Business
Mainstreet Equity Corp. third quarter results show 30% growth in assets and positive funds from operations
Mainstreet Equity Corp. third quarter results show 30% growth in assets and positive funds from operations.
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Aug. 5 /CNW/ - Mainstreet Equity's financial results for the\nthird quarter ended June 30, 2005, reflected the continued growth of its\nportfolio.\nDuring the third quarter of fiscal 2005, Mainstreet purchased three \nmulti-residential apartment complexes in Calgary, Alberta and Surrey, B.C,\ntotalling 390 units for $22 million. These additions brought Mainstreet's\ntotal apartment unit count to 3,535 units across Canada, an increase of 30%\nover the same period last year. In new markets such as Vancouver lower\nmainland and the Greater Toronto Area, the company's portfolio increased by\n226% and 81% respectively over the same period last year.\nThe company's total book value of its real estate properties grew to \n$188 million from $142 million in the third quarter of 2004. The market\nvalue(1) of these assets as of June 30, 2005 was $230 million. Based on the\ncompany's current cash position, Mainstreet has approximately $100 million in\nacquisition capacity and anticipates making additional acquisition\nannouncements over the next 30-45 days.\nMainstreet reported positive funds from operations (FFO) in the third\nquarter of 2005. Total FFO improved 29% to $0.5 million from $0.4 million the\nprevious year. The biggest contributor to improved FFO was the stabilization\nof rental units previously under renovation. At the end of the quarter,\napproximately 90% of Mainstreet's properties (acquired before the convertible\ndebenture offering in October of 2004) were fully renovated and available for\nleasing.\nFFO is a generally accepted measure of operating performance of real\nestate companies; however, it is a non-GAAP measurement. Although a number of\nreal estate companies use this measure, readers are cautioned that\nMainstreet's calculation of FFO may be different than other companies.\nMainstreet calculates FFO as net income plus amortization and future income\ntax expenses (recovery).\nIn the third quarter of 2005, Mainstreet also reported a net loss of \n$0.5 million ($0.05 per share) after gains from disposition and a net loss of\n$0.06 million ($0.06 per share) before gains from disposition. This is\ncompared with a net loss of $0.6 million ($0.06 per share) in the same period\nlast year.\nIn commenting on these results, Mainstreet President and CEO Bob Dhillon\nsaid: \"Over the last three months, we c...