TORONTO--(BUSINESS WIRE)--DREAM RESIDENTIAL REAL ESTATE INVESTMENT TRUST (TSX: DRR.U) (“Dream Residential REIT” or the “REIT” or “we” or “us”) today announced its financial results for the quarter ended December 31, 2022 (“Q4 2022”) and the period from February 24, 2022 (date of formation) to December 31, 2022 (“FY2022”). FY2022 reflects the period from May 6, 2022, the date on which the REIT completed its initial public offering (“IPO”) of units (“Trust Units”), as the REIT had no operations prior to May 6, 2022. The results for Q4 2022 are compared to the financial forecast (the “Forecast”) contained in the REIT’s final prospectus dated April 29, 2022. Management will host a conference call to discuss the financial results on February 16, 2023 at 10:00 a.m. (ET).
HIGHLIGHTS
- Q4 2022 net income was $4.6 million, which comprises net rental income of $1.8 million, fair value adjustments to investment properties of $1.8 million and fair value adjustments to financial instruments of $4.4 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”). Partially offsetting these items were cumulative other income and expenses of $(3.4) million.
- Diluted funds from operations (“FFO”) per Unit1 was $0.16 for Q4 2022, in line with the Forecast.
- Net operating income (“NOI”)2 was $5.7 million in Q4 2022 compared to $5.8 million in the Forecast (net rental income was $1.8 million in Q4 2022 compared to $2.6 million in the Forecast due to a property tax expense adjustment under IFRIC 213 that was recognized earlier than expected and is expected to offset next quarter).
- Average monthly rent as at December 31, 2022 was $1,079 per unit compared to $1,060 per unit at September 30, 2022, an increase of 1.8%.
- Portfolio occupancy was 95.5% as of December 31, 2022, with Greater Oklahoma City at 95.7%, Dallas-Fort Worth at 93.9% and Greater Cincinnati at 97.0%.
- Total assets were $432.5 million as at December 31, 2022, comprised primarily of $418.2 million of investment properties and $11.6 million of cash and cash equivalents.
- Total equity (per consolidated financial statements) was $239.3 million as at December 31, 2022, compared to $216.2 million as at September 30, 2022.
- Net asset value (“NAV”)4 per Unit was $14.50 as at December 31, 2022.
- Net total debt-to-net total assets5 was 29.7% as at December 31, 2022, total mortgages payable were $136.6 million and total assets were $432.5 million.
- The REIT declared distributions totalling $0.105 per Unit during Q4 2022.
- During the quarter, approximately 2.9 million Class B Units were redeemed and exchanged for Trust Units. At December 31, 2022, there were approximately 12.8 million Trust Units and 7.0 million Class B Units.
| ________________________________ |
1 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. |
2 Net operating income (“NOI”) is a non-GAAP financial measure. The most directly comparable financial measure to NOI is net rental income. The tables included in the Appendices section of this press release reconcile NOI for the three months ended December 31, 2022 and for 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. |
3 IFRIC 21 requires recognition of property taxes when the obligation is imposed rather than accruing on a straight-line basis. The effect of this adjustment is removed for purposes of reporting NOI (a non-GAAP financial measure). |
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. |
5 Net total debt-to-net total assets is a non-GAAP ratio. Net total debt-to-net total assets ratio is comprised of net total debt (a non-GAAP financial measure) divided by net total assets (a non-GAAP financial measure). 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. |
SUBSEQUENT HIGHLIGHTS
- On January 4, 2023, the Toronto Stock Exchange accepted the REIT’s Notice of Intention to make a normal course issuer bid (“NCIB”). Under the NCIB, the REIT has the ability to purchase for cancellation up to a maximum of 973,418 Trust Units. The NCIB commenced on January 6, 2023 and will remain in effect until the earlier of January 5, 2024, or the date on which Dream Residential REIT has purchased the maximum number of Units permitted under the NCIB. The REIT purchased 21,906 Units under its NCIB for a total of $180,000 through February 15, 2023.
FINANCIAL HIGHLIGHTS |
||||||||||||
|
Actual |
|
Forecasted |
|
Variance |
|
Actual |
|||||
(unaudited) (in thousands unless otherwise stated) |
|
Three months ended
|
|
Three months ended
|
|
|
|
For the period
|
||||
Operating results |
|
|
|
|
|
|
|
|
||||
Net income |
$ |
4,556 |
$ |
(973) |
$ |
5,529 |
$ |
112,826 |
||||
Funds from operations (“FFO”)(1) |
|
3,163 |
|
3,203 |
|
(40) |
|
7,954 |
||||
Net rental income |
|
1,805 |
|
2,652 |
|
(847) |
|
12,806 |
||||
Net operating income (“NOI”)(10) |
|
5,695 |
|
5,778 |
|
(83) |
|
14,702 |
||||
NOI Margin(11) |
|
50.1% |
|
51.7% |
|
(160) bps |
|
50.5% |
||||
Per Unit amounts |
|
|
|
|
|
|
|
|
||||
Distribution rate per Trust Unit |
$ |
0.105 |
$ |
0.105 |
$ |
— |
$ |
0.27 |
||||
Diluted FFO per Unit(2)(3) |
|
0.16 |
|
0.16 |
|
— |
|
0.40 |
||||
See footnotes at end |
Net income for Q4 2022 and FY2022 was $4.6 million and $112.8 million, respectively. Net income for Q4 2022 was $5.5 million higher than the Forecast primarily due to fair value gains on properties and financial instruments totalling $6.2 million. FFO for Q4 2022 and FY2022 was $3.2 million and $7.9 million, respectively. FFO for Q4 2022 was in line with the Forecast. Lower Q4 2022 NOI was partially offset by interest income earned on cash deposits and lower interest expense due to lower than forecasted amortization of discounts related to the fair valuation of mortgage debt that occurred upon the REIT’s acquisition of 13 multi-family residential properties from AWH Holdings LLC on the closing of the IPO. Q4 2022 diluted FFO per unit was $0.16 and consistent with the Forecast.
Net rental income for Q4 2022 and FY2022 was $1.8 million and $12.8 million, respectively. Q4 2022 net rental income was $0.8 million lower than the Forecast due to a property tax expense adjustment under IFRIC 21 that was recognized earlier than expected and is expected to offset next quarter. NOI for Q4 2022 and FY2022 was $5.7 million and $14.7 million, respectively. Q4 2022 NOI was approximately 1.4% lower than the Forecast, primarily due to increased operating expenses incurred during the quarter. This resulted in a NOI Margin of 50.1%, which was 1.6% below Forecast. Q4 2022 NOI includes investment property revenue of $11.4 million, which exceeded Forecast by $0.2 million as a result of strong occupancy and rental rate increases across the portfolio. NOI for FY2022 was $14.7 million, resulting in an NOI Margin of 50.5%.
PORTFOLIO INFORMATION |
|
|
|
As at |
||
(unaudited) |
|
December 31, 2022 |
|
September 30, 2022 |
||
Total portfolio |
|
|
|
|
||
Number of assets |
|
16 |
|
16 |
||
Investment properties fair value (in thousands) |
$ |
418,230 |
$ |
414,460 |
||
Units |
|
3,432 |
|
3,432 |
||
Occupancy rate – in place (period-end) |
|
95.5% |
|
93.7% |
||
Average in-place base rent per month per unit |
$ |
1,079 |
$ |
1,060 |
||
Estimated market rent to in-place base rent spread (%) (period-end) |
|
6.8% |
|
7.0% |
||
Tenant retention ratio (period-end)(12) |
|
46.8 % |
|
53.7% |
“We closed our inaugural year with strong operational results,” said Jane Gavan, Chief Executive Officer of Dream Residential REIT. “We generated solid rental growth as we focus on the middle market and implemented our value-add initiatives across the portfolio. We will look for opportunities to expand our footprint in 2023, continue to drive internal growth and generate long-term value for our unitholders.”
ORGANIC GROWTH
Dream Residential REIT continued to achieve attractive organic growth across the portfolio, capturing rental rate growth in its primary markets and progressing on implementing its value-add initiatives.
Weighted average monthly rent as at December 31, 2022 was $1,079 per unit, representing a 1.8% increase from September 30, 2022. Rental rate increases were experienced across all of the REIT’s primary markets including Greater Oklahoma City at 1.7%, Greater Dallas-Fort Worth at 1.4% and Greater Cincinnati at 1.9% from September 30, 2022.
During Q4 2022, blended lease trade-outs averaged 8.7%, comprised of an average increase on new leases of approximately 8.9% and an average increase on renewals of approximately 8.6%. At December 31, 2022, estimated market rents were $1,152 per unit, or an average gain-to-lease for the portfolio of 6.8%, which is largely consistent with the September 30, 2022 average gain-to-lease of 7.0% for the portfolio. The retention rate for the quarter ended December 31, 2022 was 46.8%, compared to 53.7% for the three months ended September 30, 2022, reflecting the increased number of completed units from the value-add program.
Value-Add Initiatives
Since commencing operations on May 6, 2022, renovations were completed on 226 suites across Greater Dallas-Fort Worth and Greater Oklahoma City, with an additional 17 suites under renovation as at December 31, 2022. The average new lease trade-out on renovated suites was $322 higher than expiring leases, or a premium of 32.2%. Lease trade-outs on non-renovated suites were $149 higher than expiring leases, or a premium of 15.0%.
“We exceeded our target of completion for unit renovations in 2022 and are progressing well into the new year,” said Scott Schoeman, Chief Operating Officer of Dream Residential REIT. “The returns we have achieved are consistent with expectations and our value-add initiatives continue to be a driver of rental rate growth, in addition to providing a superior experience for our tenants. Our renovation program will remain a focus for capital allocation going forward.”
FINANCING AND CAPITAL INFORMATION |
|||||
|
|
As at |
As at |
||
(unaudited) |
|
December 31, 2022 |
September 30, 2022 |
||
Financing |
|
|
|
||
Net total debt-to-net total assets(4) |
|
29.7% |
29.0% |
||
Average term to maturity on debt (years) |
|
5.6 |
5.8 |
||
Interest coverage ratio (times)(5) |
|
2.7 |
2.6 |
||
Undrawn credit facility (in thousands) |
$ |
70,000 |
70,000 |
||
Available liquidity(6) (in thousands) |
$ |
81,645 |
85,392 |
||
Capital |
|
|
|
||
Total equity (in thousands) |
$ |
239,291 |
216,234 |
||
Total equity (including Class B Units) (in thousands)(7) |
$ |
286,968 |
288,443 |
||
Total number of Trust Units and Class B Units (in thousands)(8) |
|
19,788 |
19,788 |
||
Net asset value (NAV) per Unit(9) |
$ |
14.50 |
14.58 |
||
Trust Unit price |
$ |
6.80 |
7.25 |
As of December 31, 2022, net total debt-to-net total assets was 29.7%, total mortgages payable were $136.6 million and total assets were $432.5 million. The REIT ended Q4 2022 with total available liquidity of approximately $81.6 million(6), comprised of $11.6 million of cash and cash equivalents and $70 million available on its undrawn revolving credit facility.
Total equity of $239.3 million increased from September 30, 2022 by $23.1 million. This was largely due to the approximately 2.9 million Class B Units that were redeemed and exchanged for Trust Units during the quarter. At December 31, 2022, there were approximately 12.8 million Trust Units and 7.0 million Class B Units.
NAV per Unit as at December 31, 2022 decreased slightly to $14.50 from $14.58 as at September 30, 2022, largely due a decrease in cash and cash equivalents and an increase in accounts payable and accrued liabilities as a result of property tax bills received during Q4 2022. The decrease in NAV per Unit was partially offset by fair value gains on investment properties.
Subsequent to December 31, 2022, the REIT purchased 21,906 Trust Units under its NCIB at a total of $180,000 through February 15, 2023.
“The REIT remains in a strong financial position with low leverage, ample liquidity, and a conservative debt maturity profile,” said Derrick Lau, Chief Financial Officer of Dream Residential REIT. “We continue to evaluate opportunities to strengthen the business and create value for unitholders, including early debt refinancing opportunities and our recently implemented unit buyback program.”
CONFERENCE CALL
Senior management will host a conference call to discuss the financial results on Thursday, February 16, 2023, at 10:00 a.m. (ET). To access the conference call, click on the following link to register for the audio conference: https://register.vevent.com/register/BI74c8674405584a68ab1abf3a7c27381a. Once registered, participants will receive an email with dial-in details, including a unique PIN. To access the conference call via webcast, please go to Dream Residential REIT’s website at www.dreamresidentialreit.ca and click on the link for News, then click on Events. 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.sedar.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 an initial portfolio of 16 garden-style multi-residential properties, consisting of 3,432 units 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, NOI, NOI margin, total debt, net total debt-to-net total assets ratio, adjusted EBITDAFV ratio, 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 period ended December 31, 2022, dated February 15, 2023 (the “MD&A for the fourth quarter of 2022”) and can be found under the section “Non-GAAP Financial Measures and Ratios" and respective sub-headings labelled “Funds from operations (“FFO”) and diluted FFO per Unit”, “NAV per Unit”, "Net operating income (“NOI”) and NOI Margin”, “Adjusted earnings before interest, taxed, 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 non-GAAP financial measures including tenant retention ratio. The composition of supplementary financial measures included in this press release are expressly incorporated by reference from the MD&A for the fourth quarter of 2022 and can be found under the section “Supplementary Financial Measures and Other Disclosures”. The REIT’s MD&A for the fourth quarter of 2022 is available on SEDAR at www.sedar.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, net rental income, 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 intentions to implement our value-enhancing renovation initiatives across our portfolio and our expectations regarding rental rate growth; our expectations with respect to internal growth and generating long-term value for our unitholders; and our plans regarding early debt refinancing and our unit buyback program. 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; 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 final long-form prospectus dated April 29, 2022, including under the heading “Risk Factors” therein and its latest MD&A.
FOOTNOTES
(1) FFO is a non-GAAP financial measure. The most directly comparable financial measure to FFO is net income. 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 ended December 31, 2022 and for the period from May 6, 2022 to December 31, 2022 to net income.
(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 MD&A for the period ended December 31, 2022, 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 ratio is a non-GAAP ratio. Net total debt-to-net total assets ratio 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, 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 REIT has amended its definition of adjusted EBITDAFV to adjust for the property tax liability caused by IFRIC 21. The REIT believes this will create a more meaningful and comparable measure period-over-period for investors. The table included in the Appendices section of this press release reconciles Adjusted EBITDAFV to net income. 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 undrawn credit facility. The table included in the Appendices section of this press release reconcile available liquidity to undrawn credit facility as at December 31, 2022 and September 30, 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 as at December 31, 2022 and September 30, 2022.
(8) Total number of Units includes 12,776,418 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 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) NOI is a non-GAAP financial measure. The most directly comparable financial measure to NOI is net rental income. The table included in the Appendices section of this press release reconciles NOI for the three months ended December 31, 2022 and for 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) NOI Margin is a non-GAAP ratio. NOI margin is defined as NOI (a non-GAAP financial measure) divided by 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
The table below reconciles FFO to net income for the three months ended December 31, 2022, three months ended September 30, 2022, and for the period from May 6, 2022 to December 31, 2022:
(in thousands of dollars) |
|
Three months ended
|
|
Three months ended
|
|
Period from May 6, 2022
|
|||
Net income for the period |
$ |
4,556 |
$ |
23,445 |
$ |
112,826 |
|||
Add (deduct): |
|
|
|
|
|||||
Fair value adjustments to investment properties |
|
(1,832) |
|
(1,162) |
|
(47,677) |
|||
Fair value adjustments to financial instruments |
|
(4,394) |
|
(18,946) |
|
(61,721) |
|||
Property tax liability adjustment (IFRIC 21) |
|
3,890 |
|
(1,460) |
|
1,896 |
|||
Interest expense on Class B Units |
|
943 |
|
1,046 |
|
2,630 |
|||
Funds from operations (FFO) for the period |
$ |
3,163 |
$ |
2,923 |
$ |
7,954 |
|||
Diluted weighted average number of Units |
|
19,808 |
|
19,807 |
|
19,808 |
|||
Diluted FFO per Unit |
$ |
0.16 |
$ |
0.15 |
$ |
0.40 |
|||
Reconciliation of NOI to net rental income
The table below reconciles NOI to net rental income for the three months ended December 31, 2022, three months ended September 30, 2022, and for the period from May 6, 2022 to December 31, 2022:
(in thousands of dollars) |
|
Three months ended
|
|
Three months ended
|
|
Period from May 6, 2022
|
|||
Investment properties revenue |
$ |
11,364 |
$ |
10,996 |
$ |
29,102 |
|||
Property operating expenses |
|
(9,559) |
|
(4,045) |
|
(16,296) |
|||
Net rental income |
|
1,805 |
|
6,951 |
|
12,806 |
|||
Property tax liability adjustment (IFRIC 21) |
|
3,890 |
|
(1,460) |
|
1,896 |
|||
Net operating income (NOI) |
|
5,695 |
|
5,491 |
|
14,702 |
|||
NOI Margin |
|
50.1% |
|
49.9% |
|
50.5% |
Reconciliation of EBITDAFV to net income
The table below reconciles adjusted earnings before interest, taxes, depreciation, amortization and fair value adjustments to net income for the three months ended December 31, 2022 and September 30, 2022:
Three months ended
|
|
Three months ended
|
||||
Net income for the period |
$ |
4,556 |
$ |
23,445 |
||
Add (deduct): |
|
|
||||
Interest expense - debt |
1,825 |
|
1,822 |
|||
Interest expense - Class B Units |
943 |
|
1,046 |
|||
Property tax liability adjustment (IFRIC 21) |
3,890 |
|
(1,460) |
|||
Fair value adjustments to investment properties |
(1,832) |
|
(1,162) |
|||
Fair value adjustments to financial instruments |
(4,394) |
|
(18,946) |
|||
Adjusted EBITDAFV for the period |
$ |
4,988 |
$ |
4,745 |
||
Interest expense on debt |
|
1,825 |
|
1,822 |
||
Interest coverage ratio (times) |
|
2.7 |
|
2.6 |
Reconciliation of available liquidity to undrawn credit facility
The table below reconciles available liquidity to cash and cash equivalents as at December 31, 2022 and September 30, 2022:
(in thousands of dollars) |
|
As at December 31, 2022 |
|
As at September 30, 2022 |
||
Cash and cash equivalents |
$ |
11,645 |
$ |
15,392 |
||
Undrawn credit facility |
|
70,000 |
|
70,000 |
||
Available liquidity |
$ |
81,645 |
$ |
85,392 |
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, 2022 and September 30, 2022:
|
As at December 31, 2022 |
As at September 30, 2022 |
||||||||
(in thousands of dollars, except number of Units) |
Units |
|
Amount |
Units |
|
Amount |
||||
Unitholders’ equity |
12,776,418 |
$ |
129,265 |
9,827,791 |
$ |
109,629 |
||||
Retained earnings |
— |
|
110,026 |
— |
|
106,605 |
||||
Accumulated other comprehensive income (loss) |
— |
|
— |
— |
|
— |
||||
Total equity per condensed consolidated financial statements |
12,776,418 |
|
239,291 |
9,827,791 |
|
216,234 |
||||
Add: Class B Units |
7,011,203 |
|
47,677 |
9,959,830 |
|
72,209 |
||||
Total equity (including Class B Units) |
19,787,621 |
|
286,968 |
19,787,621 |
|
288,443 |
||||
NAV per Unit |
|
$ |
14.50 |
|
$ |
14.58 |
||||
Reconciliation of net total debt-to-net total assets to net total debt and net total assets
The following table reconciles net total debt-to-net total assets to net total debt and net total assets as at December 31, 2022 and at September 30, 2022:
|
|
As at December 31, 2022 |
|
As at September 30, 2022 |
||
(in thousands of dollars) |
|
Amount |
|
Amount |
||
Mortgages payable |
$ |
136,621 |
$ |
136,337 |
||
Less: Cash and cash equivalents |
$ |
(11,645) |
$ |
(15,392) |
||
Net total debt |
$ |
124,976 |
$ |
120,945 |
||
Total assets |
$ |
432,504 |
$ |
432,672 |
||
Less: Cash and cash equivalents |
$ |
(11,645) |
$ |
(15,392) |
||
Net total assets |
$ |
420,859 |
$ |
417,280 |
||
Net total debt-to-net total assets |
|
29.7% |
|
29.0% |
