Business
Firm Capital Property Trust announces closing of a 70% interest in an industrial portfolio and confirmation of 5% distribution increase
TORONTO , Aug. 31, 2015 /CNW/ - Firm Capital Property Trust (" FCPT " or the " Tr...
About this update from Firm Capital Property Trust
[{"type":"text","content":"\n\n\n \n \n\n\n\nTORONTO, Aug. 31, 2015 /CNW/ - Firm Capital Property Trust (\"FCPT\" or the \"Trust\") (TSXV: FCD.UN) is pleased to announce the closing of its previously announced acquisition of a 70% interest in seven industrial buildings located in Waterloo, Ontario (the \"Portfolio\"). The acquisition price for 100% of the Portfolio is approximately $43.3 million, excluding transaction costs. The capitalization rate is approximately 7%. As a result of the Portfolio acquisition, the Trust has increased the size of its current portfolio by approximately 32% to $124 million. The entire Portfolio is being financed through the assumption of $29.0 million of first mortgages at an interest rate of 2.95% and existing cash resources.\n\nAs previously announced and as a result of closing of the Portfolio acquisition, the Trust has increased its annualized cash distribution by 5% to $0.42 per Trust Unit per annum or $0.035 per Trust Unit per month from $0.40 per Trust Unit per annum or $0.033333 per Trust Unit per month commencing in November, 2015 payable in December, 2015. This is the Trust's third distribution increase since its inception in late 2012 and represents total aggregate distribution increases of 20%. We anticipate this increased distribution to result in an AFFO payout ratio of below 85%.\n\n \n\nABOUT FIRM CAPITAL PROPERTY TRUSTFirm 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 Properties Inc., through a structure focused on an alignment of interests with the Trust sources, syndicates and property and asset manages investments on behalf of the Trust. \n\nFurther information about the Trust can be found by selecting the Firm Capital Property ...