Mainstreet leveraging current market opportunities

About this update from Mainstreet Equity Corp.

[{"type":"text","content":"\n\n\n\nCALGARY, Feb. 14 /CNW/ - Mainstreet Equity Corp. ("Mainstreet" or "the\nCorporation") delivered some positive results in Q1 2008(1) despite increased\nvacancy rates and operating costs due to the high proportion of acquired\nproperties being stabilized (renovated and repositioned), especially in\nEdmonton. The Corporation's number one focus for Q2 is to complete the\nstabilization process in Edmonton by the end of Q2 2008.\n\n\nMainstreet has a distinct advantage in this period of economic and market\nuncertainty in that it is positioned for continued solid growth, with assets\nin the right markets, a sound capital structure, and available cash to fund\naccretive acquisitions in an opportunistic environment.\n\n\n(1) This first quarter report is for the three-month period ended\n December 31, 2007. Mainstreet's current fiscal year ends\n September 30, 2008.\n\nFIRST QUARTER HIGHLIGHTS\n\n1. Stabilization efforts back on track\n\n - In Q1 2008 the Corporation successfully addressed its labour\n shortage in Edmonton and, with a full staff of workers, was able\n to speed the pace of stabilization of its non-stabilized (not yet\n renovated) Edmonton properties, which represent 9% of the total\n portfolio.\n\n - Stabilization of 438 units in the B.C. portfolio was completed in\n Q1 2008, which represented 8% of the total portfolio.\n\n - As of December 31, 2007, 36% of the total portfolio remained\n non-stabilized compared to 46% as of September 30, 2007.\n\n2. Portfolio grew by 17%\n\n - As of December 31, 2007, Mainstreet's portfolio of properties had\n grown to 5,261 rental units compared to 4,515 units at\n December 31, 2006.\n\n3. Mortgage costs lowered and capital generated through refinancing\n\n - In Q1 2008, $23 million of matured and short-term mortgages were\n refinanced for $33 million, raising additional funds of\n $10 million. The average interest rate on these mortgages dropped\n to 5.15% from 7.25%, which will result in annualized savings of\n $464,000 in interest expenses over the next 10 years.\n\n4. Overall funds from operations increased 25%\n\n - Funds from operations (FFO) from continued operations in Q1 2008\n decreased to $0.9 million ($0.06 per share), compared to\n $1.3 million ($0.14 per share) in Q1 2007 due mainly to high\n vacancy and operating costs during the stabilization p...

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