Northview Canadian High Yield Residential Fund (“Northview” or the
“Fund”) (NHF.UN – TSX), today announced financial results for the
three months ended March 31, 2021.
All amounts in this news release are in
thousands of Canadian dollars unless otherwise indicated.
“We are pleased that the portfolio continued to
generate stable income during the first quarter of 2021,
underpinned by overall stable occupancy and AMR,” commented Mr.
Todd Cook, Northview’s Chief Executive Officer. “We achieved an FFO
payout ratio of 77.1% and collected 98.3% of rents, underscoring
our defensive positioning against economic cycle downturns.”
HIGHLIGHTS
- Net and
comprehensive loss for the three months ended March 31, 2021 was
$1.3 million and was primarily attributable to revenue of $47.8
million, offset by operating expenses of $20.9 million and other
expenses of $28.2 million.
- Funds from
operations (“FFO”) was $15.2 million for the three months ended
March 31, 2021, resulting in FFO per Unit of $0.42.
- Adjusted funds
from operations (“AFFO”) was $12.4 million for the three months
ended March 31, 2021, resulting in AFFO per Unit of $0.34.
- Northview’s FFO
payout ratio of 77.1% reflected the seasonality of results for the
three months ended March 31, 2021, which is characterized by higher
utility costs.
- Net operating
income (“NOI”) of $26.9 million for the three months ended March
31, 2021 was earned on revenue of $47.8 million and represented an
NOI margin of 56.3%.
- Distributions of
$11.3 million were declared for the three months ended March 31,
2021, representing a monthly weighted average distribution of
$0.1092 per issued Unit.
- Occupancy for
the three months ended March 31, 2021 was 89.1% for the
multi-family portfolio, an improvement of 40 basis points (“bps”)
compared to 88.7% for the period ended December 31, 2020.
- Debt to gross
book value was 66.9% as at March 31, 2021, increasing by 20 bps
compared to 66.7% as at December 31, 2020. Interest coverage and
debt service coverage ratios were 2.67 and 1.44, respectively, for
the period from November 2, 2020 to March 31, 2021.
- Northview
collected 98.3% of multi-residential and commercial rent in the
first quarter of 2021. The collection rate to-date in the second
quarter of 2021 has been consistent with the first quarter of
2021.
COVID-19 IMPACT
Notwithstanding the impacts of the COVID-19
pandemic, the long-term fundamentals for Canadian multi-residential
markets remain compelling and Northview’s portfolio is in several
diversified geographies. The demand for rental accommodation
remains strong due to home ownership affordability continuing to be
a challenge in many markets. Markets with exposure to student
housing continue to experience higher vacancy than expected under
normal operating conditions as a result of remote learning
arrangements at post-secondary institutions.
Due to the long-term tenure of commercial
leases, supported primarily by government tenants and credit-rated
corporations, there was minimal impact of COVID-19 on rent
collections in Northview’s commercial portfolio. Execusuites
experienced lower occupancy in 2020 than expected under normal
operating cycles as a result of restrictions on interterritorial
travel due to the COVID-19 pandemic. Execusuites showed
improvements in the first quarter of 2021 following the easing of
some travel restrictions for medical and business travel.
The administration of COVID-19 vaccinations
continues across Canada, and the federal government of Canada
expects that adult Canadians will have access to the COVID-19
vaccination by the end of Q3 2021. In particular, Nunavut and the
Northwest Territories have been identified as priority regions for
the COVID-19 vaccination and, as a result, the vaccination is more
accessible as comparable to other regions of Canada. As of May
2021, all adult residents in the Northwest Territories are eligible
for a COVID-19 vaccination, and Nunavut has opened vaccination
eligibility to adult residents in priority areas, including all
adults in Iqaluit, NU.
Northview has a rent deferral program for
residential tenants who have faced financial hardships due to the
COVID-19 pandemic. Approximately 1.3% of residential tenants
currently have a rent deferral arrangement and these tenants are
fulfilling their obligations under the payment arrangements.
Further disclosure surrounding the impact of
COVID-19 is included in Northview’s Management’s Discussion and
Analysis for the three months ended March 31, 2021, which is
available on www.sedar.com.
FINANCIAL CONDITIONS AND OPERATING RESULTS
(thousands of dollars, except as indicated) |
As atMarch 31, 2021 |
As at December 31, 2020 |
Total assets |
1,866,904 |
1,878,598 |
Total liabilities, excluding net assets attributable to
Unitholders |
1,352,647 |
1,362,821 |
Total liabilities, net assets attributable to Unitholders |
1,866,109 |
1,877,618 |
Total non-current liabilities, excluding net assets attributable to
Unitholders |
1,123,639 |
1,164,992 |
Mortgages payable |
838,121 |
847,845 |
Debt to gross book value(1) |
66.9% |
66.7% |
Interest coverage ratio (times)(1)(2) |
2.67 |
2.60 |
Debt service coverage ratio (times)(1)(2) |
1.44 |
1.39 |
|
|
|
Weighted average mortgage interest rate |
2.87% |
2.87% |
Weighted average term to maturity (years) |
3.4 |
3.6 |
Weighted average capitalization rate |
7.56% |
7.56% |
Multi-residential occupancy |
89.1% |
88.7% |
Multi-residential AMR ($) |
1,286 |
1,279 |
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 |
(thousands of dollars, except as indicated) |
Three Months Ended March 31, 2021 |
Total revenue |
47,848 |
Total NOI(1) |
26,941 |
NOI margin(1) |
56.3% |
|
|
Cash flow provided by operating activities |
11,783 |
Distributions declared to Unitholders |
11,288 |
Distributions declared per Unit – weighted average ($/Unit) |
0.1092 |
Class A Unit ($/Unit) |
0.1048 |
Class C Unit ($/Unit) |
0.1106 |
Class F Unit ($/Unit) |
0.1081 |
FFO payout ratio(1)(2) |
77.1% |
AFFO payout ratio(1)(2) |
95.0% |
|
|
Net and comprehensive loss |
(1,283) |
Net and comprehensive loss per Unit ($/Unit)(1) |
(0.04) |
FFO(1) |
15,170 |
FFO per Unit ($/Unit)(1) |
0.42 |
AFFO(1) |
12,371 |
AFFO per Unit ($/Unit)(1) |
0.34 |
(1) Non-GAAP financial measure,
see “Non-GAAP and Other Financial Measures” section of this news
release and reconciliation to the most directly comparable IFRS
financial measures shown in Northview’s Management’s Discussion and
Analysis (“MD&A”) for the three months ended March 31, 2021,
which is available on www.sedar.com.
(2) Calculated for the period
from November 2, 2020 to March 31, 2021 as at March 31, 2021, and
for the period from November 2, 2020 to December 31, 2020 as at
December 31, 2020.
FINANCIAL INFORMATION
Northview’s condensed consolidated interim
financial statements, the notes thereto, and Management’s
Discussion and Analysis for the three months ended March 31, 2021,
can be found on Northview’s website at www.northviewfund.com or
www.sedar.com.
ABOUT NORTHVIEW CANADIAN HIGH YIELD RESIDENTIAL
FUND
The Fund 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.
NON-GAAP AND OTHER FINANCIAL MEASURES
Certain measures in this news release do not
have any standardized meaning as prescribed by generally accepted
accounting principles (“GAAP”) and, therefore, are considered
non-GAAP 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. 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. Please refer to Northview’s most recent
Management’s Discussion and Analysis for definitions of non-GAAP
and other financial measures and a reconciliation of non-GAAP
measures to the most directly comparable IFRS financial measures,
including for FFO, AFFO, FFO payout ratio, AFFO payout ratio,
number of Units outstanding, debt to gross book value, debt service
coverage ratio, interest coverage ratio, NOI, and NOI margin.
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 Northview’s
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
Northview’s 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 May
10, 2021 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; Northview’s ability to
maintain occupancy and the timely lease or re-lease of multi-family
suites, execusuites, and commercial space at current market rates;
tenant defaults; changes in interest rates; Northview’s
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 OfficerNorthview Canadian High
Yield Residential FundTel: (403) 531-0720Email:
tcook@northviewfund.comSarah Walker, Chief Financial Officer
Northview Canadian High Yield Residential Fund Tel: (403) 531-0720
Email: swalker@northviewfund.com
Northview (TSX:NHF.UN)
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過去 株価チャート
から 1 2024 まで 1 2025