Mainstreet Equity Corp. releases Q3 results

About this update from Mainstreet Equity Corp.

[{"type":"text","content":"\n\n\nCALGARY, July 17, 2014 /CNW/ - Mainstreet Equity Corp. (\"Mainstreet\" or\n \"Corporation\") (TSX: MEQ) is pleased to announce that the third fiscal\n quarter of 2014 marks our 15thth consecutive quarter of year-over-year double-digit increases in funds\n from operations (\"FFO\") and net operating income (\"NOI\").  Vacancy\n rates are declining, revenue is rising, and Mainstreet maintains\n significant room for future growth, through revenue increases at\n existing properties and acquisitions in cities with strong markets for\n mid-sized apartment buildings.\n\n\n\"We expected a solid spring season, and were pleased to see a strong\n quarter. As the economy recovers, Mainstreet is well-positioned with\n plenty of growth run-way and the operational expertise to back it up,\"\n says Bob Dhillon, Chief Executive Officer and founder of Mainstreet.\n \"And, like always, we are convinced our apartments are in the best\n places in Canada. People are moving west to where the jobs are,\n creating lots of demand and a healthy property market, all of which is\n good for the Mainstreet business model.\"\n\n\nResults\nIn Q3 2014, Mainstreet's revenue from continuing operations rose 16% to\n $23.0 million, up from $19.8 million in Q3 2013. Same asset rental\n revenues climbed 8% to $20.4 million, from $18.8 million in Q3 2013.\n NOI from continuing operations increased 15% to $15.3 million. Funds\n from continuing operations were up 26% to $6.6 million, an increase\n over $5.3 million in Q3 2013. Funds from continuing operations per\n basic share increased by 26% to $0.63 from $0.50 in Q3, 2013. The same\n asset vacancy rate fell to 6.6% from 8.7% in Q3 2013.\n\n\nIn Q3 2014, Mainstreet acquired 298 residential apartment units for\n $27.2 million. During the quarter, we refinanced $38 million in matured\n mortgage to long-term 10-year, CMHC-insured mortgages at an average\n interest rate of 3.21%. On a year-to-date basis, we have refinanced $95\n million in mortgages to long-term 10-year, CMHC-insured mortgages and\n have achieved annualized interest expense savings of $835,000. Through\n this process, we have liberated an additional $16.7 million in funds.\n\n\nChallenges\nMainstreet continues to face rising cost pressures, particularly in\n property tax and utility prices. The renovation and repositioning of\n properties - the ...

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