Firm Capital Property Trust Reports Q2/2024 Results
In This Article:
STRONG SEQUENTIAL SAME-STORE NOI AND NAV GROWTH
DECLINING AFFO PAYOUT RATIO
TORONTO, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Firm Capital Property Trust (“FCPT” or the “Trust”), (TSX: FCD.UN) is pleased to report its financial results for the three and six months ended June 30, 2024.
PROPERTY PORTFOLIO HIGHLIGHTS
The portfolio consists of 64 commercial properties with a total gross leasable area (“GLA”) of 2,545,843 square feet, five multi-residential complexes comprised of 599 units and four Manufactured Home Communities comprised of 537 units. The portfolio is well diversified and defensive in terms of geographies and property asset types, with 49% of NOI (44% of asset value) comprised of grocery anchored retail followed by industrial at 28% of NOI (31% of asset value). In addition, the portfolio is well diversified in terms of geographies with 38% of NOI (42% of asset value) comprised of assets located in Ontario, followed by Quebec at 37% of NOI (32% of asset value).
TENANT DIVERSIFICATION
The portfolio is well diversified by tenant profile with no tenant currently accounting for more than 11.0% of total net rent. Further, the top 10 tenants are comprised of large national tenants and account for 30.6% of total net rent.
Q2/2024 HIGHLIGHTS
Key highlights for the three months ended June 30, 2024 are as follows:
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Net income was approximately $8.9 million, compared to $5.6 million net income recorded for the same period in 2023;
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$7.71 Net Asset Value (“NAV”) per Unit, a 1.2% increase over Q1/2024;
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Net Operating Income (“NOI”) was approximately $9.7 million, a 6% increase from the same period in 2023;
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Same Property NOI increased 10% over Q2/2023;
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Adjusted Funds From Operations (“AFFO”) was approximately $4.6 million, 22% higher than the same period in 2023;
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AFFO per Unit for Q2/2024 increased by 22% to $0.124 over Q2/2023.
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AFFO Payout ratio decreased to 105% for Q2/2024 from 128% over the same period in 2023;
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Commercial occupancy was 95.8%, Multi-Residential occupancy was 99.7% while Manufactured Homes Communities occupancy was 100.0%;
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Conservative leverage profile with Debt / Gross Book Value (“GBV”) at 51.7%; and
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The Trust declared and approved monthly distributions in the amount of $0.0433 per Trust Unit for Unitholders of record on October 31, 2024, November 29, 2024 and December 31, 2024, payable on or about November 15, 2024, December 16, 2024, and January 15, 2025, respectively.
See chart below for additional information:
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| Three Months |
| Six Months Ended | |||||
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| Jun 30, 2024 | Jun 30, 2023 | Change |
| Jun 30, 2024 | Jun 30, 2023 | Change | |
| Rental Revenue | $ 15,086,655 | $ 14,094,375 | 7% |
| $ 30,099,828 | $ 28,303,583 | 6% | |
| NOI - IFRS Basis | 9,657,575 | 9,079,864 | 6% |
| 18,929,167 | 18,302,880 | 3% | |
| NOI - Cash Basis | 9,704,051 | 9,051,925 | 7% |
| 19,118,963 | 18,205,008 | 5% | |
| Same-Property NOI | 9,640,953 | 8,775,439 | 10% |
| 18,743,364 | 17,587,848 | 7% | |
| Net Income (loss) | 8,884,882 | 5,571,772 | 59% |
| 18,769,721 | 10,968,284 | 71% | |
| FFO | 4,719,175 | 4,330,951 | 9% |
| 9,271,815 | 8,816,988 | 5% | |
| AFFO | 4,592,570 | 3,756,800 | 22% |
| 9,036,710 | 7,756,037 | 17% | |
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| Total Assets |
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| 645,870,632 | 641,277,417 | 1% | |
| Total Mortgages |
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| 314,222,880 | 310,792,107 | 1% | |
| Credit Facility |
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| 19,600,000 | 23,499,985 | (17%) | |
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| Unitholders' Equity |
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| 300,862,566 | 296,890,636 | 1% | |
| Units Outstanding (000s) |
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| 36,926 | 36,925 | 0% | |
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| FFO Per Unit | $0.128 | $0.117 | 9% |
| $0.251 | $0.238 | 6% | |
| AFFO Per Unit | $0.124 | $0.102 | 22% |
| $0.245 | $0.210 | 17% | |
| Distributions Per Unit | $0.130 | $0.130 | 0% |
| $0.260 | $0.260 | 0% | |
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| FFO Payout Ratio | 102% | 111% |
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| 104% | 109% | (546) bps | |
| AFFO Payout Ratio | 105% | 128% |
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| 106% | 124% | (1,777) bps | |
| Wtd. Avg. Int. Rate - Mort. Debt |
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| 4.2% | 4.1% | 10 bps | |
| Debt to GBV |
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| 52% | 52% | (31) bps | |
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| GLA - Commercial, SF |
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| 2,545,843 | 2,557,010 | 0% | |
| Units - Multi-Res |
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| 599 | 599 | 0% | |
| Units - MHCs |
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| 537 | 536 | 0% | |
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| Occupancy - Commercial |
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| 95.8% | 96.0% | (20) bps | |
| Occupancy - Multi-Res |
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| 99.7% | 97.1% | 260 bps | |
| Occupancy MHCs |
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| 100.0% | 99.8% | 20 bps | |
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| Rent PSF - Retail |
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| $19.10 | $18.45 | 4% | |
| Rent PSF - Industrial |
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| $8.50 | $8.07 | 5% | |
| Rent per month - Multi-Res |
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| $1,453 | $1,331 | 9% | |
| Rent per month - MHCs |
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| $633 | $587 | 8% | |
For the complete financial statements, Management’s Discussion & Analysis and supplementary information, please visit www.sedar.com or the Trust’s website at www.firmcapital.com