All figures in $USD unless otherwise noted.
EARNINGS
- For the three months ended
September 30, 2023 , net loss was approximately$1.5 million , in comparison to the$1.9 million net loss reported for the three months endedJune 30, 2023 and the$1.4 million net loss reported for the three months endedSeptember 30, 2022 ; - Excluding non-cash fair value adjustments, net loss was
$0.4 million for the three months endedSeptember 30, 2023 , in comparison to the$0.2 million net loss reported for the three months endedJune 30, 2023 and the$0.4 million net income reported for the three months endedSeptember 30, 2022 . Excluding non cash fair value adjustments, net loss was$0.5 million for the nine months endedSeptember 30, 2023 in comparison to the$1.7 million net income reported for the nine months endedSeptember 30, 2022 ; - For the three months ended
September 30, 2023 , AFFO was negative$0.3 million , in comparison to the negative$0.2 million reported for the three months endedJune 30, 2023 and the$0.7 million reported for the three months endedSeptember 30, 2022 . For the nine months endedSeptember 30, 2023 , AFFO was negative$0.4 million in comparison to the$1.8 million reported for the nine months endedSeptember 30, 2022 .
Three Months Ended | Nine Months Ended | |||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Net Loss | $ | (1,483,852 | ) | $ | (1,854,814 | ) | $ | (1,434,159 | ) | $ | (8,240,393 | ) | $ | (12,082,626 | ) | |||
Net Income (Loss) Before Fair Value Adjustments | $ | (418,741 | ) | $ | (221,406 | ) | $ | 384,679 | $ | (479,587 | ) | $ | 1,723,377 | |||||
FFO | $ | (662,938 | ) | $ | (77,799 | ) | $ | 2,147,093 | $ | (1,312,319 | ) | $ | 3,409,147 | |||||
AFFO | $ | (348,782 | ) | $ | (166,675 | ) | $ | 683,208 | $ | (361,013 | ) | $ | 1,817,520 | |||||
NAV AT
Including the face value of the convertible debentures, the Trust reported NAV of
AVERAGE RENT INCREASES ACROSS INVESTMENT PORTFOLIO:
Wholly-Owned Real Estate Investments Portfolio: For the three months ended
Joint Venture Real Estate Investments Portfolio: For the three months ended
STRATEGIC REVIEW
On
By way of update, the Board is pleased to report on the following:
- WHOLLY OWNED ASSET DISPOSITIONS: The Trust had listed for sale its entire Wholly Owned Real Estate Investments and is pleased to report on the following:
Texas : OnJune 22, 2023 , the Trust announced the sale of one of its properties located inAustin, Texas for$12.6 million . Net of associated mortgage debt and closing costs, the net sale proceeds of approximately$8.8 million were used to pay off additional debt including, but not limited to, the mortgage associated with the Trust’s other property located inAustin, Texas ; bank indebtedness and the vast majority of the$5.1 million (CAD$6.9 million )Bridge Loan . The property sold had a sales price in line with its IFRS value.
OnOctober 2, 2023 , the Trust completed the sale of its unencumbered property located inAustin, Texas for$9.9 million . Net of closing costs, the net sale proceeds of approximately$9.6 million were used to pay off loans as they came due and for working capital purposes. The property had a sales price in line with its IFRS value.
In addition, the Trust has two properties located inHouston, Texas that are actively being marketed.New Jersey : OnAugust 31, 2023 , the Trust completed the previously announced sale of its property located inNew Jersey for$19.5 million . Net of associated mortgage debt and closing costs, the net sale proceeds of approximately$5.4 million were used to pay off the remainder of the Bridge Loan, other loans as they came due and for working capital purposes. The property sold had a sales price in line with its IFRS value.Florida : The Trust’s property inFlorida is actively being marketed.
- JOINT VENTURE ASSET DISPOSITIONS: The Trust has listed for sale its Joint Venture Real Estate Investments located in
Maryland andConnecticut as both the Trust and its partners have decided it is an appropriate time to exit the respective investments. As of today, one of theMaryland properties is under contract and one is being actively marketed, while theConnecticut property is under negotiations with a third party.
The sale price for 100% of theMaryland property is$16.5 million . Net of associated mortgage debt and closing costs, the net sale proceeds will be approximately$4.3 million , of which the Trust will receive approximately$1.2 million given its 25% ownership in the property. The property has a sales price in line with its IFRS value and is anticipated to close during Q4/2023.
- PREFERRED CAPITAL INVESTMENTS: As at
September 30, 2023 , the Trust has two Preferred Capital Investments located inTexas andSouth Dakota that aggregate approximately$5.1 million . The Trust continues to hold these investments and earns income at 10% and 12%, respectively. Both investments are current in terms of their interest payments. - NORMAL COURSE ISSUER BID: As a result of the Trust’s cash position, on
September 20, 2023 , the Trust announced that it received approval from the TSXV to commence a Normal Course Issuer Bid (the " Bid ") to purchase up to$1.9 million (the “Allotment”) of theCAD$19.4 million , 6.25% convertible unsecured subordinated debentures dueJune 30, 2026 ("Debentures") (TSXV:FCA.DB). The Bid commenced onSeptember 25, 2023 and will end no later thanSeptember 24, 2024 .The Board of Trustees is of the opinion that it is in the best interest of the Trust and its security holders to purchase the Debentures at a discount to Par, through the Bid, while providing liquidity for the security holders. It is the intent of the Trust to acquire as much of the Debentures as possible up to the maximum allowable under the rules of the Exchange in the context of market pricing, thus providing liquidity for existing holders of the Debentures.
As ofNovember 8 , the Trust has acquired$0.37 million or approximately 20% of the Allotment for a Weighted Average Debenture Price of$94.89 . Note that the Trust is limited to acquiring up to 2% of the Debentures on a monthly basis. During the month of October, the Trust met this limit.
The Board will continue to assess matters on a quarterly basis and determine if the Trust should: (i) distribute excess income; (ii) distribute net proceeds from asset sales, after debt repayment; (iii) reinvest net proceeds into other investments; (iv) distribute proceeds as a return of capital or special distribution; and/or (v) use excess proceeds to repurchase Trust units in the marketplace. It is the Trust’s current intention not to disclose developments with respect to the Strategic Review unless and until it is determined that disclosure is necessary or appropriate, or as required under applicable securities laws.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions.
Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse factors affecting the
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Except as required by applicable law, the Trust undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Certain financial information presented in this press release reflect certain non-International Financial Reporting Standards (“IFRS”) financial measures, which include, but not limited to NOI, FFO and AFFO. These measures are commonly used by real estate investment companies as useful metrics for measuring performance, however, they do not have standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other real estate investment companies. These terms are defined in the Trust’s Management Discussion and Analysis for the three and nine months ended
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
For further information, please contact: | |
Sandy Poklar | |
President & Chief Executive Officer | Chief Financial Officer |
(416) 635-0221 | (416) 635-0221 |
For Investor Relations information, please contact: | |
Director, Investor Relations | |
(416) 635-0221 |
Source:
2023 GlobeNewswire, Inc., source