Pure Multi-Family REIT LP Announces Release of Third Quarter Financial Results and Conference Call

On a per unit basis, Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO") were both negatively impacted during the three and nine months ended September 30, 2017 primarily due to the bought deal equity offerings completed during the prior quarters, the timing of the deployment of the net proceeds therefrom for acquisitions, the additional general and administrative ("G&A") expense incurred due to the internalization of property management and asset management functions, and the lowering of the overall leverage of Pure Multi-Family's statement of financial position.

Pure Multi-Family incurred G&A expense of $1,645,725 for the three months ended September 30, 2017, and $3,685,612 for the nine months ended September 30, 2017.  G&A expense as a percentage of revenues for the three and nine months ended September 30, 2017 was 6.8% and 5.5%, respectively.  Included in G&A expense for the three and nine months ended September 30, 2017 were non-recurring expenditures resulting from the internalization of the property management function of $489,486 and $701,990, respectively.  Removing these non-recurring expenditures results in an adjusted G&A expense as a percentage of revenue for the three and nine months ended September 30, 2017 of 4.8% and 4.5%, respectively.

Property Management Internalization

Non-recurring initial costs were incurred during the quarter relating to establishing our property management platform and our new Dallas Fort-Worth office. Although there was some duplication of costs during the transition phase, all investment properties were successfully transitioned in-house from third party property management during the quarter.

As of October 1, 2017, all external third-party property management fees have ceased to be paid by Pure Multi-Family, and we believe this will be accretive to all unitholders and drive per unit cash flow growth over the long term. 

Deleveraging the Statement of Financial Position

The Debt to Gross Book Value Ratio across our portfolio was 50.8% as at September 30, 2017. We have made a conscious effort to decrease our leverage ratios on new acquisitions to improve our overall portfolio leverage ratios as we continue to pursue growth. Of the five acquisitions made through the third quarter of 2017, total debt of $99.5 million was obtained, representing a leverage ratio of 48.3%.

Although deleveraging can create a negative impact on payout ratios in the near term, we believe it is the right thing to do for long term success.

Property Tax Appeals

Five property tax appeals relating to the prior year remain outstanding as of September 30, 2017.  We believe there is a high probability of such appeals being resolved before the end of 2017 and are working diligently on finalizing the current year property tax assessments.

Acquisitions

In July, we acquired PURE at La Villita ("La Villita"), a 306 Unit Class A multi-family apartment community located in the prestigious Las Colinas submarket of Dallas, Texas, for US$48.8 million. We funded the purchase of La Villita with cash on hand and new first mortgage financing in the amount of US$24.4 million, bearing a fixed interest rate of 3.81% per annum for a term of 15 years.

Houston Property Update

In late August, the devastating Tropical Storm Harvey hit landfall in Southeast Texas and delivered tremendous rainfall to the city of Houston over four days. We were fortunate to report only minor damage to our two Houston apartment communities.  Pure Multi-Family incurred approximately $61,500 in damages during the quarter related to Tropical Storm Harvey.  While there are still some minor repairs ongoing, both properties continue to operate at full capacity.

AFFO Payout ratio

The primary reasons for the increased FFO and AFFO payout ratios in Q3 were due to excess cash on the balance sheet, resulting from the two equity offerings completed during Q2 2017, deployment of net proceeds therefrom for acquisitions, increase in property tax expenses and the additional G&A expenses incurred as a result of the internalization of the property management and asset management functions.

Q3 2017 Financial Highlights

				As at September 30, 2017	As at December 31, 2016	Change
Debt to Gross Book Value Ratio				50.8%	55.2%	(440bps)
Fair Value of Investment Properties (US$000's)				1,013,652	778,547	30.2%
Weighted Average Fair Value IFRS Capitalization Rate				5.18%	5.41%	(23bps)
Total Portfolio Leased Occupancy				97.1%	94.9%	220bps
Total Number of Investment Properties				20	15	33.3%
Total Number of Residential Units				6,515	5,229	24.6%
Portfolio Weighted Average Year of Construction				2006	2006	-
	For the nine months ended September 30,			For the three months ended September 30,
(US$000's, except per unit amounts)	2017	2016	Change	2017	2016	Change
Weighted Average Class A Units Outstanding - Basic	66,297,478	50,255,692		76,729,771	52,660,126
Weighted Average Class A Units Outstanding - Diluted	70,329,336	54,889,804		76,729,771	58,368,104
Rental Revenue – Same Property (1)	46,140	44,863	2.9%	15,568	15,294	1.8%
Rental Revenue – Non-Same Property	20,758	11,435	81.5%	8,689	4,570	90.1%
Rental Revenue – Total	66,898	56,298	18.8%	24,257	19,864	22.1%
Net Rental Income – Same Property (1)	25,485 Werbung Mehr Nachrichten zur Pure Multi-Family REIT LP Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 08:56 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Gresham Technologies Plc 08:53 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Shanta Gold Ltd 08:52 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Network International Holdings Plc SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59