Starlight U.S. Multi-Family Core Fund Reports Same Property Rental Rate Growth of 4.5% in the Second Quarter of 2016

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

TORONTO, Aug. 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 June 30, 2016 (the "Second 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.

Second Quarter Highlights

• Same property rents increased from $1,106 to $1,156 or 4.5% when compared to June 30, 2015 and have increased by 4.8% on an annualized basis since the Fund's inception.
• Same property revenue growth was $52 or 1.2% over the second quarter of 2015.
• Portfolio occupancy was 93.2% for the Second Quarter and is within the Fund's targeted occupancy range.
• Net operating income ("NOI") was $3,281 compared to $2,785 for the second quarter of 2015, representing an increase of $496 or 17.8%.
• Same property NOI of $2,406 was $60 or 2.6% higher than during the three months ended June 30, 2015.
• Adjusted funds from operations ("AFFO") per unit at $0.33 represented a 13.8% increase over $0.29 per unit for the second quarter of 2015.
• AFFO payout ratio reduced to 44.4% for the Second Quarter compared to 51.1% for the second quarter of 2015.
• The Fund recognized a fair value increase of $10.8 million on its investment properties during the Second Quarter and the value of the Fund's investment properties increased to $252.7 million.
• Indebtedness to gross book value as at June 30, 2016 was 59.5%, slightly below the Fund's targeted range. Indebtedness to Gross Book Value as at June 30, 2015 was 62.9%.
• The Fund's weighted average interest rate on mortgages payable was 2.77% as of June 30, 2016 and the weighted average term to maturity was 3.23 years.

Operating Results

Property revenue for the Second Quarter increased by $802 or 16.1% to $5,773 when compared to the second quarter of 2015. Same property revenue growth for the Second Quarter was $52 or 1.2%. Same property rents grew by 4.5% from $1,106 to $1,153 when compared to June 30, 2015, and have increased by 4.6% on an annualized basis since the Fund's inception.  NOI increased by 17.8% to $3,281 compared to $2,785 in the same period of 2015.  Same property NOI for the Second Quarter grew by 2.6% over the second quarter of 2015.

Financial Position

As at June 30, 2016, the Fund's gross book value was $252.7 million and indebtedness was $150.4 million or 59.5% of gross book value. The interest coverage ratio was 2.35 times and the indebtedness coverage ratio was 2.02 times during the Second Quarter. The weighted average interest rate on the Fund's mortgage portfolio was 2.77% and the weighted average term to maturity was 3.23 years as at June 30, 2016. 

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 August 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: 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, [email protected]; Martin Liddell, Chief Financial Officer, Starlight U.S. Multi-Family Core Fund, 647-729-2588, [email protected]