/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, March 23, 2015 /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
December 31, 2014 (the "Fourth
Quarter") and for the year ended December 31, 2014 (the "Year End"). All
amounts in this news release are in United States currency unless otherwise
stated.
HIGHLIGHTS FOR THE YEAR END AND FOURTH QUARTER OF
2014
- The Fund recognized a $13.3
million fair value increase on its investment properties
since its inception driven predominantly by net operating income
("NOI") growth.
- The Fund had annual rental rate growth of 5.3% on all
investment property interests the Fund held for the entire
year.
- The Fund has realized annualized rental rate growth of 4.5% on
all investment property interests since their acquisition
dates.
- NOI was $5.6 million for the Year
End, and the Fund's operating margin was 54.5%.
- Adjusted funds from operations ("AFFO") payout ratio was
55.9% in the Fourth Quarter and 68.8% for the Year End.
The Fund paid distributions at 7% annually to all Unitholder
classes from April 1, 2014 onward,
immediately after funds raised in the initial public offering were
fully deployed, which was just four full months after the Fund was
launched.
- The Fund's leverage was 61.1% of gross book value as at
December 31, 2014 and the Fund had a
weighted average interest rate of 2.14%, significantly lower when
compared to December 31, 2013 which
was 73.0% and 3.01%, respectively.
- The Fund acquired Travesia Apartments ("Travesia"), on
March 2, 2015 and now has interests
in 1,527 suites. See "Subsequent Events".
"The Fund continued to deliver strong operational results. We
actively increased rental rates, created new ancillary revenue
streams and controlled expenses to drive NOI growth and asset value
increases," commented Evan Kirsh,
President of the Fund.
Operating Results
For the Fourth Quarter, property revenues and NOI were
$2.88 million and $1.66 million, respectively. Occupancy was 95.2%
during the Fourth Quarter, consistent with the previous
quarter. The Fund had operating margins for the Year End of
54.5% and NOI for the Year End of $5.64
million.
Financial Position
As of December 31, 2014, the
Fund's gross book value was $110.3
million and indebtedness was $67.4
million or 61.1% of gross book value which is at the lower
end of the target leverage range of 60% to 70%. The interest
coverage ratio at Year End was 2.93 times.
Subsequent Events
The Fund refinanced Palm Valley Apartments on February 26, 2015. The proceeds of the
refinancing were used to acquire Travesia, a 396 unit, garden
style, Class "A", apartment complex built in 2009 and located at
3701 Quick Hill Road, approximately 24 kilometres north of the
Austin central business district
in Texas.
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 March 2015
Newsletter which is available at
http://www.starlightinvest.com/starlight-u-s-multi-family-no-2-core-fund.
Non-IFRS Financial Measures
Certain terms used in this news release including NOI, AFFO,
gross book value, indebtedness 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