/EINPresswire.com/ -- MONTREAL, QUEBEC -- (Marketwired) -- 11/10/15 -- (TSX VENTURE: GAZ.UN) Fronsac Real Estate Investment Trust ("Fronsac REIT" or "Fronsac") today announced its results for Q3 2015 and a distribution of 0.3875 cents per unit to unitholders of record as at December 18th, 2015 and payable on December 31st, 2015.

For the nine months ended September 30th, 2015, Fronsac reported funds from operations ("FFO") of $857,537, an increase of 46% ($588,421 in 2014). FFO per unit was 1.85 cents compared to 1.69 cents per unit, which equates to an increase of 10%. During the first 9 months of 2015 the Trust's property rental income was $1,583,469 compared to $1,098,998 in 2014, an increase of 44%. NOI (Net operating Income) was $1,478,696 compared to $1,049,979 in 2014, an increase of 41%. Fronsac recorded a net income attributable to unitholders of $1,216,415 or 2.63 cents per unit compared to a net loss of ($583,741) or (1.68 cents) per unit for 2014. The main reason for the fluctuation in reported net income is due to the stabilization capitalizations rates of the Trust's portfolio as well as solid results as demonstrated by the increases noted above.

For the quarter ended September 30th, 2015, Fronsac reported funds from operations ("FFO") of $295,023, an increase of 68% ($175,938 in Q3 2014). A great deal of the increase is attributable to the increase in the Trust's portfolio by 9 properties since Q3 2014. For the Q3 2015, FFO per unit was 0.64 cents compared to 0.50 cents per unit for the quarter ended September 30th, 2014, an increase of 28%. During Q3 2015 the Trust's property rental income was $596,269 compared to $349,327 in Q3 2014, an increase of 71%. NOI (Net operating Income) was $515,450 compared to $342,325 in Q3 2014, an increase of 51%. Fronsac recorded a net income attributable to unitholders of $478,243 or 1.03 cents per unit compared to a net income of $667,041 or 1.88 cents per unit for Q3 2014. The main reason for the fluctuation in reported net income is due to one time deferred tax charges during Q3 2014 as a result of corporate reorganization activities.

Michel Lassonde President and CEO said: "Q3 marked another quarter of solid results for the Trust, which demonstrates the stability of our business model. We have been able to capitalize on funds from newly acquired properties while maintaining an unchanged overhead structure. Our acquisition strategy of purchasing per unit accretive investments is evident in the increases we reported this quarter, all while maintaining a conservative 62% FFO payout ratio."

The tables below represent other financial highlights as well as the reconciliation from net income to FFO for the quarter and period ended September 30th, 2015 and its comparative period. This information should be read in conjunction with the Non-Audited Consolidated Financials Statements and MD&A for the quarter ended September 30th, 2015 and September 30th, 2014.

SUMMARY OF SELECTED QUARTERLY INFORMATION
                                                 9 months
Periods ended September 30,
 2015                                   2015         2014       Change    %
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Financial info
  Property rental income           1,583,469    1,098,998      484,471   44%
  Total revenue                    1,673,469    1,098,998      574,471   52%
  NOI (1)                          1,478,696    1,049,979      428,717   41%
  FFO (1)                            857,537      588,421      269,116   46%
  AFFO (1)                           848,612      488,184      360,428   74%
  EBITDA (1)                       1,268,682      927,073      341,609   37%
  Investment properties (2)       31,823,651   20,789,863   11,033,788   53%
  Total assets                    32,143,057   21,217,321   10,925,736   51%
  Total mortgage/loans/long
   term debt (3)                  15,974,631    9,759,724    6,214,907   64%
  Total exchangeable preferred
   units                             897,956      874,802       23,154    3%
  Total debentures                   251,246            -      251,246  100%
  Total equity                    14,275,894   10,254,619    4,021,275   39%
  Weighted average units o/s -
   basic                          46,260,619   34,761,565   11,499,054   33%

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Amounts on a per unit basis
  FFO/unit                            0.0185       0.0169       0.0016   10%
  AFFO/unit                           0.0183       0.0140       0.0043   31%
  Distributions                       0.0115       0.0111       0.0004    3%

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(1) Non-IFRS financial measures
(2) Includes value of investment properties owned through joint ventures
    (530 Barkoff)
(3) Excludes exchangeable debentures and exchangeable preferred units


RECONCILIATION OF NET INCOME TO FFO
                                                    3 months
Periods ended September 30, 2015          2015          2014        Change
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Net income (loss) attributable to
 unitholders                           478,243       665,548      (187,305)
Change in value of investment
 properties                           (170,660)       47,718      (218,378)
Change in value of investment
 properties in joint ventures                -             -             -
Unit based compensation                (18,699)       (1,761)      (16,938)
Change in liability component of
 exchangeable preferred units           13,017         3,173         9,844
Change in fair value of
 derivative financial instruments       (6,150)     (126,800)      120,650
Realized/unrealized gain on
 interest swaps                              -          (680)          680
Change in fair value of other
 financial components                   (1,165)      (12,000)       10,835
Deferred income taxes                      437      (399,260)      399,697

                                 -------------------------------------------
FFO(1) - basic                         295,023       175,938            68%
FFO per unit - basic                    0.0064        0.0050            28%

Distributions paid on
 exchangeable units (if dilutive)        9,982        17,721        (7,739)

                                 -------------------------------------------
FFO - diluted                          305,005       193,659            57%
FFO per unit - diluted                  0.0062        0.0050            24%

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Distributions                          179,718       132,915        46,803
Distributions per unit                  0.0039        0.0037             5%

FFO - basic after distributions         0.0025        0.0013        0.0012

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Distributions as a % of FFO -
 basic                                      61%           74%          (14%)

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Weighted avg. units o/s
  Basic                             46,323,316    35,403,181    10,920,135
  Diluted                           49,411,516    38,998,120    10,413,396

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(1) FFO is a Non-IFRS financial measure

                                                    9 months
                                          2015          2014        Change
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Net income (loss) attributable
to unitholders                       1,216,415      (583,741)    1,800,156

Change in value of investment
 properties                           (368,735)    1,556,920    (1,925,655)
Change in value of investment
 properties in joint ventures                -        58,300       (58,300)
Unit based compensation                (18,699)       (4,576)      (14,123)
Change in liability component of
 exchangeable preferred units           30,922        36,433        (5,511)
Change in fair value of
 derivative financial instruments       (3,070)     (109,300)      106,230
Realized/unrealized gain on
 interest swaps                              -        (4,700)        4,700
Change in fair value of other
 financial components                      (60)      (10,500)       10,440
Deferred income taxes                      764      (350,415)      351,179

                                 -------------------------------------------
FFO(1) - basic                         857,537       588,421            46%
FFO per unit - basic                    0.0185        0.0169            10%

Distributions paid on
 exchangeable units (if dilutive)       40,877        34,075         6,802

                                 -------------------------------------------
FFO - diluted                          898,414       622,496            44%
FFO per unit - diluted                  0.0182        0.0160            14%

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Distributions                          529,900       387,778       142,122
Distributions per unit                  0.0115        0.0111             3%

FFO - basic after distributions         0.0071        0.0058        0.0013

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Distributions as a % of
FFO - basic                                 62%           66%           (4%)

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Weighted avg. units o/s
  Basic                             46,260,619    34,761,565    11,499,054
  Diluted                           49,348,819    38,903,655    10,445,164

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(1) FFO is a Non-IFRS financial measure

About Fronsac - Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality commercial real estate properties situated along highways or frequently travelled routes, rented to strong tenants under long term, management free and net leases. These properties are occupied by tenants within the following sectors; (1) Fast food chains, (2) Major oil/gas companies and (3) Convenience store chains.

Forward-Looking Statements - This press release contains forward-looking statements and information as defined by applicable securities laws. Fronsac warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence to the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new standards, as well as other risks and factors described from time to time in the documents filed by Fronsac with securities regulators, including the management report. Fronsac does not update or modify its forward-looking statements even if future events occur or for any other reason, unless required by law or any regulatory authority.

Neither the TSX Venture Exchange Inc., nor its Regulatory Services Provider (as that term is defined in the Policy of the TSX Venture Exchange and its Regulatory Services Provide) accepts any responsibility for the adequacy or accuracy of this release.

The September 30th, 2015 financial statements and management discussion & analysis of Fronsac REIT may be viewed on SEDAR at www.sedar.com

Contacts:
Jason Parravano
(450) 536-5328

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