/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
WINNIPEG, MB, Nov. 24, 2021 /CNW/ - Marwest Apartment Real
Estate Investment Trust ("Marwest Apartment REIT" or the
"REIT") (TSXV: MAR.UN) reported financial results for the
third quarter ended September 30,
2021.
The Condensed Consolidated Interim Financial Statements and
Management's Discussion and Analysis ("MD&A") for Q3 2021 and
the nine months ended September 30, 2021 are available on
the REIT's website at www.marwestreit.com and
at www.sedar.com.
Q3 2021 Highlights
- Adjusted funds from operations ("AFFO") of $0.04 per unit for the nine months ended
September 30, 2021
- Generated net property operating income ("NOI") of $1,206,553 since the acquisition of 251 units
(the "Qualifying Transaction") on April 30,
2021
- NOI margin of 62.44% for the nine months ended September 30, 2021
- Occupancy rate of 98.77% since the Qualifying Transaction
- Average monthly rent per suite to September 30, 2021 of $1,512
Mr. William Martens, Chief
Executive Officer and Trustee commented "We are very pleased to
have completed our first full quarter of operations with our
initial portfolio. Since Q3 we have completed the purchase of
an additional 112 rental units with the closing of the Element
acquisition on November 15,
2021."
Operations Summary
Portfolio
Operational Information
|
As at September
30, 2021
|
Number of
properties
|
|
2
|
Number of
suites
|
|
251
|
Average Occupancy
Rate to date
|
98.77%
|
Average rental rate
to date
|
|
$1,512
|
|
|
|
Financial
Summary
|
|
Period ended
September 30, 2021
|
Property
revenue
|
|
$
|
1,932,200
|
Net property
operating income
|
1,206,553
|
Net income
|
|
4,855,259
|
FFO
|
|
453,275
|
FFO per
unit
|
|
$
|
0.05
|
AFFO
|
|
353,160
|
AFFO per
unit
|
|
$
|
0.04
|
|
|
|
|
|
|
Debt Metrics as
at
|
|
As at September
30, 2021
|
Debt to total
assets
|
|
66.65%
|
Weighted average
mortgage interest rate
|
2.78%
|
Weighted average
months to debt maturity
|
79.41
|
Debt service coverage
ratio
|
|
1.35
|
Financial Summary
The REIT generated FFO and AFFO per unit of $0.05 and $0.04
respectively through Q3 2021. The reporting of FFO and AFFO
was attributable to the recent acquisitions of the REIT's two
properties. As noted above, the REIT's initial
property acquisitions closed on April 30,
2021, thus the results for the 9 months ended September 30, 2021 substantively reflect only the
five months that the REIT owned the properties.
FFO an AFFO are defined in "Non-IFRS Measures" in Q3 2021
Management's Discussion and Analysis.
Reconciliation of
Net Income to FFO
|
|
Period ended
September 30,
2021
|
Net income
|
|
$
|
4,855,259
|
Fair value
adjustments
|
|
(4,401,984)
|
FFO
|
|
453,275
|
FFO per
unit
|
|
$
|
0.05
|
Reconciliation of
FFO to AFFO
|
|
|
FFO
|
|
$
|
453,275
|
Capital
expenditures
|
|
(81,192)
|
Leasing
costs
|
|
(18,923)
|
AFFO
|
|
353,160
|
AFFO per
unit
|
|
$
|
0.04
|
Operational Summary
Turnovers and
Renewals
|
Period ended
September 30, 2021
|
Suite
Turnovers
|
68 units
|
Move ins
|
78 Units
|
Lease
Renewals
|
117 units
|
Renewal
rate
|
63%
|
Outlook
Management believes it will continue to see a stable rental
market for rental apartments. With increased vaccination
rates, provincial re-opening plans in effect, and the easing of
border restrictions driving immigration, management believes the
demand for multi-family rentals will increase.
The rising cost of home ownership has widened the affordability
gap between renting and home ownership within the market that the
REIT operates, which further fuels the demand for multi-family
rentals. The REIT's newer generation portfolio includes
amenities such as clubhouses and gyms, further increasing demand.
Management believes it will close another transaction within the
next twelve months, due to the strategic relationship that the
Trust has with the Marwest Group and the ability to raise capital
within the market.
Acquisition of Marwest (Element) Apartments L.P.
On November 15, 2021, the REIT
closed the purchase of 100% of Marwest (Element) Apartments L.P.
partnership units through its subsidiary MAR REIT L.P.
Marwest (Element) Apartments L.P. own the multi-family properties
located at 85 Fiorentino and 30 El Tassi Drive, Winnipeg, Manitoba. The aggregate
purchase price of $2,367,194 reflects
the value of the properties less the mortgages payable assumed by
the REIT. The purchase price was satisfied by the issuance of
1,029,211 exchangeable limited partnership units in MAR REIT L.P.
at $1.15 per Unit and $1,183,602 in cash.
Distributions
The Board of Trustees have adopted a monthly distribution policy
pursuant to which the REIT will pay monthly distributions.
The initial distribution will be to Unitholders of record on
December 31, 2021 in the amount of
$0.00125 per unit ($0.015 annualized) and will be paid on or about
January 15, 2022. Distributions
are subject to suspension, amendment or termination at any
time.
About Marwest Apartment REIT
The REIT is an unincorporated open-ended trust governed by the
laws of the Province of Manitoba.
The REIT was formed to provide Unitholders with the opportunity to
invest in the Canadian multi-family rental sector through the
ownership of high-quality income-producing properties, with an
initial focus on stable markets throughout Western Canada.
Forward-looking Statements
The information in this news release includes certain
information and statements about management's views of future
events, expectations, plans and prospects that constitute
forward–looking statements. These statements are based upon
assumptions that are subject to significant risks and
uncertainties. Because of these risks and uncertainties and
as a result of a variety of factors, the actual results,
expectations, achievements or performance may differ materially
from those anticipated and indicated by these forward–looking
statements. Forward–looking statements in this news release
include, but are not limited to, the implementation of a cash
distribution policy. A number of factors could cause actual
results to differ materially from these forward–looking
statements. The payment of cash distributions will be
dependent upon a number of factors, including but not limited to
the financial performance, financial condition and financial
requirements of the REIT. Although management of the REIT
believes that the expectations reflected in forward–looking
statements are reasonable, it can give no assurances that the
expectations of any forward–looking statements will prove to be
correct. Except as required by law, the REIT disclaims any
intention and assumes no obligation to update or revise any
forward–looking statements to reflect actual results, whether as a
result of new information, future events, changes in assumptions,
changes in factors affecting such forward–looking statements or
otherwise.
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this news release.
The Trust Units are not registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") and
may not be offered or sold within the
United States or to or for the account or benefit of U.S.
persons, except in certain transactions exempt from the
registration requirements of the U.S. Securities Act. This press
release does not constitute an offer to sell, or the solicitation
of an offer to buy, securities of the REIT in the United States or in any other
jurisdiction.
SOURCE Marwest Apartment Real Estate Investment Trust