NexLiving Communities Reports Record Q1 2025 Results and Declares Quarterly Dividend

HALIFAX, NS, May 14, 2025 /CNW/ - (TSXV: NXLV) – NexLiving Communities Inc. ("NexLiving" or the "Company") announced operating and financial results for the three-month period ended March 31, 2025.

Stavro Stathonikos, President & CEO commented: "We had a strong start to 2025 as we continued execution of our strategy of scaling in secondary markets with high-quality, stabilized assets. In Q1, we delivered 110% year-over-year growth in FFO and 70% growth in NOI, driven by both acquisitions and stronger performance across our existing portfolio. Occupancy improved to 97.4% at quarter-end and has continued to strengthen post-quarter as we continue to reduce churn at one of our Saint John properties. I'm especially proud of our team for driving these strong results while also advancing the integration of more than 1,000 units acquired in the past six months."

Summary of Results:

• Net operating income ("NOI") increased by +70% to $4.9 million for the three-month period ended March 31, 2025.
• Same property NOI increased +2.1%, driven by a +3.1% increase in revenue and offset by a +4.5% rise in expenses for the three-month period ended March 31, 2025.
• Funds from operations ("FFO") increased +110% to $1.7 million and diluted FFO per share increased +6% to $0.05 for the three-month period ended March 31, 2025

Q1 2025 Operating and Financial Highlights:

As at	31-Mar-25	31-Dec-24	Change
Number of suites	1,998	1,998	-
Occupancy	97.4 %	96.4 %	100 bps
Net Debt to GBV*	67.6 %	67.7 %	(10) bps
Weighted average term to debt maturity (years)	4.0	4.2	(0.2) yrs
Weighted average contractual interest rate	3.17 %	3.17 %	-
Net asset value	140,180,478	136,225,487	2.9 %
Net asset value per share	$              4.25	$              4.12	3.3 %
For the three months ended March 31,	2025	2024	Change
NOI	4,867,911	2,872,187	69.5 %
NOI margin	56.9 %	58.5 %	(93) bps
FFO*	1,688,194	804,181	109.9 %
FFO per share - diluted*	0.05	0.05	5.8 %
FFO payout ratio*	20 %	21 %	(1 %)
Same property revenue*	4,496,516	4,360,153	3.1 %
Same property operating expenses*	(1,866,712)	(1,785,671)	4.5 %
Same property NOI*	2,629,803	2,574,482	2.1 %
Same property NOI margin*	58.5 %	59.0 %	(56) bps

*Refer to section "Non-IFRS Financial Measures"

Occupancy:

As of March 31, 2025, the portfolio had an occupancy rate of 97.4%, reflecting a 100 basis point increase from December 31, 2024, driven by occupancy gains across the portfolio. As of May 13, 2025, overall portfolio occupancy further improved to 97.6%, driven by a 30 basis point increase in New Brunswick occupancy to 96.6%.

Winnipeg Acquisition:

On May 1, 2025, the Company acquired a 50% ownership interest in a portfolio comprising 169 suites across eight multi-residential properties located in Winnipeg, Manitoba for $1.8 million. The portfolio is currently financed with CMHC-insured mortgages totaling approximately $14.4 million, bearing a weighted-average interest rate of 2.72% and an average term to maturity of approximately three years.

Fair Value of Investment Properties:

The Company's overall weighted average capitalization rate as at March 31, 2025, was 4.82%, unchanged from December 31, 2024.

The fair value gain of $3.3 million for the three-month period ended March 31, 2025, reflects NOI growth realized during the period, as well as forecasted NOI improvements from anticipated rent increases and operating expense efficiencies.

NCIB Activity:

During the three-month period ended March 31, 2025, the Company purchased for cancellation 112,300 shares at a cost of $189,554, representing a weighted average share price of $1.69. Subsequent to quarter end, the Company purchased for cancelation 84,700 shares at a cost of $145,137, representing a weighted average share price of $1.71.

Refinancing Activity:

Subsequent to quarter end, the Company refinanced its mortgage on the 51 Noel property and entered into a new $10.6 million CMHC insured mortgage for a five-year term with a fixed interest rate of 3.56%. The new mortgage replaced the maturing $7.7 million mortgage.

Dividend:

The Company's board of directors has approved and declared a dividend of $0.01 per common share for the quarter ending June 30, 2025, representing $0.04 per share on an annualized basis. The dividend is payable on, or after June 27, 2025, to shareholders of record at the close of business on June 6, 2025.

About the Company

NexLiving continues to execute on its plan to acquire recently built or refurbished, highly leased multi-residential properties in secondary markets across Canada. NexLiving aims to deliver exceptional living experiences to our residents and provide comfortable, affordable housing solutions that cater to a wide range of demographics. The properties offer a range of modern and updated suites, with a variety of amenities and features that allow residents to experience a hassle-free and maintenance-free lifestyle. NexLiving is committed to investing in its properties to ensure that they are modern and up to date. The Company currently owns 2,083 units in New Brunswick, Quebec, Ontario and Manitoba. NexLiving has also developed a robust pipeline of qualified properties for potential acquisition. By screening the properties identified to match the criteria set out by the Company (proximity to healthcare, amenities, services and recreation), management has identified a number of attractive acquisition targets.

For more information about NexLiving, please refer to our website at www.nexliving.ca and our public disclosure at www.sedarplus.ca. 

Forward-Looking Statements

This news release forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "projects", "estimates", "forecasts", "intends", "continues", "anticipates", or "does not anticipate" or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements contained in this news release include, but are not limited to, management's expectations of additional rental increases to come into effect by year end and the further enhancement of the Company's financial results. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. These forward-looking statements reflect the current expectations of the Company's management regarding future events and operating performance, but involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual events could differ materially from those projected herein and depend on a number of factors. These risks and uncertainties are more fully described in regulatory filings, which can be obtained on SEDAR at www.sedarplus.ca, under NexLiving's profile, as well as under Risk Factors section of the MD&A released on May 13, 2025. Although forward-looking statements contained in this new release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this new release speak only as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

Non-IFRS Financial Measures

The Company prepares and releases unaudited consolidated interim financial statements and audited consolidated annual financial statements prepared in accordance with IFRS. In this and other earnings releases, as a complement to results provided in accordance with IFRS, NexLiving discloses financial measures not recognized under IFRS which do not have standard meanings prescribed by IFRS. These include FFO, FFO (cents per share) – diluted, FFO payout ratio, Debt to GBV and same-property metrics (collectively, the "Non-IFRS Measures"). These Non-IFRS Measures are further defined and discussed in the MD&A dated May 13, 2025, which should be read in conjunction with this news release. Since these measures are not recognized under IFRS, they may not be comparable to similar measures reported by other issuers. The Company presents the Non-IFRS measures because management believes these Non-IFRS measures are relevant measures of the ability of NexLiving to earn revenue and to evaluate its performance and cash flows. A reconciliation of these Non-IFRS measures is included in the MD&A dated May 13, 2025. The Non-IFRS measures should not be construed as alternatives to net income (loss) or cash flows from operating activities determined in accordance with IFRS as indicators of the Company's performance.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE NexLiving Communities Inc.

For further information please contact: Stavro Stathonikos, [email protected], 416-876-6617