TORONTO--(BUSINESS WIRE)--DREAM RESIDENTIAL REAL ESTATE INVESTMENT TRUST (TSX: DRR.U, TSX: DRR.UN) (“Dream Residential REIT” or the “REIT” or “we” or “us”) today announced its financial results for the three months (“Q4 2023”) and year ended December 31, 2023. Management will host a conference call to discuss the financial results on February 15, 2024 at 10:00 a.m. (ET).
HIGHLIGHTS
- Strategic property sale 3.3% above Q3 2023 IFRS value: On November 29, 2023, the REIT sold its Forrest Grove property for gross proceeds before adjustments and transaction costs of $9.0 million. We intend to invest the net proceeds in other existing assets to improve rents and enhance their value.
- Comparative properties net operating income (“Comparative properties NOI”)1 was $6.1 million in Q4 2023, a 10.3% increase when compared to $5.6 million in Q4 2022. Net rental income was $2.6 million in Q4 2023 or $0.8 million higher than Q4 2022, due to an increase in investment properties revenue of $0.6 million and a decrease in investment properties expenses of $0.2 million.
- Diluted funds from operations (“FFO”) per Unit2 was $0.18 for Q4 2023, a 10.9% increase compared to $0.16 for Q4 2022. The increase in diluted FFO per Unit over Q4 2022 was mainly due to increased net rental income and comparative properties NOI, partially offset by higher general and administrative expenses.
- Portfolio occupancy was 93.7% as at December 31, 2023, up from 93.4% at the end of Q3 2023, with Greater Oklahoma City at 93.8%, Greater Dallas-Fort Worth at 92.4% and Greater Cincinnati at 95.1%. Occupancy was consistent with expectations as we continue to manage our value-add program, completing 85 units during the quarter.
- Average monthly rent as at December 31, 2023 was $1,156 per unit, representing a 1.1% increase compared to $1,143 per unit at September 30, 2023.
- Conservative balance sheet continues to provide financial flexibility. Net total debt-to-net total assets3 was 31.6% as at December 31, 2023, compared to 29.7% as at December 31, 2022. Total mortgages payable were $137.6 million consisting of 11 fixed rate mortgages with a weighted average contractual interest rate of 4.0%. Total assets (per consolidated financial statements) were $411.9 million as at December 31, 2023. Total assets were comprised primarily of $398.3 million of investment properties and $10.9 million of cash and cash equivalents.
“In 2023, DRR successfully delivered on its IPO forecast, followed by strong operational and financial performance for the year, despite facing broader market challenges,” said Brian Pauls, Chief Executive Officer of Dream Residential REIT. “We are pleased to report 10.3% CP NOI growth in the fourth quarter and our balance sheet remains safe and flexible, with low leverage and a solid liquidity position.
We believe that the market is undervaluing our portfolio relative to our peers and private market valuations. Our business has been resilient in the face of higher interest rates, cost inflation and a tougher operating environment. Looking ahead, we will continue to explore opportunities to enhance our portfolio, drive internal growth and generate long-term value for our unitholders, while providing an attractive distribution yield supported by a conservative payout ratio.”
- Q4 2023 net loss was $(12.9) million, which comprises net rental income of $2.6 million, fair value adjustments to investment properties of $(12.9) million and fair value adjustments to financial instruments of $1.2 million, primarily from the revaluation of Class B units of DRR Holdings LLC, a subsidiary of the REIT (“Class B Units” and together with the Trust Units, “Units”). Cumulative other income and expenses totalled $(3.8) million.
- Total equity (per consolidated financial statements) was $218.0 million as at December 31, 2023, compared to $239.3 million as at December 31, 2022.
-
Net asset value (“NAV”)4 per Unit was $13.50 as at December 31, 2023, compared to $14.50 as at
December 31, 2022. - The REIT declared distributions totalling $0.105 per Unit during Q4 2023.
- During the year ended December 31, 2023, the REIT purchased a total of 150,758 Trust Units under its normal course issuer bid (“NCIB”) that commenced on January 6, 2023, for a total of $1.2 million.
- Subsequent to December 31, 2023, approximately 3.3 million Class B Units were redeemed and exchanged for Trust Units.
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1 |
Comparative properties NOI is a non-GAAP financial measure. The tables included in the Appendices section of this press release reconcile comparative properties NOI to net rental income for the three months and year ended December 31, 2023, three months ended December 31, 2022 and the period from May 6, 2022 to December 31, 2022. For further information on this non-GAAP financial measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
|
2 |
Diluted FFO per Unit is a non-GAAP ratio. Diluted FFO per Unit is comprised of FFO (a non-GAAP financial measure) divided by the weighted average number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
|
3 |
Net total debt-to-net total assets is a non-GAAP ratio. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
|
4 |
NAV per Unit is a non-GAAP ratio. NAV per Unit is comprised of total equity (including Class B Units) (a non-GAAP financial measure) divided by the number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. |
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FINANCIAL HIGHLIGHTS
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(in thousands unless otherwise stated) |
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Three months
|
|
Three months
|
|
Year ended
|
|
Period from
|
|||
Operating results |
|
|
|
|
|
|
|
|
|||
Net income (loss) |
$ |
(12,882) |
$ |
4,556 |
$ |
(14,849) |
$ |
112,826 |
|||
FFO(1) |
|
3,497 |
|
3,163 |
|
13,944 |
|
7,954 |
|||
Net rental income |
|
2,642 |
|
1,805 |
|
24,850 |
|
12,806 |
|||
Comparative properties NOI(10) |
|
6,140 |
|
5,569 |
|
23,963 |
|
14,345 |
|||
Comparative properties NOI margin(11) |
|
52.1% |
|
50.4% |
|
51.7% |
|
50.7% |
|||
Per Unit amounts |
|
|
|
|
|
|
|
|
|||
Distribution rate per Trust Unit |
$ |
0.105 |
$ |
0.105 |
$ |
0.420 |
$ |
0.270 |
|||
Diluted FFO per Unit(2)(3) |
|
0.18 |
|
0.16 |
|
0.71 |
|
0.40 |
See footnotes at end
Net income (loss) for Q4 2023 was $(12.9) million compared to $4.6 million in Q4 2022, primarily due to a change in fair value adjustments to investment properties of $(14.8) million and a change in fair value adjustments to financial instruments of $(3.1) million from Q4 2022, partially offset by an increase in net rental income of $0.8 million. The remaining difference was mainly driven by lower interest expense on Class B Units as a result of Class B Units that were redeemed on a one-for-one basis for Trust Units in Q4 2022. FFO for Q4 2023 was $3.5 million compared to $3.2 million in Q4 2022 due largely to an increase in NOI of $0.5 million. Q4 2023 diluted FFO per Unit was $0.18 compared to $0.16 in the prior year comparative quarter.
Net rental income for Q4 2023 was $2.6 million compared to $1.8 million in the prior year comparative quarter. Comparative properties NOI for Q4 2023 was $6.1 million compared to $5.6 million in the prior year comparative quarter. Comparative properties NOI margin of 52.1% was 170 basis points higher than Q4 2022. Q4 2023 comparative properties NOI includes comparative investment properties revenue of $11.8 million, which exceeded the prior year comparative quarter by $0.7 million, primarily driven by rental rate growth and value-add rental premiums. Investment properties operating expenses decreased $0.2 million as a result of decreased property taxes, partially offset by increased property insurance and maintenance expenses.
On November 29, 2023, the REIT sold the Forrest Grove property in Wichita, Kansas for gross proceeds before adjustments and transaction costs of $9.0 million. This transaction provides the REIT with enhanced liquidity and financial flexibility to support our value-add program across the portfolio.
PORTFOLIO INFORMATION
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|||||
|
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December 31,
|
|
September 30
|
|
December 31,
|
||
|
|
|
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|
|
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Number of assets |
|
15 |
|
16 |
|
16 |
||
Investment properties fair value (in thousands) |
$ |
398,310 |
$ |
414,830 |
$ |
418,230 |
||
Units |
|
3,300 |
|
3,432 |
|
3,432 |
||
Occupancy rate – in place (period-end) |
|
93.7% |
|
93.4% |
|
95.5% |
||
Average in-place base rent per month per unit |
$ |
1,156 |
$ |
1,143 |
$ |
1,079 |
||
Estimated market rent to in-place base rent spread (%) (period-end) |
|
8.3% |
|
6.1% |
|
6.8% |
||
Tenant retention ratio(12) |
|
59.6% |
|
51.2% |
|
46.8% |
||
See footnotes at end
ORGANIC GROWTH
In 2023, Dream Residential REIT achieved solid organic growth across the portfolio, capturing rental rate growth and executing on implementing its value-add initiatives.
Weighted average monthly rent as at December 31, 2023 was $1,156 per unit, representing a 1.1% increase from September 30, 2023. Rental rates increased in the Greater Cincinnati region at 1.0%, Greater Oklahoma City region at 2.3% from September 30, 2023. Greater Dallas-Fort Worth experienced a rental rate decrease of (1.4)% from September 30, 2023. Since December 31, 2022, rental rates have increased 7.1% for the portfolio. This consists of an increase from December 31, 2022 of 8.2% for the Greater Cincinnati region, 8.2% for the Greater Oklahoma City region and 4.0% for the Greater Dallas-Fort Worth region.
During Q4 2023, blended lease trade outs averaged 1.6% compared to 5.4% in Q3 2023. This is comprised of an average increase on renewals of approximately 3.5% (7.3% – September 30, 2023) and an average decrease on new leases of approximately (1.1)% (3.5% – September 30, 2023). As at December 31, 2023, estimated market rents were $1,252 per unit, or an average gain-to-lease for the portfolio of 8.3%. The retention rate for the quarter ended December 31, 2023 was 59.6% compared to 46.8% for the three months ended December 31, 2022 due to our leasing efforts in securing renewals during the period.
Value-Add Initiatives
During Q4 2023, renovations were completed on 85 suites across Greater Dallas-Fort Worth and Greater Oklahoma City, with 16 suites under renovation as at December 31, 2023. For the three months ended December 31, 2023, the average new lease trade-out on renovated suites was $187 per unit higher than expiring leases, or a lease trade out of 17.9%.
“While facing challenging market conditions, the REIT’s portfolio has performed well and operations were consistent with management’s expectation,” said Scott Schoeman, Chief Operating Officer of Dream Residential REIT. “During the quarter, we sold Forrest Grove, a non-core asset with limited value-add runway, at a value above Q3 2023 IFRS. We expect to use the net proceeds to invest in our existing assets to drive rental rate growth and enhance value and overall portfolio quality. Our value-add program continues to deliver strong returns and we are excited to expand it into Cincinnati this year.”
FINANCING AND CAPITAL INFORMATION
|
|
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As at |
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(unaudited) (dollar amounts presented in thousands, except for per Unit amounts) |
|
December 31,
|
December 31,
|
|
Financing |
|
|
|
|
Net total debt-to-net total assets(4) |
|
31.6% |
29.7% |
|
Average term to maturity on debt (years) |
|
5.3 |
5.6 |
|
Interest coverage ratio (times)(5) |
|
2.9 |
2.7 |
|
Undrawn credit facility |
$ |
70,000 |
70,000 |
|
Available liquidity(6) |
$ |
80,943 |
81,645 |
|
Capital |
|
|
|
|
Total equity |
$ |
218,032 |
239,291 |
|
Total equity (including Class B Units)(7) |
$ |
265,358 |
286,968 |
|
Total number of Trust Units and Class B Units(8) |
|
19,656,471 |
19,787,621 |
|
Net asset value (NAV) per Unit(9) |
$ |
13.50 |
14.50 |
|
Trust Unit price |
$ |
6.75 |
6.80 |
See footnotes at end
As at December 31, 2023, net total debt-to-net total assets was 31.6%, total mortgages payable were $137.6 million and total assets were $411.9 million. The REIT ended Q4 2023 with total available liquidity of approximately $80.9 million(6), comprised of $10.9 million of cash and cash equivalents and $70.0 million available on its undrawn revolving credit facility.
Total equity of $218.0 million decreased from December 31, 2022 by $21.3 million. As at December 31, 2023, there were approximately 12.6 million Trust Units and 7.0 million Class B Units.
NAV per Unit as at December 31, 2023 decreased to $13.50 from $14.50 as at December 31, 2022, mainly due to fair value losses on investment properties recognized during the period.
In 2023, the REIT purchased 150,758 Trust Units under its NCIB for a total of $1.2 million. Subsequent to December 31, 2023, the REIT renewed its prior NCIB for a one-year period, which commenced on January 8, 2024. Under the bid, the REIT will have the ability to purchase for cancellation a maximum of 1,174,446 of its Trust Units through the TSX. Daily purchases are limited to 2,258 Trust Units and the NCIB will remain in effect until the earlier of January 7, 2025 or the date on which the REIT has purchased the maximum number of Trust units permitted.
CONFERENCE CALL
Senior management will host a conference call to discuss the financial results on Thursday, February 15, 2024, at 10:00 a.m. (ET). To access the conference call, please dial 1-800-319-4610 (toll free) or 416-915-3239 (toll). To access the conference call via webcast, please go to Dream Residential REIT’s website at www.dreamresidentialreit.ca and click the link for the webcast. A taped replay of the conference call and the webcast will be available for ninety (90) days following the call.
OTHER INFORMATION
Information appearing in this press release is a select summary of financial results. The consolidated financial statements and management’s discussion and analysis for the REIT will be available at www.dreamresidentialreit.ca and under the REIT’s profile on www.sedarplus.com.
Dream Residential REIT is an unincorporated, open-ended real estate investment trust established and governed by the laws of the Province of Ontario. The REIT owns a portfolio of garden-style multi-residential properties, primarily located in three markets across the Sunbelt and Midwest regions of the United States. For more information, please visit www.dreamresidentialreit.ca.
Non-GAAP financial measures, ratios and supplementary financial measures
The REIT’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this press release, as a complement to results provided in accordance with IFRS, the REIT discloses and discusses certain non-GAAP financial measures and ratios, including FFO, diluted FFO per Unit, comparative properties NOI, comparative investment properties revenue, NOI, comparative properties NOI margin, net total debt-to-net total assets ratio, net total debt, net total assets, adjusted EBITDAFV, interest coverage ratio (times), available liquidity, total equity (including Class B Units) and NAV per Unit as well as other measures discussed elsewhere in this press release. These non-GAAP financial measures and ratios are not defined by or recognized under IFRS and do not have a standardized meaning under IFRS. The REIT’s method of calculating these non-GAAP financial measures and ratios may differ from other issuers and may not be comparable with similar measures presented by other issuers. The REIT has presented such non-GAAP financial measures and ratios as management believes they are relevant measures of the REIT’s underlying operating and financial performance. Certain additional disclosures such as the composition, usefulness and changes, as applicable, of the non-GAAP financial measures and ratios included in this press release are expressly incorporated by reference from the management’s discussion and analysis of the financial condition and results from operations of the REIT as at and for the three months and year ended December 31, 2023, dated February 14, 2024 (the “Q4 2023 MD&A”) and can be found under the section “Non-GAAP Financial Measures and Ratios” and respective sub-headings labelled “FFO and diluted FFO per Unit”, “NAV per Unit”, “Comparative properties NOI and comparative properties NOI margin”, “Adjusted earnings before interest, taxes, depreciation, amortization and fair value adjustments (Adjusted EBITDAFV)”, “Available liquidity”, “Total equity (including Class B Units)”, “Interest coverage ratio (times)” and “Net total debt-to-net total assets”. In this press release, the REIT also discloses and discusses certain supplementary financial measures, including tenant retention ratio and weighted average number of units. The composition of supplementary financial measures included in this press release is expressly incorporated by reference from the Q4 2023 MD&A and can be found under the section “Supplementary Financial Measures and Other Disclosures”. The Q4 2023 MD&A is available on SEDAR+ at www.sedarplus.com under the REIT’s profile and on the REIT’s website at www.dreamresidentialreit.ca under the Investors section. Non-GAAP financial measures and ratios should not be considered as alternatives to net income (loss), net rental income, investment properties revenue cash flows generated from (utilized in) operating activities, cash and cash equivalents, total assets, non-current debt, total equity, or comparable metrics determined in accordance with IFRS as indicators of the REIT’s performance, liquidity, cash flow, and profitability.
Forward-Looking Information
This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes statements regarding our ability to drive rental rate growth; future market conditions; our ability to maintain a safe and flexible balance sheet which will drive operations; our anticipated investments in our properties and their effect on portfolio quality and rent growth; our intention to implement our value-enhancing renovation initiatives across our portfolio; the resiliency of our portfolio; and the ability of our value-add program and regional diversification to enhance the safety of our business. Forward-looking information generally can be identified by the use of forward-looking terminology such as “will”, “expect”, “believe”, “plan”, or “continue”, or similar expressions suggesting future outcomes or events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dream Residential REIT’s control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, risks inherent in the real estate industry; financing risks; inflation, interest and currency rate fluctuations; global and local economic and business conditions; risks associated with unexpected or ongoing geopolitical events; changes in law; tax risks; competition; environmental and climate change risks; insurance risks; cybersecurity; and uncertainties surrounding the COVID-19 pandemic and other public health crises and epidemics. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable; there are no unforeseen changes in the legislative and operating framework for our business; we will have access to adequate capital to fund our future projects and plans and that we will receive financing on acceptable terms; inflation and interest rates will not materially increase beyond current market expectations; and geopolitical events will not disrupt global economies. All forward-looking information in this press release speaks as of the date of this press release. Dream Residential REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is contained in Dream Residential REIT’s filings with securities regulators, including its latest annual information form and management’s discussion and analysis. These filings are also available at the REIT’s website www.dreamresidentialreit.ca.
FOOTNOTES
(1) FFO is a non-GAAP financial measure. The most directly comparable financial measure to FFO is net income (loss). For further information on this non-GAAP measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. The table included in the Appendices section of this press release reconciles FFO for the three months and year ended December 31, 2023, three months ended December 31, 2022 and the period from May 6, 2022 to December 31, 2022 to net income (loss).
(2) Diluted FFO per Unit is a non-GAAP ratio. Diluted FFO per Unit is comprised of FFO (a non-GAAP financial measure) divided by the weighted average number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.
(3) A description of the determination of diluted amounts per Unit can be found in the REIT’s 2023 MD&A in the section “Supplementary Financial Measures and Other Disclosures”, under the heading “Weighted average number of Units”.
(4) Net total debt-to-net total assets is a non-GAAP ratio. Net total debt-to-net total assets comprises net total debt (a non-GAAP financial measure) divided by net total assets (a non-GAAP financial measure). The most directly comparable financial measure to net total debt is mortgages payable, and the most directly comparable financial measure to net total assets is total assets. For further information on this non-GAAP ratio and these non-GAAP financial measures, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.
(5) Interest coverage ratio (times) is a non-GAAP ratio. Interest coverage ratio is comprised of adjusted EBITDAFV (a non-GAAP financial measure) divided by interest expense on debt. The table included in the Appendices section of this press release reconciles adjusted EBITDAFV to net income (loss). The most directly comparable financial measure to adjusted EBITDAFV is net income (loss). For further information on this non-GAAP ratio and non-GAAP financial measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.
(6) Available liquidity is a non-GAAP financial measure. The most directly comparable financial measure to available liquidity is the undrawn credit facility. The table included in the Appendices section of this press release reconciles available liquidity to the undrawn credit facility as at December 31, 2023 and December 31, 2022. For further information on this non-GAAP measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.
(7) Total equity (including Class B Units) is a non-GAAP financial measure. The most directly comparable financial measure to total equity (including Class B Units) is total equity. For further information on this non-GAAP measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. The table included in the Appendices section of this press release reconciles total equity (including Class B Units) to total equity (per the consolidated financial statements) as at December 31, 2023 and December 31, 2022.
(8) Total number of Units includes 12,645,268 Trust Units and 7,011,203 Class B Units that are classified as a liability under IFRS.
(9) NAV per Unit is a non-GAAP ratio. NAV per Unit comprises total equity (including Class B Units) (a non-GAAP financial measure) divided by the total number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.
(10) Comparative properties NOI is a non-GAAP financial measure. The most directly comparable financial measure to comparative properties NOI is net rental income. The table included in the Appendices section of this press release reconciles comparative properties NOI for the three months and year ended December 31, 2023, the three months ended December 31, 2022 and the period from May 6, 2022 to December 31, 2022 to net rental income. For further information on this non-GAAP financial measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.
(11) Comparative properties NOI margin is a non-GAAP ratio. Comparative properties NOI margin is defined as Comparative properties NOI (a non-GAAP financial measure) divided by comparative investment properties revenue, as a percentage. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.
(12) Tenant retention ratio is defined as the number of renewed leases divided by the total number of leases signed during the period. Tenant retention ratio is a supplementary financial measure.
Appendices
Reconciliation of FFO to net income (loss)
The table below reconciles FFO to net income (loss) for the three months and year ended December 31, 2023, three months ended December 31, 2022 and the period from May 6, 2022 to December 31, 2022:
(in thousands of dollars, unless otherwise stated) |
|
|
Three months
|
|
Three months
|
|
Year ended
|
|
Period from
|
||||
Net income (loss) for the period |
|
|
$ |
(12,882) |
$ |
4,556 |
$ |
(14,849) |
$ |
112,826 |
|||
Add (deduct): |
|
|
|
|
|||||||||
Fair value adjustments to investment properties |
|
|
|
12,937 |
|
|
(1,832) |
|
25,834 |
|
(47,677) |
||
Fair value adjustments to financial instruments |
|
|
|
(1,249) |
|
|
(4,394) |
|
(259) |
|
(61,721) |
||
Property tax liability adjustment (IFRIC 21) |
|
|
|
3,582 |
|
|
3,890 |
|
(358) |
|
1,896 |
||
Debt settlement costs and transaction cost on disposal of investment properties |
|
|
|
373 |
|
__ |
|
632 |
__ |
||||
Interest expense on Class B Units |
|
|
|
736 |
|
|
943 |
|
2,944 |
|
2,630 |
||
Funds from operations (FFO) for the period |
|
|
$ 3,497 |
$ |
3,163 |
$ 3,944 |
$ 7,954 |
||||||
Diluted weighted average number of Units (in thousands) |
|
19,750 |
|
|
19,808 |
|
19,776 |
|
19,808 |
||||
Diluted FFO per Unit |
|
|
$ |
0.18 |
$ |
0.16 |
$ |
0.71 |
$ |
0.40 |
|||
Reconciliation of NOI and Comparative properties NOI to net rental income
The table below reconciles NOI and Comparative properties NOI to net rental income for the three months and year ended December 31, 2023, three months ended December 31, 2022 and the period from May 6, 2022 to December 31, 2022:
|
|
|
Three months
|
|
Three months
|
|
Year ended
|
|
Period from
|
||||
Investment properties revenue |
|
$ |
11,997 |
$ |
11,364 |
$ |
47,561 |
$ |
29,102 |
||||
Less: Investment properties revenue from sold properties |
|
|
|
206 |
|
|
317 |
|
|
1,198 |
|
|
835 |
Comparative investment properties revenue |
|
|
|
11,791 |
|
|
11,047 |
|
|
46,363 |
|
|
28,267 |
|
|
|
|
|
|
|
|
|
|
||||
Net rental income |
|
|
|
2,642 |
|
|
1,805 |
|
|
24,850 |
|
|
12,806 |
Property tax liability adjustment (IFRIC 21) |
|
|
|
3,582 |
|
|
3,890 |
|
|
(358) |
|
|
1,896 |
Net operating income (NOI) |
|
|
|
6,224 |
|
|
5,695 |
|
|
24,492 |
|
|
14,702 |
Less: NOI from sold properties |
|
|
|
84 |
|
|
126 |
|
|
529 |
|
|
357 |
Comparative properties NOI |
|
|
|
6,140 |
|
|
5,569 |
|
|
23,963 |
|
|
14,345 |
Comparative properties NOI Margin |
|
|
|
52.1% |
|
|
50.4% |
|
|
51.7% |
|
|
50.7% |
Reconciliation of adjusted EBITDAFV to net income (loss)
The table below reconciles adjusted earnings before interest, taxes, depreciation, amortization and fair value adjustments to net income (loss) for the year ended December 31, 2023 and the period from May 6, 2022 to December 31, 2022:
(in thousands, unless otherwise stated) |
|
|
Year ended
|
|
Period from May 6, 2022 to
|
|
Net income (loss) for the period |
|
$ |
(14,849) |
$ |
112,826 |
|
Add (deduct): |
|
|||||
Interest expense – debt |
|
|
7,427 |
|
4,716 |
|
Interest expense – Class B Units |
|
|
2,944 |
|
2,630 |
|
Fair value adjustments to investment properties |
|
|
25,834 |
|
(47,677) |
|
Fair value adjustments to financial instruments |
|
|
(259) |
|
(61,721) |
|
Property tax liability adjustment (IFRIC 21) |
|
|
(358) |
|
1,896 |
|
Debt settlement costs and transaction costs on disposal of investment properties |
|
|
632 |
|
__ |
|
Adjusted EBITDAFV for the period |
|
$ |
21,371 |
$ |
12,670 |
|
Interest expense on debt |
|
|
7,427 |
|
4,716 |
|
Interest coverage ratio (times) |
|
|
2.9 |
|
2.7 |
|
Reconciliation of available liquidity to undrawn credit facility
The table below reconciles available liquidity to cash and cash equivalents as at December 31, 2023 and December 31, 2022:
(in thousands of dollars) |
As at December 31, 2023 |
As at December 31, 2022 |
|||
Undrawn credit facility |
$ |
70,000 |
$ |
70,000 |
|
Cash and cash equivalents |
$ |
10,943 |
$ |
11,645 |
|
Available liquidity |
$ |
80,943 |
$ |
81,645 |
|
Reconciliation of total equity (including Class B Units) and NAV per Unit to total equity
The table below reconciles total equity (including Class B Units) and NAV per Unit to total equity as at December 31, 2023 and December 31, 2022:
|
As at December 31, 2023 |
|
As at December 31, 2022 |
||||||
(in thousands of dollars, except number of Units) |
Units |
|
Amount |
|
Units |
|
Amount |
||
Unitholders’ equity |
12,645,268 |
$ |
128,179 |
|
12,776,418 |
$ |
129,265 |
||
Retained earnings |
__ |
|
89,853 |
|
__ |
|
110,026 |
||
Total equity per consolidated financial statements |
12,645,268 |
|
218,032 |
|
12,776,418 |
|
239,291 |
||
Add: Class B Units |
7,011,203 |
|
47,326 |
|
7,011,203 |
|
47,677 |
||
Total equity (including Class B Units) |
19,656,471 |
|
265,358 |
|
19,787,621 |
|
286,968 |
||
NAV per Unit |
|
$ |
13.50 |
|
|
$ |
14.50 |
||
Reconciliation of net total debt to mortgages payable and net total assets to total assets and calculation of net total debt-to-net total assets to net total debt and net total assets
The following table reconciles net total debt to mortgages payable and net total assets to total assets and calculates net total debt-to-net total assets as at December 31, 2023 and December 31, 2022:
|
As at December 31, 2023 |
As at December 31, 2022 |
|||
(in thousands of dollars, unless otherwise stated) |
Amount |
Amount |
|||
Mortgages payable |
$ |
137,632 |
$ |
136,621 |
|
Less: Cash and cash equivalents |
$ |
(10,943) |
$ |
(11,645) |
|
Net total debt |
$ |
126,689 |
$ |
124,976 |
|
Total assets |
$ |
411,926 |
$ |
432,504 |
|
Less: Cash and cash equivalents |
$ |
(10,943) |
$ |
(11,645) |
|
Net total assets |
$ |
400,983 |
$ |
420,859 |
|
Net total debt-to-net total assets |
|
31.6% |
|
29.7% |
|
