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Fronsac Announces its Results for the Quarter Ended March 31, 2020 and Monthly Distributions for the Months of July, August and September 2020

MONTREAL, May 22, 2020 (GLOBE NEWSWIRE) -- (TSX-V:FRO.UN) Fronsac Real Estate Investment Trust (“Fronsac REIT” or “Fronsac”) announces its results for the quarter ended March 31st, 2020 and that it will make monthly cash distributions of 0.213¢ per unit, representing 2.555¢ per unit on an annualized basis, on July 31st, August 31st and September 30th, 2020 to unitholders of record on July 15th, August 14th and September 15th, 2020, respectively.

For the quarter ended March 31st, 2020, Fronsac reported recurring funds from operations ("Recurring FFO") per unit of 1.10¢ compared to 0.98¢ per unit for the quarter ended March 31, 2019, an increase of 12%. Recurring FFO was $1,462,713, an increase of 46% ($1,000,484 in Q1 2019). During Q1 2020, the Trust’s property rental income was $2,863,606 compared to $1,999,095 in Q1 2019, an increase of 43%. NOI (Net operating Income) was $2,198,785 compared to $1,556,756 in Q1 2019, an increase of 41%. Fronsac recorded a net income attributable to unitholders of $4,118,476, or 3.10¢ per unit, compared to a net income of $50,870, or 0.05¢ per unit, in Q1 2019.

Jason Parravano, President and CEO declares: ‘‘It is important once again to highlight the growth that we experienced this past quarter. I believe that we are in a great position to weather the storm ahead. We have seen optimism from our tenants as more and more people are out on the road.’’

The tables below represent other financial highlights as well as the reconciliation from net income to FFO for the periods ended March 31st, 2020 and its comparative period. This information should be read in conjunction with the Consolidated Financials Statements and MD&A for the quarters ended March 31st, 2020 and March 31st, 2019.

           
SUMMARY OF SELECTED ANNUAL INFORMATION        
         
  3 months      
Periods ended March 31 2020 2019 Δ %  
           
Financial info          
Property rental income   2,863,606   1,999,095 864,511 43 %
Total revenue   2,863,606   1,999,095 864,511 43 %
Net income (loss) and          
comprehensive income (loss)   4,118,476   50,870 4,067,606 7,996 %
NOI (1)   2,198,785   1,556,756 642,029 41 %
FFO (1)   1,462,713   1,000,484 462,229 46 %
Recurring FFO (1)(2)   1,462,713   1,000,484 462,229 46 %
AFFO (1)   1,349,626   970,747 378,879 39 %
EBITDA (1)   2,020,860   1,474,163 546,697 37 %
Investment properties (3)   160,828,581   107,597,405 53,231,176 49 %
Total assets   155,220,627   100,749,003 54,471,624 54 %
Total mortgage/loans/long term debt (4)   71,064,054   50,549,310 20,514,744 41 %
(including revolving line of credit)   76,887,604   54,979,310 21,908,294 40 %
Total convertible debentures   2,985,538   1,580,732 1,404,806 89 %
Total equity   71,358,784   41,842,156 29,516,628 71 %
Weighted average units o/s - basic   132,966,393   101,606,238 31,360,155 31 %
           
           
Amounts on a per unit basis          
FFO   0.0110   0.0098 0.0012 12 %
Recurring FFO   0.0110   0.0098 0.0012 12 %
AFFO   0.0102   0.0096 0.0006 6 %
Distributions   0.0064   0.0056 0.0008 14 %
           
           
(1) See appropriate sections for reconciliation to the closest IFRS measure and section "Explanation of non-IFRS financial measures" 
(2) Recurring FFO excludes ''Other income'' items as presented on the Consolidated Financial Statements 
(3) Includes value of investment properties owned through joint ventures; Refer to Note 4 (Investment Properties) and Note 5 ([1] value of developed properties, [2] leased properties and [3] properties under development) in Fronsac's financial statements 
(4) Excludes convertible debentures 


RECONCILIATION OF NET INCOME TO FFO          
           
  3 months        
Periods ended March 31 2020   2019   Δ  
             
Net income attributable            
to unitholders 4,118,476   50,870   4,067,606  
             
Debenture issuance costs   -      -      -   
Δ in value of investment properties (2,377,881 ) 842,237   (3,220,118 )
Δ in value of investment            
properties in joint ventures (404,906 ) 76,151   (481,057 )
Unit based compensation 180,000   63,180   116,820  
Δ in liability component of             
convertible debentures (37,788 ) (12,749 ) (25,039 )
Δ in fair value of derivative             
financial instruments (21,900 ) (19,205 ) (2,695 )
Accretion of lease payments 6,712     -    6,712  
Income taxes   -      -    -  
             
FFO(1) - basic 1,462,713   1,000,484   46 %
FFO per unit - basic 0.0110   0.0098   12 %
             
Distributions paid on convertible             
debentures (if dilutive)   -    -   -  
             
FFO - diluted 1,462,713   1,000,484   46 %
FFO per unit - diluted 0.0110   0.0098   12 %
             
             
Recurring FFO(2) - basic 1,462,713   1,000,484   46 %
Recurring FFO per unit - basic 0.0110   0.0098   12 %
             
             
Distributions 875,793   563,825   311,968  
Distributions per unit 0.0064   0.0056   14 %
             
FFO - basic after distributions 0.0046   0.0043   0.0003  
Recurring FFO - basic after distributions 0.0046   0.0043   0.0003  
             
             
Distributions as a % of            
FFO - basic 58 % 56 % 2 %
Distributions as a % of            
Recurring FFO - basic 58 % 56 % 2 %
             
             
Weighted avg. units o/s            
Basic  132,966,393   101,606,238   31,360,155  
Diluted  132,966,393   101,606,238   31,360,155  
             
             
(1) See appropriate sections for reconciliation to the closest IFRS measure and section "Explanation of non-IFRS financial measures"   
(2) Recurring FFO excludes ''Other income'' as presented on the Consolidated Financial Statements 


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 March 31th, 2020 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.