/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Dec. 8, 2014 /CNW/ - Starlight U.S. Multi-Family
Core Fund (TSX.V: SUD.A, SUD.U) (the "Fund") today announced
that its property portfolio, comprising interests in 1,131
multi-family units situated in Austin, Dallas and Houston,
Texas, has been valued by an independent appraiser, CBRE,
Inc., at US$110.3 million in
connection with the Fund's 2014 year-end performance review. The
appraised value represents a 48.2% increase over the US$32.7 million gross equity proceeds raised in
the Fund's initial public offering.
The increase in appraised value of the Fund's property portfolio
is due to net operating income ("NOI") growth and
capitalization rate compression and reflects underlying
fundamentals and market conditions as well as the Manager's active
asset management strategy. The increase to the Fund's
appraised portfolio value does not reflect any currency
appreciation or property portfolio premium and does not take into
consideration the carried interest to be paid to the manager of the
Fund, Starlight Investments Ltd., in certain circumstances, as
described in the Fund's consolidated financial statements and
management's discussion and analysis for the period ended
September 30, 2014 and available on
the Fund's website and at www.sedar.com. There is no
guarantee that the Fund will be able to sell its properties for
their aggregate appraised value.
The Fund also announced today that its NOI margin from inception
to September 30, 2014 was 56.0% and
annualized rental growth was 4.7%. In addition, if the refinancing
of the Falls at Eagle Creek was in
place on July 1, 2014 as opposed to
during the fourth quarter of 2014, the Fund's adjusted funds from
operations ("AFFO") and AFFO payout ratio for the three
months ended September 30, 2014 would
have been US$886,000 and 62.4%,
respectively.
"We are pleased with the Fund's strong performance since
formation. The strong underlying market fundamentals and the
implementation of our active asset management strategy have driven
a material increase in the Fund's property portfolio," indicated
Evan Kirsh, President of the
Fund.
The Bank of Canada exchange
rate at the close of business on December 5,
2014 was US$1.00: CDN$1.14, which compared to the weighted average
exchange rate of US$1.00:
CDN$1.05 at the time of closing of
the Fund's initial public offering, represents additional
appreciation of 8.6% in the unitholders' equity of the Fund.
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.
The Fund has five classes of Units. The Fund's Class A Units and
Class U Units are listed on the TSX Venture Exchange under the
symbols SUD.A and SUD.U, respectively, and Class C Units, Class D
Units, and Class F Units are convertible into Class A Units. As at
November 28, 2014, there were
3,400,483 issued and outstanding Units of the Fund.
Non-IFRS Measures and Values
Certain terms used in this news release including NOI, NOI
margin and AFFO 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 ended September 30, 2014 on the Fund's profile at
www.sedar.com. All amounts in this news release are approximate
values.
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