MONTREAL, May 25, 2018 (GLOBE NEWSWIRE) -- (TSX-V:GAZ.UN) Fronsac Real Estate Investment Trust (“Fronsac REIT” or “Fronsac”) today announced its results for the quarter ended March 31st, 2018, and that it will make monthly cash distributions of 0.168¢ per unit, representing 2.016¢ per unit on an annualized basis, on July 31st, August 31st and September 28th, 2018 to unitholders of record on July 16th, August 15th and September 14th, 2018, respectively.
For the quarter ended March 31th, 2018, Fronsac reported recurring funds from operations ("Recurring FFO") per unit of 0.91¢ compared to 0.86¢ per unit for the quarter ended March 31th, 2017, an increase of 6%. Recurring FFO was $777,049, an increase of 53% ($509,113 in Q1 2017). During Q1 2018 the Trust’s property rental income was $1,361,751 compared to $969,635 in Q1 2017, an increase of 40%. NOI (Net operating Income) was $1,088,893 compared to $781,131 in Q1 2017, an increase of 39%. Fronsac recorded a net income attributable to unitholders of $1,373,354, or 1.6¢ per unit, compared to a net income of $1,840,152, or 3.1¢ per unit, in Q1 2017.
Jason Parravano President and CEO said: “2018 is off to a great start for Fronsac. We completed our Benny & Co. development in Cap Rouge, Quebec as well as our largest single property acquisition to date, the Bureau en Gros in Gatineau, Quebec. We continue to stay true to our business model and fuel our pipeline with acquisitions which are immediately accretive to our per unit results.”
The tables below represent other financial highlights as well as the reconciliation from net income to FFO for the periods ended March 31th, 2018 and its comparative period. This information should be read in conjunction with the Consolidated Financials Statements and MD&A for the quarters ended March 31th, 2018 and March 31th, 2017.
| SUMMARY OF SELECTED ANNUAL INFORMATION | ||||||
| 3 months | ||||||
| Periods ended March 31 | 2018 | 2017 | Change | % | ||
| Financial info | ||||||
| Property rental income | 1,361,751 | 969,635 | 392,116 | 40% | ||
| Total revenue | 1,376,751 | 969,635 | 407,116 | 42% | ||
| NOI (1) | 1,088,893 | 781,131 | 307,762 | 39% | ||
| FFO (1) | 792,049 | 509,113 | 282,936 | 56% | ||
| Recurring FFO (1) | 777,049 | 509,113 | 267,936 | 53% | ||
| AFFO (1) | 790,780 | 500,268 | 290,512 | 58% | ||
| EBITDA (1) | 1,014,097 | 691,099 | 322,998 | 47% | ||
| Investment properties (2) | 77,974,669 | 50,873,143 | 27,101,526 | 53% | ||
| Total assets | 77,151,567 | 50,318,833 | 26,832,734 | 53% | ||
| Total mortgage/loans/long term debt (3) | 37,809,315 | 24,991,267 | 12,818,048 | 51% | ||
| Total exchangeable preferred units | - | 956,072 | (956,072) | (100%) | ||
| Total convertible debentures | 254,714 | 253,259 | 1,455 | 1% | ||
| Total equity | 37,690,821 | 23,022,113 | 14,668,708 | 64% | ||
| Weighted average units o/s - basic | 85,659,099 | 59,269,263 | 26,389,836 | 45% | ||
| Amounts on a per unit basis | ||||||
| FFO | 0.0092 | 0.0086 | 0.0008 | 9% | ||
| Recurring FFO | 0.0091 | 0.0086 | 0.0005 | 6% | ||
| AFFO | 0.0092 | 0.0084 | 0.0008 | 9% | ||
| Distributions | 0.0050 | 0.0045 | 0.0005 | 10% | ||
| (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 | 2018 | 2017 | Change | ||
| Net income attributable | |||||
| to unitholders | 1,373,354 | 1,840,152 | (466,798) | ||
| Change in value of investment properties | (674,827) | (1,334,751) | 659,924 | ||
| Change in value of investment | |||||
| properties in joint ventures | 60,489 | (31,140) | 91,629 | ||
| Unit based compensation | 41,080 | 28,475 | 12,605 | ||
| Change in liability component of | |||||
| exch. preferred units & debentures | 4,133 | 14,352 | (10,219) | ||
| Change in fair value of derivative | |||||
| financial instruments | (12,180) | (7,975) | (4,205) | ||
| Income taxes | - | - | - | ||
| FFO(1) - basic | 792,049 | 509,113 | 56% | ||
| FFO per unit - basic | 0.0092 | 0.0086 | 8% | ||
| Distributions paid on exchangeable | |||||
| units (if dilutive) | - | 13,897 | (13,897) | ||
| FFO - diluted | 792,049 | 523,010 | 51% | ||
| FFO per unit - diluted | 0.0092 | 0.0083 | 11% | ||
| Recurring FFO - basic | 777,049 | 509,113 | 53% | ||
| Recurring FFO per unit - basic | 0.0091 | 0.0086 | 6% | ||
| Distributions | 431,785 | 266,847 | 164,938 | ||
| Distributions per unit | 0.0050 | 0.0045 | 12% | ||
| FFO - basic after distributions | 0.0042 | 0.0041 | 0.0001 | ||
| Recurring FFO - basic after distributions | 0.0040 | 0.0041 | (0.0001) | ||
| Distributions as a % of | |||||
| FFO - basic | 55% | 52% | 3% | ||
| Distributions as a % of | |||||
| Recurring FFO - basic | 56% | 52% | 4% | ||
| Weighted avg. units o/s | |||||
| Basic | 85,659,099 | 59,269,263 | 26,389,836 | ||
| Diluted | 86,240,494 | 62,938,858 | 23,301,636 | ||
| (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 March 31th, 2018 financial statements and management discussion & analysis of Fronsac REIT may be viewed on SEDAR at www.sedar.com
For further information please contact Jason Parravano at (450) 536-5328.