Business
Mainstreet delivers growth and positive results in funds from operations for first quarter of 2006
Mainstreet delivers growth and positive results in funds from operations for first quarter of 2006.
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Feb. 14 /CNW/ - Mainstreet Equity Corp. (\"Mainstreet\" or the\n\"Corporation\") today announced its 2006 first quarter results for the three-\nmonth period ended December 31, 2005. Highlights for the quarter include:\n\n- completion on December 30, 2005 of the secondary offering (non-\n treasury issue) announced in the first quarter; 2.7 million\n Mainstreet common shares were sold privately, or through the\n facilities of the TSX, at $5.00 per common share, which the\n Corporation believes will help widen its distribution base, improve\n the liquidity of shares and enhance their value in the future;\n\n- acquisition of four rental apartment complexes (255 units) in\n Edmonton, Alberta, and Surrey, B.C., for a total cost of\n $14.9 million (average $58,000 per unit).\n\n- 7% growth of portfolio in the first quarter, compared to year-end\n 2005; portfolio comprised 3,805 units, with an approximate market\n value of $324 million compared to a book value of $204 million, as of\n December 31, 2005;\n\n- 289% improvement in funds from operations, to $106,000 in the first\n quarter of 2006 compared with a negative value of $56,000 in the\n first quarter of 2005, due to continued growth through acquisitions,\n and increased revenues from stabilized properties (newly acquired\n properties that have been renovated to Mainstreet's branded standard\n and returned to the market at higher rents). For stabilized\n properties, funds from operations improved by 36% to $832,000 in the\n first quarter of 2006 compared with $605,000 in the first quarter of\n 2005;\n\n- 36% increase in overall rental income (non-stabilized and stabilized\n properties) for the first quarter, due to increased number of\n stabilized properties and improved vacancy rates;\n\n- marginal increase in overall vacancy rates to 10% in the first\n quarter of 2006, compared to 9.3% in the same period of 2005, despite\n the acquisition of 11 (1,072 units) non-stabilized properties since\n the first quarter of 2005;\n\n- drop in average vacancy rate for stabilized properties to 5.5% in the\n first quarter of 2006, compared to 7.1% in the same period of 2005;\n\n- low average vacancy rates for stabilized properties in Calgary and\n Edmonton of 3.6% and 4.8%, respectively, for the first quarter, with\n further declines to 0.9% and 3.2%, respectively, as of\n Fe...