Summary of Results
- Suite count increased to 1,166 from 705 at
March 31, 2023 (+65% Y/Y) as the Company continued to execute on its acquisition pipeline. - Property revenue increased +65% to
$4.2 million for the three-month period, driven by the acquisition of high quality properties and rental rate increases. - Net operating income ("NOI") increased +82% to
$2.3 million (55% margin) for the three-month period. - Same-property NOI increased +13.2% for the quarter, driven by a 6.0% increase in same property revenue and a 1.3% decrease in same property expenses. The lower expenses are primarily due to a reduction in property tax rates in
New Brunswick , partially offset by approximately$50,000 in non-recurring repair and maintenance expense associated with damage caused by a winter storm that affected certainNew Brunswick properties. Excluding the winter storm impact, same-property NOI increased +17.1% for the quarter. - The portfolio remained highly occupied at 97.1% at
March 31, 2023 , up 33 basis points over the quarter. Approximately 40% of the vacant units were attributable to the Company's suite repositioning program in theOntario market, which is progressing ahead of expectations.New Brunswick occupancy was 98.1%, with approximately half of the vacancy being related to recent acquisitions of newly constructed properties, which the Company expects to lease up in the near term. - FFO per share grew +103% for the quarter on a fully diluted basis.
Q1 2023 Operating and Financial Highlights:
As at | Change | ||
Number of suites | 1,166 | 1,016 | 150 |
Occupancy | 97.1 % | 96.8 % | 33 bps |
Debt to total assets | 67.7 % | 66.0 % | 171 bps |
Debt to GBV* | 67.3 % | 66.0 % | 131 bps |
Weighted average term to debt maturity (years) | 4.0 | 2.8 | 1.1 yrs |
Weighted average contractual interest rate | 3.60 % | 2.99 % | 61 bps |
Investment properties | 245,636,406 | 203,071,000 | 21.0 % |
Total assets | 247,634,890 | 205,715,083 | 20.4 % |
Total liabilities | 167,730,200 | 135,818,258 | 23.5 % |
Net asset value | 79,904,690 | 69,896,825 | 14.3 % |
Net asset value per share | 0.242 | 0.238 | 1.4 % |
For the three months ended | 2023 | 2022 | Change |
Rental income | 4,205,209 | 2,553,345 | 64.7 % |
NOI | 2,329,164 | 1,278,089 | 82.2 % |
NOI margin | 55.4 % | 50.1 % | 533 bps |
Net income | 2,644,781 | 1,178,982 | 124.3 % |
FFO* | 555,613 | 270,515 | 105.4 % |
FFO (cents per share) - diluted* | 0.18 | 0.09 | 102.9 % |
Dividends declared (cents per share) | 0.05 | 0.05 | - |
Weighted average units outstanding - diluted | 310,060,787 | 306,345,962 | 1.2 % |
Same property revenue* | 2,705,455 | 2,553,345 | 6.0 % |
Same property operating expenses* | 1,259,116 | 1,275,527 | (1.3) % |
Same property NOI* | 1,446,339 | 1,277,818 | 13.2 % |
Same property NOI margin* | 53.5 % | 50.0 % | 342 bps |
*Refer to section "Non-IFRS Financial Measures" |
Acquisition Activity:
On
Findlay Estates Refinancing:
On
Fair Value of Investment Properties:
The Company's weighted average capitalization rate as at
Normal Course Issuer Bid:
The Company announced today that the
The price which the Company will pay for any such Shares will be the prevailing market price at the time of acquisition. The actual number of Shares which may be purchased pursuant to the NCIB and the timing of any such purchases will be determined by management of the Company and will be facilitated by
The Board of Directors believes that, from time to time, the trading price of the Common Shares does not reflect the value of its business and its future prospects. Accordingly, depending upon future price movements and other factors, the Board believes that its Common Shares are an attractive investment (and an appropriate use of available corporate funds), and that the NCIB is in the best interests of the Company and represents an opportunity to enhance value for its shareholders.
A copy of the Company's notice filed with the Exchange may be obtained, by any shareholder without charge, by contacting info@nexliving.ca.
Dividend:
The Company's board of directors has approved and declared a dividend of
The Company designates these taxable dividends to be paid to its holders as eligible dividends and will notify the holders such dividends are being paid as eligible dividends for the purposes of the Income Tax Act (
DSU Grants:
On
About the Company
The Company continues to execute on its plan to acquire recently built or refurbished, highly leased multi-residential properties in bedroom communities in
For more information about NexLiving, please refer to our website at www.nexliving.ca and our public disclosure at www.sedar.com.
Forward-Looking Statements
This news release forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "projects", "estimates", "forecasts", "intends", "continues", "anticipates", or "does not anticipate" or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements contained in this news release include, but are not limited to, management's expectations of additional rental increases to come into effect by year end and the further enhancement of the Company's financial results. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. These forward-looking statements reflect the current expectations of the Company's management regarding future events and operating performance, but involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual events could differ materially from those projected herein and depend on a number of factors. These risks and uncertainties are more fully described in regulatory filings, including the Company's Annual Information Form, which can be obtained on SEDAR at www.sedar.com, under NexLiving's profile, as well as under Risk Factors section of the MD&A released on
Non-IFRS Financial Measures
The Company prepares and releases unaudited consolidated interim financial statements and audited consolidated annual financial statements prepared in accordance with IFRS. In this and other earnings releases, as a complement to results provided in accordance with IFRS, NexLiving discloses financial measures not recognized under IFRS which do not have standard meanings prescribed by IFRS. These include FFO, FFO (cents per share) – diluted, Debt to GBV and same-property metrics (collectively, the "Non-IFRS Measures"). These Non-IFRS Measures are further defined and discussed in the MD&A dated
Neither the
SOURCE
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