Toronto, Ontario--(Newsfile Corp. - July 30, 2024) - Sun Residential Real Estate Investment Trust (TSXV: SRES) today released its financial results for the three and six months ended June 30, 2024. All amounts are in United States dollars unless otherwise noted. "C$" refers to Canadian dollars.
Revenue for the three months ended June 30, 2024, was $1,438,752, a decrease of 2.5% compared with the same period in the prior year. Net rental income was $952,962, a decrease of 3.6%, and net income and comprehensive income for the three months was $279,332, which includes an investment properties valuation adjustment of $358,082.
Revenue for the six months ended June 30, 2024, was $2,887,350, an increase of 0.6% compared with the same period in the prior year. Net rental income was $2,043,576, an increase of 3.4%, and net income and comprehensive income for the six months was $937,152, which includes an investment properties valuation adjustment of $358,082.
At June 30, 2024, Sun had total assets of $64.4 million (December 31, 2023 – $64.3 million), and cash and cash equivalents of $3.4 million (December 31, 2023 – $3.8 million). Working capital at June 30, 2024, was $3.9 million (December 31, 2023 – $3.7 million).
"Evergreen at Southwood, our flagship property in Tallahassee, is performing well," said Robert C. Wetenhall, Jr., Chief Executive Officer. "We are continuing to renovate our Cape Coral property, and we are expecting construction to be completed during this year."
Additional highlights (at June 30, 2024 or for the three and six months then ended, unless otherwise noted)
Weighted average occupancy for the quarter – 94% (Occupancy at period-end - 94%)
Net operating income margin – 49%
FFO (funds from operations) for the three months ended June 30, 2024 – $150,185 (June 30, 2023 – $206,792).
FFO (funds from operations) for the six months ended June 30, 2024 – $350,515 (June 30, 2023 – $366,988).
AFFO (adjusted funds from operations) for the three months ended June 30, 2024 – $102,997 (June 30, 2023 – $183,081).
AFFO (adjusted funds from operations) for the six months ended June 30, 2024 – $303,327 (June 30, 2023 – $316,925).
Debt to gross book value – 49%
NAV (net asset value) per unit – $0.087 (C$0.118)
A reconciliation to non-IFRS measures is set out below. For further information on the financial results as well as analysis of operational statistics, please refer to Sun's consolidated financial statements and its management's discussion and analysis for the period ended June 30, 2024 available on SEDAR+ at www.sedarplus.com and on Sun's website at www.sunresreit.com.
Quarterly distribution
The Board of Trustees has approved a regular quarterly distribution of C$0.00095 (0.095 Canadian cents) per unit. This distribution will be paid September 27, 2024 to unitholders of record as of the close of business on September 11, 2024, and represents distributions an annual rate of C$0.0038 (0.38 Canadian cents) per unit.
Non-IFRS Financial Measures
Weighted average leased rate, FFO, AFFO, rent collection, net operating income margin, NAV per unit and debt to gross book value are key measures of performance commonly used by real estate investment trusts. They are not measures recognized under International Financial Reporting Standards (IFRS) and do not have meanings prescribed by IFRS. Weighted average leased rate, FFO, AFFO, rent collection for March 2024, net operating income margin, NAV per unit and debt to gross book value as calculated by Sun may not be comparable to similar measures presented by other issuers. Please see the table below for reconciliations to IFRS measures.
Three months ended
Six months ended
June 30
June 30
2024
2023
2024
2023
Net income (loss) attributable to unitholders
$
(5,207
)
$
257,120
$
255,288
$
458,449
Adjustments to arrive at FFO
Fair value adjustment to income producing investment properties
92,525
46,493
92,525
98,162
Realty taxes not accounted for under
IFRIC 21
(250,200
)
(217,800
)
(500,400
)
(435,600
)
Non-controlling interest
77,261
83,940
199,859
165,345
Fair value adjustment to property under development
265,557
-
265,557
-
Deferred income taxes
(30,357
)
45,087
36,203
88,990
Loss (gain) on foreign currency translation
606
(8,048
)
1,483
(8,359
)
Funds from operations (FFO)
150,185
206,792
350,515
366,987
Adjustments to arrive at AFFO
Capital expenditures
(92,525
)
(46,493
)
(92,525
)
(98,162
)
Non-controlling interest
45,337
22,782
45,337
48,099
Adjusted funds from operations (AFFO)
$
102,997
$
183,081
$
303,327
$
316,924
Weighted average number of units
203,338,999
203,338,999
203,338,999
203,338,999
FFO per unit
$
0.0007
$
0.0010
$
0.0017
$
0.0018
AFFO per unit
$
0.0005
$
0.0009
$
0.0015
$
0.0016
About Sun Residential REIT
Sun Residential Real Estate Investment Trust is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust dated January 22, 2019, as amended and restated on March 22, 2019 and November 4, 2020. The business of Sun is to acquire multi-family residential properties in the Sunbelt region of the United States.
Caution regarding forward-looking statements
Forward-looking statements in this news release, including the timing of the development of our Cape Coral property, and elsewhere reflect Sun's current assumptions, expectations, and projections. Often, but not always, forward‐looking statements can be identified by words such as "planned," "expects," "expecting," "anticipated," or "believes," or variations of such words and phrases or state that certain actions, events, or results "may," "could," "would," or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Sun's actual results or achievements to be materially different from those expressed or implied by the forward-looking statements. The forward-looking statements made in this news release relate only to events or information as of the date hereof. All forward-looking statements are based on assumptions that may prove to be incorrect. Furthermore, forward-looking statements are qualified in their entirety by the inherent risks, uncertainties and changes in circumstances surrounding future expectations that are difficult to predict and mostly beyond the control of Sun.
Except as specifically required by Canadian securities law, Sun undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Many factors will cause actual results to differ, perhaps materially, from results in the forward-looking statements: for a description of such factors please refer to the Management's Discussion and Analysis for the three months ended June 30, 2024, available at www.sedarplus.ca or at www.sunresreit.com.
Jeffrey D. Sherman, Chief Financial Officer [email protected] (416) 214-2228
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.
