"SAME PROPERTY METRICS CONTINUE GROWTH TREND INTO
SECOND QUARTER"
VANCOUVER, Aug. 8, 2018 /CNW/ - Pure Multi-Family REIT LP
("Pure Multi-Family") (TSXV: RUF.U, RUF.UN, RUF.DB.U; OTCQX: PMULF)
is pleased to announce the release of its financial results for the
three and six months ended June 30,
2018.
The results, consisting of Pure Multi-Family's condensed interim
consolidated financial statements for the three and six months
ended June 30, 2018, and management's
discussion and analysis of results of operations and financial
condition ("MD&A") dated August 8,
2018 are available on SEDAR at www.sedar.com and at
www.puremultifamily.com. All metrics are stated at Pure Multi's
interest, which adjusts for any real estate taxes related to IFRIC
21, and dollar amounts are disclosed in U.S. dollars, unless
otherwise indicated.
Financial Highlights
|
|
|
|
For the three months
ended June 30,
|
|
For the six months
ended June 30,
|
(US$000's, except
per unit amounts)
|
2018
|
2017
|
Change
|
|
2018
|
2017
|
Change
|
Rental Revenue – Same
Property (1)
|
20,236
|
19,637
|
3.1%
|
|
40,362
|
38,999
|
3.5%
|
Net Rental Income –
Same Property (1)
|
11,527
|
10,238
|
12.6%
|
|
22,799
|
20,515
|
11.1%
|
Average Rent Per
Occupied Unit – Same Property (1)
|
1,263
|
1,253
|
0.8%
|
|
1,261
|
1,250
|
0.9%
|
Average Physical
Occupancy – Same Property (1)
|
95.2%
|
94.0%
|
120bps
|
|
94.9%
|
93.6%
|
130bps
|
(1) Same
Property – represents properties owned as at January 1,
2017 and throughout the comparative periods.
|
|
|
|
|
|
|
As
at
June 30,
2018
|
As at
December 31, 2017
|
Change
|
Debt to Gross Book
Value Ratio
|
|
|
|
53.0%
|
|
53.4%
|
(40bps)
|
Total Portfolio
Leased Occupancy
|
|
|
|
97.7%
|
|
95.0%
|
270bps
|
Total Number of
Investment Properties
|
|
|
|
22
|
|
22
|
-
|
Total Number of
Residential Units
|
|
|
|
7,085
|
|
7,085
|
-
|
Portfolio Weighted
Average Year of Construction
|
|
|
|
2007
|
|
2007
|
-
|
Stephen Evans, Pure
Multi-Family's CEO stated, "Our strong operating performance
year-to-date continued with same property revenue growth of 3.1%
and same property net rental income growth of 12.6% during the
quarter, driven by our sustained efforts to improve portfolio
occupancy, reduce rental concessions, and decrease operating
expenses across our portfolio."
Based on investment properties owned as of January 1, 2017 and throughout the comparative
periods, for the three and six months ended June 30, 2018, Pure Multi-Family achieved same
property revenue growth of 3.1% and 3.5%, respectively, and same
property net rental income ("NOI") growth of 12.6% and 11.1%,
respectively, compared to the same periods in the prior year. Same
property revenue growth was driven by increases in same property
physical occupancy and same property average rent per occupied
unit, coupled with a reduction in same property rental concessions.
Same property NOI, over the same periods, was primarily positively
impacted by the internalization of the property management
function. Normalizing the impact resulting from the elimination of
property management fees and the resolution of prior year property
tax appeals, adjusted same property NOI for the three and six
months ended June 30, 2018 increased
by 5.7% and 5.2%, respectively, compared to the same periods in the
prior year.
|
|
|
|
For the three months
ended June 30,
|
For the six months
ended June 30,
|
(US$000's, except
units and per unit amounts)
|
2018
|
2017
|
Change
|
2018
|
2017
|
Change
|
Weighted Average
Units Outstanding - Basic
|
76,731,540
|
65,867,109
|
|
76,731,227
|
60,994,875
|
|
Weighted Average
Units Outstanding - Diluted
|
80,761,628
|
69,898,967
|
|
80,761,315
|
65,026,733
|
|
|
|
|
|
|
|
|
Rental Revenue – Same
Property (1)
|
20,236
|
19,637
|
3.1%
|
40,362
|
38,999
|
3.5%
|
Rental Revenue –
Non-Same Property
|
7,123
|
2,167
|
228.7%
|
14,110
|
3,642
|
287.4%
|
Rental Revenue –
Total
|
27,359
|
21,804
|
25.5%
|
54,472
|
42,641
|
27.7%
|
|
|
|
|
|
|
|
Net Rental Income –
Same Property (1)
|
11,527
|
10,238
|
12.6%
|
22,799
|
20,515
|
11.1%
|
Net Rental Income –
Non-Same Property
|
3,965
|
1,075
|
268.8%
|
7,828
|
1,898
|
312.4%
|
Net Rental Income –
Total
|
15,492
|
11,313
|
36.9%
|
30,627
|
22,413
|
36.6%
|
|
|
|
|
|
|
|
FFO
|
6,446
|
4,792
|
34.5%
|
13,877
|
10,220
|
35.8%
|
FFO Per Unit –
Basic
|
0.08
|
0.07
|
16.1%
|
0.17
|
0.16
|
8.9%
|
FFO Per Unit –
Diluted
|
0.08
|
0.07
|
16.1%
|
0.17
|
0.16
|
8.9%
|
FFO Payout
Ratio
|
115.5%
|
141.9%
|
(2,510bps)
|
107.3%
|
120.4%
|
(1,260bps)
|
|
|
|
|
|
|
|
AFFO
|
6,005
|
4,428
|
35.6%
|
12,994
|
9,515
|
36.6%
|
AFFO Per Unit –
Basic
|
0.08
|
0.07
|
17.1%
|
0.16
|
0.15
|
9.5%
|
AFFO Per Unit –
Diluted
|
0.08
|
0.07
|
17.1%
|
0.16
|
0.15
|
9.5%
|
AFFO Payout
Ratio
|
124.0%
|
153.6%
|
(2,960bps)
|
114.6%
|
129.3%
|
(1,470bps)
|
(1) Same Property –
represents properties owned as at January 1, 2017 and throughout
the comparative periods.
|
Pure Multi-Family's FFO and AFFO payout ratios improved during
both the three and six month periods ending June 30, 2018, compared to the same periods in
the prior year. These improvements to the FFO and AFFO payout
ratios were partially offset by increased general and
administrative ("G&A") expenses related to the previously
disclosed strategic review process implemented earlier in the
year. Excluding these additional expenditures related to the
strategic review process, the FFO payout ratios for the three and
six months ended June 30, 2018 would
have been 104.4% and 101.0%, respectively, and the AFFO payout
ratios for the same periods would have been 111.2% and 107.5%,
respectively.
Pure Multi-Family incurred G&A expenses of $2,544,834 and $4,179,164 during the three and six months ended
June 30, 2018, respectively,
representing G&A expenses as a percentage of revenues of 9.3%
and 7.7%. G&A expenses during the current year include
additional corporate level expenditures resulting from the
internalized property management function and non-recurring
expenditures resulting from the strategic review process.
The non-recurring expenditures, resulting from the strategic
review process, included within G&A expenses were approximately
$687,000 during the three months
ended June 30, 2018 and $857,000 during the six months ended June 30, 2018. Removing these non-recurring
expenditures results in an adjusted G&A expense as a percentage
of revenues of 6.8% and 6.1%, respectively, for the three and six
months ended June 30, 2018.
Q2-2018 Conference Call
Stephen Evans, CEO, Samantha Adams, SVP, and Scott Shillington, CFO, of Pure Multi-Family,
will host the conference call at 10:00 am
(PST), 1:00 pm (EST), on
Thursday, August 9, 2018, to review
the financial results and corporate developments for the three and
six months ended June 30, 2018.
To participate on the conference call, please dial one of the
following numbers approximately 10 minutes prior to the
commencement of the call and ask to join the Pure Multi-Family REIT
LP Conference Call.
Dial in numbers
• Toll free dial in
number (from Canada and
USA):
|
1-888-390-0546
|
• International or
Local
Toronto:
|
1-416-764-8688
|
Conference Call Replay
If you cannot participate on August 9,
2018, a replay of the conference call will be available by
dialing one of the following replay numbers. You will be able to
dial in and listen to the conference 120 minutes after the meeting
end time, and the replay will be available until August 16, 2018.
Please enter the Replay ID# 886356, followed by the # key.
Replay Dial in number
• Toll free (from
Canada or the
USA):
|
1-888-390-0541
|
• International or
Local Toronto:
|
1-416-764-8677
|
About Pure Multi-Family REIT LP
Pure Multi-Family is a Canadian based, publicly traded vehicle
which offers investors exclusive exposure to attractive,
institutional quality U.S. multi-family real estate assets.
Additional information about Pure Multi-Family is available at
www.puremultifamily.com and www.sedar.com.
Non-IFRS Financial Measures
This news release contains certain non-IFRS financial
measures, including Pure Multi's interest, FFO, AFFO, same property
NOI, rental revenue-same property, rental revenue-non-same
property, net rental income, net rental income-same property, net
rental income-non-same property, same property revenue, same
property net rental income, same property average rent per occupied
residential unit, average rent per occupied residential unit, same
property physical occupancy, total portfolio leased occupancy, FFO
payout ratio, AFFO payout ratio and any related per Unit amounts to
measure, compare and explain Pure Multi-Family's operating results
and financial performance. These measures are commonly used by
entities in the real estate industry as useful metrics for
measuring performance. However, they do not have any standardized
meaning prescribed by IFRS and are not necessarily comparable to
similar measures presented by other publicly traded entities
because the method of calculation may differ. These measures should
be considered as supplemental in nature and not as a substitute for
related financial information prepared in accordance with IFRS.
Please refer to Pure Multi-Family's MD&A (available on SEDAR
at www.sedar.com) for the three and six months ended
June 30, 2018 for a reconciliation of
the non-IFRS financial measures used herein to standardized IFRS
measures.
Forward-Looking Information
Certain statements contained in this news release may
constitute forward-looking statements. Forward-looking statements
are often, but not always, identified by the use of words such as
"anticipate", "plan", "expect", "may", "will", "intend", "should",
and similar expressions. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking statements.
Although Pure Multi-Family believes that the expectations and
assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because Pure Multi-Family can give no
assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not
limited to, competitive factors in the industries in which Pure
Multi-Family operates, prevailing economic conditions, the failure
to obtain necessary regulatory approvals or satisfy the conditions
to closing any proposed acquisitions, and other factors, many of
which are beyond the control of Pure Multi-Family.
The forward-looking statements contained in this news release
represent Pure Multi-Family's expectations as of the date hereof,
and are subject to change after such date. Pure Multi-Family
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required under applicable
securities regulations.
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 THE ACCURACY
OF THIS RELEASE.
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SOURCE Pure Multi-Family REIT LP