MARWEST APARTMENT REIT ANNOUNCES Q2 2022 RESULTS – Canada NewsWire | Vette Leader

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Winnipeg, MB, August 10, 2022 /CNW/ – Marwest Apartment Real Estate Investment Trust (“Marwest Condo REIT” or the “REIT”) (TSXV: MAR.UN) reported financial results for the past three and six months June 30, 2022. This press release should be read in conjunction with the condensed consolidated interim financial statements and management’s discussion and analysis (“M&A”) for the three and six months ended June 30, 2022, which are available on the REIT’s website at www.marwestreit.com and at www.sedar.com.

Mister. William MartensChief Executive Officer and Trustee, commented: “We are pleased to report a further increase in our net asset value per unit (“NAV per unit”) in this quarter’s results, up over 18% since then December 31, 2021. In addition, we have an exceptional mortgage profile, with the majority of our mortgages carrying low-risk CMHC-insured debt with an average maturity of over six years.”

Highlights of the second quarter of 2022

  • Increase in Net Asset Value per Share (“NAV per Share”) from $1.27 at December 31, 2021 to $1.50 at June 30, 2022
  • Generated Net Operating Income (“NOI”) of $954,939 and $1,865,540 for the past three and six months June 30, 2022
  • Funds from Operations (“FFO”) from $0.0346 per unit for the past six months June 30, 2022
  • Adjusted Funds from Operations (“AFFO”) of $0.0299 per unit for the past six months June 30, 2022
  • Occupancy rate of 95.47% reported for the first six months of 2022
  • 164,000 Trust Units purchased and sold by the NCIB in Q2 2022 at an average price of $0.91

Summary of operations

Operational information of the portfolio



As of June 30, 2022

number of properties



3

Number of suites



363

Past average occupancy



95.47%

Previous average rental price



$1,509





financial overview


Three months passed
June 30, 2022

Six months have passed
June 30, 2022

real estate income


$1,619,305

$3,238,045

net operating income


954,939

1,865,540

net income


3.148.015

5,026,738

FFO


350,486

679,016

FFO per unit


$0.0179

$0.0346

AFFO


306,731

587,565

AFFO per unit


$0.0157

$0.0299









debt metrics



As of June 30, 2022

debt to total assets



68.10%

Weighted Average Mortgage Rate



2.82%

Weighted average months to debt maturity



76.5

debt service coverage ratio



1.18

financial overview

The REIT generated FFO and AFFO per unit of $0.0346 and $0.0299 during the past six months June 30th2022.

FFO and AFFO are defined in “Non-IFRS Measures” in Management’s Discussion and Analysis Q2 2022.

Reconciliation of Net Income to FFO and
AFFO


Three months passed
June 30, 2022


Six months have passed
June 30, 2022

net income


$3,148,015


$5,026,738

Distribution on Exchange Units


40,669


81,340

fair value adjustments


(2,838,198)


(4,429,062)

FFO


350,486


679,016

FFO per unit


$0.0179


$0.0346

Transition from FFO to AFFO





FFO


$350,486


$679,016

investments


(28,636)


(71,921)

leasing costs


(15.119)


(19,530)

AFFO


306,731


587,565

AFFO per unit


$0.0157


$0.0299

NAV on June 30, 2022


shareholders’ equity

$20,704,350

Interchangeable Units

8,673,021

NAV

29,377,371

Trust units as of June 30, 2022

8,667,564

Exchange Units as of June 30, 2022

10,841,274

Deferred units as of June 30, 2022

81,491

Total number of units outstanding

19,590,329

NAV per unit

$1.50

outlook

Management is optimistic that with rising COVID-19 vaccination rates, easing of COVID-19 restrictions, immigration, as well as inflation and rising interest rates, demand for multifamily housing will continue to grow, according to the CBRE Canada Real Estate Market 2022 Outlook. Management is focused on growing the portfolio and shareholder value through increasing rental rates when the market permits, future acquisition opportunities that increase the REIT’s overall size and performance, and maintaining a manageable debt structure. The REIT’s short-term debt is all tight, with an average remaining mortgage term of over six years. Most of the debt is CMHC insured. After the refinancing, the REIT could have the potential to see more favorable mortgage terms for the potential transition from conventional debt to CMHC-insured debt. Management believes that the organic growth in NAV due to the amortization of debt over the mortgage terms is a positive result of the higher leverage on these mortgages, which will decrease over time, reducing debt to GBV and thereby the NAV per unit will be increased.

Management expects demand for rental housing to continue to grow in the coming quarters due to increasing immigration and the affordability gap between renting and owning a home. With the bank of Canada With interest rates rising to control inflation, home ownership costs continue to rise, widening the affordability gap between renting and owning a home. The increase in operating costs caused by inflation can be offset by rent increases if the market allows, since 74 percent of the portfolio is not subject to rent control.

About Marwest Apartments Real Estate Investment Trust

The REIT is an unincorporated open trust governed by the laws of the province of Manitoba. The REIT was formed to provide unitholders with an opportunity to invest in Canada’s rental multifamily sector through ownership of quality, high-yield real estate, with an initial focus on consistently stable markets Western Canada.

Forward-Looking Statements

The information in this press release contains certain information and statements about management’s beliefs about future events, expectations, plans and prospects that constitute forward-looking statements. These statements are based on assumptions that involve significant risks and uncertainties. Because of these risks and uncertainties, and a variety of factors, actual results, expectations, achievements or performance could differ materially from those anticipated and indicated in these forward-looking statements. A number of factors could cause actual results to differ materially from these forward-looking statements, including the risks described in the REIT’s most recent annual informational return. Payment of cash distributions depends on a number of factors, including but not limited to the financial performance, financial condition and financial needs of the REIT. Although the REIT’s management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the expectations reflected in the forward-looking statements will prove to be correct. Except as required by law, the REIT disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, or changes in factors affecting them Future effect-looking statements or otherwise.

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

The Trust Units are not registered under, and may not be offered or sold under, the United States Securities Act of 1933, as amended (the “US Securities Act”) The United States or to or for the account or benefit of any US person, except for certain transactions that are exempt from the registration requirements of the US Securities Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the REIT The United States or in any other jurisdiction.

Notice Regarding Disclosure of Non-IFRS Measures

The annual financial statements of the REIT are prepared in accordance with IFRS. In addition to the IFRS measures, this press release and the REIT Q2 2022 MD&A disclose certain non-IFRS financial measures commonly used as indicators of performance by Canadian real estate investment trusts. Non-IFRS measures and ratios include net operating income (“NOI”), debt service coverage ratio, FFO, AFFO, FFO per unit, AFFO per unit, and NAV per unit.

Management believes these metrics are useful to investors as they are widely accepted metrics of the REIT’s performance and provide a relevant basis for comparison between real estate companies. These non-IFRS financial measures are not defined under IFRS and are not intended to represent financial performance, financial condition or cash flows for the period and should not be viewed as an alternative to net income, cash flow from operations or any other financial performance measure calculated under IFRS.

The above measures are not standardized under the accounting framework used to prepare the REIT’s financial statements. Readers should also be cautioned that the above metrics calculated by the REIT may not be comparable to similar metrics for other issuers. For more information, see the sections titled “Non-IFRS Measures” and “Financial Operations and Results” in the REIT’s Q2 2022 MD&A, incorporated herein by reference, for additional information (available on SEDAR at www.sedar .com or website of the REIT www.marwestreit.com)

SOURCE Marwest Apartment Real Estate Investment Trust

For more information: REIT Contact: Mr. William Martens, Chief Executive Officer, Telephone: (204) 947-1200.

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