Business
Mainstreet delivers strong results
Mainstreet delivers strong results.
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, Aug. 3 /CNW/ - Mainstreet Equity Corp. ("Mainstreet" or "the\nCorporation") delivered continued financial and portfolio growth in Q3\n2007(1). All key performance metrics increased compared to Q3 2006, including\nrevenues, net operating income, and a significant increase in funds from\noperations. As well, the Corporation is effectively managing the substantial\ngrowth of its business, with a total of 264 units (eight buildings) acquired\nin Q3. It is significant to note that this growth has been achieved with very\nlittle equity dilution. Except for a $33 million convertible debenture\nissuance in October 2004, Mainstreet has financed acquisitions with its cash\nflow.\n\n\nTHIRD QUARTER HIGHLIGHTS\n\n1. Funds from operations increased 585%\n\n - Funds from operations (FFO) from continued operations in\n Q3 2007 rose to $1.4 million ($0.12 per share), compared to\n $202,000 ($0.02 per share) in Q3 of 2006.\n - FFO for stabilized properties in Q3 2007 was $2 million ($0.18\n per share).\n - This improvement is due mainly to added value achieved through\n Mainstreet's ongoing stabilization efforts, which increased\n rental rates for renovated units, and to an overall increase in\n rental rates, especially in Alberta.\n\n2. Total revenues up 27% in Q3\n\n - Total revenues from continuing operations were $10.4 million in\n Q3 2007 compared to $8.2 million in Q3 2006.\n\n3. "Same assets" rental revenues increased 16%\n\n - "Same assets" rental revenues increased by 16% to $8.3 million\n in Q3 2007 from $7.2 million in Q3 2006.\n\n4. Net operating income rose 26%\n\n - Net operating income (NOI) in Q3 2007 reached $6.2 million,\n compared to $4.9 million in Q3 2006.\n\n5. "Same assets" NOI up 18%\n\n - "Same assets" NOI increased to $5.3 million in Q3 2007, compared\n to $4.5 million in the same period of 2006.\n\n6. Lowered mortgage costs and generated capital through refinancing\n\n - In Q3 2007, $2.7 million of mortgage loans matured and were\n refinanced, and additional funds of $3.8 million were raised.\n The average interest rate on these mortgages dropped to 4.82%\n from 5.5%.\n - Mainstreet obtained approval from Canada Mortgage and Housing\n Corporation (CMHC) to refinance about $12.2 million of short-term\n mortgages. Additional funds of approximate...