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TORONTO, Dec. 8, 2014 /CNW/ - Starlight U.S. Multi-Family Core Fund (TSX.V: UMF.A, UMF.U) (the "Fund") today announced that its property portfolio, comprising interests in 2,004 multi-family units situated in Dallas and Houston, Texas, has been valued by an independent appraiser, CBRE, Inc., at US$176.1 million in connection with the Fund's 2014 year-end performance review. The appraised value represents a 74.1% increase over the US$47.2 million gross equity proceeds raised in the Fund's initial public offering.
The increase in appraised value of the Fund's property portfolio is due to net operating income ("NOI") growth and capitalization rate compression and reflects underlying fundamentals and market conditions as well as the Manager's active asset management strategy. The increase to the Fund's appraised portfolio value does not reflect any currency appreciation or property portfolio premium and does not take into consideration the carried interest to be paid to the manager of the Fund, Starlight Investments Ltd., in certain circumstances, as described in the Fund's consolidated financial statements and management's discussion and analysis for the period ended September 30, 2014 and available on the Fund's website and at www.sedar.com. There is no guarantee that the Fund will be able to sell its properties for their aggregate appraised value.
The Fund also announced today that its NOI margin from inception to September 30, 2014 was 56.0% and annualized rental growth was 5.2%. In addition, if the refinancing of Greenhaven Apartments and the Falls at Eagle Creek was in place on July 1, 2014 as opposed to during the fourth quarter of 2014, the Fund's adjusted funds from operations ("AFFO") and AFFO payout ratio for the three months ended September 30, 2014 would have been approximately US$1.2 million and 68.3%, respectively.
"We are extremely pleased with the Fund's strong performance to date. Our active management initiatives coupled with strong underlying market fundamentals have resulted in a significant increase in the Fund's property portfolio valuation since inception," stated Evan Kirsh, President of the Fund.
The Bank of Canada exchange rate at the close of business on December 5, 2014 was US$1.00: CDN$1.14, which compared to the weighted average exchange rate of US$1.00: CDN$1.02 at the time of closing of the Fund's initial public offering, represents additional appreciation of 11.7% in the unitholders' equity of the Fund.
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.
The Fund has five classes of Units. The Fund's Class A Units and Class U Units are listed on the TSX Venture Exchange under the symbols UMF.A and UMF.U, respectively, and Class C Units, Class F Units, and Class I Units are convertible into Class A Units. As at November 28, 2014, there were 4,827,782 issued and outstanding Units of the Fund.
Non-IFRS Measures and Values
Certain terms used in this news release including NOI, NOI margin and AFFO 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 ended September 30, 2014 on the Fund's profile at www.sedar.com. All amounts in this news release are approximate values.
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: Evan Kirsh, President, Starlight U.S. Multi-Family Core Fund, 647-725-0417, [email protected]