/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO,
May 19, 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
March 31, 2015 (the "First
Quarter"). All amounts in this news release are in United States currency and include the Fund's
equity investment in the Falls at
Eagle Creek unless otherwise stated.
HIGHLIGHTS FOR THE FIRST QUARTER OF
2015
- The Fund acquired Travesia Apartments ("Travesia") on
March 2, 2015, increasing its
interests in apartment suites by 44% from 892 to 1,288.
- Same property average monthly rent improved from $986 for the three months ended March 31, 2014 to $1,047 in the First Quarter, representing a 6.2%
increase year over year. Rent growth since inception of the Fund
has been 4.3% on an annualized basis.
- Portfolio occupancy was equal to 94.8% and within the Fund's
targeted range of 92-95% which has been established in order to
optimize rental rates.
- Adjusted funds from operations ("AFFO") payout ratio was
49.4% representing a reduction from 55.9% in the three months ended
December 31, 2014.
- The Fund recognized a $4.3
million fair value increase on its investment properties
predominantly driven by net operating income ("NOI") growth.
The portfolio's value represented by fair value of investment
properties less original purchase price was 61.4% of the Fund's
initial public offering gross subscription proceeds.
- Indebtedness to gross book value rose to 71.4% as result of the
acquisition of Travesia but remained below the allowable maximum of
75%.
- The Fund had an interest coverage ratio of 3.11 times and
weighted average interest rate of 2.67%.
"During the first quarter of 2015, the Fund has
once again delivered strong operational results. The acquisition of
Travesia was a significant addition to an already solid portfolio
of newly constructed, class "A" properties and will contribute to
the Fund's continually improving operating metrics," commented
Evan Kirsh, President of the
Fund.
Operating Results
For the First Quarter, property revenues and NOI
were $3.28 million and $1.83 million, respectively, representing a
slight improvement when compared to the three months ended
December 31, 2014. Portfolio
occupancy remained consistent at 94.8% during the First
Quarter. Compared to the three months ended March 31, 2014, the increase in same property NOI
was 16.9% and same property average monthly rent improved 6.2% for
the same periods. The increase was above expectations reflecting
the asset management initiatives implemented since
acquisition.
Financial Position
As of March 31,
2015, the Fund's gross book value was $166.1 million and indebtedness was $118.6 million or 71.4% of gross book
value. The interest coverage ratio for the First Quarter was
3.11 times, higher when compared to the prior year's overall
interest coverage ratio of 2.93 times but slightly lower than the
previous quarter. The weighted average interest rate on the
Fund's mortgage portfolio was 2.67% and the weighted average term
to maturity was 4.65 years.
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
AFFO, NOI, gross book value, indebtedness, indebtedness to gross
book value 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