VANCOUVER, BC–(Marketwired – March 08, 2017) – Pure Multi-Family REIT LP (“Pure Multi-Family”) (TSX VENTURE: RUF.U) (TSX VENTURE: RUF.UN) (TSX VENTURE: RUF.DB.U) (OTCQX: PMULF) is pleased to announce the release of its financial results for the three months and year ended December 31, 2016.
Q4 and Annual 2016 Financial Highlights
The results, consisting of Pure Multi-Family’s audited consolidated financial statements for the year ended December 31, 2016 and management’s discussion and analysis (“MD&A”) of results of operations and financial condition dated March 8, 2017, are available on SEDAR at www.sedar.com and www.puremultifamily.com. All metrics are stated at Pure Multi-Family’s interest, which adjusts for any real estate taxes related to IFRIC 21.
Stephen Evans, CEO of Pure Multi-Family, stated, “We are very pleased to announce our fourth quarter and annual results for 2016. For the year ended December 31, 2016, we continued to deliver very strong same property operating metrics, specifically same-property revenue and NOI growth rates. Through our active management, we continued to execute on our high-grading strategy of building a top quality portfolio. When looking at a long-term horizon, we believe this strategy will provide unitholders with a stable and predictable level of FFO and AFFO growth, generated by our best in-class portfolio.”
For the year ended December 31, 2016, Pure Multi-Family achieved same-property revenue growth of 5.3% and same-property NOI growth of 7.0% compared to the prior year. This strong organic growth was primarily driven by an increase in same-property average rent per occupied unit of 5.5%, while same-property average physical occupancy remained relatively flat over the same time period. For the three months ended December 31, 2016, Pure Multi-Family achieved same-property revenue growth of 4.4% and same-property NOI growth 0.9% compared to the same period in the prior year.
Pure Multi-Family reported funds from operations (“FFO”) per basic Class A unit (each, a “Unit”) of Pure Multi-Family of US$0.41 for the year ended December 31, 2016, and US$0.08 per Unit for the three months ended December 31, 2016, compared to US$0.44 per Unit and US$0.11 per Unit, respectively, in 2015. Adjusted funds from operations (“AFFO”) was US$0.38 per Unit for the year ended December 31, 2016, and US$0.08 per Unit for the three months ended December 31, 2016, compared to US$0.42 per Unit and US$0.10 per Unit, respectively, for the same periods in 2015.
Same-property NOI and FFO and AFFO per Unit amounts were adversely affected during the three months ended December 31, 2016 due to a number of timing issues, including: excess property tax expense booked during the fourth quarter; excess cash on the balance sheet during the year due to the timing of the equity financing; the acquisition of three new assets and the profitable dispositions of two older investment properties, the proceeds of which were used to finance two high quality property acquisitions in early 2017; as well as, the required lease-up of recently acquired, brand new, investment properties that are in stabilization mode.
Property taxes were higher than anticipated due to higher than expected property value assessments. As per the ordinary course of business, certain of the property tax assessments are currently under appeal with expected resolution within the next 12 to 18 months. Until such resolution, however, Pure Multi-Family must book the entire 2016 property tax expense, as assessed. Normalizing the additional property tax expense over the entire 2016 fiscal year, rather than recognizing the entire amount in the fourth quarter would result in adjusted same-property NOI growth for the three months ended December 31, 2016 of 5.4%, compared to the same period in the prior year.
| For the year ended December 31 |
For the three months ended December 31 |
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| (US$000’s, except per unit amounts) | 2016 | 2015 | Change | 2016 | 2015 | Change | ||||||
| Weighted Average Units Outstanding – Basic | 51,553,540 | 39,761,071 | 55,418,872 | 43,429,172 | ||||||||
| Weighted Average Units Outstanding – Diluted | 55,739,002 | 43,831,867 | 55,497,401 | 47,979,552 | ||||||||
| Rental Revenue – Same Property (1) | 44,518 | 42,278 | 5.3 | % | 15,179 | 14,540 | 4.4 | % | ||||
| Rental Revenue – Non-Same Property | 31,896 | 16,598 | 92.2 | % | 4,937 | 2,007 | 146.0 | % | ||||
| Rental Revenue – Total | 76,414 | 58,876 | 29.8 | % | 20,116 | 16,547 | 21.6 | % | ||||
| Net Rental Income – Same Property (1) | 25,686 | 23,997 | 7.0 | % | 8,191 | 8,119 | 0.9 | % | ||||
| Net Rental Income – Non-Same Property | 16,006 | 8,699 | 84.0 | % | 2,080 | 991 | 109.9 | % | ||||
| Net Rental Income – Total | 41,692 | 32,696 | 27.5 | % | 10,271 | 9,110 | 12.7 | % | ||||
| FFO | 22,036 | 18,364 | 20.0 | % | 4,778 | 4,885 | (2.2 | %) | ||||
| FFO Per Unit – Basic | 0.41 | 0.44 | (7.3 | %) | 0.08 | 0.11 | (23.0 | %) | ||||
| FFO Per Unit – Diluted | 0.41 | 0.44 | (6.8 | %) | 0.08 | 0.11 | (22.3 | %) | ||||
| FFO Payout Ratio | 93.0 | % | 86.1 | % | 6.9 | % | 114.8 | % | 89.3 | % | 25.5 | % |
| AFFO | 20,810 | 17,363 | 19.9 | % | 4,456 | 4,607 | (3.3 | %) | ||||
| AFFO Per Unit – Basic | 0.38 | 0.42 | (7.4 | %) | 0.08 | 0.10 | (23.9 | %) | ||||
| AFFO Per Unit – Diluted | 0.38 | 0.41 | (6.8 | %) | 0.08 | 0.10 | (22.3 | %) | ||||
| AFFO Payout Ratio | 98.5 | % | 91.1 | % | 7.4 | % | 123.1 | % | 94.7 | % | 28.4 | % |
| Average Rent Per Occupied Unit – Same Property (1) | 1,141 | 1,081 | 5.5 | % | 1,191 | 1,139 | 4.6 | % | ||||
| Average Rent Per Occupied Unit – Total | 1,212 | 1,078 | 12.4 | % | 1,244 | 1,131 | 10.1 | % | ||||
| Same Property – represents properties owned during the entire comparative periods | ||||||||||||
| As at December 31 | ||||||
| 2016 | 2015 | Change | ||||
| Debt to Gross Book Value Ratio | 55.2 | % | 54.6 | % | 60bps | |
| Fair Value of Investment Properties | 778,547 | 613,682 | 26.9 | % | ||
| Weighted Average Fair Value IFRS Capitalization Rate | 5.41 | % | 5.50 | % | (90bps | ) |
| Total Portfolio Leased Occupancy | 94.9 | % | 97.3 | % | (240bps | ) |
| Total Number of Investment Properties | 17 | 14 | 21.4 | % | ||
| Total Number of Residential Units | 5,229 | 4,437 | 17.8 | % | ||
| Portfolio Weighted Average Year of Construction | 2006 | 2003 | 3 years | |||
Mr. Evans stated, “We are pleased with our solid results for 2016, which included internalizing our asset management function at no cost to our unitholders, and delivering same property revenue growth of 5.3% and same property NOI growth of 7.0%, which places Pure Multi-Family among the leaders in the Canadian REIT space for these key value driving metrics. The internalization of our property management function will commence in the coming quarters. Looking ahead we expect our top quality portfolio to continue to generate solid results for our unitholders.”
Conference Call
Stephen Evans, CEO, Samantha Adams, VP, and Scott Shillington, CFO, of Pure Multi-Family will host the conference call at 12:00 pm (EST), 9:00 am (PST), on Thursday, March 9, 2017, to review the financial results and corporate developments for the year ended December 31, 2016.
To participate in this conference call, please dial one of the following numbers approximately 10 minutes prior to the commencement of the call, and ask to join the Pure Multi-Family REIT LP Conference Call.
Dial in numbers
| Toll free dial in number (from Canada and USA) | 1-888-390-0546 | |
| International or Local Toronto | 1-416-764-8688 |
Conference Call Replay
If you cannot participate on March 9, 2017, a replay of the conference call will be available by dialing one of the following replay numbers. You will be able to dial in and listen to the conference 120 minutes after the meeting end time, and the replay will be available until March 16, 2017.
Please enter the Replay ID# 421528, followed by the # key.
| Replay Dial in number (Toll free from Canada or the USA) | 1-888-390-0541 | |
| International or Local Toronto | 1-416-764-8677 |
About Pure Multi-Family REIT LP
Pure Multi-Family is a Canadian based, publically traded vehicle which offers investors exclusive exposure to attractive, institutional quality U.S. multi-family real estate assets.
Additional information about Pure Multi-Family is available at www.puremultifamily.com and www.sedar.com.
Non-IFRS Financial Measures
This news release contains certain non-IFRS financial measures, including Pure Multi’s interest, FFO, AFFO, net rental income – same property, net rental income – non-same property, rental revenue – same property, rental revenue – non-same property, average rent per occupied unit, average rent per occupied unit – same property, total portfolio leased occupancy, FFO payout ratio, AFFO payout ratio and any related per Unit amounts to measure, compare and explain Pure Multi-Family’s operating results and financial performance. These measures are commonly used by entities in the real estate industry as useful metrics for measuring performance. However, they do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other publicly traded entities. These measures should be considered as supplemental in nature and not as a substitute for related financial information prepared in accordance with IFRS. Please refer to Pure Multi-Family’s MD&A (available on SEDAR at www.sedar.com) for the year ended December 31, 2016 for a reconciliation of the non-IFRS financial measures used herein to standardized IFRS measures.
Forward-Looking Information
Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “plan”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward looking statements in this news release include: (a) when looking at a long-term horizon, we believe this strategy will provide unitholders with a stable and predictable level of FFO and AFFO growth, generated by our best in-class portfolio; (b) the internalization of our property management function will commence in the coming quarters, which we anticipate will result in additional cashflow savings; and (iii) looking ahead we expect our top quality portfolio to continue to generate solid results for our unitholders.
Although Pure Multi-Family believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Pure Multi-Family can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, competitive factors in the industries in which Pure Multi-Family operates, prevailing economic conditions, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing any proposed acquisitions, and other factors, many of which are beyond the control of Pure Multi-Family.
The forward-looking statements contained in this news release represent Pure Multi-Family’s expectations as of the date hereof, and are subject to change after such date. Pure Multi-Family disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
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 THE ACCURACY OF THIS RELEASE.
For more information, please contact:
Andrew Greig
Director of Investor Relations
Pure Multi-Family REIT LP
Suite 910, 925 West Georgia Street
Vancouver, BC V6C 3L2
Phone: (604) 681-5959 or (888) 681-5959
E-mail: agreig@puremultifamily.com