NexLiving Communities Reports Record Q4 2023 Operating and Financial Results
Summary of Results
- Suite count increased year-over-year from 1,016 to 1,166 (+15% Y/Y).
- Property revenue increased +46% to
$4.8 million for the three-month period and +56% to$18.5 million for the twelve-month period endedDecember 31, 2023 . - Net operating income ("NOI") increased +61% to
$2.9 million (60.4% margin) for the three-month period and +65% to$11.0 million (56.2% margin) for the twelve-month period endedDecember 31, 2023 . - FFO per share increased +52% for the three-month period and +37% for the twelve-month period, on a fully diluted basis.
- Same property NOI for the three-month period increased +24.0% as revenue grew by +7.7% and same property expenses declined by (11.5)%. The decrease in same property operating expenses was related to lower property taxes, maintenance, and insurance costs.
- Same property NOI for the twelve-month period increased +13.9% as revenue grew by +7.5% and same property expenses declined by (0.8)%. The decrease in same property operating expenses was related to lower property taxes, maintenance, and insurance costs, partially offset by higher cleaning and utility expenses.
- The portfolio remained highly occupied at 96.8% at
December 31, 2023 .New Brunswick occupancy was 97.8% andOntario occupancy was 88.1%, as approximately one-third of the overall portfolio vacant units were attributable to the Company's suite repositioning program in theOntario market.
Q4 2023 Operating and Financial Highlights:
As at |
|
|
Change |
Number of suites |
1,166 |
1,016 |
150 |
Occupancy |
96.8 % |
96.8 % |
- |
Net Debt to GBV* |
68.6 % |
65.6 % |
304 bps |
Weighted average term to debt maturity (years) |
4.6 |
2.8 |
1.8 yrs |
Weighted average contractual interest rate |
3.71 % |
2.99 % |
72 bps |
Net asset value |
74,633,442 |
69,896,825 |
6.8 % |
Net asset value per share |
$ 4.49 |
$ 4.73 |
(5.1) % |
For the three months ended |
2023 |
2022 |
Change |
Rental income |
4,811,070 |
3,300,364 |
45.8 % |
NOI |
2,905,709 |
1,808,085 |
60.7 % |
NOI margin |
60.4 % |
54.8 % |
561 bps |
Net income |
(3,039,678) |
2,366,603 |
(228.4) % |
FFO* |
856,708 |
499,818 |
71.4 % |
FFO per share - diluted* |
$ 0.05 |
$ 0.03 |
52.3 % |
Dividends declared (per share) |
$ 0.01 |
$ 0.01 |
- |
FFO payout ratio* |
19 % |
30 % |
(1,019) bps |
Weighted average units outstanding - diluted |
16,683,850 |
14,825,879 |
12.5 % |
Same property revenue* |
2,817,323 |
2,616,259 |
7.7 % |
Same property operating expenses* |
1,062,890 |
1,200,824 |
(11.5) % |
Same property NOI* |
1,754,433 |
1,415,435 |
24.0 % |
Same property NOI margin* |
62.3 % |
54.1 % |
817 bps |
For the twelve months ended |
2023 |
2022 |
Change |
Rental income |
18,475,666 |
11,864,526 |
55.7 % |
NOI |
11,036,516 |
6,670,444 |
65.5 % |
NOI margin |
59.7 % |
56.2 % |
351 bps |
Net income |
(2,203,803) |
7,513,188 |
(129.3) % |
FFO* |
2,837,887 |
1,859,846 |
52.6 % |
FFO per share - diluted* |
$ 0.17 |
$ 0.13 |
36.9 % |
Dividends declared (per share) |
$ 0.04 |
$ 0.04 |
- |
FFO payout ratio* |
23 % |
32 % |
(856) bps |
Weighted average units outstanding - diluted |
16,455,802 |
14,763,052 |
11.5 % |
Same property revenue* |
11,051,114 |
10,280,401 |
7.5 % |
Same property operating expenses* |
4,435,168 |
4,472,885 |
(0.8) % |
Same property NOI* |
6,615,946 |
5,807,516 |
13.9 % |
Same property NOI margin* |
59.9 % |
56.5 % |
338 bps |
*Refer to section "Non-IFRS Financial Measures" |
Fair Value of Investment Properties:
The Company's weighted average capitalization rate as at
NCIB Activity:
During the three month period ended
Transaction Update:
On
The Company and Devcore continue to make progress towards closing the Transaction and subject to receipt of final approval from the TSXV and all other conditions being satisfied or waived, including certain regulatory and lender approvals, the Company expects that the Transaction will close during the second quarter of 2024.
Refinancing Activity:
On
On
About the Company
The Company continues to execute on its plan to acquire recently built or refurbished, highly leased multi-residential properties in bedroom communities across
For more information about NexLiving, please refer to our website at www.nexliving.ca and our public disclosure at www.sedarplus.ca.
Forward-Looking Statements
This news release forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "projects", "estimates", "forecasts", "intends", "continues", "anticipates", or "does not anticipate" or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements contained in this news release include, but are not limited to, management's expectations of additional rental increases to come into effect by year end and the further enhancement of the Company's financial results. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. These forward-looking statements reflect the current expectations of the Company's management regarding future events and operating performance, but involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual events could differ materially from those projected herein and depend on a number of factors. These risks and uncertainties are more fully described in regulatory filings, which can be obtained on SEDAR at www.sedarplus.ca, under NexLiving's profile, as well as under Risk Factors section of the MD&A released on
Non-IFRS Financial Measures
The Company prepares and releases unaudited consolidated interim financial statements and audited consolidated annual financial statements prepared in accordance with IFRS. In this and other earnings releases, as a complement to results provided in accordance with IFRS, NexLiving discloses financial measures not recognized under IFRS which do not have standard meanings prescribed by IFRS. These include FFO, FFO (cents per share) – diluted, FFO payout ratio, Debt to GBV and same-property metrics (collectively, the "Non-IFRS Measures"). These Non-IFRS Measures are further defined and discussed in the MD&A dated
Neither the
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