Firm Capital Property Trust announces Q2/2013 results

TORONTO, Aug. 8, 2013 /CNW/ - Firm Capital Property Trust ("FCPT" or the "Trust"), (TSXV : FCD.UN) reported today its condensed interim consolidated financial results for the three and six months ended June 30, 2013.

FINANCIAL HIGHLIGHTS
Rental revenue for the three and six months ended June 30, 2013 was $929,668 and $1,744,130, respectively. Net Operating Income ("NOI") for the three and six months ended June 30, 2013 was $640,917 and $1,164,123 respectively. NOI margin for the three and six months ended June 30, 2013 was 69% and 67%, respectively.

For the three months ended June 30, 2013, Funds From Operations ("FFO") per Unit was $0.098 while Adjusted Funds From Operations ("AFFO") per Unit was $0.093. FFO and AFFO payout ratios were 89% and 94%, respectively. For the six months ended June 30, 2013, FFO per Unit was $0.192 while AFFO per Unit was $0.183. FFO and AFFO payout ratios were 91% and 96%, respectively. Debt/Gross Book Value ("GBV") was 37.1%.

On August 1, 2013, the Trust closed on the previously announced acquisition of a 50% participation in 25 industrial buildings located in Montreal. The total purchase price of 100% of the portfolio was $48.2 million, excluding transaction costs. The portfolio is comprised of 1,029,898 square feet of GLA and is approximately 90% occupied. The portfolio was financed with proceeds from new first mortgage financings and from a private placement of trust units. 50% of the Portfolio was acquired by the Trust, while the remaining 50% was acquired by an entity associated with the Trust's asset manager that consists predominantly of senior management and trustees of FCPT. The funding required by the Trust for its 50% interest came from a combination of existing cash resources and a $6.4 million non-brokered private placement at $5.10 per trust unit.

Pro-forma the acquisition and financing activity, the Trust's AFFO payout ratio is anticipated to be below 80% and Debt/GBV stands at approximately 53%. The Trust has increased the size of its current portfolio to 30 properties with a value of approximately $58 million. In addition, the acquisition improves the diversification of the current portfolio through the addition of the industrial asset class to the existing retail and medical office asset classes.

DISTRIBUTION REINVESTMENT PLAN & UNIT PURCHASE PLAN
The Trust has in place a Distribution Reinvestment Plan ("DRIP") and Unit Purchase Plan (the "Plan"). Under the terms of the DRIP, FCPT's Unitholders may elect to automatically reinvest all or a portion of their regular monthly distributions in additional Units, without incurring brokerage fees or commissions. Under the terms of the Plan, FCPT's Unitholders may purchase a minimum of $1,000 of Units per month and maximum purchases of up to $12,000 per annum.

For the complete financial statements and Management's Discussion & Analysis for the period, please visit www.sedar.com or the Trust's website at www.firmcapital.com.

ABOUT FIRM CAPITAL PROPERTY TRUST
Firm Capital Property Trust is focused on creating long-term value for Unitholders, through capital preservation and disciplined investing to achieve stable distributable income. In partnership with management and industry leaders, The Trust's plan is to co-own a diversified property portfolio of multi-residential, flex industrial, net lease convenience retail, and core service provider professional space. In addition to stand alone accretive acquisitions, the Trust will make joint acquisitions with strong financial partners and acquisitions of partial interests from existing ownership groups, in a manner that provides liquidity to those selling owners and professional management for those remaining as partners.  Firm Capital Realty Partners Inc., through a structure focused on an alignment of interests with the Trust, will source, syndicate and participate in investments.

FORWARD LOOKING INFORMATION
This press release may contain forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", and by discussions of strategies that involve risks and uncertainties. The forward-looking statements are based on certain key expectations and assumptions made by the Trust regarding, among other things, the use of the net proceeds from the Offering, the closing of the Offering, and the closing of the Acquisition. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of the Trust believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the Trust nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the Firm Capital Property Trust have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.

SOURCE: Firm Capital Property Trust

Robert McKee
President & Chief Executive Officer
[phone]

Sandy Poklar
Chief Financial Officer
[phone]