (1) 509,113 268,236 240,877 90 %
AFFO (1) 500,268 384,397 115,871 30 %
EBITDA (1) 690,074 591,702 98,372 17 %
Investment properties (2) 50,873,143 34,808,863 16,064,280 46 %
Total assets 50,318,833 35,319,808 14,999,025 42 %
Total mortgage/loans/long term debt (3) 24,991,267 17,878,692 7,112,575 40 %
Total exchangeable preferred units 956,072 916,457 39,615 4 %
Total convertible debentures 253,259 251,895 1,364 1 %
Total equity 23,022,113 15,490,110 7,532,003 49 %
Weighted average units o/s - basic 59,269,263 46,378,751 12,890,512 28 %
Amounts on a per unit basis
FFO 0.0086 0.0090 (0.0004 ) (5 %)
Recurring FFO 0.0086 0.0058 0.0028 49 %
AFFO 0.0084 0.0083 0.0002 2 %
Distributions 0.0045 0.0039 0.0006 16 %
(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
Periods ended March 31 2017 2016 Change
Net income (loss) attributable to unitholders 1,840,152 1,528,631 311,521
Change in value of investment properties (1,334,751 ) (1,090,184 ) (244,567 )
Change in value of investment properties in joint ventures
(31,140
)
(27,984
)
(3,156
)
Unit based compensation 28,475 - 28,475
Change in liability component of exchangeable preferred units
14,352

13,443

909
Change in fair value of derivative financial instruments
(6,180
)
(4,915
)
(1,265
)
Change in fair value of other financial components
(1,795
)
(755
)
(1,040
)
Income taxes - - -
FFO(1) - basic 509,113 418,236 22 %
FFO per unit - basic 0.0086 0.0090 (5 %)
Distributions paid on exchangeable units (if dilutive) 13,897 11,967 1,930
FFO - diluted 523,010 430,203 22 %
FFO per unit - diluted 0.0084 0.0087 (4 %)
Recurring FFO - basic 509,113 268,236 90 %
Recurring FFO per unit - basic 0.0086 0.0058 49 %
Distributions 266,847 179,718 87,129
Distributions per unit 0.0045 0.0039 16 %
FFO - basic after distributions 0.0041 0.0051 (0.0011 )
Recurring FFO - basic after distribution 0.0041 0.0019 0.0022
Distributions as a % of
FFO - basic 52 % 43 % 9 %
Distributions as a % of
Recurring FFO - basic 52 % 67 % (15 %)
Weighted avg. units o/s
Basic 59,269,263 46,378,751 12,890,512
Diluted 62,357,463 49,466,951 12,890,512
(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 commercial real estate properties situated along highways or frequently travelled routes, rented to strong tenants under long term, management free and net leases. These properties are typically occupied by tenants within the following sectors; (1) Fast food chains, (2) Major oil/gas companies and (3) Convenience store chains.

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 March 31st, 2017 financial statements and management discussion & analysis of Fronsac REIT may be viewed on SEDAR at www.sedar.com

Contact Information

  • Fronsac Real Estate Investment Trust
    Jason Parravano
    (450) 536-5328