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TORONTO, May 19, 2015 /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, 2015 (the "First Quarter"). All amounts in this news release are in United States currency and exclude the Fund's non-controlling interest in the Falls at Eagle Creek unless otherwise stated.
HIGHLIGHTS FOR THE FIRST QUARTER OF 2015
- Same property average monthly rent improved from $1,076 to $1,087 for the First Quarter, representing a 4.1% increase on an annualized basis during a traditionally slower leasing period. Rent growth since inception of the Fund has been 5.0% on an annualized basis.
- Portfolio occupancy was equal to 94.6% and within the Fund's targeted range of 92-95% which has been established in order to optimize rental rates.
- Net operating income ("NOI") margin was 58.3%. NOI was 6.5% higher for the First Quarter compared to the prior three months.
- The Fund recognized a $2.7 million fair value increase on its investment properties driven predominantly by NOI growth. The portfolio's value represented by fair value of investment properties less original purchase price was 79.9% of the Fund's initial public offering gross subscription proceeds.
- Adjusted funds from operations payout ratio was 49.9% representing an improvement from 53.6% in the three months ended December 31, 2014.
- Interest coverage ratio increased to 3.01 times compared to 2.85 times for the three months ended December 31, 2014.
- Indebtedness to gross book value was 60.6%, at the lower end of the Fund's targeted range.
- The Fund acquired a 662/3 percent ownership interest in Belle Haven Apartments ("Belle Haven").
Evan Kirsh, President of the Fund commented, "The Fund continues to achieve impressive rental rate growth in each successive reporting period while maintaining occupancy level within its targeted range. This has resulted in strong growth in net operating income and asset value."
For the First Quarter, property revenues and NOI were $4.64 million and $2.70 million, respectively. Portfolio occupancy was 94.6% during the First Quarter compared to 94.9% during the three months ended December 31, 2014 and 93.1% during the three months ended March 31, 2014. NOI growth for the First Quarter was 6.5% greater than the three months ended December 31, 2014, partially attributable to the acquisition of the Fund's interest in Belle Haven on February 19, 2015.
As of March 31, 2015, the Fund's gross book value was $196.7 million and indebtedness was $119.2 million or 60.6% of gross book value. Indebtedness as a percentage of gross book value is at the lower end of the Fund's target range of 60%-70%. The interest coverage ratio for the First Quarter was 3.01 times, an increase compared to the three months ended December 31, 2014. The weighted average interest rate on the Fund's mortgage portfolio was 2.92% and the weighted average term to maturity was 4.10 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 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 March 2015 Newsletter which is available at http://starlightinvest.com/starlight-u-s-multi-family-core-fund.
Non-IFRS Financial Measures
Certain terms used in this news release including NOI, AFFO, gross book value, indebtedness, interest coverage ratio and indebtedness 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: Evan Kirsh, President, Starlight U.S. Multi-Family Core Fund, 647-725-0417, [email protected]