Business
For Mainstreet, exceptional margins stand out amid a list of positive metrics in Q3
CALGARY, July 29 /CNW/ - In the third quarter of 2009(1), Mainstreet Equity Corp. persisted in it...
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, July 29 /CNW/ - In the third quarter of 2009(1), Mainstreet\nEquity Corp. persisted in its efforts to maximize margins by minimizing\nvariable costs such as G&A, maintenance and repair, and marketing expenses.\nFurther, with nearly 80% of Mainstreet's existing properties (prior to Q3 2009\nacquisitions) now stabilized, and with the Corporation's capital-intensive\nrenovations largely complete, every incremental increase in revenue now flows\nto Mainstreet's bottom line. As a result, Mainstreet has posted a significant\nimprovement in operating margins: 64% in Q3 2009 compared to 58% a year\nprevious.\n\n\nAdditionally, notwithstanding the prevailing economic challenges,\nMainstreet achieved positive results on all key metrics in Q3 2009:\n\n\n Rental Revenue - Up 10% to $13.0 million (vs.\n $11.8 million in Q3 2008)\n\n Rental Revenue - Same Assets - Up 4% to $12.1 million (vs.\n Properties $11.6 million in Q3 2008)\n\n Net Operating Income (NOI) - Up 22% to $8.3 million (vs.\n $6.8 million in Q3 2008)\n\n NOI - Same Assets Properties - Up 16% to $7.8 million (vs.\n $6.7 million in Q3 2008)\n\n Funds from Operations (FFO) - Up 54% to $2.3 million (vs.\n $1.5 million in Q3 2008)\n\n Increase in Portfolio - 8.4% (to 5,838 units versus 5,389\n units in Q3 2008) (including 22 units\n hold for resale)\n\n Acquisitions in Q3 2009 - 157 units (Saskatoon, SK & Surrey,\n BC)(average unit cost: $76,000)\n\n Acquisitions subsequent to - 159 units (Saskatoon, SK)(average\n Q3 2009 unit cost: $63,000)\n\n Total portfolio(x) - 5,997 units including 22 units held\n for resale\n\n Stabilized Units - 93 properties (4,259 units) out of\n 122 properties (5,816 units)\n\n Refinancing - $11 million refinanced to long-term\n CMHC-insured mortgages (average\n interest rate (equal sign) 3.38%)\n\n Refinancing subsequent to Q3 - $10 million approved for refinancing\n to long-term CMHC-insured mortgages\n (expected average interest\n rate (equal sign) 3.4%)\n\n Floating Debt - $32 million (9% of Mainstreet's total\n mortgage loans)\n\n Normal and Substantial Course - 4.1 million shares at an average\n Issuer Bid price of $6.35/share (year to date\n 2009)\n\n Newly acquired line of credit - $22 million (for acquisitions and\n operating line of credit)\n\n(x) including acquisitions subsequent to Q3 2009\n\n\nQ3 IN REVIEW - Continue...