Toronto, Ontario--(Newsfile Corp. - November 5, 2024) - Sun Residential Real Estate Investment Trust (TSXV: SRES) today released its financial results for the three and nine months ended September 30, 2024. All amounts are in United States dollars unless otherwise noted. "C$" refers to Canadian dollars.
Revenue for the three months ended September 30, 2024, was $1,487,858, an increase of 1.4% compared with the same period in the prior year. Net rental income was $1,020,253, an increase of 0.3%, and net income and comprehensive income for the three months was $531,963.
Revenue for the nine months ended September 30, 2024, was $4,375,208, an increase of 0.9% compared with the same period in the prior year. Net rental income was $3,063,829, an increase of 2.4%, and net income and comprehensive income for the nine months was $1,469,115, which includes an investment properties valuation adjustment of $454,608.
At September 30, 2024, Sun had total assets of $64.6 million (December 31, 2023 - $64.3 million), and cash and cash equivalents of $3.3 million (December 31, 2023 - $3.8 million). Working capital at September 30, 2024, was $4.0 million (December 31, 2023 - $3.7 million).
"Hurricanes Helene and Milton landed in Florida in September and October, respectively," said Robert C. Wetenhall, Jr., Chief Executive Officer. "They resulted in severe flooding and wind damage in certain parts of the state. Fortunately, our employees avoided injury and our properties were unaffected. We also took proactive measures such as moving materials to the second floor at our renovation project in Cape Coral to mitigate the potential impact of flooding. Although the properties emerged from the hurricanes unscathed, general business activity and government operations in the region have been disrupted, which will affect the completion date of the renovation project in Cape Coral, mainly due to permitting delays. At this time, we anticipate that the property will be ready for occupancy by year-end absent further weather disruptions."
Additional highlights (at September 30, 2024 or for the three and nine months then ended, unless otherwise noted)
- Occupancy - 95% at September 30, 2024, currently 98%
- Net operating income margin - 52% for the three months ended September 30, 2024
- FFO (funds from operations) for the three months ended September 30, 2024 - $182,257 (previous year - $207,547).
- FFO (funds from operations) for the nine months ended September 30, 2024 - $532,772 (previous year - $574,533).
- AFFO (adjusted funds from operations) for the three months ended September 30, 2024 - $133,029 (previous year - $177,958).
- AFFO (adjusted funds from operations) for the nine months ended September 30, 2024 - $436,356 (previous year - $494,882).
- Debt to gross book value - 49%
- NAV (net asset value) per unit - $0.087 (C$0.117)
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 September 30, 2024 available on SEDAR+ at www.sedarplus.ca and on Sun's website at www.sunresreit.com.
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 | Nine months ended | |||||||||||
| September 30 | September 30 | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net income (loss) attributable to unitholders | $ | 217,919 | $ | (3,801,441 | ) | $ | 473,207 | $ | (3,342,992 | ) | ||
| Adjustments to arrive at FFO | ||||||||||||
| Fair value adjustment to income producing investment properties | 96,526 | 10,658,017 | 189,051 | 10,756,179 | ||||||||
| Realty taxes not accounted for under IFRIC 21 | (250,200 | ) | (217,800 | ) | (750,600 | ) | (653,400 | ) | ||||
| Non-controlling interest | 75,300 | (5,115,706 | ) | 275,159 | (4,950,362 | ) | ||||||
| Fair value adjustment to property under development | - | - | 265,557 | - | ||||||||
| Deferred income taxes | 44,195 | (1,323,819 | ) | 80,398 | (1,234,829 | ) | ||||||
| Loss (gain) on foreign currency translation | (1,483) | 8,296 | - | (63 | ) | |||||||
| Funds from operations (FFO) | 182,257 | 207,547 | 532,772 | 574,533 | ||||||||
| Adjustments to arrive at AFFO | ||||||||||||
| Capital expenditures | (96,526 | ) | (58,017 | ) | (189,051 | ) | (156,179 | ) | ||||
| Non-controlling interest | 47,298 | 28,428 | 92,635 | 76,528 | ||||||||
| Adjusted funds from operations (AFFO) | $ | 133,029 | $ | 177,958 | $ | 436,356 | $ | 494,882 | ||||
| Weighted average number of units | 203,338,999 | 203,338,999 | 203,338,999 | 203,338,999 | ||||||||
| FFO per unit | $ | 0.0009 | $ | 0.0010 | $ | 0.0026 | $ | 0.0028 | ||||
| AFFO per unit | $ | 0.0007 | $ | 0.0009 | $ | 0.0021 | $ | 0.0024 | ||||
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 and nine months ended September 30, 2024, available at www.sedarplus.ca or at www.sunresreit.com.
For further information, please contact:
Robert C. Wetenhall Jr.
Chief Executive Officer
rwetenhall@sunresreit.com
Jeffrey D. Sherman,
Chief Financial Officer
jsherman@sunresreit.com
(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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228959
