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TORONTO, July 25, 2013 /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 June 30, 2013 (the "Second Quarter") and period from February 12, 2013 (date of formation) to June 30, 2013. The results and financial condition reflect a 69-day period of operations for the Fund's initial portfolio comprised of three properties commencing on April 23, 2013.
The forecast figures below represent a 69-day proration of the financial forecast ("Forecast") as stated in the final long form prospectus of the Fund dated March 31, 2013 for comparison purposes. All dollar amounts set out in this news release are in United States ("U.S.") currency unless otherwise noted. Full consolidated financial results and related management's discussion and analysis are available on the Fund's profile at www.sedar.com.
SECOND QUARTER HIGHLIGHTS
- Net Operating Income ("NOI") was 9% above the Forecast, reflecting strong occupancy and rental growth.
- Weighted average portfolio occupancy of 97.2% and average monthly rents ("AMR") of $1,033 as of June 30, 2013 as compared to 94% in the Forecast and $1,027 AMR at the initial purchase date.
- Subsequent to the completion of the Second Quarter, the Fund announced that it has entered into an agreement to acquire Greenhaven, an apartment complex located in a rapidly growing area of North Dallas, for a purchase price of approximately $23.5 million.
Evan Kirsh, the Fund's President commented, "The Fund is off to a solid start with results ahead of forecast, significant progress on deploying the additional capital raised and a stronger U.S. dollar."
For the Second Quarter, property revenues and NOI were $1.84 million and $1.07 million, respectively. At the conclusion of the second quarter, AMR was $1,033 and weighted average portfolio occupancy was 97.2%.
At the end of the Second Quarter, basic and diluted funds from operations ("FFO") per limited partnership unit was $0.11. The FFO payout ratio was 70.39%. FFO payout ratio was based on the Fund's unitholder equity deployed in connection with the purchase of Fund's initial portfolio comprised of three properties.
As of June 30, 2013, the Fund's gross book value was $83.39 million and indebtedness was $51.35 million or 61.58%. The interest coverage ratio for the Second Quarter was 2.61 times. Both these metrics fall within the Fund's stated targets. The weighted average interest rate on the Fund's mortgage portfolio was 3.5%, and the weighted average term to maturity was 4.42 years.
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 financial statements and management's discussion and analysis for the period, and any other information relating to the Fund, please visit www.sedar.com.
Non-IFRS Financial Measures
Certain terms used in this news release including NOI, FFO, gross book value, indebtedness and interest coverage ratio are not measures defined under International Financial Reporting Standards 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 Second Quarter available on the Fund's profile at www.sedar.com.
This news release contains statements that may constitute forward-looking statements within the meaning of Canadian securities laws and which reflect the Fund's current expectations regarding future events, including statements concerning statements regarding financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes, plans and objectives, future results, performance, achievements, prospects or opportunities for the Fund or the real estate industry are forward-looking statements. In some cases, forward-looking statements can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.
The forward-looking statements in this news release involve risks and uncertainties, including those set forth in the Fund's materials filed with the Canadian securities regulatory authorities from time to time at www.sedar.com. Actual results could differ materially from those projected herein. Those risks and uncertainties include, among other things, risks related to: reliance on the Fund's manager; the experience of the Fund's officers and directors; substitutes for residential real estate rental suites; reliance on property management; competition for real property investments and tenants; anticipated future growth of the Fund; and U.S. market factors.
Information contained in forward-looking statements is based upon certain material assumptions that were applied in developing such forward-looking statements including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including the following: the ability of the Fund to completed the acquisition of Greenhaven and secure acceptable financing; the ability of the manager of the Fund to manage and operate the properties; the inventory of multi-family real estate properties; the population of multi-family real estate market participants; assumptions about the markets in which the Fund operates; the global and North American economic environment; foreign currency exchange rates; and governmental regulations or tax laws. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, neither the Fund nor its manager undertakes any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
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
President, Starlight U.S. Multi-Family Core Fund