Le Lézard
Classified in: Business
Subject: EARNINGS

Fronsac Announces Its Results For The Quarter Ended September 30, 2019 And An Increase Of 15.1% In Its 2020 Per Unit Distribution


MONTREAL, Nov. 08, 2019 (GLOBE NEWSWIRE) -- (TSX-V: FRO.UN) Fronsac Real Estate Investment Trust ("Fronsac REIT" or "Fronsac") announces its results for the quarter ended September 30th, 2019 and, for an eight consecutive year, an increase in its annual distribution as well as distributions for the months of January, February and March 2020.

Distributions
Starting in January 2020, the annual distribution will go from 2.220¢ to 2.555¢ per unit, representing an increase of 15.1%. The monthly distributions will be of 0.213¢ per unit. This represents a 104% total growth since Fronsac's first distributions in 2012.

Fronsac also announces that it will make monthly cash distributions of 0.213¢ per unit, representing 2.555¢ per unit on an annualized basis, on January 31st, February 28th and March 31st, 2020 to unitholders of record on January 15th, February 14th and March 16th, 2020, respectively.

For the quarter ended September 30, 2019, Fronsac reported recurring funds from operations ("Recurring FFO") per unit of 1.02¢ compared to 0.95¢ per unit for the quarter ended September 30, 2018, an increase of 8%. Recurring FFO was $1,197,449, an increase of 37% ($871,219 in Q3 2018). During Q3 2019, the Trust's property rental income was $2,458,451 compared to $1,663,373 in Q3 2018, an increase of 48%. NOI (Net operating Income) was $1,881,747 compared to $1,324,647 in Q3 2018, an increase of 42%. Fronsac recorded a net income attributable to unitholders of $3,891,506, or 3.33¢ per unit, compared to a net income of $544,021, or 0.59¢ per unit, in Q3 2018.

For the 9-month period ended September 30, 2019, Fronsac reported Recurring FFO per unit of 3.04¢ compared to 2.76¢ per unit for the same period in 2018, an increase of 10%. Recurring FFO was $3,319,677, an increase of 38% ($2,413,136 for the same period in 2018). During the 9-month period ended September 30, 2019, the Trust's property rental income was $6,650,030 compared to $4,556,093 for the same period in 2018, an increase of 46%. Net operating Income was $5,142,963 compared to $3,623,014 for the same period in 2018, an increase of 42%. Fronsac recorded a net income attributable to unitholders of $4,088,070, or 3.74¢ per unit, compared to a net income of $2,196,171, or 2.51¢ per unit for the same period in 2018.

Jason Parravano President and CEO said: "We are pleased to share with everyone our results for Q3 2019. Our per unit growth has allowed us to increase once again our distributions for the following year, and this for the 8th year in a row. During the quarter, we also continued to add to our portfolio and to diversify our tenant base."

The tables below represent other financial highlights as well as the reconciliation from net income to FFO for the periods ended September 30th, 2019 and its comparative period. This information should be read in conjunction with the Consolidated Financials Statements and MD&A for the quarters ended September 30th, 2019 and September 30th, 2018.

       
SUMMARY OF SELECTED ANNUAL INFORMATION     
 9 months    
Periods ended September 3020192018  ?%
Financial info      
Property rental income6,650,0304,556,093  2,093,93746%
Total revenue6,650,0304,571,093  2,078,93745%
NOI (1)5,142,9633,623,014  1,519,94942%
FFO (1)3,319,6772,428,136  891,54137%
Recurring FFO (1)3,319,6772,413,136  906,54138%
AFFO (1)3,276,1912,115,047  1,161,14455%
EBITDA (1)4,887,8513,372,480  1,515,37145%
Investment properties (2)133,413,30899,264,996  34,148,31234%
Total assets126,614,74296,863,007  29,751,73531%
Total mortgage/loans/long term debt (3)60,553,95247,168,403  13,385,54928%
(including revolving line of credit)68,379,23247,568,403  20,810,82944%
Total convertible debentures2,967,4981,576,413  1,391,08588%
Total equity53,031,40345,899,465  7,131,93816%
Weighted average units o/s - basic109,356,60587,649,966  21,706,63925%
Amounts on a per unit basis      
FFO0.03040.0277  0.002710%
Recurring FFO0.03040.0275  0.002810%
AFFO0.03000.0241  0.005824%
Distributions0.01670.0151  0.001510%
        
(1) Non-IFRS financial measures
(2) Includes value of investment properties owned through joint ventures
(3) Excludes convertible debentures
 


            
RECONCILIATION OF NET INCOME TO FFO
 3 months    6 months   
Periods ended September 3020192018  ? 20192018  ?
Net income (loss) attributable           
to unitholders3,891,506544,021  3,347,485 4,088,0702,196,171  1,891,899
Debenture issuance costs-53,171  (53,171) 30,66053,171  (22,511)
? in value of investment properties(2,689,721)24,924  (2,714,645) (1,056,922)(145,781)  (911,141)
? in value of investment           
properties in joint ventures79,560124,712  (45,152) 156,687156,423  264
Unit based compensation(275)17,600  (17,875) 181,30580,510  100,795
? in liability component of           
convertible debentures(20,084)10,130  (30,214) (983)10,882  (11,865)
? in fair value of derivative           
financial instruments(92,875)94,260  (187,135) (106,530)71,720  (178,250)
Accretion of lease payments29,338-  29,338 29,338-  29,338
Income taxes-2,401  (2,401) (1,948)5,040  (6,988)
FFO(1) - basic1,197,449871,219  37% 3,319,6772,428,136  37%
FFO per unit - basic0.01020.0095  8% 0.03040.0277  10%
Interest paid on convertible           
debentures (if dilutive)--  - --  -
FFO - diluted1,197,449871,219  37% 3,319,6772,428,136  37%
FFO per unit - diluted0.01020.0093  10% 0.03040.0269  13%
Recurring FFO - basic1,197,449871,219  37% 3,319,6772,413,136  38%
Recurring FFO per unit - basic0.01020.0095  8% 0.03040.0275  10%
Distributions649,344458,528  190,816 1,805,4931,322,097  483,396
Distributions per unit0.00560.0050  12% 0.01670.0151  10%
FFO - basic after distributions0.00470.0045  0.0002 0.01370.0126  0.0011
Recurring FFO - basic after distributions0.00470.0045  0.0002 0.01370.0124  0.0013
Distributions as a % of           
FFO - basic54%53%  1% 55%55%  -
Distributions as a % of           
Recurring FFO - basic54%53%  1% 55%55%  -
Weighted avg. units o/s           
Basic117,014,41391,554,473  25,459,940 109,356,60587,649,966  21,706,639
Diluted117,014,41394,059,156  22,955,257 109,356,60590,154,649  19,201,956
(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 IFRS 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 September 30th, 2019 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.


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News published on 8 november 2019 at 17:40 and distributed by: