/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
WINNIPEG, MB, Aug. 24, 2021 /CNW/ - Marwest
Apartment Real Estate Investment Trust ("Marwest Apartment
REIT" or the "REIT") (TSXV: MAR.UN) reported financial
results for the second quarter ended June
30, 2021.
The Condensed Consolidated Interim Financial Statements and
Management's Discussion and Analysis ("MD&A") for Q2 2021 and
the six months ended June 30, 2021 are available on the
REIT's website at www.marwestreit.com and
at www.sedar.com.
Q2 2021 Highlights
- Purchase of two properties comprising an aggregate of 251 units
in Winnipeg, Manitoba
- Average monthly rent per suite at June
30, 2021 of $1,509
- Occupancy rate of 98.6% at June 30,
2021
- Generated net property operating income ("NOI") of $492,877 since the acquisition of 251 units on
April 30, 2021
- NOI margin of 63.3%
- Adjusted funds from operations ("AFFO") of $0.03 per unit
- Commencing distributions at approximately 20 percent of AFFO to
Unitholders of record on December 31,
2021, with an estimated first payment date of January 15, 2022
Mr. William Martens, Chief
Executive Officer and Trustee commented "We are very pleased to
have completed our initial property acquisitions.The acquisition of
251 newer generation residential suites in prime locations within
Winnipeg provides Marwest
Apartment REIT with a solid base from which to grow. Following
the initial property acquisitions, the Principals of Marwest Asset
Management Inc. and their associates retained a significant equity
ownership in the REIT. We believe that this support is
indicative of the conviction that the principals of the Marwest
Group have in our business strategy and provides significant
alignment between us and our external asset and property
manager. Furthermore, we are excited to have completed our
first broadly marketed public offering, raising $4.7 million of gross proceeds, which closed
subsequent to the quarter end. With the proceeds of the
offering and cash on hand, Marwest will be focused on continuing to
grow its portfolio and acquisition / development pipeline."
Portfolio
Operational Information
|
As at June 30,
2021
|
Number of
properties
|
2
|
Number of
suites
|
251
|
Average Occupancy
Rate
|
98.6%
|
Average rental
rate
|
$1,509
|
|
|
Financial
Summary
|
Period ended
June
30, 2021
|
Property
revenue
|
$
|
778,955
|
Net property
operating income
|
492,877
|
Net loss
|
(510,871)
|
FFO
|
212,555
|
FFO per
unit
|
$
|
0.03
|
AFFO
|
169,130
|
AFFO per
unit
|
$
|
0.03
|
|
|
|
|
Debt Metrics as
at
|
As at June 30,
2021
|
Debt to total
assets
|
75.4%
|
Weighted average
mortgage interest rate
|
2.78%
|
Weighted average
months to debt maturity
|
82.42
|
Interest coverage
ratio
|
1.38
|
Financial Summary
The REIT generated FFO and AFFO per unit of $0.03 in Q2 2021. The reporting of FFO and
AFFO was attributable to the recent acquisitions of the REIT's two
properties. As noted above, the REIT's initial property
acquisitions closed on April 30,
2021, so the results for the 3 months ended June 30, 2021 substantively reflect only the two
month period that the REIT owned the properties.
FFO an AFFO are defined in "Non-IFRS Measures" in Q2 2021
Management's Discussion and Analysis.
Reconciliation of
Net Income to FFO
|
Period ended
June
30, 2021
|
Net loss
|
$
|
(510,871)
|
Fair value
adjustments
|
723,426
|
FFO
|
212,555
|
FFO per
unit
|
$
|
0.03
|
Reconciliation of
FFO to AFFO
|
|
FFO
|
$
|
212,555
|
Capital
expenditures
|
(28,281)
|
Leasing
costs
|
(15,144)
|
AFFO
|
169,130
|
AFFO per
unit
|
$
|
0.03
|
Operational Summary
Turnovers and
Renewals
|
Period ended
June
30, 2021
|
Suite
Turnovers
|
24 units
|
Move ins
|
33 Units
|
Lease
Renewals
|
51 units
|
Renewal
rate
|
68%
|
Outlook
Management believes it will continue to see a stable rental
market for rental apartments. With increased vaccination
rates, provincial re-opening plans in effect, and the easing of
border restrictions driving immigration, management believes the
demand for multi-family rentals will increase.
The rising cost of home ownership has widened the affordability
gap between renting and home ownership within the market that the
REIT operates, which further fuels the demand for multi-family
rentals. The REIT's newer generation portfolio includes of
amenities such as clubhouses and gyms, further increasing demand.
Policy regarding Automatic Grants of Deferred Units in
satisfaction of Trustee Compensation
The REIT's board of trustees also unanimously adopted a policy
pursuant to which, at the election of each REIT trustee, the
compensation payable to such trustee (other than meeting fees,
which shall be paid in cash) in respect of each calendar quarter
shall accrue and be payable at the beginning of the last day of the
calendar quarter (or, if the REIT establishes a distribution record
date for the last month of the quarter which is other than the last
calendar day of the month, at the beginning of such distribution
record date) (the "Grant Date"). Effective on each
Grant Date, commencing on September 30,
2021, Deferred Units shall be issued to each trustee to whom
accrued trustee compensation is payable, at a price determined in
accordance with the REIT's equity incentive plan dated April 30, 2021 in such number so as to satisfy
the accrued compensation amount in full, provided that no
fractional Deferred Units shall be issued and any balance
shall be payable in cash.
Each of the trustees has elected to have all of their
compensation (other than meeting fees) paid in deferred units
pursuant to the policy. The policy provides that
neither the policy, nor any election of a particular trustee to
receive compensation in deferred units, may be revoked, amended or
changed during a general or special blackout period or, in the case
of an individual Trustee, at any time when such individual Trustee
has knowledge of a material fact or material change in respect of
the REIT which has not been generally disclosed.
About Marwest Apartment REIT
The REIT is an unincorporated open-ended trust governed by the
laws of the Province of Manitoba.
The REIT was formed to provide Unitholders with the opportunity to
invest in the Canadian multi-family rental sector through the
ownership of high-quality income-producing properties, with an
initial focus on stable markets throughout Western Canada.
Forward-looking Statements
The information in this news release includes certain
information and statements about management's views of future
events, expectations, plans and prospects that constitute forward–
looking statements. These statements are based upon assumptions
that are subject to significant risks and uncertainties.
Because of these risks and uncertainties and as a result of a
variety of factors, the actual results, expectations, achievements
or performance may differ materially from those anticipated and
indicated by these forward–looking statements. Forward–looking
statements in this news release include, but are not limited to,
the implementation of a cash distribution policy. A number of
factors could cause actual results to differ materially from these
forward–looking statements. The payment of cash distributions
will be dependent upon a number of factors, including but not
limited to the financial performance, financial condition and
financial requirements of the REIT. Although management of
the REIT believes that the expectations reflected in forward–
looking statements are reasonable, it can give no assurances that
the expectations of any 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,
changes in factors affecting such forward–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 news release.
The Trust Units are not registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") and
may not be offered or sold within the
United States or to or for the account or benefit of U.S.
persons, except in certain transactions exempt from the
registration requirements of the U.S. Securities Act. This press
release does not constitute an offer to sell, or the solicitation
of an offer to buy, securities of the REIT in the United States or in any other
jurisdiction.
SOURCE Marwest Apartment Real Estate Investment Trust