/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
WINNIPEG, MB, May 11, 2022
/CNW/ - Marwest Apartment Real Estate Investment Trust ("Marwest
Apartment REIT" or the "REIT") (TSXV: MAR.UN) reported
financial results for the three months ended March 31, 2022. This press release should
be read in conjunction with the REIT's Condensed Consolidated
Interim Financial Statements and Management's Discussion and
Analysis ("MD&A") for the three months ended March
31, 2022, which are available on the REIT's website
at www.marwestreit.com and at www.sedar.com.
Mr. William Martens, Chief
Executive Officer and Trustee commented "We are pleased with the
performance of the assets that we have acquired for the REIT.
We continue to look for other acquisition opportunities and
implement measures to increase Unitholder value, such as the
introduction of the Normal Course Issuer Bid ("NCIB") in Q1
2022."
Q1 2022 Highlights
- Increase in Net Asset Value per Unit ("NAV per unit") from
$1.27 at December 31, 2021 to $1.44 at March 31,
2022
- Generated net operating income ("NOI") of $910,601 for the three months ended March 31, 2022
- Funds from operations ("FFO") of $0.0272 per unit for the three months ended
March 31, 2022
- Adjusted funds from operations ("AFFO") of $0.0232 per unit for the three months ended
March 31, 2022
- Occupancy rate of 94.78% reported for Q1 2022
Operations Summary
Portfolio
Operational Information
|
|
As at March 31,
2022
|
Number of
properties
|
|
3
|
Number of
suites
|
|
363
|
Average Occupancy Rate
to date
|
|
94.78%
|
Average rental rate to
date
|
|
$1,511
|
|
|
|
Financial
Summary
|
|
Three months
ended
March 31, 2022
|
Property
revenue
|
|
$
1,618,740
|
Net Operating
Income
|
|
910,601
|
Net income
|
|
1,878,723
|
FFO
|
|
328,530
|
FFO per unit
|
|
$
0.0272
|
AFFO
|
|
280,834
|
AFFO per
unit
|
|
$
0.0232
|
|
|
|
|
|
|
Debt
Metrics
|
|
As at March 31,
2022
|
Debt to total
assets
|
|
68.95%
|
Weighted average
mortgage interest rate
|
|
2.82%
|
Weighted average months
to debt maturity
|
|
79.49
|
Debt service coverage
ratio
|
|
1.15
|
Financial Summary
The REIT generated FFO and AFFO per unit of $0.0272 and $0.0232
during the three months ended March
31, 2022.
FFO an AFFO are defined in "Non-IFRS Measures" in the Q1 2022
Management's Discussion and Analysis.
Reconciliation of
Net Income to FFO and AFFO
|
Three months
ended
March 31, 2022
|
Net income
|
$
1,878,723
|
Distribution on
Exchangeable Units
|
40,671
|
Fair value
adjustments
|
(1,590,864)
|
FFO
|
328,530
|
FFO per unit
|
$
0.0272
|
Reconciliation of
FFO to AFFO
|
|
FFO
|
$
328,530
|
Capital
expenditures
|
(43,285)
|
Leasing
costs
|
(4,411)
|
AFFO
|
280,834
|
AFFO per
unit
|
$
0.0232
|
|
|
NAV at March 31,
2022
|
|
Unitholders'
Equity
|
$
17,738,780
|
Exchangeable
Units
|
10,624,449
|
NAV
|
28,363,229
|
Trust Units at
December 31, 2022
|
8,831,564
|
Exchangeable
Units at December 31, 2022
|
10,841,274
|
Deferred units
at December 31, 2022
|
67,444
|
Total Units
outstanding
|
19,740,282
|
NAV per Unit
|
$
1.44
|
Outlook
The REIT expects the demand for rental housing to continue
and potentially grow, as does the industry evidenced by the 2022
CBRE Canada Real Estate Market Outlook, due to a number of factors
including, the return of immigration policies post COVID-19 and
rising home prices.
About Marwest Apartment Real Estate Investment Trust
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. A number of factors could cause actual results to
differ materially from these forward‐looking statements, including
the risks described in the REIT's latest annual information return.
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.
Notice with respect to Non-IFRS Measures Disclosure
In addition to IFRS measures, certain non-IFRS financial
measures are commonly used by Canadian real estate investment
trusts as an indicator of performance. Non-IFRS measures and
ratios includes Net Operating Income ("NOI), Debt-Service Coverage
Ratio, FFO, AFFO, FFO per Unit, AFFO per Unit, and NAV per
Unit.
Management believes that these measures are helpful to investors
because they are widely recognized measures of the REIT's
performance and provide a relevant basis for comparison among real
estate entities. These non-IFRS financial measures are not
defined under IFRS and are not intended to represent financial
performance, financial position or cash flows for the period and
should not be viewed as an alternative to net income, cash flow
from operations or other measures of financial performance
calculated in accordance with IFRS.
The above measures are not standardized under the financial
reporting framework used to prepare the financial statements of the
REIT. Readers should be further cautioned that the above
measures as calculated by the REIT may not be comparable to similar
measures presented by other issuers. Refer to the Non-IFRS
measures in the REIT's Q1 2022 MD&A, which is incorporated by
reference herein, for further information (available on SEDAR at
www.sedar.com or the REIT's website www.marwestreit.com)
SOURCE Marwest Apartment Real Estate Investment Trust