Business
Mainstreet's Continued Focus on Key Goals Yields Positive Trends in Key Performance Metrics
Mainstreet's Continued Focus on Key Goals Yields Positive Trends in Key Performance Metrics
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\n Jul. 26, 2010 (Canada NewsWire Group) -- \n \n \n CALGARY, July 26 /CNW/ - In the third quarter of 2010(1), Mainstreet Equity Corp. maintained a tight focus on its strategic goals for 2010:\n\n\n >\n\n\nThe results of Mainstreet's focus on these core objectives are evident in many key metrics and performance indicators during Q3 2010:\n\n\n\n >\n\n\n\n\nQ3 IN REVIEW\n\n1. Reduced vacancy rate from 19.5% to 11.4% as of July 23, 2010\n\nThrough numerous strategic measures aimed at attracting and retaining tenants, Mainstreet has reduced its overall vacancy rate from 19.5% at the start of the year to 11.4% nine months later. The Corporation is aiming to hit at a single-digit vacancy rate before year-end.\nThe latest CMHC Rental Market Reports (Spring 2010) show vacancy rate increases across much of BC, most of Saskatchewan and all of Alberta; and Statistics Canada data from June 2010 shows that provincial in-migration in Western Canada is the lowest it's been in more than a decade. In light of these general market conditions, Mainstreet is clearly bucking the vacancy rate trend.\n\n2. Locked another 10% of Mainstreet's total debt ($39 million out of $402 million) into long-term commitments to pre-empt interest rate hikes\n\nAnticipating the eventual rise in interest rates, Mainstreet has been aggressive in its efforts to consolidate as much floating and maturing debt as possible into long-term, lower interest, CMHC-insured mortgages. As of June 30, 2010, 98% ($393 million) of the Corporation's total debt ($402 million) was consolidated into long-term mortgages, most of them fixed-rate and CMHC-insured.\nFrom its refinancing efforts in Q1 through Q3 2010, Mainstreet has extracted $21 million for growth and other capital expenditures.\n\n3. Pursued value-added growth in strategic Western Canadian mid-market locations\n\nDuring Q3 2010, Mainstreet acquired 195 units in Calgary - a very tight market. For this well-located concrete mid-rise with great potential for significantly higher rental rates, Mainstreet spent $25 million - an average cost of just $128,000 per unit. This property aligns perfectly with the Mainstreet business model and its "value added" approach to maximizing top-line revenues.\nAs a comparison, in Q3 2010, Mainstreet sold a nearby building for $155,000 per unit. The newly acquired building is in...