/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Aug. 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 June 30, 2016 (the
"Second 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.
Second Quarter Highlights
- Same property rents grew 4.9% from $1,045 as at June 30,
2015 to $1,096 as at
June 30, 2016. Since the Fund's
inception, property rents have increased by 5.4% on an annualized
basis.
- Portfolio occupancy was 94.9% during the three months ended
June 30, 2016 compared to 95.7%
during the three months ended June 30,
2015, within the Fund's targeted occupancy range.
- Revenue for the three and six months ended June 30, 2016 was $4,466 and $8,858,
respectively, representing increases of $173 or 4.0% and $1,284 or 17.0% when compared to the same periods
in 2015. The increase for the three months ended June 30, 2016 represents same property revenue
improvements.
- NOI for the three and six months ended June 30, 2016 was $2,503 and $4,957,
representing increases of $99 or 4.1%
and $722 or 17.0% when compared to
the same periods in 2015. The increase for the three months ended
June 30, 2016 represents a same
property NOI increase.
- AFFO per Unit at $0.41 for the
three months ended June 30, 2016,
represented a 36.7% increase over the three months ended
June 30, 2015.
- AFFO payout ratio for the three and six months ended
June 30, 2016 were 34.2% and 36.4%,
respectively, both significantly lower than 47.4% and 45.8% for the
corresponding periods in 2015.
- The Fund recognized a fair value increase on its investment
properties during the three months ended June 30, 2016 of $1.6
million. The Fund's investment properties including its
joint venture interest and equity investment were valued at
$190.0 million as of June 30, 2016.
- Interest Coverage Ratio and Indebtedness Coverage Ratio
strengthened to 3.06 times and 3.03 times, respectively, during the
three and six months ended June 30,
2016, respectively, compared with 2.61 times and 2.99 times
for the same periods in 2015.
- The Fund's weighted average interest rate on mortgages payable
was 2.33% as of June 30, 2016 and the
weighted average term to maturity was 5.29 years.
- Indebtedness to Gross Book Value was 60.7% as at June 30, 2016, a reduction from 68.8% as at
June 30, 2015 and at the lower end of
the Fund's targeted range of 60-70%.
Operating Results
Same property revenues for the Second Quarter were $4,466, $173 or
4.0% higher than the second quarter of 2015. Rental rates increased
to $1,096 as of June 30, 2016 from $1,045 as of June 30,
2015, representing an increase of 4.9%. Rents since
the Fund's inception have increased 5.4% on an annualized
basis. Portfolio occupancy was 94.9% during the Second
Quarter compared to 95.7% during the three months ended
June 30, 2015, at the higher end of
the Fund's targeted occupancy range. Same property NOI for the
Second Quarter of $2,503 was
$99 or 4.1% higher when compared to
$2,404 in the second quarter of 2015.
AFFO per Unit for the Second Quarter increased by 36.7% to
$0.41 and the AFFO payout ratio
reduced from 47.4% to 34.2% in comparison to the second quarter of
2015. The improvement is attributable to same property NOI
growth as well as reduced interest on loans payable during the
three months ended June 30, 2016 as a
result of refinancing Travesia Apartments on April 29, 2016 to lower the Fund's cost of
capital by eliminating the mezzanine loan.
Financial Position
As of June 30, 2016, the Fund's
gross book value was $190.0 million
and indebtedness was $115.3 million
or 60.7% of gross book value, which is at the lower end of the
Fund's targeted range of 60%-70%. The interest coverage ratio and
indebtedness coverage ratio continued to strengthen during the
Second Quarter and were each 3.06 times. The weighted average
interest rate on the Fund's mortgage portfolio was 2.33% and the
weighted average term to maturity on mortgages was 5.29 years as at
June 30, 2016.
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 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,
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