2022-08-02 | TSXV:SRES | Press Release

Toronto, Ontario–(Newsfile Corp. – August 2, 2022) – Sun Residential Real Estate Investment Trust (TSXV: SRES) today released its financial results for the three and six months ended June 30, 2022. All amounts are in United States. dollars, unless shown as C$, which refers to Canadian dollars.

Revenue for the three months ended June 30, 2022 was $1,354,447 (same period, prior year – $1,189,384), net rental income was $955,321 (prior year – $870,735), and the net income for the three months was $529,904 (prior year – 5,543,133). . Revenue for the six months ended June 30, 2022 was $2,644,278 (same period, prior year – $2,365,450), net rental income was $1,864,062 (prior year – $1,735,136), and the net income for the six months was $1,006,691 (prior year – $6,016,928) . Prior year net income reflects a fair value increase in the investment property of $5,815,980, before taxes.

At June 30 2022, Sun had total assets of $70.3 million (December 31, 2021 – $69.7 million), and cash and cash equivalents of $4.6 million (December 31, 2021 – $4.5 million). Working capital at June 30, 2022 was $5.1 million (December 31, 2021 – $4.5 million).

“We continue to be very pleased with the performance of our property,” said Gordon Wiebe, CEO of Sun. “Net rental income increased by 9.7% in the three months ended June 30, 2022, compared with the same period last year. We are continuing to review strategic options for Sun Residential REIT.”

Highlights (at June 30, 2022 unless otherwise noted)

  • Weighted average leased rate – 96%.
  • FFO (funds from operations) for three months ended June 30, 2022 – $151,875, an increase of 41% from the prior year.
  • AFFO (adjusted funds from operations) for three months ended June 30, 2022 – $149,655, an increase of 51% from the prior year.
  • Rent collection for June 2022 – approximately 99%
  • Lease renewals for three months ended June 30, 2022 at an average rent increase of 8.9% compared to the previous lease rate; average new leases at a 24.7% increase.
  • Net operating income margin (three months ended June 30, 2022) – 56%
  • Debt to gross book value – 45%

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 three and six months ended June 30, 2022, available on SEDAR at www.sedar.com and on Sun’s website at www.sunresreit.com.

Conference Call

Interested parties are invited to participate in a Zoom video call with management on August 3, at 9 am EDT. Please click on the following link: https://us02web.zoom.us/j/81541808299?pwd=a3I2MWtOdU5FT3hGTDZNZDFwODJzZz09

Meeting ID: 815 4180 8299, Passcode: 742778

Non-IFRS Financial Measures

Weighted average occupancy rate, FFO, AFFO, rent collections, net operating income margin 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 standardized meanings prescribed by IFRS. Weighted average leased rate, FFO, AFFO, rent collection for June 2022, net operating income margin 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 standardized IFRS measures.

Three months ended Six months ended
June 30 June 30
2022 2021 2022 2021
Net income (loss) attributable to unitholders $ 201,005 $ 2,403,718 $ 370,920 $ 2,589,526
Adjustments to arrive at FFO
Fair value adjustment to
investment properties 4,352 (5,815,980) 10,152 (5,815,980)
Realty taxes not accounted for under
IFRIC 21 (190,200) (190,800) (380,400) (381,600)
Non-controlling interest 91,066 2,943,322 181,422 3,036,814
Deferred income taxes 51,083 769,722 96,125 783,652
Loss on foreign currency translation (5,431) (2,507) (3,817) (4,833)
Funds from operations (FFO) 151,875 107,475 274,402 207,579
Adjustments to arrive at AFFO
Capital expenditures (4,352) (17,020) (10,152) (17,020)
Non-controlling interest 2,132 8,340 4,974 8,340
Adjusted funds from operations (AFFO) $ 149,655 $ 98,795 $ 269,224 $ 198,899
Weighted average number of units 203,338,999 203,338,999 203,338,999 203,338,999
FFO per unit 0.0007 0.0005 0.0013 0.0010
AFFO per unit 0.0007 0.0005 0.0013 0.0010

Forward-Looking Statements

This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of Sun. Forward-looking statements are identified by words such as “target”, “believe”, “anticipate”, “expect”, “plan”, “will”, “may”, “estimate” and other similar expressions. The forward-looking statements in this news release are based on certain assumptions. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading “Risk Factors” in Sun’s management’s discussion and analysis for the year ended December 31, 2021 which is available at www.sunresreit.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Therefore, readers should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by law, Sun assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future. events or otherwise.

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. Its business operations commenced on January 28, 2020, when it completed a financing and concurrently acquired a 51% interest in a multi-family residential property comprising 12 buildings with 288 rental units as well as various amenities for tenants located in Tallahassee, Florida.

For further information, please contact:

Gordon Wiebe,

Chief Executive Officer

[email protected]

Jeffrey Sherman,

Chief Financial Officer

[email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/132621.


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