Business
To sustain momentum and counter the economy's impact, Mainstreet sharpens its focus on core strategies
To sustain momentum and counter the economy's impact, Mainstreet sharpens its focus on core strat...
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\nFeb. 12, 2010 (Canada NewsWire Group) -- CALGARY, Feb. 12 /CNW/ -- In the first quarter of 2010, Mainstreet Equity Corp. met the repercussions of Canada's struggling economy head-on. In addition to beginning fiscal 2010 with a commitment to evaluating and refining its strategy for growth, minimizing costs and solidifying its management team, the Corporation extended concessions designed to encourage renewal of existing leases in the face of market-driven vacancy rate increases. These one-time expenses will be discontinued as the economy rebounds; however, in Q1 2010, they had a measurable impact on many of Mainstreet's metrics:Rental Revenue - Down 2% to $12.5 million (vs.$12.7 million in Q1 2009)Rental Revenue - Same Assets - Down 8% to $11.5 million (vs.Properties $12.6 million in Q1 2009)Net Operating Income (NOI)From continuing operations - Up 4% to $7.7 million (vs.$7.4 million in Q1 2009)Same Assets Properties - Down 5% to $6.9 million (vs.$7.3 million in Q1 2009)FFO from continuing operationsIncluding financing cost - Up 1614% to $1.6 million (vs.$95,000 in Q1 2009)Excluding financing cost - Down 24% to $1.7 million (vs.$2.2 million in Q1 2009)Operating Margin - 61% (vs. 58% in Q1 2009)Total Acquisition and Capital - $13.8 million (vs. $7.2 millionExpenditures in Q1 2009)Stabilized Units - 94 properties (4,199 units) outof 125 properties (6,027 units)Acquisitions - 183 units, representing anincrease in portfolio of 3%Floating Debt - $29 million (7.5% ofMainstreet's total mortgageloans)Refinancing (subsequent to Q1 2010) - $15 million approved forrefinancing on six-month CMHC-insured mortgages (expectedaverage interest rate= 2.6% versus currentinterest rate of 5.35%)Normal and Substantial Course - 2,868 common shares purchasedIssuer Bid and cancelled at an averageprice of $8.39/share - totaloutstanding shares reduced from10,355,827 to 10,352,959Cash on balance sheet - $17 million ($1.64/share)Dispositions (subsequent to Q1 2010) - The Corporation entered into aconditional agreement to sellthree properties (95 units) forapproximately $13 million, whichrepresents a pre-tax profit ofapproximately $7 millionQ1 IN REVIEW - Sustaining Momentum with a Focus On StrategyDuring fiscal 2009, Mainstreet Equity Corp. demonstrated that the agile execution of a sound strategy is the surest way to succeed in any economy. Entering ...