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Fronsac REIT Reports Strong Growth and Announces its Financial Results for the Quarter Ended March 31st, 2014

May 22, 2014



MONTREAL, QUEBEC--(Marketwired - May 22, 2014) - (TSX VENTURE:GAZ.UN) Fronsac Real Estate Investment Trust ("Fronsac REIT" or "Fronsac") today released its consolidated financial statements for the quarter ended March 31st, 2014.

For the first quarter of 2014, Fronsac reported funds from operations ("FFO") of $217,315, an increase of 65,53% over the comparable quarter of 2013 ($128,946 in Q1-2013). For the quarter ended March 31st, 2014, FFO per unit was 0.63 cents, compared to 0.40 cents per unit for the comparable period of 2013, an increase of 57,5%.

Michel Lassonde President and CEO said: "Fronsac has maintained is course and applied it's business plan of acquiring or developing triple-net leased asset with national tenants. Our excellent Q1-2014 results reflect the acquisitions completed in 2013. "

The AFFO/FFO summary and the highlights for the years ended December 31, 2013 and 2012 as well as for the quarters ending on March 31st are presented in the tables below :

Financial results highlights

OPERATIONAL AND FINANCIAL HIGHLIGHTS ---------------------------------------------------------------------------- For the periods ended March 31, March 31, December 31, December 31, 2014 2013 2013 2012 (3 months) (3 months) (12 months) (12 months) ---------------------------------------------------------------------------- OPERATIONAL DATA Number of properties 9 6 9 5 Occupancy 100% 100% 100% 100% Value of properties 19,670,243 13,744,144 20,398,786 11,521,954 FINANCIAL PERFORMANCE Property rental revenue 377,154 228,934 1,006,914 665,870 EBITDA 310,037 176,087 926,380 456,330 Funds from operations (FFO) 217,315 128,946 581,977 273,456 Adjusted funds from operations (AFFO) 217,315 128,946 581,977 273,456 Distributions 127,432 - 443,322 256,737 PER UNIT FINANCIAL PERFORMANCE Weighted average units outstanding 34,429,853 32,616,083 32,817,956 20,985,587 FFO 0.0063 0.0040 0.0177 0.0130 AFFO 0.0063 0.0040 0.0177 0.0130 Distributions per unit 0.0037 n/a 0.0135 0.0125 AFFO payout ratio 58.73% n/a 76.18% 93.89% FINANCING Leverage 47.46% 28.05% 45.04% 28.74% Interest coverage ratio 2.1 3.9 2.8 2.7 Debt service coverage ratio 1.9 2.5 2.1 1.9 ----------------------------------------------------------------------------



About Fronsac - Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality commercial real estate properties, rented to strong tenants under long term, management free and net leases.

Forward-Looking Statements - This press release contains forward-looking statements and information as defined by applicable securities laws, including statements relating to Fronsac and expectations of the management regarding a proposed transaction and the expected benefits thereof. There is no assurance that the proposed transaction will be carried out and that the anticipated benefits will materialize. The proposed transaction is subject to approval and consent of stakeholders and there is no certainty that these will be achieved. 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) accept any responsibility for the adequacy or accuracy of this release.

The March 31st, 2014 financial statements of Fronsac REIT may be viewed on SEDAR at www.sedar.com.

FOR FURTHER INFORMATION PLEASE CONTACT: Michel Lassonde President (450) 536-5328 Source: Fronsac Real Estate Investment Trust


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Source: Marketwire (Canada)


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