HALIFAX, NS, April 21, 2021
/CNW/ - ViveRE Communities Inc. (TSXV:
VCOM) ("ViveRE" or the "Company") provides the
following corporate update.
"We are very pleased with the Company's performance over the
past year. ViveRE has successfully grown its' portfolio of
properties, more than doubled revenue and net operating income and
has established a significant pipeline of premium 55+ active living
properties for potential acquisition in the near term," noted
Mike Anaka, President and CEO. "We
are well positioned to continue increasing operating income and
asset values, as well as generating funds for reinvestment in the
business throughout 2021 and beyond."
2020 Operating Highlights
1) Portfolio Growth from Acquisitions
ViveRE completed $62.8 million in
acquisitions in 2020. The total portfolio increased to 533 units
and over $81 million in value at
cost. The Company added 347 units in Moncton NB, 47 units in Saint John NB and 20 units in Oshawa ON. The
Emma Street property in Oshawa is
the Company's first step toward geographic diversification into
secondary markets outside the Maritime provinces.
2) Revenue and NOI Growth
Property revenue increased by $2.5
million (233%) to $3.6 million
and net operating income increased by $1.4
million to over $2 million
(226%) during the year. Due to the timing of 2020 acquisitions, if
revenue and NOI from the current portfolio are maintained at the
current monthly run rate annual amounts are expected to be
approximately double in the 2021 fiscal year.
3) Below Market Rents
Management estimates that comparable market rents are
approximately 10-20% higher than ViveRE's average in- place rents.
The differential between in-place and market rents provides the
Company with the potential opportunity to raise rents and increase
yields while still providing very affordable, competitive rents to
our tenants.
4) Limited Exposure to Rent Control
Approximately 95% of the Company's properties are located in
New Brunswick and are presently
not subject to rent control. As a result ViveRE can adjust rental
rates annually in order to close the differential between in-place
and market rents.
5) Financing at Attractive Interest Rates
The Company has acquired its portfolio of properties at an
average cap rate of approximately 5.70%. ViveRE has also been able
to take advantage of low interest rates on conventional mortgages.
The Company placed mortgage debt of approximately $46 million on its 2020 property acquisitions at
a fixed weighted average interest rate of 1.89%.
Corporate Update
The 2020 Annual and Special Meeting of shareholders has been
scheduled for May 25, 2021 at
11am AST. The meeting will mark the
launch of the next phase of the Company's development including
rebranding and a strengthened management team. Further details will
be provided in the ViveRE Management Information Circular.
ViveRE reports that at the Annual and Special Meeting of the
shareholders of the Corporation held on June
29, 2020, a majority of the disinterested shareholders of
the Corporation approved the increase in the maximum number of
common shares issuable under the Corporation's Deferred Share Unit
Plan (DSU Plan) from 3,000,000 to 7,000,000.
The Board of Directors, in accordance with the terms of the
Company's DSU Plan, have approved the issuance of 2,185,000
deferred share units (DSUs) to directors, management and
consultants of the Company. The DSU's vest over three years in
accordance with the provisions of the Company's DSU plan.
The Board of Directors, in accordance with the provisions of the
Company's Stock Option Plan, also approved the issuance of 750,000
options to a consultant of the Company. The options are exercisable
at $0.19 per common share; vest in
two equal tranches of 375,000 options on April 15 , 2021 and October 15, 2021 and are exercisable for a ten
year term.
Further to the Company's press release dated February 22, 2021, ViveRE reports that it has
issued 1,152,636 common shares of the Company to settle outstanding
indebtedness owed to an arm's-length creditor of the company in the
amount of $238,400 of which
$86,600 was settled at a price of
$0.22 per share and $151,800 was settled at a price of $0.20 per share.
Company
ViveRE continues to execute its plan to acquire recently built
or refurbished, highly leased multi-residential properties in
bedroom communities across Canada.
The Company aims to satisfy the needs of the newly emerging 55+
resident. The demographic that has changed the world is now
changing the way residential rental apartments cater to their
requirements. Their desire for community, along with service,
quality and convenience has led to the emergence of the 55+ active
living segment. "Apartments" are the next home, after years of
owning they look forward to the carefree lifestyle provided through
renting in a community of their peers. ViveRE intends to
consolidate this emerging market niche. The company currently owns
533 units in New Brunswick and
Ontario. ViveRE has developed a
robust pipeline of qualified properties for potential acquisition.
By screening properties identified to match the criteria set out by
the company (proximity to healthcare, amenities, services and
recreation), management has identified a significant pipeline of
potential acquisitions for consideration by the Company's Board of
Directors.
On behalf of the Board of Directors of ViveRE Communities
Inc.
"Mike Anaka"
Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
Forward-Looking Statements
This news release contains forward-looking statements
relating to the future operations of ViveRE and other statements
that are not historical facts. Forward-looking statements are often
identified by terms such as "will", "may", "should", "anticipate",
"expects" and similar expressions. All statements other than
statements of historical fact, included in this release, including,
without limitation, statements regarding the future plans and
objectives of ViveRE Communities Inc, are forward-looking
statements that involve risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from ViveRE Communities Inc.'s
expectations include other risks detailed from time to time in the
filings made by ViveRE Communities Inc. with securities
regulators.
The reader is cautioned that assumptions used in the
preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of ViveRE Communities Inc. The reader
is cautioned not to place undue reliance on any forward-looking
information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release and ViveRE Communities Inc.
will only update or revise publicly the included forward-looking
statements as expressly required by Canadian securities
law.
SOURCE ViveRE Communities Inc.