Despite extremely challenging operating conditions, Calgary-based Mainstreet Equity Corporation announced Friday it managed to maintain funds from operations at the same level as the previous year, while achieving a slight improvement in FFO per share and five per cent growth in rental revenue in its first quarter of fiscal 2021.
The company said a six per cent drop in same-asset Net Operating Income is well below its typical standards, yet still exceeded its expectations given the current macroeconomic context.
“In fact, we believe these results are evidence that the multifamily apartment space remains the most resilient asset class across the entire real estate industry—particularly the mid-market, affordable housing segment that Mainstreet occupies,” said the company in a news release.
“Our ability to achieve stable results in Q1 demonstrates the fundamental durability of the rental market, and underscores Mainstreet’s proven operating model,” said Bob Dhillon, Founder and Chief Executive Officer of Mainstreet.
“The environment in which Mainstreet operates has changed dramatically over the last 12 months. However, our countercyclical growth strategy has not, and will provide our management team with unique opportunities to create shareholder growth in the coming year.”
The company said it believes current market conditions create a greater opportunity than ever for Mainstreet to acquire assets with high value-added potential at low cost, funded by record-low costs of debt and diversify its portfolio in new markets. Year to date, Mainstreet has acquired an additional 210 units at a total value of $22 million.
“Having successfully entered the Winnipeg market in Q1, we plan to aggressively continue expanding and diversifying our portfolio through 2021,” it said.