MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST ANNOUNCES 2024 ANNUAL RESULTS

Canada NewsWire

WINNIPEG, MB, March 20, 2025

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

WINNIPEG, MB, March 20, 2025 /CNW/ - Marwest Apartment Real Estate Investment Trust (the "REIT") (TSXV: MAR.UN) reported financial results for the year ended December 31, 2024. This press release should be read in conjunction with the REIT's Consolidated Financial Statements and Management's Discussion and Analysis ("2024 Annual MD&A") for the year ended December 31, 2024, which are available on the REIT's website at www.marwestreit.com and at www.sedarplus.ca(1) .

Mr. William Martens, Chief Executive Officer and Trustee commented, "The REIT performed well throughout 2024 reporting strong results with an increase of 8.11% in Same Property NOI. With continued growth in the portfolio's rental rates, we have seen continued increases in our NAV per Unit. As we look ahead, we believe the strong fundamentals for rentals in Winnipeg will allow us to continue to deliver positive financial results for our Unitholders."

2024 Annual Highlights

   -- Increased distributions by approximately 2% to Unitholders on record at 
      June 30, 2024 
 
   -- Reported Net Asset Value per Unit ("NAV") of $2.37 at December 31, 2024 
      compared to $1.90 at December 31, 2023 
 
   -- Same Property Net Operating Income1 ("Same Property NOI") increased by 
      8.11% in 2024 compared to 2023 
 
   -- Reported funds from operations ("FFO") per Unit of $0.1224 for the year 
      ended December 31, 2024, compared to $0.0970 for 2023 
 
   -- Reported adjusted funds from operations ("AFFO") per Unit of $0.1022 for 
      year ended December 31, 2024, compared to $0.0936 for 2023 
 
   -- Average Occupancy rate of 99.29% reported for the year ended December 31, 
      2024 

Operations Summary

 
 
Portfolio Operational Information     Year ended          Year ended 
                                       December 31, 2024   December 31, 2023 
Number of properties                                   4                   4 
Number of suites                                     516                 516 
Average Occupancy Rate                           99.29 %             99.00 % 
Average rental rate                               $1,597              $1,540 
 
Same property Net Operating Income           $ 6,875,434         $ 6,359,930 
 
 
                            Three months ended        Year ended 
                                         December 31               December 31 
Reconciliation of Same      2024         2023         2024         2023 
Property NOI(2) to IFRS 
Revenue from investment 
 properties                 $ 2,631,643  $ 2,521,270  $10,346,107  $ 9,958,861 
Expenses: 
Property operating 
 expenses                       681,190      675,977    2,533,484    2,695,493 
Realty taxes                    233,688      225,864      937,189      903,438 
Total property operating 
 expenses                       914,878      901,841    3,470,673    3,598,931 
Same Property NOI(2)        $ 1,716,765  $ 1,619,429  $ 6,875,434  $ 6,359,930 
 
 
(1) This news release contains certain non-IFRS and 
 other financial measures. Refer to "Notice with respect 
 to Non-IFRS Measures" in this news release for a complete 
 list of measures and their meaning. 
(2) Same Property Portfolio consists of all the multi-residential 
 properties owned by the REIT for comparable periods 
 in Q4 2024 and Q4 2023 -- See "Notice with respect 
 to Non-IFRS Measures" below. 
 
 
Reconciliation of Debt-to-Gross Book Value ratio 
 
Total interest-bearing debt                            $101,678,601 
Total assets on balance sheet                           150,093,432 
Debt-to-Gross Book Value ratio                              67.74 % 
 
Reconciliation of Debt Service Coverage ratio 
 
Net Operating Income for the year ended December 31, 
 2024                                                    $6,875,434 
Mortgage payments for the year ended December 31, 
 2024                                                     4,959,081 
Debt Service Coverage ratio                                    1.39 
Weighted average term to maturity on fixed rate debt   63.56 months 
Weighted average interest rate on fixed debt                 3.09 % 
 

Financial Summary

The REIT generated FFO and AFFO per Unit of $0.1022 and $0.0936, respectively, during the year ended December 31, 2024.

 
Reconciliation of Net        Three months ended       Year ended 
Income and 
Comprehensive Income to FFO 
and AFFO 
                             December 31              December 31 
                             2024        2023         2024         2023 
Revenue from investment 
 properties                  $2,631,643  $ 2,521,270  $10,346,107   $9,958,861 
Property operating expenses   (681,190)    (675,977)  (2,533,484)  (2,695,493) 
Realty taxes                  (233,688)    (225,864)    (937,189)    (903,438) 
Net Operating Income          1,716,765    1,619,429    6,875,434    6,359,930 
NOI Margin                      65.24 %      64.23 %      66.45 %      63.86 % 
General and administrative    (221,420)    (308,952)    (842,226)    (887,564) 
Interest income                  43,238       24,624      171,165       83,894 
Finance costs                 (989,164)    (957,055)  (3,982,916)  (3,828,958) 
Fair value gain (loss) on: 
Investment properties         2,884,863    4,337,052    7,226,479    7,510,095 
Unit-based compensation          22,239     (49,067)       42,871        5,944 
Warrants liability                    -            -            -            - 
Exchangeable Units            1,357,667  (3,686,033)    2,664,585    (542,063) 
Net income and 
comprehensive income         $4,814,188    $ 979,998  $12,155,392   $8,701,278 
 
 
                            Three months ended        Year ended 
                            December 31               December 31 
Reconciliation of FFO       2024         2023         2024         2023 
Net income and 
 comprehensive income         4,814,188      979,998   12,155,392    8,701,278 
Distributions on 
 Exchangeable Units              40,730       41,468      164,929      163,968 
Fair value (gain) loss on 
 investment properties      (2,884,863)  (4,337,052)  (7,226,479)  (7,510,095) 
Fair value (gain) loss on 
 unit-based compensation       (22,239)       49,067     (42,871)      (5,944) 
Fair value (gain) loss on 
 Exchangeable Units         (1,357,667)    3,686,033  (2,664,585)      542,063 
FFO                             590,149      419,514    2,386,386    1,891,270 
Weighted average number of 
 Units                       19,498,838   19,498,838   19,498,838   19,501,576 
FFO/unit                       $ 0.0303     $ 0.0215     $ 0.1224     $ 0.0970 
 
Reconciliation of AFFO 
FFO                           $ 590,149    $ 419,514   $2,386,386   $1,891,270 
Capital expenditures           (12,013)     (10,560)    (377,718)     (52,729) 
Leasing costs                   (3,124)      (2,388)     (15,803)     (14,146) 
AFFO                            575,012      406,566    1,992,865    1,824,395 
Weighted average number of 
 Units                       19,498,838   19,498,838   19,498,838   19,501,576 
AFFO/unit                      $ 0.0295     $ 0.0209     $ 0.1022     $ 0.0936 
AFFO payout ratio               13.23 %      18.34 %      15.14 %      16.17 % 
 
 
NAV and NAV per Unit                At December 31, 2024  At December 31, 2023 
Reconciliation 
Unitholders' Equity                          $39,901,132           $27,578,331 
Exchangeable Units                             6,788,338             9,757,146 
NAV                                           46,689,470            37,335,477 
Trust Units                                    9,055,242             8,657,564 
Exchangeable Units                            10,443,596            10,841,274 
Deferred Units                                   169,608               167,265 
Total Units oustanding                        19,668,446            19,666,103 
NAV per unit                                       $2.37                 $1.90 
 

The overall increase in NAV from $1.90 at December 31, 2023 to $2.37 at December 31, 2024, was mostly due to market conditions throughout all properties and net operating income less finance costs and general and administrative expenses exceeding distributions.

Outlook

Management is focused on growing the portfolio and unitholder value through increasing rental rates where the market allows, future acquisition opportunities that will increase the overall size and performance of the REIT, as well as maintaining a manageable debt structure. The current debt of the REIT is all fixed rates with an average remaining mortgage term of over five years. The majority of the REIT's debt is CMHC insured.

Management believes the organic growth in NAV due to paydown of debt over the mortgage terms is a positive outcome of the higher leveraged position as well as lowering the REIT's debt-to-GBV ratio and thereby increasing the NAV per Unit over time.

Management anticipates the demand for rental housing to continue to remain strong in the coming quarters. Management will assess the risks to the portfolio as the tariff uncertainty continues between Canada and the United States governments, and how that may or may not impact the economy. Interest rates have maintained the elevated levels increasing the cost of home ownership and delaying would-be homeowners purchases.

The increase in the portfolio's operating costs due to inflation may be offset by increases in rental rates, where the market allows, as 56 percent of the portfolio at December 31, 2024 is not under rent control or restrictive financing agreements.

About Marwest Apartment Real Estate Investment Trust

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