Toronto, Ontario--(Newsfile Corp. - February 8, 2022) - Sun Residential Real Estate Investment Trust (TSXV: SRES) today released its financial results for the three months and year ended December 31, 2021. All amounts are in United States dollars, unless shown as C$ which refers to Canadian dollars.
Revenue for the three months ended December 31, 2021 was $1,296,918 (same period, prior year - $1,178,338), net rental income was $213,355 (prior year - $322,806), and the net income was $5,622,213 (prior year - loss of $11,669). Net income reflects a fair value increase in the investment property of $6,617,000 before taxes.
Revenue for the year ended December 31, 2021 was $4,946,475 (same period, prior year - $4,356,819), net rental income was $2,868,457 (prior year - $2,477,207), and the net income was $12,121,413 (prior year - $234,660). Net income reflects a fair value increase in the investment property of $12,432,980, before taxes.
At December 31, 2021, Sun had total assets of $69.7 million (December 31, 2020 - $56.6 million), and cash and cash equivalents of $4.5 million (December 31, 2020 - $3.9 million). Working capital at December 31, 2021 was $4.5 million (December 31, 2020 - $3.8 million).
"Our property continues to perform very well; property management has been doing an outstanding job despite the challenges that have arisen from the pandemic," said Gordon Wiebe, CEO of Sun.
Highlights (at December 31, 2021 unless otherwise noted)
- Weighted average occupancy rate - 96%.
- FFO (funds from operations) for three months ended December 31, 2021 - $131,522 (same period, prior year - $122,567).
- FFO (funds from operations) for year ended December 31, 2021 - $480,998 (same period, prior year - $159,322).
- AFFO (adjusted funds from operations) for three months ended December 31, 2021 - $131,522 (same period, prior year - $109,604).
- AFFO (adjusted funds from operations) for year ended December 31, 2021 - $472,318 (same period, prior year - $146,359).
- Rent collection for December 2021 - approximately 99%
- Lease renewals for three months ended December 31, 2021 at an average rent increase of 10%.
- Net operating income margin (year ended December 31, 2021) - 58%
- Debt to gross book value - 45%
- Net asset value (NAV) per unit at December 31, 2021 - $0.10 or C$0.12
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 year ended December 31, 2021, available on SEDAR at and on Sun's website at .
Conference Call
Interested parties are invited to participate in a Zoom call with management on Tuesday February 15, 2022, 4:00 p.m. ET, to review the results. To participate or listen to the call, please click on this link:
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Meeting ID: 833 1009 4601, Passcode: 810887, 438 809 7799 or 647 374 4685.
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 occupancy rate, FFO, AFFO, rent collection for September 2021, 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 refer to Sun's Management's Discussion and Analysis for the year ended December 31, 2021 for reconciliations to standardized IFRS measures. Net asset value (NAV) per unit is calculated by dividing unitholders' equity of $19,461,725 by 203,338,999, converted to C$ at a rate of 1.25. NAV is a non-GAAP measure that represents management's view of the intrinsic value of Sun. However, it is not defined by IFRS and may not be comparable to similar measures presented by other issuers.
| Three months ended | Year ended | ||||||||||||||
| December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||
| Net income attributable to: | |||||||||||||||
| Unitholders of the Trust | $ | 2,413,921 | $ | (50,041 | ) | $ | 5,173,518 | $ | (181,044 | ) | |||||
| Non-controlling interest | 3,208,292 | 38,372 | 6,947,895 | 415,704 | |||||||||||
| Net income (loss) | $ | 5,622,213 | $ | (11,669 | ) | $ | 12,121,413 | $ | 234,660 | ||||||
| Net income (loss) attributable to | |||||||||||||||
| unitholders | $ | 2,413,921 | $ | (50,041 | ) | $ | 5,173,518 | $ | (181,044 | ) | |||||
| Fair value loss (gain) on | |||||||||||||||
| investment property | (6,617,000 | ) | (38,322 | ) | (12,432,980 | ) | 586,703 | ||||||||
| Realty taxes not accounted | |||||||||||||||
| under IFRIC21 | 572,400 | 392,400 | - | - | |||||||||||
| Non-controlling interest | 2,961,854 | (173,498 | ) | 6,092,160 | (287,484 | ) | |||||||||
| Deferred income taxes | 797,490 | - | 1,647,950 | - | |||||||||||
| Loss (gain) on foreign currency | |||||||||||||||
| translation | 2,857 | (7,972 | ) | 350 | 41,147 | ||||||||||
| FFO | $ | 131,522 | $ | 122,567 | $ | 480,998 | $ | 159,322 | |||||||
| capital expenditure | - | (25,418 | ) | (17,020 | ) | (25,418 | ) | ||||||||
| Non-controlling interest | - | 12,455 | 8,340 | 12,455 | |||||||||||
| AFFO | $ | 131,522 | $ | 109,604 | $ | 472,318 | $ | 146,359 | |||||||
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 . 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
gwiebe@sunresreit.com
Jeffrey Sherman,
Chief Financial Officer
jsherman@sunresreit.com
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