Mainstreet positioned for next level of growth

About this update from Mainstreet Equity Corp.

[{"type":"text","content":"\n\n\n\nCALGARY, May 12 /CNW/ - In the second quarter of 2008(1), Mainstreet\nEquity Corp. ("Mainstreet or "the Corporation") focused on setting the stage\nfor the next level of growth. The Corporation achieved this by increasing its\ncash position in two ways. First, it secured a new acquisition line of credit\nand is in the process of raising capital by refinancing its stabilized\nproperties. Second, Mainstreet was successful in substantially completing its\nEdmonton renovations as planned, which is expected to translate into a\nsubstantial increase in occupancy rates and, in turn, higher anticipated\nrental revenues and cash flow in the future.\n\n\nIn Q1 and Q2, the Corporation slowed the pace of acquisitions due to the\nU.S. led real estate recession and credit crunch. Going forward, management\nwill monitor market conditions and take opportunistic, but cautious, steps\ntoward the next round of acquisitions.\n\n\nBob Dhillon, President and CEO of Mainstreet, said, "We accomplished\nthese objectives under challenging market conditions and with 37% of our\nportfolio undergoing stabilization. Even with these significant challenges, we\nwere able to deliver some positive financial results and the stage is now set\nfor future growth."\n\n\n(1) This second quarter report is for the three-month period ended\n March 31, 2008. Mainstreet's current fiscal year ends\n September 30, 2008.\n\n\nSECOND QUARTER HIGHLIGHTS\n\n1. Mainstreet secures $55 million credit facility\n - During the quarter, Mainstreet entered into an agreement to obtain\n a $55 million syndicated, secured, acquisition line of credit,\n which is expected to take effect in May 2008. It is anticipated\n that this line of credit will be used to finance future growth.\n\n2. Edmonton renovations substantially completed on schedule\n - Mainstreet met its Q2 target of substantially completing\n renovations of Edmonton properties that were acquired in the past\n 9-24 months, and the marketing process to lease up these buildings\n has begun.\n\n3. Rental revenues up 10% in Q2, despite high vacancy\n - Even with 37% of Mainstreet's properties vacant while undergoing\n renovations, total rental revenues from continuing operations were\n $11.0 million in Q2 2008 compared to $10.0 million in Q2 2007.\n - This increase is due mainly to a moderate increase...

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