Business
Mainstreet Equity Corp reports another quarter of double-digit year-over-year growth in funds from operations and net operating income, nears three-year mark of growth streak
CALGARY , July 23, 2013 /CNW/ - Mainstreet Equity Corp. (TSX: MEQ) is pleased to report ...
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\nCALGARY, July 23, 2013 /CNW/ - Mainstreet Equity Corp. (TSX: MEQ) is\n pleased to report that it continues to deliver significant shareholder\n value, with the third quarter in its 2013 fiscal year marking the 11th consecutive quarter of double-digit, year-over-year growth in funds\n from operations (FFO) and net operating income (\"NOI\"). With a lengthy\n track record of non-dilutive growth, Mainstreet is also showing\n operational improvement, reflected in better rental rates and\n diminished rental incentives on existing properties.\n\n\n\"Nothing was easy in the third quarter. Utility rates are rising,\n mortgage rates are lifting from their lows and Alberta, our core\n operational area, was hit by historic floods. Yet Mainstreet continues\n to thrive and grow,\" says Bob Dhillon, Chief Executive and Founder. \"We\n are locking in discounted electricity rates and directing significant\n new funds to refurbishment of existing facilities, which we expect will\n allow us to maintain our streak of NOI growth. We have shown a\n commitment to relentlessly pursuing improvement, but still see room for\n even better financial performance as we move to lock in better interest\n rates on a large number of mortgages in coming quarters. That model has\n made us a top-performing Canadian real estate company over the past\n decade, and we continue to see ample opportunity in today's market.\"\n\n\nRESULTS FROM CONTINUING OPERATIONS\nFunds from operations in Q3 2013 rose 12% to $5.3 million, up from $4.7\n million in Q3 2012. Quarterly rental revenue increased 15% to $19.8\n million, from $17.2 million in Q3 2012. Net operating income climbed to\n $13.2 million, a 10% increase from $12.0 million in Q3 2012.\n\n\nMainstreet achieved these results while acquiring 738 unstabilized units\n in the past year. Same-asset revenues rose 7% to $17.1 million, up from\n $15.9 million in the comparable quarter, while vacancy in those\n properties dropped to 6.9% in Q3 2013 from 7.6% in Q3 2012.\n\n\nNON-DILUTIVE ORGANIC GROWTH\nMainstreet's total continued-operations investment portfolio has grown\n to 8,170 units, up 10% from 7,432 units at June 30, 2012. In the third\n quarter, Mainstreet acquired an additional 394 units in Edmonton at a\n cost of $42.3 million.\n\n\nFINANCING\nInterest rates near historic lows present a remarkable opportunity ...