Calgary-based Mainstreet Equity Corp., an add-value, mid-market consolidator of apartments in Western Canada, says it’s poised for growth over the next fiscal year.
“After several years of economic turbulence in some of our core markets, we now see a tremendous recovery underway” said Bob Dhillon, founder and chief executive officer of Mainstreet. “Going forward, we will continue to pursue our long-term strategy of growing our portfolio without diluting the value of Mainstreet shares.”
The company reported its financial results for the three months ended Dec. 31, 2017, on Tuesday.
It said it is “presented with one of the best growth opportunities in its history, with record-high potential to boost net operating income and what we believe is an ample liquidity position to pursue future acquisitions.”
Since 2015, its long-term strategy has been to aggressively acquire assets during economic downturns.
In its fiscal 2018 first quarter, funds from operations increased 48 per cent to $6.3 million, compared with $4.3 million the previous year. Rental revenues increased five per cent to $27.1 million, compared with $25.8 million. Net operating income increased five per cent to $16.4 million.
Mainstreet said the same asset vacancy rate in quarter one of 2018 increased to 9.9 per cent, up from 9.6 per cent in quarter one of 2017. The overall quarter one 2018 vacancy rate, which includes vacant units as apartments undergo stabilization, increased year-over-year to 11.1 per cent from 9.7 per cent in quarter one 2017. That was due to increased acquisitions over the past three years.
Since 2000, Mainstreet has grown its portfolio from 272 units with a market value of approximately $17 million to a current market value of $1.7 billion and more than 11,000 units in the B.C. communities of Surrey, New Westminster and Abbotsford; Calgary and Southern Alberta, Edmonton and Fort Saskatchewan in Alberta; and Saskatoon and Regina in Saskatchewan.
Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.
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