Fronsac REIT Announces Excellent Financial Results for 2013
04 April 2014 - 3:58PM
Marketwired
Fronsac REIT Announces Excellent Financial Results for 2013
MONTREAL, QUEBEC--(Marketwired - Apr 4, 2014) -
(TSX-VENTURE:GAZ.UN) - Fronsac Real Estate Investment Trust
("Fronsac REIT" or "Fronsac") today released its audited
consolidated financial statements for the year ended December 31st,
2013.
For the financial year ended December 31, 2013, Fronsac reported
funds from operations ("FFO") of $581,977, an increase of 113% over
the year of 2012 ($273,456 in 2012). For the year 2013, FFO per
unit was 1.77¢ (1.73¢ per unit diluted), compared to 1.30¢ per unit
for the year ended December 31, 2012 (1.30¢ per unit diluted), an
increase of 36% over the year 2012. The acquisitions completed in
2013 mainly explain the strong increase in the FFO.
Fronsac reported FFO of $119,269 for the three months ended
December 31, 2013, an increase of 261% over the same period in the
prior year ($33,078 in 2012). FFO per unit was 0.36¢ for the
quarter ended December 31, 2013 (0.35¢ per unit diluted) compared
to 0.15¢ per unit for the quarter ended December 31, 2012 (0.15¢
per unit diluted), an increase of 140% over Q4 2012. The
acquisitions mentioned above mainly explain the strong increase in
the FFO.
Michel Lassonde President and CEO said: "We are very pleased
with our performance and growth for the quarter and the year. Our
performance for 2013 has led to an annual distribution increase for
2014 from 1.35¢ to 1.48¢ cents per unit. This represents the third
consecutive annual distribution increase for Fronsac. Fronsac's
success is a confirmation of our business strategy and solid
financial structure."
For its 2013 financial year, Fronsac recorded a net profit
attributable to unitholders of $1,250,170 or 3.81¢ per unit
compared to a net profit of $1,062,419 or 5.06¢ per unit for 2012.
Profit was mainly affected by the same factors affecting FFO as
well as non-cash gains of $575,903 [2012: 999,361] and $97,896
[2012: nil] related to the increase in value of the investment
properties recorded respectively in the accounts of "Investment
properties" and "Investment in joint-ventures".
The AFFO/FFO summary and the highlights for the years ended
December 31, 2013 and 2012 as well as for the quarters ending at
the same dates are presented in the tables below :
Financial results highlights
AFFO/FFO Reconciliation *
|
31-12-2013 |
|
31-12-2012 |
|
31-12-2013 |
|
31-12-2012 |
|
|
3 months |
|
3 months |
|
12 months |
|
12 months |
|
Net income attributable to unitholders |
959,081 |
|
929,738 |
|
1,250,170 |
|
1,062,419 |
|
Variation of fair value of investment properties |
769,240 |
|
999,361 |
|
575,903 |
|
999,361 |
|
Variation of fair value of investments properties recorded in joint
ventures |
58,309 |
|
- |
|
97,896 |
|
- |
|
Unit-based compensation |
(200 |
) |
(3,200 |
) |
(22,950 |
) |
4,606 |
|
Adjustment to the liability component of the convertible preferred
units |
8,309 |
|
567 |
|
17,344 |
|
2,036 |
|
Variation of fair value of derivative financial instrument |
(17,875 |
) |
(6,500 |
) |
(69,180 |
) |
19,500 |
|
Unrealized (gains) on interest rates swaps |
(2,000 |
) |
(2,400 |
) |
(7,900 |
) |
(13,400 |
) |
Variation of fair value of warrants |
(340 |
) |
(4,475 |
) |
(2,700 |
) |
3,594 |
|
Amortization intangible assets |
1,853 |
|
1,851 |
|
7,406 |
|
7,404 |
|
Current income taxes |
7,776 |
|
4,668 |
|
7,776 |
|
4,668 |
|
Deferred income taxes |
(9,786 |
) |
112,190 |
|
75,810 |
|
181,990 |
|
|
|
|
|
|
|
|
|
|
AFFO/FFO - basic |
119,269 |
|
33,078 |
|
581,977 |
|
273,456 |
|
Distributions paid on convertible preferred units |
15,350 |
|
- |
|
59,888 |
|
- |
|
AFFO/FFO - diluted |
184,619 |
|
33,078 |
|
641,865 |
|
273,456 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of units outstanding - basic |
33,138,894 |
|
22,405,529 |
|
32,817,956 |
|
20,985,587 |
|
Weighted average number of units outstanding - diluted |
37,929,094 |
|
22,405,529 |
|
37,093,456 |
|
20,985,587 |
|
|
|
|
|
|
|
|
|
|
AFFO/FFO per unit - basic |
0.0036 |
|
0.0015 |
|
0.0177 |
|
0.0130 |
|
AFFO/FFO per unit - diluted |
0.0035 |
|
0.0015 |
|
0.0173 |
|
0.0130 |
|
|
|
|
|
|
|
|
|
|
EBITDA |
241,594 |
|
89,871 |
|
926,380 |
|
456,330 |
|
Interest coverage |
2.2 |
|
1.5 |
|
2.8 |
|
2.7 |
|
Debt coverage |
1.7 |
|
1.1 |
|
2.1 |
|
1.9 |
|
* = For the three (3) and twelve (12) months periods ending
December 31, 2013 and 2012, FFO and AFFO were equal.
Financial position
|
31-12-2013 |
|
31-12-2012 |
|
Investment properties (at fair value) |
20,398,786 |
|
11,521,954 |
|
Investments in joint ventures (at fair value) |
761,729 |
|
- |
|
Total assets |
22,131,533 |
|
14,333,024 |
|
Total debts and loans |
9,967,130 |
|
4,119,972 |
|
Total liabilities |
11,263,993 |
|
4,832,944 |
|
Leverage Ratio |
45.0 |
% |
28.7 |
% |
Weighted Average Cost of Debt |
4.93 |
% |
4.91 |
% |
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 December 31, 2013 financial statements of Fronsac REIT may
be viewed on SEDAR at www.sedar.com
Michel LassondePresident(450) 536-5328
Fronsac Real Estate Investment (TSXV:GAZ.UN)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Fronsac Real Estate Investment (TSXV:GAZ.UN)
Historical Stock Chart
Von Jul 2023 bis Jul 2024