/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
WINNIPEG, MB, March 15, 2022 /CNW/ - Marwest Apartment
Real Estate Investment Trust ("Marwest Apartment REIT" or
the "REIT") (TSXV: MAR.UN) reported financial results for
the year ended December 31, 2021.
The Consolidated Financial Statements and Management's
Discussion and Analysis ("MD&A") for the year
ended December 31, 2021 are available on the REIT's
website at www.marwestreit.com and
at www.sedar.com.
2021 Highlights
- Net Asset Value per Unit ("NAV per unit") of $1.27 at December 31,
2021
- Generated net operating income ("NOI") of $2,022,976 since the completion of the Qualifying
Transaction (the "QT") on April 30,
2021
- Adjusted funds from operations ("AFFO") of $0.06 per unit for the year ended December 31, 2021, reflecting eight months of
operations since the QT
- NOI margin of 60.57% for the year ended December 31, 2021
- Occupancy rate of 98.49% since the Qualifying Transaction
- Average monthly rent per suite to December 31, 2021 of $1,510
Mr. William Martens, Chief
Executive Officer and Trustee commented "We are very pleased to
have completed our first year of operations. We look forward
to further expanding our portfolio."
Operations Summary
Portfolio
Operational Information
|
|
As at December 31,
2021
|
Number of
properties
|
|
3
|
Number of
suites
|
|
363
|
Average Occupancy Rate
to date
|
|
98.49%
|
Average rental rate to
date
|
|
$1,510
|
|
|
|
Financial
Summary
|
|
Year ended December
31, 2021
|
Property
revenue
|
|
$
|
3,339,846
|
Net Operating
Income
|
|
2,022,976
|
Net income
|
|
9,215,064
|
FFO
|
|
824,005
|
FFO per unit
|
|
|
0.07
|
AFFO
|
|
704,205
|
AFFO per
unit
|
|
$
|
0.06
|
|
|
|
|
|
|
Debt Metrics as
at
|
|
As at December 31,
2021
|
Debt to total
assets
|
|
71.70%
|
Weighted average
mortgage interest rate
|
|
2.82%
|
Weighted average months
to debt maturity
|
|
82.47
|
Debt service coverage
ratio
|
|
1.35
|
Financial Summary
The REIT generated Funds from Operations ("FFO") per Unit and
AFFO per unit of $0.07 and
$0.06 during the year ended
December 31, 2021. The reporting
of FFO and AFFO was attributable to the recent acquisitions of the
REIT's three properties. As noted above, the REIT's initial
property acquisitions closed on April 30,
2021, thus the results for the year ended December 31, 2021 substantively reflect only the
eight months that the REIT had operations.
FFO an AFFO are defined in "Non-IFRS Measures" in the Annual
2021 Management's Discussion and Analysis.
Reconciliation of
Net Income to FFO
|
Year ended December
31, 2021
|
Net income
|
$
|
9,215,064
|
Distribution on
Exchangeable Units
|
|
13,557
|
Fair value
adjustments
|
(8,404,616)
|
FFO
|
824,005
|
FFO per unit
|
$
|
0.07
|
Reconciliation of
FFO to AFFO
|
|
FFO
|
|
824,005
|
Capital
expenditures
|
(96,466)
|
Leasing
costs
|
(23,334)
|
AFFO
|
704,205
|
AFFO per
unit
|
$
|
0.06
|
NAV at December 31,
2021
|
|
Unitholders'
Equity
|
|
15,893,174
|
Exchangeable
Units
|
9,106,671
|
NAV
|
24,999,845
|
Trust Units at
December 31, 2021
|
8,831,564
|
Exchangeable
Units at December 31, 2021
|
10,841,274
|
Deferred units
at December 31, 2021
|
53,595
|
Total Units
outstanding
|
19,726,433
|
NAV per Unit
|
|
1.27
|
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.
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.
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 Marwest'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 Marwest's 2021 Annual 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