Business
Mainstreet Equity Corporation - 13th consecutive quarter of double-digit year-over-year increases in FFO and net operating income
CALGARY , Feb. 12, 2014 /CNW/ - Mainstreet Equity Corp. ("Mainstreet" or "Corporation") ...
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\nCALGARY, Feb. 12, 2014 /CNW/ - Mainstreet Equity Corp. (\"Mainstreet\" or\n \"Corporation\") (TSX: MEQ) is pleased to report a 67% increase in funds\n from operations (\"FFO\") in the first quarter of the financial year\n 2014, compared to Q1 2013. The strong gains highlight the 13th consecutive quarter of double-digit year-over-year increases in FFO and\n net operating income (\"NOI\"), a robust testament to the strength of the\n Mainstreet model.\n\n\n\"We could not be more thrilled about our performance this quarter,\" says\n Bob Dhillon, Chief Executive Officer and founder of Mainstreet. \"We\n have said for a long time that our business is a high-horsepower growth\n engine, and our strong results once again make that clear. But this is\n no one-off. We're now into our fourth year of consistent gains, and\n given our underlying business model, we believe that there is ample\n reason to expect this trend to continue.\"\n\n\nResults\nIn Q1 2014, Mainstreet's revenue from continuing operations rose 17% to\n $21.5 million, up from $18.4 million in Q1 2013. Same asset rental\n revenues climbed 10% to $19.8 million, from $18 million in Q1 2013. NOI\n from continuing operations increased 18% to $14.4 million, while\n growing 10% to $13.2 million at same asset properties. Funds from continuing operations (excluding stock option cash settlement\n expense) were up 67% to $6.0 million, an increase over $3.6 million in Q1 2013.  The same asset vacancy rate fell to 7.3% from 9.6% in Q1 2013.\n\n\nIn Q1 2014, we acquired 87 residential apartment units in the British\n Columbia and Alberta cities of Abbotsford, Calgary and Edmonton for\n total consideration of $9 million. During the quarter, we secured $7.9\n million in 10-year, CMHC-insured mortgages on five stabilized\n properties in Saskatoon, at an interest rate of 3.6%.\n\n\nChallenges\nAcross our portfolio, we have experienced average annual property tax\n increases of 3% to 5%. Natural gas prices have risen substantially in\n 2014. Interest rates have surged by close to 100-basis points over the\n past six months, though signs of reversal have recently emerged.\n\n\nOutlook:\n\n\nMainstreet believes key performance levers remain firmly in place to\n underpin future growth. On vacancy, rental concessions, property\n stabilization and acquisition capacity, Mainstreet contin...