/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, April 12, 2016 /CNW/ - Starlight U.S.
Multi-Family (No. 2) Core Fund (TSX.V: SUD.A, SUD.U) (the
"Fund") today announced its results of operations and financial
condition for the three months ended December 31, 2015 (the "Fourth Quarter") and for
the year ended December 31, 2015 (the
"Year End"). All amounts in this news release are in thousands of
United States dollars and include
the Fund's revenues, expenses, assets and liabilities of its equity
investment in the Falls at Eagle
Creek and investment in joint venture, Soho Parkway Apartments,
unless otherwise stated.
Fourth Quarter Highlights
- Same property rents grew from $1,009 to $1,071 in
the Fourth Quarter compared to the fourth quarter of 2014,
representing an increase of 6.1% and have increased by 5.3% on
annualized basis since the Fund's inception.
- Same property revenue growth was 3.8% in the Fourth Quarter and
6.9% for the Year End.
- Same property net operating income ("NOI") for the Year End was
$354 or 8.5% higher than the previous
year.
- Portfolio occupancy was 94.6% during the Fourth Quarter,
compared to 95.2% during the same period last year, reflecting the
Fund's continued optimization of rental rates to drive overall
revenue increases.
- Adjusted funds from operations ("AFFO") payout ratio was a
conservative 40.6% for the Fourth Quarter and significantly
improved from 55.9% for the Fourth Quarter of 2014 and consistent
with 38.4% for the third quarter of 2015.
- The Fund recognized an additional $8.2
million fair value increase on its investment properties,
including Soho Parkway Apartments during the Fourth Quarter and has
recognized a $38.4 million increase
since inception driven by NOI growth and capitalization rate
compression.
- Interest coverage ratio and indebtedness coverage ratio both
remained strong and improved to 3.07 times during the Fourth
Quarter.
- The Fund's weighted average interest was 2.55% as of
December 31, 2015 and the weighted
average term to maturity was 5.09 years.
- Indebtedness to gross book value was 61.4%, at the lower end of
the Fund's targeted leverage range of 60-70%.
Operating Results
Property revenues for the Year End were $16,326 compared to $10,353 in 2014 and NOI was $9,133 compared to $5,640 in 2014. Same property revenue
growth for the Year End was $541 or
6.9% and same property NOI growth for the Year End was $354 or 8.5%. Portfolio occupancy was 94.6%
during the Fourth Quarter compared to 95.2% during the three months
ended December 31, 2014, in both
cases at the high end of the Fund's targeted occupancy range. Same
property rents grew from $1,009 to
$1,071 in the Fourth Quarter compared
to the fourth quarter of 2014, representing an increase of 6.1% and
has increased by 5.3% on annualized basis since the Fund's
inception.
Financial Position
As of December 31, 2015, the
Fund's gross book value was $187.7
million and indebtedness was $115.2
million or 61.4% of gross book value. Indebtedness as a
percentage of gross book value was at the lower end of the Fund's
targeted range of 60%-70%. The interest coverage ratio and
indebtedness coverage ratio for the Fourth Quarter was 3.07 times
and for the Year End was 2.95 times. The ratios have remained
consistent and healthy throughout 2015. The weighted average
interest rate on the Fund's mortgage portfolio increased slightly
to 2.55% from 2.14% when comparing 2015 to the prior year as a
result of the Fund's acquisition of Travesia Apartments in March of
2015.
About Starlight U.S. Multi-Family (No. 2) 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 April 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 (No. 2) Core Fund