Business
Strong growth continues for Mainstreet in second quarter
Strong growth continues for Mainstreet in second quarter.
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, May 10 /CNW/ - Mainstreet Equity Corp. ("Mainstreet" or "the\nCorporation") delivered consistent strong performance again in Q2 2007(1),\ndespite increased costs, higher vacancy rates and other challenges associated\nwith aggressive growth. The quarter marked progress in the stabilization\nprocess, increased rental revenues and funds from operations, reduced mortgage\ncosts, and additional funds for new investment. Mainstreet's common share\nprice increased by 28% from $14.48 per share at the beginning of Q2 to $18.48\nat the end of the quarter.\n\n\n"We're excited to have achieved a total portfolio size of over 5,000\nunits, including acquisitions subsequent to the second quarter of 2007," says\nBob Dhillon, president and CEO. "This strong growth is the result of\nMainstreet's ability to be in the right market at the right time, and buy at\nthe right price."\n\n\nSecond Quarter Highlights\n\n1. Total revenues up 35% in Q2\n\n - Total revenues from continuing operations were $10.1 million in Q2\n 2007 compared to $7.5 million in Q2 2006.\n - "Same assets" rental revenues increased by 21% to $8.4 million in\n Q2 2007 from $6.9 million in Q2 2006.\n\n2. Funds from operations\n\n - FFO from continued operations in Q2 2007 reached $1.3 million\n ($0.13 per share), an increase of 2,658% compared to ($50,000)\n ($0.01 per share) in Q2 of 2006.\n - FFO for stabilized properties in Q2 2007 was $2.1 million\n ($0.21 per share).\n - This improvement is due mainly to added value achieved through\n Mainstreet's stabilization efforts, which increased rental rates\n for renovated units, and to an overall increase in rental rates,\n especially in Alberta.\n\n3. Acquired 286 units in Q2 2007\n\n - Mainstreet continued to grow its Saskatchewan portfolio with the\n addition of 54 units in the prime east end location of Saskatoon\n at an average price of $53,000 per unit. Saskatoon represents the\n Corporation's fifth, and newest, core market area, chosen because\n of its lower rental rates and ample opportunities to acquire\n undervalued, mid-market properties with high potential to add\n value through Mainstreet's Value Chain model.\n - The Corporation also closed on 232 units in Abbotsford, B.C.,\n including 163 residential apartment units at a cost of $70,000 per\n unit, and 69...