HALIFAX,
NS, May 30, 2022 /CNW Telbec/ - (TSXV:
NXLV) – NexLiving Communities Inc. ("NexLiving" or
the "Company") announced today continuing strong operating and
financial results for the three months ended March 31, 2022.
Q1 2022 Operating and Financial
Highlights:
Significant growth in revenue
and NOI
Property revenue grew +45.7% to $2.6
million and net operating income grew +34.2% to $1.3 million during the quarter. Funds from
operations ("FFO") increased +22.7% to $0.3
million and net income increased +175.4% to $1.2M while FFO per share declined -29.8% to
0.09 cents per share. The decline in
FFO per share is primarily the result of timing differences between
the November 2021 equity raise and
acquisitions.
NOI margin decreased by 430 basis points from a year ago due to
significantly higher property tax assessments in New Brunswick. The province of New Brunswick has proposed a phased reduction
of the provincial component of the property tax rate by 50% over
three years. Had this new reduced tax rate been in place during the
quarter, NOI margin would have been 54.7%.
As at March 31, the Company's
portfolio was approximately 99% occupied.
The following tables contain a summary of selected operating and
financial performance measures:
For the three months
ended
|
March 31,
2022
|
March 31,
2021
|
Change
|
Rental
income
|
2,553,345
|
1,752,067
|
45.7%
|
Net property operating
income
|
1,278,089
|
952,273
|
34.2%
|
NOI margin
|
50.1%
|
54.4%
|
-430 bps
|
Net income
|
1,178,982
|
428,110
|
175.4%
|
FFO
|
270,515
|
220,414
|
22.7%
|
FFO per share (cents
per share) - diluted
|
0.09
|
0.13
|
-29.8%
|
Dividends declared
(cents per share)
|
0.05
|
0.05
|
-
|
Weighted average units
outstanding - diluted
|
306,345,962
|
175,262,484
|
74.8%
|
As at
|
March 31, 2022
|
December 31, 2021
|
Change
|
Number of investment
properties
|
25
|
25
|
-
|
Number of
suites
|
705
|
705
|
-
|
Occupancy
|
99%
|
99%
|
-
|
Net asset
value
|
63,762,362
|
60,801,885
|
4.9%
|
Net asset value per
share
|
0.22
|
0.22
|
1.3%
|
Debt to GBV*
|
64.7%
|
65.7%
|
-97 bps
|
Estimated In-Place Revenue and
NOI run-rate
As previously announced, the Company completed the acquisition
of a 64-suite property in New
Brunswick and a 58-suite property in Ontario for a combined $25.1 million, subsequent to the quarter end. As
of May 27, 2022, the Company's
portfolio comprises 827 suites and 27 buildings with a value in
excess of $150 million. NexLiving's
in-place rental revenue and NOI, assuming full-year ownership of
the existing portfolio, is estimated to be approximately
$12.0 million and $6.8 million, respectively.
Dividend
The Company's board of directors has approved and declared a
dividend of $0.0005 per common share
for the quarter ending June 30,
representing $0.002 per share on an
annualized basis (1.25% implied yield). The dividend is payable on,
or after June 30 to shareholders of
record at the close of business on June
10.
The Company designates these taxable dividends to be paid to its
holders as eligible dividends and will notify the holders such
dividends are being paid as eligible dividends for the purposes of
the Income Tax Act (Canada) and
corresponding provincial legislation.
The declaration and payment of dividends is at the discretion of
the board of directors of the Company and future declaration of
dividends will depend on the Company's financial results, cash
requirements and other factors deemed relevant by the board of
directors of the Company.
Corporate Update
The 2022 Annual and Special Meeting of shareholders has been
scheduled for June 8, 2021 at
11am AST. Further details are
provided in the NexLiving Management Information Circular, dated
May 6, 2022.
The Board of Directors, in accordance with the terms of the
Company's DSU Plan, have approved the issuance of 2,260,000
deferred share units (DSUs) to directors, management and
consultants of the Company. The DSUs vest over three years in
accordance with the provisions of the Company's DSU plan.
For more information about NexLiving, please refer to our
website at www.nexliving.ca and our public disclosure at
www.sedar.com.
About the Company
NexLiving continues to execute its plans to acquire recently
built or refurbished, highly leased multi-residential properties in
bedroom communities across Canada.
The Company aims to satisfy the needs of the newly emerging 55+
resident. The demographic that has changed the world is now
changing the way residential rental apartments cater to their
requirements. Their desire for community, along with service,
quality and convenience has led to the emergence of the 55+ active
living segment. Apartments are their next "home", after years of
owning they look forward to the carefree lifestyle provided through
renting in a community of their peers. NexLiving intends to
consolidate this emerging market niche. The Company currently owns
827 units in New Brunswick and
Ontario. NexLiving has also
developed a robust pipeline of qualified properties for potential
acquisition. By screening the properties identified to match the
criteria set out by the Company (proximity to healthcare,
amenities, services and recreation), management has assembled a
significant pipeline of potential acquisitions for consideration by
the Company's Board of Directors.
Forward-Looking
Statements
This news release forward-looking information within the meaning
of applicable Canadian securities laws ("forward-looking
statements"). All statements other than statements of
historical fact are forward-looking statements. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "projects", "estimates", "forecasts", "intends",
"continues", "anticipates", or "does not anticipate" or "believes"
or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may",
"could", "should", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements contained in this news release
include, but are not limited, to management's expectations of
additional rental increases to come into effect by year end and the
further enhancement of the Company's financial results. Such
forward-looking statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations.
These forward-looking statements reflect the current expectations
of the Company's management regarding future events and operating
performance, but involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Actual events could differ
materially from those projected herein and depend on a number of
factors. These risks and uncertainties are more fully described in
regulatory filings, including the Company's Annual Information
Form, which can be obtained on SEDAR at www.sedar.com, under
NexLiving's profile, as well as under Risk Factors section of the
MD&A released on May 27,
2022. Although forward-looking statements contained in this
new release are based upon what management believes are reasonable
assumptions, there can be no assurance that actual results will be
consistent with these forward-looking statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. The forward-looking statements in this new release
speak only as of the date of this news release. Except as required
by applicable securities laws, the Company does not undertake, and
specifically disclaims, any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future developments or otherwise, except as required by applicable
law.
Non-IFRS Financial
Measures
The Company prepares and releases unaudited consolidated interim
financial statements and audited consolidated annual financial
statements prepared in accordance with IFRS. In this and other
earnings releases, as a complement to results provided in
accordance with IFRS, NexLiving discloses financial measures not
recognized under IFRS which do not have standard meanings
prescribed by IFRS. These include Net operating income (NOI), funds
from operations (FFO), FFO per common share and D/GBV
(collectively, the "Non-IFRS Measures"). These Non-IFRS
Measures are further defined and discussed in the MD&A released
on May 27, 2022, which should
be read in conjunction with this news release. Since these measures
are not recognized under IFRS, they may not be comparable to
similar measures reported by other issuers. The Company presents
the Non-IFRS measures because management believes these Non-IFRS
measures are relevant measures of the ability of NexLiving to earn
revenue and to evaluate its performance and cash flows. A
reconciliation of these Non-IFRS measures is included in the
MD&A released on May
27, 2022. The Non-IFRS measures should not be
construed as alternatives to net income (loss) or cash flows from
operating activities determined in accordance with IFRS as
indicators of the Company's performance.
Neither the TSX Venture 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 press release.
SOURCE NexLiving Communities Inc.