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CALGARY, Alberta, Nov. 10, 2022 (GLOBE NEWSWIRE) — Northview Fund (�Northview or the Fund) (NHF.UN TSX), today announced financial results for the three and nine months ended September 30, 2022.
All amounts in this news release are in thousands of Canadian dollars unless otherwise indicated.
We achieved NOI growth of 2.4% in the third quarter of 2022, driven by improved multi-residential occupancy across the portfolio. Our teams focus on residents customer service experience and operating efficiencies as well as improving economic conditions were the key drivers for the occupancy momentum from the prior quarter, including a 300 basis point improvement in Western Canada. These occupancy gains have helped offset continued inflationary pressures, commented Mr. Todd Cook, Chief Executive Officer of Northview. With the current rising interest rate environment, the Fund continues its mortgage refinance program with a goal of reducing the amount of floating rate debt on the credit facility. | |
HIGHLIGHTS
(1) See Non-GAAP and Other Financial Measures section of this news release.
(2) Non-GAAP financial measure or non-GAAP ratio. See Non-GAAP and Other Financial Measures section of this news release.
FINANCIAL CONDITIONS AND OPERATING RESULTS
(thousands of dollars, except as indicated) | As at September 30, 2022 | As at December 31, 2021 |
Total assets | 1,916,620 | 1,853,096 |
Total liabilities, excluding net assets attributable to Unitholders | 1,375,684 | 1,357,746 |
Total liabilities, net assets attributable to Unitholders | 1,915,474 | 1,852,184 |
Total non-current liabilities, excluding net assets attributable to Unitholders | 1,065,887 | 570,239 |
Mortgages payable | 847,867 | 808,842 |
Debt to gross book value(1) | 66.9% | 67.8% |
Weighted average mortgage interest rate | 3.19% | 2.87% |
Weighted average term to maturity (years) | 2.6 | 2.7 |
Weighted average capitalization rate | 7.18% | 7.44% |
Multi-residential occupancy(1) | 92.1% | 90.2% |
AMR ($)(1) | 1,276 | 1,272 |
Number of multi-residential suites | 11,121 | 11,121 |
Number of execusuites | 200 | 200 |
Commercial sq. ft. | 1,131,730 | 1,131,730 |
Number of Units outstanding (000s)(1) | 35,917 | 35,917 |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||
(thousands of dollars, except as indicated) | 2022 | 2021 | 2022 | 2021 | ||||
Revenue | 49,703 | 48,172 | 147,241 | 143,701 | ||||
NOI | 30,904 | 30,189 | 84,163 | 84,751 | ||||
NOI margin | 62.2% | 62.7% | 57.2% | 59.0% | ||||
Cash flows provided by operating activities | 9,443 | 13,572 | 31,365 | 39,213 | ||||
Distributions declared to Unitholders | 11,287 | 11,287 | 33,863 | 33,863 | ||||
Monthly distributions declared per Unit weighted average ($/Unit) | 0.1091 | 0.1092 | 0.1091 | 0.1092 | ||||
Class A Unit ($/Unit) | 0.1048 | 0.1048 | 0.1048 | 0.1048 | ||||
Class C Unit ($/Unit) | 0.1106 | 0.1106 | 0.1106 | 0.1106 | ||||
Class F Unit ($/Unit) | 0.1081 | 0.1081 | 0.1081 | 0.1081 | ||||
FFO payout ratio trailing twelve months(2)(3) | 78.2% | 70.7% | 78.2% | 70.7% | ||||
AFFO payout ratio trailing twelve months(2)(3) | 99.5% | 85.6% | 99.5% | 85.6% | ||||
Net and comprehensive loss | 52,707 | 839 | 45,683 | (3,136 | ) | |||
Net and comprehensive loss per Unit ($/Unit) | 1.47 | 0.02 | 1.27 | (0.09 | ) | |||
FFO(2) | 14,553 | 18,479 | 41,655 | 49,284 | ||||
FFO per Unit ($/Unit)(2) | 0.41 | 0.51 | 1.16 | 1.37 | ||||
AFFO(2) | 11,353 | 15,680 | 32,056 | 40,887 | ||||
AFFO per Unit ($/Unit)(2) | 0.32 | 0.44 | 0.89 | 1.14 |
(1) See Non-GAAP and Other Financial Measures section of this news release.
(2) Non-GAAP financial measure or non-GAAP ratio. See Non-GAAP and Other Financial Measures section of this news release.
NON-GAAP AND OTHER FINANCIAL MEASURES
Certain measures in this earnings release do not have any standardized meaning as prescribed by generally accepted accounting principles (GAAP) and may, therefore, be considered non-GAAP financial measures, non-GAAP ratios, or other measures and may not be comparable to similar measures presented by other issuers. These measures are provided to enhance the readers overall understanding of our current financial condition and financial performance. They are included to provide investors and management with an alternative method for assessing our operating results in a manner that is focused on the performance of our ongoing operations and to provide a more consistent basis for comparison between periods. These measures include widely accepted measures of performance for Canadian real estate investment trusts; however, the measures are not defined by GAAP. In addition, these measures are subject to the interpretation of definitions by the preparers of financial statements and may not be applied consistently between real estate entities. These measures include:
For information on the most directly comparable GAAP measures, composition of the measures, a description of how Northview uses these measures, and an explanation of how these measures provide useful information to investors, refer to the Non-GAAP and Other Financial Measures section of Northviews management discussion and analysis as at and for the three months and nine months ended September 30, 2022 and 2021, available on Northviews profile on SEDAR at www.sedar.com, which is incorporated by reference into this news release.
NON-GAAP RECONCILIATION
The following table reconciles FFO and AFFO from net and comprehensive income (loss), the most directly comparable GAAP measure as presented in the financial statements:
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||
(thousands of dollars, except where indicated) | 2022 | 2021 | 2022 | 2021 | ||||
Net and comprehensive income (loss) | 52,707 | 839 | 45,683 | (3,136 | ) | |||
Adjustments: | ||||||||
Distributions to Unitholders | 11,287 | 11,287 | 33,863 | 33,863 | ||||
Depreciation | 751 | 765 | 2,289 | 2,301 | ||||
Fair value (gain) loss on investment properties | (50,249 | ) | 5,586 | (40,309 | ) | 15,384 | ||
Transaction costs | | | | 866 | ||||
Other(1) | 57 | 2 | 129 | 6 | ||||
FFO | 14,553 | 18,479 | 41,655 | 49,284 | ||||
Maintenance capex reserve multi-residential | (2,963 | ) | (2,747 | ) | (8,889 | ) | (8,241 | ) |
Maintenance capex reserve commercial | (237 | ) | (52 | ) | (710 | ) | (156 | ) |
AFFO | 11,353 | 15,680 | 32,056 | 40,887 | ||||
FFO per Unit ($/Unit) | 0.41 | 0.51 | 1.16 | 1.37 | ||||
FFO payout ratio trailing twelve months(2) | 78.2% | 70.7% | 78.2% | 70.7% | ||||
AFFO per Unit ($/Unit) | 0.32 | 0.44 | 0.89 | 1.14 | ||||
AFFO payout ratio trailing twelve months(2) | 99.5% | 85.6% | 99.5% | 85.6% | ||||
Number of Units outstanding (000s) | 35,917 | 35,917 | 35,917 | 35,917 |
(1) Other is comprised of non-controlling interest, amortization of other long-term assets, amortization of tenant inducements, gain on disposition of property, plant and equipment, and fair value adjustments for non-controlling interest and equity investments.
(2) Comparative information calculated for the period November 2, 2020, the date on which Northview began operations, to September 30, 2021.
FINANCIAL INFORMATION
Northviews unaudited condensed consolidated interim financial statements, the notes thereto, and Managements Discussion and Analysis for the three months and nine months ended September 30, 2022 and 2021, can be found on Northviews website at www.northviewfund.com or www.sedar.com.
ABOUT NORTHVIEW FUND
Northview is a closed-end fund established pursuant to a declaration of trust under the laws of the Province of Ontario for the primary purpose of indirectly acquiring, owning, and operating a portfolio of income-producing rental properties in secondary markets within Canada.
CAUTIONARY AND FORWARD-LOOKING INFORMATION
Certain information contained in this news release may constitute forward-looking information within the meaning of applicable securities laws relating to the business and financial outlook of Northview. Statements that reflect Northviews current objectives, plans, goals, and strategies are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking information. In some instances, forward-looking information can be identified by the use of terms such as may, should, expect, will, anticipate, believe, intend, estimate, predict, potentially, starting, beginning, begun, moving, continue, or other similar expressions concerning matters that are not historical facts. Forward-looking information in this news release includes, but is not limited to, statements related to the recapitalization event, the effects of the coronavirus (COVID-19) pandemic on Northviews business, future maintenance expenditures, financing and the availability of financing, future economic conditions, liquidity and capital resources, market trends, future operating efficiencies, tenant incentives, and occupancy levels. Such statements involve significant risks and uncertainties and are not meant to provide guarantees of future performance or results. These cautionary statements qualify all of the statements and information contained in this news release incorporating forward-looking information.
Forward-looking information is made as of November 10, 2022 and is based on information available to management as of that date. Management believes that the expectations reflected in forward-looking information is based upon information and reasonable assumptions available at the time they are made; however, management can give no assurance that the actual results will be consistent with this forward-looking information. Factors that could cause actual results, performance, or achievements to differ materially from those expressed or implied by forward-looking information include, but are not limited to, general economic conditions; the COVID-19 pandemic; the availability of a new competitive supply of real estate which may become available through construction; Northviews ability to maintain occupancy and the timely lease or re-lease of multi-residential suites, execusuites, and commercial space at current market rates; tenant defaults; changes in interest rates; Northviews qualification as a real estate investment trust (REIT); changes in operating costs; governmental regulations and taxation; fluctuations in commodity prices; and the availability of financing. Additional risks and uncertainties not presently known to Northview, or those risks and uncertainties that Northview currently believes to be not material, may also adversely affect Northview. Northview cautions readers that this list of factors is not exhaustive and that should certain risks or uncertainties materialize, or should underlying estimates or assumptions prove incorrect, actual events, performance, and results may vary materially from those expected. Except as specifically required by applicable Canadian law, Northview assumes no obligation to update or revise publicly any forward-looking information to reflect new events or circumstances.
To learn more about Northview, visit www.northviewfund.com or contact:
Todd Cook, Chief Executive Officer | Sarah Walker, Chief Financial Officer | ||
Northview Fund | Northview Fund | ||
Tel: | (403) 531-0720 | Tel: | (403) 531-0720 |
Email: | tcook@northviewfund.com | Email: | swalker@northviewfund.com |
(1) Other is comprised of non-controlling interest, amortization of other long-term assets, amortization of tenant inducements, gain on disposition of property, plant and equipment, and fair value adjustments for non-controlling interest and equity investments.
(2) Comparative information calculated for the period November 2, 2020, the date on which Northview began operations, to September 30, 2021.
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