Mainstreet Equity Corporation - Adoption of International Financial Reporting Standards (IFRS) more accurately reflects the true value Mainstreet has created for its shareholders since inception

About this update from Mainstreet Equity Corp.

[{"type":"text","content":"\n\n\n\n\n\nCALGARY, March 6, 2012 /CNW/ - In its first quarter results for fiscal\n 2012, Mainstreet Equity Corp. (TSX: MEQ) today announced that,\n following the implementation of International Financial Reporting\n Standards (\"IFRS\") and new acquisitions in Western Canada, the\n Corporation's national portfolio of 7,797 units in mid-market family\n apartment buildings is valued at $956 million, with net asset value\n equal to $42 per share basic.\n\n\nBob Dhillon, CEO of Mainstreet Equity Corp., said: \"We believe that\n these results, which reflect the true value of our holdings, again\n demonstrate the success of Mainstreet's value-add business model. The\n results show that we have organically created growth and value to our\n portfolio without any equity dilution. We are now actively pursuing\n plans to further enhance the shareholder value of our Corporation. I\n want to thank the Mainstreet team for helping us to achieve this new\n milestone which follows our signal success in being the only real\n estate company listed among the top ten gainers on the TSX in 2011.\"IFRS\nIn Q1 2012, Mainstreet adopted the new IFRS accounting rules which\n allows the Corporation to report its investment properties at fair\n market value, instead of book value, in its financial statements. The\n new figures reveal the reportable value Mainstreet has created for\n shareholders since inception. As a result of IFRS, Mainstreet reported\n a portfolio value of $956 million for its investment properties instead\n of a historical book value of $505 million. This increases the\n reportable net asset value to $437 million which equates to $42 per\n share basic and $39 per share fully diluted, and reduces the debt to\n fair market value ratio to 54% instead of\n102% measured at historical cost basis.\n\n\nResults\nFunds From Operations (\"FFO\") grew by 14% to $3.4 million, while Net\n Operating Income (\"NOI\") grew by 10% to $11.1 million. Across the\n board, there was a drop in Mainstreet vacancy rates to 8.7% in the\n quarter, from 11.2% in Q1 2011. The same-asset vacancy rate in the\n portfolio fell to 7.0% in Q1 2012 from 9.9% in Q1 2011. This welcome\n trend is continuing and, as of March 1, 2012, two months after\n quarter's end, the overall vacancy dropped further to 5%.These improved\n results in FFO, NOI and vacancy rates were achieve...

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