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TORONTO, Aug. 25, 2016 /CNW/ – Starlight U.S. Multi-Family (No. 4) Core Fund (TSX.V: SUF.A, SUF.U) (the “Fund”) today announced its results of operations and financial condition for the three months ended June 30, 2016 (the “Second Quarter”). The Fund commenced operations on April 10, 2015 after closing its initial public offering on April 9, 2015. All amounts in this news release are in thousands of United States dollars unless otherwise stated.
Second Quarter Highlights
- Average monthly rents increased to $1,233 as at June 30, 2016 compared to $1,202 as at March 31, 2016, representing an increase of 10.3% on an annualized basis. Since the Fund’s inception, rents have increased 4.9% on an annualized basis.
- Portfolio occupancy increased to 93.9% during the three months ended June 30, 2016 compared to 92.9% during the three months ended March 31, 2016, both within the Fund’s targeted occupancy range.
- For the three months ended June 30, 2016, the Fund’s revenue was $4,628 which was $108 or 2.4% higher than the previous three months ended March 31, 2016.
- NOI for the properties was $2,688 for the three months ended June 30, 2016 which was $61 or 2.3% higher than the previous three months ended March 31, 2016. NOI margin was 58.1% for both the three and six months ended June 30, 2016.
- AFFO for the three and six months ended June 30, 2016 was $1,193 and $2,381 respectively. AFFO per unit was $0.20 and $0.39 for the same periods.
- AFFO payout ratio was stable at 73.2% during the three months ended June 30, 2016 and 72.2% for the six months ended June 30, 2016.
- Interest coverage ratios and indebtedness coverage ratios also remained consistent at 1.99 times and 2.11 times during the three and six months ended June 30, 2016, respectively.
- The Fund recognized a fair value increase on its investment properties of $3.1 million and its investment properties were valued at $213.6 million as of June 30, 2016.
- Weighted average interest rate on mortgages was 2.56% as at June 30, 2016 and the weighted average term to maturity was 4.25 years.
- Indebtedness to gross book value at 66.5% remains within the Fund’s targeted leverage range of 60-70%.
Operating Results
During the Second Quarter, property revenues were $4,628 and NOI was $2,688. Property revenues were $108 or 2.4% higher than the previous quarter and NOI was $61 or 2.3% higher than the previous quarter.
Portfolio occupancy was 93.9% during the Second Quarter which was within the Fund’s targeted occupancy range. The Fund had an average rental rate per suite for the Second Quarter equal to $1,233 (actual dollars) compared to the previous quarter of $1,202 (actual dollars) representing an increase of 10.3% on an annualized basis. Since the Funds inception, rents have increased 4.9% on an annualized basis.
Financial Position
As of June 30, 2016, the Fund’s indebtedness to gross book value was 66.5%. The interest coverage ratio and indebtedness coverage ratio for the Second Quarter was 1.99 times, down from 2.23 times in the previous quarter. The weighted average interest rate on the Fund’s mortgages payable increased to 2.56% from 2.54% in the previous quarter and the weighted average term to maturity decreased to 4.25 years. The Fund’s AFFO payout ratio for the Second Quarter was at 73.2% and for the six months ended June 30, 2016 was 72.2%.
About Starlight U.S. Multi-Family (No. 4) Core Fund
The Fund is a limited partnership formed under the Limited Partnerships Act (Ontario) for the primary purpose of indirectly acquiring, owning and operating a portfolio of diversified income producing rental properties in the U.S. multi-family real estate market.
For complete consolidated financial statements and management’s discussion and analysis for the period, and any other information relating to the Fund, please visit www.sedar.com. Further details regarding the Fund’s unit performance and distributions, market conditions where the Fund’s properties are located, performance by the Fund’s properties and a capital investment update are also available in the Fund’s August 2016 Newsletter which is available on the Fund’s profile at www.starlightus.com.
Non-IFRS Financial Measures
Certain terms used in this news release including NOI, AFFO, gross book value, indebtedness, interest coverage ratio and indebtedness coverage ratio are not measures defined under International Financial Reporting Standards (“IFRS”) as prescribed by the International Accounting Standard Board. Details on non-IFRS financial measures are set out in the Fund’s management’s discussion and analysis for the period available on the Fund’s profile at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Starlight U.S. Multi-Family (No. 4) Core Fund
