"STRONG SAME PROPERTY RESULTS FUEL GROWTH"
VANCOUVER, May 9, 2018 /CNW/ - Pure Multi-Family REIT LP
("Pure Multi-Family") (TSXV: RUF.U, RUF.UN, RUF.DB.U; OTCQX: PMULF)
is pleased to announce the release of its financial results for the
three months ended March 31,
2018.
The results, consisting of Pure Multi-Family's condensed interim
consolidated financial statements for the three months ended
March 31, 2018, and management's
discussion and analysis of results of operations and financial
condition ("MD&A") dated May 9,
2018, are available on SEDAR at www.sedar.com and at
www.puremultifamily.com. All metrics are stated at Pure Multi's
interest, which adjusts for any real estate taxes related to IFRIC
21, and dollar amounts are disclosed in U.S. dollars, unless
otherwise indicated.
Q1-2018 Financial Highlights
|
|
|
For the three months
ended March 31,
|
(US$000's, except
per unit amounts)
|
2018
|
2017
|
Change
|
Rental Revenue – Same
Property (1)
|
20,126
|
19,361
|
4.0%
|
Net Rental Income –
Same Property (1)
|
11,272
|
10,277
|
9.7%
|
Average Rent Per
Occupied Unit – Same Property (1)
|
1,259
|
1,246
|
1.0%
|
Average Physical
Occupancy – Same Property (1)
|
94.7%
|
93.2%
|
150bps
|
(1)
|
Same Property –
represents properties owned as at January 1, 2017 and
throughout
the comparative periods.
|
|
|
|
|
|
As
at
March 31,
2018
|
As at
December 31,
2017
|
Change
|
Debt to Gross Book
Value Ratio
|
53.7%
|
53.4%
|
30bps
|
Total Portfolio
Leased Occupancy
|
96.5%
|
95.0%
|
150bps
|
Total Number of
Investment Properties
|
22
|
22
|
-
|
Total Number of
Residential Units
|
7,085
|
7,085
|
-
|
Portfolio Weighted
Average Year of Construction
|
2007
|
2007
|
-
|
Steve Evans, Pure Multi-Family's
CEO stated, "In 2017, we completed the internalization of our
property management functions, further deleveraged our balance
sheet, geographically diversified our portfolio and improved the
average age of our portfolio to just over ten years of age.
"These efforts were part of a board approved strategy to
high-grade our Class A multi-family apartment portfolio, create a
conservative and flexible financial profile, lock in historic low
interest rates for an average weighted term to maturity of 9 years,
and to build out our management platform to support the continued
growth of our business.
"Having completed the internalization of property management in
2017, we were able to remain focused on operations at our
properties and continued to execute on our strategic business
initiatives. We are extremely pleased with the strong results
achieved to date in 2018.
"Despite such successes, our intended migration to the Toronto
Stock Exchange has been delayed pending the outcome of the
strategic review process."
Based on investment properties owned as of January 1, 2017 and throughout the comparative
periods, for the three months ended March
31, 2018, Pure Multi-Family achieved same property revenue
growth of 4.0% and same property net rental income ("NOI") growth
of 9.7% compared to the same period in the prior year. Same
property revenue growth was driven by increases in same property
physical occupancy and same property average rent per occupied
unit, coupled with a reduction in same property rental concessions.
Same property NOI, over the same period, was positively impacted by
the internalization of the property management function but
partially offset by the inclusion of prior year property tax
refunds recorded during the prior year period. Normalizing the
impact resulting from the elimination of property management fees
and the resolution of prior year property tax appeals, adjusted
same property NOI for the three months ended March 31, 2018 increased by 4.7% compared to the
same period in the prior year.
|
|
|
For the three months
ended March 31,
|
(US$000's, except
per unit amounts)
|
2018
|
2017
|
Change
|
Weighted Average
Units Outstanding - Basic
|
76,730,911
|
56,068,506
|
|
Weighted Average
Units Outstanding - Diluted
|
80,760,999
|
60,137,533
|
|
|
|
|
|
Rental Revenue – Same
Property (1)
|
20,126
|
19,361
|
4.0%
|
Rental Revenue –
Non-Same Property
|
6,987
|
1,476
|
373.4%
|
Rental Revenue –
Total
|
27,113
|
20,837
|
30.1%
|
|
|
|
|
Net Rental Income –
Same Property (1)
|
11,272
|
10,277
|
9.7%
|
Net Rental Income –
Non-Same Property
|
3,864
|
822
|
370.1%
|
Net Rental Income –
Total
|
15,136
|
11,099
|
36.4%
|
|
|
|
|
FFO
|
7,431
|
5,428
|
36.9%
|
FFO Per Unit –
Basic
|
0.09
|
0.09
|
1.3%
|
FFO Per Unit –
Diluted
|
0.09
|
0.09
|
1.3%
|
FFO Payout
Ratio
|
100.2%
|
101.4%
|
(120bps)
|
|
|
|
|
AFFO
|
6,989
|
5,087
|
37.4%
|
AFFO Per Unit –
Basic
|
0.09
|
0.09
|
1.6%
|
AFFO Per Unit –
Diluted
|
0.09
|
0.09
|
1.6%
|
AFFO Payout
Ratio
|
106.5%
|
108.2%
|
(170bps)
|
|
|
|
|
Average Rent Per
Occupied Unit – Same Property (1)
|
1,259
|
1,246
|
1.0%
|
Average Physical
Occupancy – Same Property (1)
|
94.7%
|
93.2%
|
150bps
|
(1)
Same Property – represents properties owned as at January 1, 2017
and throughout the comparative periods.
|
Pure Multi-Family incurred general and administrative
("G&A") expenses of $1,634,330
during the three months ended March 31,
2018, representing G&A expenses as a percentage of
revenues of 6.0%, compared to $799,614 and 3.8%, respectively, during the same
period in the prior year. The increase in G&A expenses during
the current period compared to the prior year period is primarily
due to the additional corporate level expenditures resulting from
the internalized property management function. In the prior year
period, these costs were presented within NOI as property
management fees.
Included in G&A expenses during the three months
March 31, 2018 were non-recurring
expenditures resulting from the strategic review process, which was
initiated in response to an unsolicited offer to acquire all of the
outstanding units of Pure Multi-Family, of approximately
$170,000. Removing these
non-recurring expenditures results in an adjusted G&A expense
as a percentage of revenues for the three months ended March 31, 2018 of 5.4%.
Q1-2018 Conference Call
Stephen Evans, CEO, Samantha Adams, SVP, and Scott Shillington, CFO, of Pure Multi-Family,
will host the conference call at 10:00 am
(PST), 1:00 pm (EST), on
Thursday, May 10, 2018, to review the
financial results and corporate developments for the quarter ended
March 31, 2018.
To participate on the conference call, please dial one of the
following numbers approximately 10 minutes prior to the
commencement of the call, and ask to join the Pure Multi-Family
REIT LP Conference Call.
Dial in numbers
• Toll free dial in
number (from Canada and USA):
|
1-888-390-0546
|
• International or
Local
Toronto:
|
1-416-764-8688
|
Conference Call Replay
If you cannot participate on May 10,
2018, a replay of the conference call will be available by
dialing one of the following replay numbers. You will be able to
dial in and listen to the conference 120 minutes after the meeting
end time, and the replay will be available until May 17, 2018.
Please enter the Replay ID# 911122, followed by the # key.
Replay Dial in number
• Toll free (from
Canada or the USA):
|
1-888-390-0541
|
• International or
Local Toronto:
|
1-416-764-8677
|
About Pure Multi-Family REIT LP
Pure Multi-Family is a Canadian based, publically traded vehicle
which offers investors exclusive exposure to attractive,
institutional quality U.S. multi-family real estate assets.
Additional information about Pure Multi-Family is available at
www.puremultifamily.com and www.sedar.com.
Non-IFRS Financial Measures
This news release contains certain non-IFRS financial
measures, including Pure Multi's interest, FFO, AFFO, same property
NOI, rental revenue-same property, rental revenue-non-same
property, net rental income, net rental income-same property, net
rental income-non-same property, same property revenue, same
property average rent per occupied residential unit, average rent
per occupied residential unit, same property average physical
occupancy, total portfolio leased occupancy, FFO payout ratio, AFFO
payout ratio and any related per Unit amounts to measure, compare
and explain Pure Multi-Family's operating results and financial
performance. These measures are commonly used by entities in the
real estate industry as useful metrics for measuring performance.
However, they do not have any standardized meaning prescribed by
IFRS and are not necessarily comparable to similar measures
presented by other publicly traded entities because the method of
calculation may differ. These measures should be considered as
supplemental in nature and not as a substitute for related
financial information prepared in accordance with IFRS. Please
refer to Pure Multi-Family's MD&A (available on SEDAR at
www.sedar.com) for the three months ended March 31, 2018 for a reconciliation of the
non-IFRS financial measures used herein to standardized IFRS
measures.
Forward-Looking Information
Certain statements contained in this news release may
constitute forward-looking statements. Forward-looking statements
are often, but not always, identified by the use of words such as
"anticipate", "plan", "expect", "may", "will", "intend", "should",
and similar expressions. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking statements. Forward-looking statements in this
news release include: (a) despite such successes, our intended
migration to the Toronto Stock Exchange has been delayed pending
the outcome of the strategic review process.
Although Pure Multi-Family believes that the expectations and
assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because Pure Multi-Family can give no
assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not
limited to, competitive factors in the industries in which Pure
Multi-Family operates, prevailing economic conditions, the failure
to obtain necessary regulatory approvals or satisfy the conditions
to closing any proposed acquisitions, and other factors, many of
which are beyond the control of Pure Multi-Family.
The forward-looking statements contained in this news release
represent Pure Multi-Family's expectations as of the date hereof,
and are subject to change after such date. Pure Multi-Family
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required under applicable
securities regulations.
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 THE ACCURACY
OF THIS RELEASE.
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SOURCE Pure Multi-Family REIT LP