MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST ANNOUNCES 2024 ANNUAL RESULTS
Canada NewsWire
WINNIPEG, MB, March 20, 2025
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
WINNIPEG, MB, March 20, 2025 /CNW/ - Marwest Apartment Real Estate Investment Trust (the "REIT") (TSXV: MAR.UN) reported financial results for the year ended December 31, 2024. This press release should be read in conjunction with the REIT's Consolidated Financial Statements and Management's Discussion and Analysis ("2024 Annual MD&A") for the year ended December 31, 2024, which are available on the REIT's website at www.marwestreit.com and at www.sedarplus.ca(1) .
Mr. William Martens, Chief Executive Officer and Trustee commented, "The REIT performed well throughout 2024 reporting strong results with an increase of 8.11% in Same Property NOI. With continued growth in the portfolio's rental rates, we have seen continued increases in our NAV per Unit. As we look ahead, we believe the strong fundamentals for rentals in Winnipeg will allow us to continue to deliver positive financial results for our Unitholders."
2024 Annual Highlights
-- Increased distributions by approximately 2% to Unitholders on record at
June 30, 2024
-- Reported Net Asset Value per Unit ("NAV") of $2.37 at December 31, 2024
compared to $1.90 at December 31, 2023
-- Same Property Net Operating Income1 ("Same Property NOI") increased by
8.11% in 2024 compared to 2023
-- Reported funds from operations ("FFO") per Unit of $0.1224 for the year
ended December 31, 2024, compared to $0.0970 for 2023
-- Reported adjusted funds from operations ("AFFO") per Unit of $0.1022 for
year ended December 31, 2024, compared to $0.0936 for 2023
-- Average Occupancy rate of 99.29% reported for the year ended December 31,
2024
Operations Summary
Portfolio Operational Information Year ended Year ended
December 31, 2024 December 31, 2023
Number of properties 4 4
Number of suites 516 516
Average Occupancy Rate 99.29 % 99.00 %
Average rental rate $1,597 $1,540
Same property Net Operating Income $ 6,875,434 $ 6,359,930
Three months ended Year ended
December 31 December 31
Reconciliation of Same 2024 2023 2024 2023
Property NOI(2) to IFRS
Revenue from investment
properties $ 2,631,643 $ 2,521,270 $10,346,107 $ 9,958,861
Expenses:
Property operating
expenses 681,190 675,977 2,533,484 2,695,493
Realty taxes 233,688 225,864 937,189 903,438
Total property operating
expenses 914,878 901,841 3,470,673 3,598,931
Same Property NOI(2) $ 1,716,765 $ 1,619,429 $ 6,875,434 $ 6,359,930
(1) This news release contains certain non-IFRS and
other financial measures. Refer to "Notice with respect
to Non-IFRS Measures" in this news release for a complete
list of measures and their meaning.
(2) Same Property Portfolio consists of all the multi-residential
properties owned by the REIT for comparable periods
in Q4 2024 and Q4 2023 -- See "Notice with respect
to Non-IFRS Measures" below.
Reconciliation of Debt-to-Gross Book Value ratio
Total interest-bearing debt $101,678,601
Total assets on balance sheet 150,093,432
Debt-to-Gross Book Value ratio 67.74 %
Reconciliation of Debt Service Coverage ratio
Net Operating Income for the year ended December 31,
2024 $6,875,434
Mortgage payments for the year ended December 31,
2024 4,959,081
Debt Service Coverage ratio 1.39
Weighted average term to maturity on fixed rate debt 63.56 months
Weighted average interest rate on fixed debt 3.09 %
Financial Summary
The REIT generated FFO and AFFO per Unit of $0.1022 and $0.0936, respectively, during the year ended December 31, 2024.
Reconciliation of Net Three months ended Year ended
Income and
Comprehensive Income to FFO
and AFFO
December 31 December 31
2024 2023 2024 2023
Revenue from investment
properties $2,631,643 $ 2,521,270 $10,346,107 $9,958,861
Property operating expenses (681,190) (675,977) (2,533,484) (2,695,493)
Realty taxes (233,688) (225,864) (937,189) (903,438)
Net Operating Income 1,716,765 1,619,429 6,875,434 6,359,930
NOI Margin 65.24 % 64.23 % 66.45 % 63.86 %
General and administrative (221,420) (308,952) (842,226) (887,564)
Interest income 43,238 24,624 171,165 83,894
Finance costs (989,164) (957,055) (3,982,916) (3,828,958)
Fair value gain (loss) on:
Investment properties 2,884,863 4,337,052 7,226,479 7,510,095
Unit-based compensation 22,239 (49,067) 42,871 5,944
Warrants liability - - - -
Exchangeable Units 1,357,667 (3,686,033) 2,664,585 (542,063)
Net income and
comprehensive income $4,814,188 $ 979,998 $12,155,392 $8,701,278
Three months ended Year ended
December 31 December 31
Reconciliation of FFO 2024 2023 2024 2023
Net income and
comprehensive income 4,814,188 979,998 12,155,392 8,701,278
Distributions on
Exchangeable Units 40,730 41,468 164,929 163,968
Fair value (gain) loss on
investment properties (2,884,863) (4,337,052) (7,226,479) (7,510,095)
Fair value (gain) loss on
unit-based compensation (22,239) 49,067 (42,871) (5,944)
Fair value (gain) loss on
Exchangeable Units (1,357,667) 3,686,033 (2,664,585) 542,063
FFO 590,149 419,514 2,386,386 1,891,270
Weighted average number of
Units 19,498,838 19,498,838 19,498,838 19,501,576
FFO/unit $ 0.0303 $ 0.0215 $ 0.1224 $ 0.0970
Reconciliation of AFFO
FFO $ 590,149 $ 419,514 $2,386,386 $1,891,270
Capital expenditures (12,013) (10,560) (377,718) (52,729)
Leasing costs (3,124) (2,388) (15,803) (14,146)
AFFO 575,012 406,566 1,992,865 1,824,395
Weighted average number of
Units 19,498,838 19,498,838 19,498,838 19,501,576
AFFO/unit $ 0.0295 $ 0.0209 $ 0.1022 $ 0.0936
AFFO payout ratio 13.23 % 18.34 % 15.14 % 16.17 %
NAV and NAV per Unit At December 31, 2024 At December 31, 2023
Reconciliation
Unitholders' Equity $39,901,132 $27,578,331
Exchangeable Units 6,788,338 9,757,146
NAV 46,689,470 37,335,477
Trust Units 9,055,242 8,657,564
Exchangeable Units 10,443,596 10,841,274
Deferred Units 169,608 167,265
Total Units oustanding 19,668,446 19,666,103
NAV per unit $2.37 $1.90
The overall increase in NAV from $1.90 at December 31, 2023 to $2.37 at December 31, 2024, was mostly due to market conditions throughout all properties and net operating income less finance costs and general and administrative expenses exceeding distributions.
Outlook
Management is focused on growing the portfolio and unitholder value through increasing rental rates where the market allows, future acquisition opportunities that will increase the overall size and performance of the REIT, as well as maintaining a manageable debt structure. The current debt of the REIT is all fixed rates with an average remaining mortgage term of over five years. The majority of the REIT's debt is CMHC insured.
Management believes the organic growth in NAV due to paydown of debt over the mortgage terms is a positive outcome of the higher leveraged position as well as lowering the REIT's debt-to-GBV ratio and thereby increasing the NAV per Unit over time.
Management anticipates the demand for rental housing to continue to remain strong in the coming quarters. Management will assess the risks to the portfolio as the tariff uncertainty continues between Canada and the United States governments, and how that may or may not impact the economy. Interest rates have maintained the elevated levels increasing the cost of home ownership and delaying would-be homeowners purchases.
The increase in the portfolio's operating costs due to inflation may be offset by increases in rental rates, where the market allows, as 56 percent of the portfolio at December 31, 2024 is not under rent control or restrictive financing agreements.
About Marwest Apartment Real Estate Investment Trust
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