Delavaco Residential Properties Corp. Reports First Quarter Financial and Operating Results
29 May 2014 - 10:00PM
Marketwired
Delavaco Residential Properties Corp. Reports First Quarter
Financial and Operating Results
TORONTO,
ON--(Marketwired - May 29, 2014) - Delavaco
Residential Properties Corp. ("Delavaco" or the "Company")
(TSX-VENTURE:
DVO.U) (OTCQX:
DELAF) today announced its results for the quarter
ended March 31, 2014.
HIGHLIGHTS*All amounts stated in USD, unless
otherwise stated.
Corporate
- On December 30, 2013, Delavaco completed a reverse takeover
transaction with Sereno Capital. The Company began trading on the
TSX-V under the symbol DVO.U on January 3, 2014.
Portfolio
- Fair value of investment properties and assets held for sale as
at March 31, 2014, was $101,929,277, an increase of $1,912,167 or
2% quarter over quarter.
- Realized a fair value gain on investment properties of
$414,956.
- As at March 31, 2014, Delavaco had 837 single-family units and
311 multi-family units and managed a 316 unit multi-family
building, bringing the total owned and operated unit count to
1,464.
- Occupancy and adjusted occupancy of the aggregate owned and
operated portfolio as at March 31, 2014, was 80% and 82%
respectively.
Operational and Financial Performance
- Revenue for the three months ended March 31, 2014, increased
$623,377 or 35% quarter over quarter to $2,419,860.
- NOI for the three months ended March 31, 2014, increased
$302,721 or 63% year over year to $785,914.
Recent Announcements
- On April 10, 2014, Delavaco began trading on the OTCQX under
the ticker symbol DELAF.
- In May, 2014, Delavaco sold properties in St. Petersburg,
Florida, for approximately $1,475,000. The properties were sold at
the fair value previously recognized in the assets held for sale,
hence did not recognize a gain or loss on the disposition. Delavaco
decided to relocate the capital in other regions where it believes
it can obtain more optimal capitalization rates.
- On May 5, 2014, Delavaco purchased 96 single-family style units
within 19 multi-family buildings in Paterson, New Jersey, for an
aggregate purchase price of $6,250,000. Half of the purchase price
was paid through the issuance of 3,120,000 common shares at $1.00
per share, and the remainder through two promissory notes secured
by a first ranking lien on the properties. The promissory notes
bear interest of 5.5% per annum and have a maturity date of
November 1, 2014.
Occupancy (as at March 31, 2014)
The following table provides a leasing performance
summary of our owned and operated portfolio as at March 31,
2014:
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Region |
|
Number of Units |
|
Units Leased |
|
Units Vacant |
|
Occupancy |
|
|
Adjusted Occupancy(1) |
|
|
Average Monthly Rent |
Florida
single-family(2) |
|
525 |
|
311 |
|
214 |
|
59.2 |
% |
|
62.2 |
% |
|
$ |
1,032 |
Georgia
single-family |
|
312 |
|
263 |
|
49 |
|
84.3 |
% |
|
90.7 |
% |
|
|
846 |
Florida
multi-family |
|
153 |
|
147 |
|
6 |
|
96.1 |
% |
|
96.1 |
% |
|
|
1,049 |
Texas
multi-family |
|
158 |
|
150 |
|
8 |
|
94.9 |
% |
|
94.9 |
% |
|
|
817 |
Total -
owned properties |
|
1,148 |
|
871 |
|
277 |
|
75.9 |
% |
|
79.1 |
% |
|
$ |
941 |
Properties
managed (not owned) |
|
316 |
|
297 |
|
19 |
|
94.0 |
% |
|
94.0 |
% |
|
|
|
Total -
owned and operated |
|
1,464 |
|
1,168 |
|
296 |
|
79.8 |
% |
|
82.4 |
% |
|
|
|
_________________________
(1) Excludes units under renovation
(2) Includes assets held for sale. As at March 31, 2014, 116
units in Florida were held for sale.
|
|
Summary of Properties |
|
Quarter Total |
|
2014 Q1 |
|
2013 Q4 |
|
2013 Q3 |
|
2013 Q2 |
Single-Family Doors: Florida(1) |
|
|
525 |
|
|
525 |
|
|
525 |
|
|
526 |
Single-Family Doors: Georgia |
|
|
312 |
|
|
298 |
|
|
257 |
|
|
171 |
Multi-Family Units: Florida |
|
|
153 |
|
|
153 |
|
|
- |
|
|
- |
Multi-Family Units: Texas |
|
|
158 |
|
|
158 |
|
|
- |
|
|
- |
Total
Units |
|
|
1,148 |
|
|
1,134 |
|
|
782 |
|
|
697 |
Fair Value
of Properties(2) |
|
$ |
101,929,277 |
|
$ |
99,960,201 |
|
$ |
62,545,842 |
|
$ |
55,631,572 |
Average
Fair Value per Unit |
|
$ |
88,789 |
|
$ |
88,148 |
|
$ |
79,982 |
|
$ |
79,816 |
______________________
(1) Number of doors does not include the multi-unit complex
located at 999 W. Prospect Road and 1007 W. Prospect Road which was
disposed of in Q2, 2013, as it was a transitional living
complex.
(2) Includes assets held for sale
"Delavaco has once again increased our revenues
while improving our NOI, during an aggressive growth stage. The
Board and Management remain focused on achieving the goals set for
2014 and look forward to continuous improvement throughout the
year. Delavaco has increased its focus on the quality of tenants to
ensure longevity leading to reduced turnover, stabilization and a
reduction of turnover costs," commented Andrew DeFrancesco, Chief
Executive Officer.
About Delavaco Residential Properties Corp.
Delavaco Residential Properties Corp. was formed on
January 27, 2011 to take advantage of the U.S. housing crisis with
the goal of significant capital appreciation through the recovery
of the housing sector. Now a public company, Delavaco has its
shares listed for trading on the TSX Venture Exchange and the OTCQX
marketplace in the U.S. Delavaco is focused on the ownership and
management of single and multi-family residential properties
located principally in the south-eastern United States. Delavaco's
real estate portfolio consists of 525 single-family homes in
Florida, 298 single-family homes in Georgia, 311 multi-family units
in Florida and Texas and 96 multi-family units in New Jersey.
Delavaco also manages a 316 multi-family unit portfolio in
Hollywood, Florida. Delavaco's acquisition strategy involves the
identification and purchase of under-valued residential properties
located in highly populated and dynamic urban centers within the
lower to middle income demographic sector with tenants who qualify
for government funding under the United States rental voucher
assisted program. Delavaco's security holders include some of the
leading Canadian institutional investors and real estate holding
companies.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: Certain information in this news release constitutes
forward-looking statements under applicable securities law. Any
statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward- looking
statements. Forward-looking statements are often identified by
terms such as "may," "should," "anticipate," "expect," "intend" and
similar expressions. Forward-looking statements in this news
release include, but are not limited to, statements with respect to
Delavaco's intended acquisition focus. Forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks associated with general economic conditions;
adverse industry events; marketing costs; loss of markets;
volatility of real estate prices; inability to access sufficient
capital from internal and external sources, and/or inability to
access sufficient capital on favourable terms; industry and
government regulation; changes in legislation, income tax and
regulatory matters; the ability of Delavaco to implement its
business strategies; competition; currency and interest rate
fluctuations and other risks.
Readers are cautioned that the foregoing list
is not exhaustive. Readers are further cautioned not to place undue
reliance on forward-looking statements as there can be no assurance
that the plans, intentions or expectations upon which they are
placed will occur. Such information, although considered reasonable
by management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
Neither the Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Additional information about Delavaco Residential
Properties Corp. is available at www.delavacoproperties.com or
www.sedar.com.
For more information please contact:Michael GalloroChief
Financial Officer Delavaco Residential Properties Corp. The
Exchange Tower130 King Street West, Suite 2210 Toronto, ON M5X
1A9 Phone: (416) 362-4441 E-mail: Email contactLisa-Marie
IannitelliDirector of Investor Relations & Business
Development Delavaco Residential Properties Corp.The Exchange
Tower130 King Street West, Suite 2210 Toronto, ON M5X 1A9 Phone:
(416) 362-4441 E-mail: Email contact
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