Fronsac Real Estate Investment Trust
TSX VENTURE : GAZ.UN

Fronsac Real Estate Investment Trust

November 13, 2014 18:06 ET

Fronsac REIT Reports Solid Results for the 9 Month Period Ended September 30th, 2014

MONTREAL, QUEBEC--(Marketwired - Nov. 13, 2014) - Fronsac Real Estate Investment Trust ("Fronsac REIT" or "Fronsac") (TSX VENTURE:GAZ.UN) today released its consolidated financial statements for the quarter ended September 30th, 2014.

For the three month ended September 30th of 2014, Fronsac reported funds from operations ("FFO") of $175,938, a decrease of 23.00% over the comparable three month period of 2013 ($228,518 in Q3-2013). For the quarter ended September 30th, 2014, FFO per unit was 0.50¢, compared to 0.70¢ per unit for the comparable period of 2013, a decrease of 28.57%. The decrease in FFO for the third quarter is due to one-time non-recurring accounting adjustments

For the first nine month of 2014, Fronsac reports funds from operations ("FFO") of $588,421, an increase of 27.16% over the comparable nine month period of 2013 ($462,709 in Q3-2013). As at September 30th, 2014, FFO per unit was 1.69¢, compared to 1.41¢ per unit for the comparable period of 2013, an increase of 19.86%.

Michel Lassonde President and CEO said: "Our results for the first nine month of 2014 are strong and show a continued growth in our FFO and our cash flow. We are very pleased that our growth continues to be accretive on a per unit basis."

The AFFO/FFO summary and the highlights for the quarter ending on September 30th are presented in the tables below :

OPERATIONAL AND FINANCIAL HIGHLIGHTS
For the periods endedSeptember 30, September 30, September 30, September 30,
2014 2013 2014 2013
(3 months) (3 months) (9 months) (9 months)
OPERATIONAL DATA
Number of properties10 8 10 8
Occupancy100%100%100%100%
Value of properties (including joint venture)20,090,267 17,950,279 20,090,267 17,950,279
FINANCIAL PERFORMANCE
Property rental revenue349,327 233,068 1,098,998 693,548
Funds from operations (FFO)175,938 228,518 588,421 462,709
Adjusted funds from operations (AFFO)175,938 228,518 588,421 462,709
EBITDA300,660 307,679 913,988 684,786
Distributions132,915 111,210 387,778 332,111
PER UNIT FINANCIAL PERFORMANCE
Weighted average units outstanding35,403,181 32,865,485 34,761,565 32,709,801
FFO0.0050 0.0070 0.0169 0.0141
AFFO0.0050 0.0070 0.0169 0.0141
Variation-28.57%s/o 19.86%s/o
Distributions per unit0.0037 0.003375 0.0111 0.010125
AFFO payout ratio74.00%48.21%65.68%71.81%
FINANCING
Leverage50.13%42.52%50.13%42.52%
Interest coverage ratio2.4 3.4 2.6 3.1
Debt service coverage ratio1.8 2.5 1.8 2.3

About Fronsac - Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality commercial real estate properties, rented to strong tenants under long term, management free and net leases.

Forward-Looking Statements - This press release contains forward-looking statements and information as defined by applicable securities laws, including statements relating to Fronsac and expectations of the management regarding a proposed transaction and the expected benefits thereof. There is no assurance that the proposed transaction will be carried out and that the anticipated benefits will materialize. The proposed transaction is subject to approval and consent of stakeholders and there is no certainty that these will be achieved. 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) accept any responsibility for the adequacy or accuracy of this release.

The September 30th, 2014 financial statements of Fronsac REIT may be viewed on SEDAR at www.sedar.com

Contact Information

  • Michel Lassonde
    President
    (450) 536-5328