/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Aug. 18, 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 June 30,
2015 (the "Second Quarter"). All amounts in this news
release are in thousands of United
States currency unless otherwise stated and include the
Fund's equity investment in the
Falls at Eagle Creek unless otherwise stated.
HIGHLIGHTS FOR THE SECOND QUARTER OF 2015
- Same property revenue growth was 8.2% for the Second Quarter
compared to the same period last year. Rent growth since inception
of the Fund has been 5.2% on an annualized basis.
- Revenues for the Second Quarter were $4,293 compared to $2,779 for the comparable period last year. The
increase was due to increased occupancy and average monthly rents
as well as a full quarter of revenues from Travesia Apartments
acquired on March 2, 2015.
- Portfolio occupancy increased to 95.7% from 94.3%, as at
June 30, 2014, at the higher end of
the Fund's targeted occupancy range.
- Net operating income ("NOI") for the Second Quarter was
$2,404 compared to $1,504 for the three months ended June 30, 2014, representing a 59.8% increase and
was partially driven by the full quarter of operations at Travesia
Apartments which contributed $761.
- Same property NOI growth was 9.3% for the Second Quarter
compared to the same period last year.
- The Fund recognized an additional $6.6
million fair value increase on its investment properties
during the Second Quarter driven predominately by NOI growth. For
the six months ended June 30, 2015,
the Fund recognized a cumulative $10.9
million of fair value increase on its investment
properties. The portfolio's value increase represented by the
fair value of the investment properties less their original
purchase price was 84.9% of the Fund's initial public offering
gross subscription proceeds.
- Adjusted funds from operations ("AFFO") payout ratio was a
conservative 49.3% for the Second Quarter and 49.0% for the six
months ended June 30,
2015.
- Interest coverage ratio and indebtedness coverage ratio remains
strong at 2.67 times for the six months ended June 30, 2015.
- Indebtedness to gross book value was 68.8%, well within the
Fund's targeted leverage range of 60-70%.
- The Fund began a normal course issuer bid subsequent to the end
of the Second Quarter in order to utilize excess cash to repurchase
units which it believes are currently undervalued.
Operating Results
For the Second Quarter, property revenues were $4.29 million compared to $2.78 million in the comparable period last year
and NOI was $2.40 million compared to
$1.50 million in the comparable
period last year. NOI growth for the Second Quarter was
$900 or 59.8% higher than the three
months ended June 30, 2014,
predominately due to the acquisition of Travesia Apartments on
March 2, 2015. Portfolio occupancy
was 95.7% during the Second Quarter compared to 94.3% during the
three months ended June 30, 2014 and
at the high end of the Fund's targeted occupancy range. Same
property NOI was 9.3% and 12.2% higher for the three and six months
ended June 30, 2015 compared to the
same 2014 periods and reflects the active asset management
initiatives implemented. Average in place rental rates per suite
per month for same properties increased from $1,026 to $1,045, a
$19 increase or 1.9% over the last 3
months.
Financial Position
As of June 30, 2015, the Fund's
gross book value was $172.9 million
and indebtedness was $118.9 million
or 68.8% of gross book value. Interest coverage ratio and
indebtedness coverage ratio for the six months ended June 30, 2015 were 2.67 times, lower when
compared to the prior year's overall interest coverage ratio of
2.93 times. Both ratios are lower due to the acquisition of
Travesia Apartments increasing the Fund's leverage, but remain
strong. The weighted average interest rate on the Fund's mortgage
portfolio was 2.71% and the weighted average term to maturity was
5.4 years as of June 30, 2015.
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 June 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, 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