REIT doubles profit, showcases strong portfolio performance
Firm Capital Property Trust (FCPT) has reported strong financial results for the first quarter of 2024, highlighting a significant increase in net income, among other positive developments.
For the three months ended March 31, FCPT posted a net income of roughly $9.9 million, more than doubling the $5.4 million recorded during the same period in 2023.
FCPT said its portfolio is well diversified by tenant profile, with no single tenant accounting for more than 11.2% of total net rent. The top 10 tenants, which include large national companies, account for 31.3% of total net rent.
The REIT highlighted progress in refinancing 2024 mortgage maturities, with 75% of the $92.1 million in loans maturing this year already refinanced at attractive rates and terms.
These refinancings brought in approximately $12 million in additional cash to the trust, leaving only $23.3 million (or 25%) of 2024 mortgage maturities remaining, according to FCPT’s financial report.
FCPT's portfolio consists of 64 commercial properties totaling 2.5 million square feet of leasable area, along with 599 multi-residential units and 537 manufactured home units across Canada.
Key financial metrics for the quarter included a net asset value (NAV) per Unit of $7.62, up 1.9% from the fourth quarter of 2023. Its net operating income (NOI) was about $9.3 million, reflecting a 1% increase from the previous year, while same-property NOI rose by 3%.
Adjusted funds from operations (AFFO) were approximately $4.4 million, representing an 11% increase from Q1 2023. AFFO per unit also saw an 11% rise, reaching $0.120. The payout ratio decreased to 108% from 121% in the same period last year.
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Firm Capital Property Trust focuses on owning and co-owning a diversified property portfolio, including multi-residential, flex industrial, and net lease convenience retail properties. FCPT also engages in joint acquisitions with financial partners and acquisitions of partial interests from existing ownership groups, providing liquidity and professional management for partners.
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