Starlight U.S. Multi-Family Core Fund Announces Robust 2016 First Quarter Results

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, May 25, 2016 /CNW/ - Starlight U.S. Multi-Family Core Fund (TSX.V: UMF.A, UMF.U) (the "Fund") today announced its results of operations and financial condition for the three months ended March 31, 2016 (the "First Quarter"). All amounts in this news release are in thousands of United States dollars and exclude the non-controlling interest in the Falls at Eagle Creek and include the Fund's share of revenues, expenses, assets and liabilities for its joint venture investments in Soho Parkway Apartments, The Villages of Sunset Ridge, Belle Haven Apartments and Sorelle Apartments unless otherwise stated.

First Quarter Highlights

  • Same property rents increased from $1,087 to $1,160 or 6.7% over the first quarter of 2015 and have increased by 4.9% on an annualized basis since the Fund's inception.
  • Same property revenue growth was $113 or 3.0% above the first quarter of 2015.
  • Portfolio occupancy was 93.1% for the First Quarter and is within the Fund's targeted occupancy range.
  • Net operating income ("NOI") was $3,126 compared to $2,700 for the first quarter of 2015, representing an increase of $426 or 15.8%.
  • Same property NOI of $2,165 was in-line with the same property NOI during the three months ended March 31, 2015, with revenue growth being offset by higher property taxes due to an increase in assessed values across the Fund's portfolio.
  • Adjusted funds from operations ("AFFO") per unit at $0.32 was in-line with the first quarter of 2015.
  • AFFO payout ratio was reduced to 42.4% for the First Quarter compared to 46.0% for the first quarter of 2015.
  • Indebtedness to gross book value as at March 31, 2016 was 62.6%, within the maximum allowable ratio under the Fund's limited partnership agreement. Indebtedness to Gross Book Value as at March 31, 2015 was 60.6%.
  • The Fund's weighted average interest rate of mortgages payable was 2.75% as of March 31, 2016 and the weighted average term to maturity was 3.48 years.
  • On February 10, 2016, the Fund sold Bridgemoor at Denton. The net proceeds from the sale were used to purchase Marquee Station, a Class "A" multi-family property in Raleigh, North Carolina, which closed February 26, 2016.

Operating Results

Property revenue for the First Quarter increased by $863 or 18.6% to $5,500 when compared to the first quarter of 2015. NOI increased by 15.8% to $3,126 compared to $2,700 in the same period of 2015. Same property revenue growth for the First Quarter was $113 or 3.0%. Same property rents grew by 6.7% from $1,087 to $1,160 compared to the first quarter of 2015, and have increased by 4.9% on an annualized basis since the Fund's inception.

Financial Position

As at March 31, 2016, the Fund's gross book value was $241.5 million and indebtedness was $151.2 million or 62.6% of gross book value. The interest coverage ratio was 2.54 times and the indebtedness coverage ratio was 2.08 times for the First Quarter. The weighted average interest rate on the Fund's mortgage portfolio was 2.75% and the weighted average term to maturity was 3.48 years as at March 31, 2016. 

Subsequent Events

On April 18, 2016, the Fund repaid $650 of its share of the mezzanine loan associated with its joint venture interest in Belle Haven Apartments. This repayment lowered the Funds weighted average interest rate on all loans payable to 3.12%.

About Starlight U.S. Multi-Family 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 May 2016 Newsletter which is available on the Fund's profile at www.starlightus.com.

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 Core Fund

For further information: To learn more about Starlight U.S. Multi-Family Core Fund, visit www.starlightus.com or contact: Evan Kirsh, President, Starlight U.S. Multi-Family Core Fund, 647-725-0417, ekirsh@starlightus.com; Martin Liddell, Chief Financial Officer, Starlight U.S. Multi-Family Core Fund, 647-729-2588, mliddell@starlightus.com


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