Business
With a strong cash position, Mainstreet is poised for new opportunities in 2009
CALGARY, May 11 /CNW/ - In the second quarter of 2009(1), Mainstreet Equity Corp. transitioned fr...
About this update from Mainstreet Equity Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, May 11 /CNW/ - In the second quarter of 2009(1), Mainstreet\nEquity Corp. transitioned from a period of high expenditures related to\nproperty acquisitions and renovations to a position of stable cash flow with\nfunds to grow. Through continued refinancing under lower interest, long-term,\nCMHC-insured mortgage loans (by which Mainstreet raised about $3.8 million\nduring Q2 2009), and after issuer bids motivated by management's belief that\nMainstreet's shares are substantially undervalued (including a substantial\nissuer bid buy-back of 3.3 million common shares at $6.25 per common share and\nan ongoing normal course issuer bid through which, year to date, the\nCorporation has purchased 782,000 common shares at an average price of $6.36\nper common share), Mainstreet's funds for growth as of March 31, 2009 totalled\n$28 million ($16 million in cash, $10 million in transit, $2 million in\nholdbacks).\n\n\nIn addition to these activities, management is pleased to report overall\npositive results in Q2:\n\n\n Debt-to-market value ratio - 56%(1) (as of March 31, 2009)\n\n Rental Revenues - Up 19% to $13.1 million (vs.\n $11 million in Q2 2008)\n\n Rental Revenue - Same Assets - Up 12% to $12.4 million (vs.\n Properties $11 million in Q2 2008)\n\n Net Operating Income (NOI) - Up 22% to $7.3 million (vs.\n $6 million in Q2 2008)\n\n NOI - Same Assets Properties - Up 16% to $6.9 million (vs.\n $6 million in Q2 2008)\n\n Funds from Operations (FFO) - Up 68% to $1.7 million(2) (vs.\n $1 million in Q2 2008)\n\n Increase in Portfolio - 5.4% (to 5,659 units versus\n 5,367 units in Q2 2008)\n\n Acquisitions in Q2 2009 - One building in Edmonton - 13\n units (average cost: $62,000 per\n unit)\n\n Stabilized Units - 93 properties (4,259 units) out of\n 121 properties (5,659 units)\n\n Refinancing - 11% of remaining floating debt\n ($40 million out of $356 million)\n\n Substantial Issuer Buyback - 3.3 million shares at $6.25/share\n (closed January 23, 2009)\n\n Normal Course Issuer Bid - 0.8 million shares at an average\n price of $6.36/share (year to date\n 2009)\n\n(1) Based on AACI appraisals\n(2) Before a non-cash financing cost of $0.2 million\n\n\nQ2 IN REVIEW - Well Positioned for Future Profitability and Growth\n\n\nDuring the past three years, Mainstreet was focused on growth - that is,\non finding and acquiring unde...