Business
Mainstreet Equity demonstrates significant growth in value in 2005
Mainstreet Equity demonstrates significant growth in value in 2005.
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Dec. 22 /CNW/ - Mainstreet Equity Corp. (\"Mainstreet\" or the\n\"Corporation\") (TSX:MEQ) today released its 2005 annual report including\nfinancial results for its year ended September 30, 2005. The Corporation\nposted substantial increases in year-over-year revenues and rental income, and\nsignificantly grew its portfolio of assets through acquisitions. As of\nSeptember 30, 2005, Mainstreet's portfolio of properties had an appraised\nmarket value of more than $300 million as determined by independent real\nestate appraisers with Accredited Appraiser Canadian Institute (AACI)\ndesignation. This compares to a book value of $189 million.\n\n2005 Highlights\n\nThe following highlights include activities and achievements in the 2005\nfiscal year ending September 30, 2005, as well as subsequent activities as of\nthe day of this press release:\n\n - Mainstreet's total portfolio grew by 30% to 3,550 units compared\n to 2004 as a result of acquiring 817 apartment units in our four\n focus markets - Vancouver/Lower Mainland (Surrey), Calgary,\n Edmonton and Greater Toronto Area - at a total cost of $47 million\n during 2005. After fiscal year-end, the Corporation acquired an\n additional 255 units at a cost of $15 million.\n\n - Mainsteet's asset base in Vancouver/Lower Mainland (Surrey) grew\n by 226% (666 units) in 2005. After fiscal year-end, the\n Corporation acquired an additional 150 units in the region. Tight\n rental supply, high values on competing purchase property, and\n favourable long-term demographics make this a desirable target\n market for Mainstreet.\n\n - Mainstreet's Calgary vacancy rate fell dramatically to 2.0% as of\n December 15, 2005, compared to the average annual vacancy rates of\n 13% in 2004 and 6.4% in fiscal 2005. A high proportion of\n apartment units have reached \"stabilized\" status, meaning they\n have been value-enhanced through refinancing, renovations and\n operational improvements, and then reintroduced to the market at\n higher rental rates.\n\n - The Corporation's overall vacancy rate fell to 4.2% on stabilized\n properties (as of December 15, 2005), a reduction of approximately\n seven points and three points compared to the average annual\n vacancy rates of 11% in 2004 and 7% in 2005.\n\n - Effective December 1, 2005, due to the stabilization of apartments\n and market forc...