/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, May 25, 2016 /CNW/ - Starlight U.S. Multi-Family
(No. 2) Core Fund (TSX.V: SUD.A, SUD.U) (the "Fund") today
announced its results of operations and financial condition for the
three months ended March 31, 2016
(the "First Quarter"). All amounts in this news release are in
thousands of United States
dollars, unless otherwise stated, and include the Fund's share of
the revenues, expenses, assets and liabilities of its equity
investment in the Falls at Eagle
Creek and joint venture interest in Soho Parkway Apartments.
First Quarter Highlights
- Same property rents grew 5.4% from $1,029 to $1,085
when comparing the First Quarter to the first quarter of 2015.
Property rents have increased by 5.3% on an annualized basis since
the Fund's inception.
- Portfolio occupancy was 93.9% during the First Quarter,
compared to 94.6% during the same period last year, and is within
the Fund's targeted occupancy range.
- Revenue and same property revenue for the First Quarter were
$4,392 and $3,018, respectively, representing increases of
$1,111 or 33.9% and $129 or 4.5% when compared to the same period in
2015.
- Net operating income ("NOI") and same property NOI for the
First Quarter were $2,454 and
$1,651, respectively, representing
increases of $624 or 34.1% and
$32 and 2.0% when compared to the
same period in 2015.
- Adjusted funds from operations ("AFFO") per unit increased by
21.4% to $0.34 reflecting same
property NOI growth and strong contributions from Soho
Parkway.
- AFFO payout ratio was a conservative 38.9% for the First
Quarter, significantly lower than the 52.2% for the first quarter
of 2015.
- Interest coverage ratio and indebtedness coverage ratio
remained strong at 3.00 times during the First Quarter and
consistent with the first quarter of 2015.
- The Fund's weighted average interest rate of mortgages payable
was 2.29% as of March 31, 2016 and
the weighted average term to maturity was 5.25 years.
- Indebtedness to gross book value was 61.5% as at March 31, 2016, a reduction from 71.4% as at
March 31, 2015 and at the lower end
of the Fund's targeted leverage range of 60-70%.
Operating Results
Property revenues for the First Quarter were $4,392, $1,111 or
33.9% higher when compared to $3,281
in 2015. NOI of $2,454 was
$624 or 34.1% higher when compared to
$1,830 in 2015. Same property revenue
growth for the First Quarter was $129
or 4.5% and same property NOI growth for the First Quarter was
$32 or 2.0%.
Portfolio occupancy was 93.9% during the First Quarter compared
to 94.6% during the three months ended March
31, 2015, within the Fund's targeted occupancy range. Same
property rents grew from $1,029 to
$1,085 compared to the first quarter
of 2015, representing an increase of 5.4% and have increased by
5.3% on annualized basis since the Fund's inception.
Financial Position
As of March 31, 2016, the Fund's
gross book value was $188.0 million
and indebtedness was $115.7 million
or 61.5% of gross book value, which was at the lower end of the
Fund's targeted range of 60%-70%. The interest coverage ratio and
indebtedness coverage ratio for the First Quarter were each 3.02
times and consistent with the last quarter of 2015. The weighted
average interest rate on the Fund's mortgage portfolio was 2.29%
and the weighted average term to maturity on mortgages was 5.25
years as at March 31, 2016.
Subsequent Events
On April 13, 2016, the Fund repaid
$750 of the mezzanine loan associated
with Travesia Apartments. The loan is a Canadian dollar denominated
loan and the Fund realized a foreign exchange gain of $14.
On April 29, 2016, the Fund
refinanced Travesia Apartments and obtained net proceeds of
$7,202 after paying off the existing
mortgage payable. The proceeds were used to repay the remaining
balance of mezzanine loan associated with Travesia Apartments. The
refinancing and mortgage repayment reduced the Fund's weighted
average interest rate on all loans payable to 2.29% from 2.72% as
at March 31, 2016, and increased the
weighted average term to maturity on all loans payable from 4.92
years as at March 31, 2016 to 5.54
years.
About Starlight U.S. Multi-Family (No. 2) 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 May
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, indebtedness to gross book value
and interest 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. 2) Core Fund