"CONTINUED ECONOMIC GROWTH FUELS STRONG SAME
PROPERTY RESULTS"
VANCOUVER, Nov. 5, 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 and nine months ended September 30,
2018.
The results, consisting of Pure Multi-Family's condensed interim
consolidated financial statements for the three and nine months
ended September 30, 2018, and
management's discussion and analysis of results of operations and
financial condition ("MD&A") dated November 5, 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.
Financial Highlights
|
|
For the three months
ended
September 30,
|
|
For the nine months
ended
September
30,
|
(US$000's, except
per unit amounts)
|
2018
|
2017
|
Change
|
|
2018
|
2017
|
Change
|
Rental Revenue – Same
Property (1)
|
20,464
|
19,815
|
3.3%
|
|
60,826
|
58,814
|
3.4%
|
Net Rental Income –
Same Property (1)
|
10,962
|
10,126
|
8.3%
|
|
33,761
|
30,640
|
10.2%
|
Average Rent Per
Occupied Unit – Same Property (1)
|
1,270
|
1,257
|
1.0%
|
|
1,264
|
1,252
|
1.0%
|
Average Physical
Occupancy – Same Property (1)
|
95.8%
|
95.6%
|
20bps
|
|
95.2%
|
94.3%
|
90bps
|
(1) Same
Property – represents properties owned as at January 1,
2017 and throughout the comparative periods.
|
|
|
|
As
at September 30,
2018
|
As at
December 31,
2017
|
Change
|
Debt to Gross Book
Value Ratio
|
|
52.7%
|
53.4%
|
(70bps)
|
Total Portfolio
Leased Occupancy
|
|
96.8%
|
95.0%
|
180bps
|
Total Number of
Investment Properties
|
|
22
|
22
|
-
|
Total Number of
Residential Units
|
|
7,085
|
7,085
|
-
|
Portfolio Weighted
Average Year of Construction
|
|
2007
|
2007
|
-
|
Stephen Evans, Pure
Multi-Family's CEO stated, "We are pleased to report another strong
quarter, which resulted in same property revenue growth of 3.3% and
same property net rental income growth of 8.3% compared to the same
quarter in the previous year. These results were driven by
our sustained efforts to improve portfolio occupancy, reduce rental
concessions, and decrease operating expenses across our portfolio.
These strong results are reflected in management's estimated NAV
which has increased from US$6.98 at
the start of the year to US$7.21 at
the end of Q3."
For the three and nine months ended September 30, 2018, Pure Multi-Family achieved
same property net rental income ("NOI") growth of 8.3% and 10.2%,
respectively, compared to the same periods in the prior year. This
growth was driven by increases in revenue and a reduction in
property operating expenses. Revenues were higher due to
increases in occupancy and average rent per occupied unit, and a
reduction in rental concessions, while operating expenses were
primarily lower due to the internalization of the property
management function.
|
|
For the three months
ended September 30,
|
For the nine months
ended September 30,
|
(US$000's, except
units and per unit amounts)
|
2018
|
2017
|
Change
|
2018
|
2017
|
Change
|
Weighted Average
Units Outstanding - Basic
|
76,731,540
|
76,729,771
|
|
76,731,333
|
66,297,478
|
|
Weighted Average
Units Outstanding - Diluted
|
76,731,540
|
76,721,771
|
|
80,761,315
|
70,329,336
|
|
|
|
|
|
|
|
|
Rental Revenue – Same
Property (1)
|
20,464
|
19,815
|
3.3%
|
60,826
|
58,814
|
3.4%
|
Rental Revenue –
Non-Same Property
|
7,076
|
4,442
|
59.3%
|
21,186
|
8,084
|
162.1%
|
Rental Revenue –
Total
|
27,540
|
24,257
|
13.5%
|
82,012
|
66,898
|
22.6%
|
|
|
|
|
|
|
|
Net Rental Income –
Same Property (1)
|
10,962
|
10,126
|
8.3%
|
33,761
|
30,640
|
10.2%
|
Net Rental Income –
Non-Same Property
|
3,686
|
2,243
|
64.3%
|
11,515
|
4,141
|
178.0%
|
Net Rental Income –
Total
|
14,648
|
12,369
|
18.4%
|
45,276
|
34,782
|
30.2%
|
|
|
|
|
|
|
|
FFO
|
6,098
|
4,938
|
23.5%
|
19,974
|
15,157
|
31.8%
|
FFO Per Unit –
Basic
|
0.08
|
0.06
|
23.5%
|
0.25
|
0.22
|
14.5%
|
FFO Per Unit –
Diluted
|
0.08
|
0.06
|
23.5%
|
0.25
|
0.22
|
14.5%
|
FFO Payout
Ratio
|
122.1%
|
150.7%
|
(2,860bps)
|
111.8%
|
130.3%
|
(1,850bps)
|
|
|
|
|
|
|
|
AFFO
|
5,660
|
4,557
|
24.2%
|
18,653
|
14,073
|
32.6%
|
AFFO Per Unit –
Basic
|
0.07
|
0.06
|
24.2%
|
0.24
|
0.20
|
15.1%
|
AFFO Per Unit –
Diluted
|
0.07
|
0.06
|
24.2%
|
0.24
|
0.20
|
15.1%
|
AFFO Payout
Ratio
|
131.5%
|
163.3%
|
(3,180bps)
|
119.7%
|
140.3%
|
(2,060bps)
|
(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 $2,208,950
and $6,388,114 during the three and
nine months ended September 30, 2018,
respectively, representing G&A expenses as a percentage of
revenues of 8.0% and 7.8%. G&A expenses during the
current year include additional corporate level expenditures
resulting from the internalized property management function and
non-recurring expenditures resulting from the strategic review
process.
The non-recurring expenditures, resulting from the strategic
review process, included within G&A expenses were approximately
$544,000 during the three months
ended September 30, 2018 and
$1,401,000 during the nine months
ended September 30, 2018. Removing
these non-recurring expenditures results in an adjusted G&A
expense as a percentage of revenues of 6.0% and 6.1%, respectively,
for the three and nine months ended September 30, 2018.
Pure Multi-Family's FFO and AFFO payout ratios improved during
both the three and nine month periods ending September 30, 2018 compared to the same periods
in the prior year. These improvements to the FFO and AFFO
payout ratios were partially offset by increased G&A expenses
related to the previously disclosed strategic review process
conducted earlier in the year.
The additional expenditures relating to the strategic review
process impacted the FFO and AFFO per unit amounts by $0.007 and $0.018,
respectively, for the three and nine months ended September 30, 2018, resulting in higher FFO and
AFFO payout ratios than were actually incurred from recurring
operations.
Strategic Review Process
On April 5, 2018, Pure
Multi-Family announced that, as part of a strategic review, a
special committee of independent directors (the "Special
Committee") would commence a formal process to explore the
potential sale of Pure Multi-Family.
In August 2018, a bidder advised
that it was prepared to make an offer to acquire all of the
outstanding Class A units of Pure Multi-Family at a price of
US$7.64 per unit. Management and the
Board of Directors of Pure Multi-Family supported the offer and
agreed to vote all of their units in favour of such offer. On
August 23, 2018, the bidder advised
that it was no longer pursuing a potential transaction with Pure
Multi-Family.
On August 24, 2018, the Special
Committee terminated the formal process to explore the potential
sale of Pure Multi-Family.
Q3-2018 Conference Call
Stephen Evans, CEO, Samantha Adams, SVP, and Scott Shillington, CFO, of Pure Multi-Family,
will host a conference call at 9:00 am
(PST), 12:00 pm (EST), on
Tuesday, November 6, 2018, to review
the financial results and corporate developments for the three and
nine months ended September 30,
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 November 6,
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 November 13, 2018.
Please enter the Replay ID# 407211, 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, publicly 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 net rental income, same property average rent per occupied
residential unit, average rent per occupied residential unit, same
property 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 and nine months ended September 30, 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.
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