Business
Mainstreet Equity Corp.'s strong second quarter reflects focused growth strategy
Mainstreet Equity Corp.'s strong second quarter reflects focused growth strategy.
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\n\nCALGARY, May 15 /CNW/ - Mainstreet Equity Corp. (\"Mainstreet\" or the\n\"Corporation\") today announced its financial results for the second quarter\nended March 31, 2006. Highlights for the quarter include:\n\n- Growth in portfolio to 3,891 units (72 properties), a 24% increase\n compared to 3,145 units (59 properties) held at the end of the second\n quarter 2005.\n\n- Significant growth in the Edmonton mid-market with the acquisition of\n 152 units in the second quarter; subsequent to the second quarter, an\n additional 260 units (10 properties) were acquired in Edmonton,\n increasing the Corporation's portfolio in this strong market by 42%\n since fiscal year-end 2005.\n\n- Attractive acquisition costs averaging $47,000 per unit acquired in\n the second quarter, well below average per-unit acquisition costs of\n approximately $86,000 for this market, reported by InSite Research.\n\n- Stabilization of 167 units in the second quarter; as of March 31,\n 2006, 71% of the Corporation's residential units (2,750 units out of\n a total 3,891) were renovated; Mainstreet has implemented rental\n increases in its Alberta portfolio and anticipates stabilization of\n the remaining non-stabilized units over the next 12 to 18 months; a\n property is regarded as stabilized when 90% of its units have been\n renovated and repositioned in the market at market rents.\n\n- Drop in vacancy rate for the stabilized portfolio to 3.25% in the\n second quarter 2006 compared to 5.5% in the first quarter 2006, while\n the overall vacancy rate in Calgary decreased substantially to 1.51%\n in the second quarter 2006 compared to 3.6% in the first quarter\n 2006; as of March 31, 2006, 91% of units in Mainstreet's total\n portfolio were rented, 7% were being renovated and the remainder were\n vacant because of market conditions.\n\n- Canada Mortgage and Housing Corporation approval in the second\n quarter to refinance mortgages totaling $10 million at 5.22% interest\n rate, maturing in February 2007, to a lower interest rate of 4.66%\n for 10 years; expected to be completed in May 2006, the refinancing\n will allow Mainstreet to realize additional funds of approximately\n $2.4 million, which will be used to fund growth initiatives; and\n\n- Disposition of a non-strategic, stand-alone asset totaling 66\n multi-family residential units located in Red...