Mainstreet: On track and moving forward

About this update from Mainstreet Equity Corp.

[{"type":"text","content":"\n\n\n\nCALGARY, July 30 /CNW/ - In the third quarter of 2008(1), Mainstreet\nEquity Corp. improved on all fronts including portfolio growth, increased\nrental revenues and stabilization progress. Even with an average vacancy rate\nof 20.8% and the high costs of stabilization, same assets revenues and net\noperating income went up. As well, through refinancing of matured mortgages\nand converting short term mortgages to long term CMHC insured mortgages, the\nCorporation was able to lower its cost of financing and raised additional\nfunds to support acquisitions in this flat opportunistic environment.\n\n\nMainstreet's continued success in Saskatoon in Q3 is expected to have a\npositive impact on future results. In the quarter the Corporation initiated\nacquisition of another 45 units in Saskatoon, 26 of which have been closed as\nof July 22, 2008. This brings the total unit count in the Corporation's\nSaskatoon portfolio to 527 units at an average purchase price of $39,700 per\nunit which is substantially lower than the current market price and\nreplacement cost in Saskatoon. Subsequent to the quarter end, the Corporation\nalso completed the stabilization of a 165 unit property, representing 31% of\nthe total portfolio in Saskatoon, and refinanced its existing mortgage loan.\nThe average rent has increased by 90% since the property was acquired and\nadditional funds of $8.6 million are expected to be raised from the\nrefinancing. The Corporation's average rents for stabilized properties in\nSaskatoon are now the same as stabilized properties in Edmonton and about 90%\nof average Calgary rents. With a market environment of attractive purchase\nprices, a good supply of mid-market properties and comparatively high rents,\nSaskatoon continues to be a great market choice for Mainstreet.\n\n\nOTHER THIRD QUARTER HIGHLIGHTS\n1. Portfolio grew by 6%\n As of June, 2008, Mainstreet's portfolio of properties had grown to\n 5,367 rental units compared to 5,065 units at the end of Q3 2007.\n\n Other than acquisitions in Saskatoon, the Corporation also closed\n acquisitions of 126 units in Calgary, Alberta and Abbotsford, British\n Columbia subsequent to the Q3, which increased its overall portfolio\n to 5,538 units. The details of these acquisitions are as follows:\n\n Calgary\n - An additional 42 units in the Calgary area (Cochrane) for an\...

More updates from Mainstreet Equity Corp.