Toronto, Ontario--(Newsfile Corp. - April 29, 2025) - Sun Residential Real Estate Investment Trust (TSXV: SRES) today released its financial results for the three months ended March 31, 2025. All amounts are in United States dollars unless otherwise noted. "C$" refers to Canadian dollars.
Revenue for the three months ended March 31, 2025, was $1,476,147, an increase of 1.9% compared with the same period in the prior year. Net income and comprehensive income for the three months ended March 31, 2025 was $733,814, an increase of $75,994, after recording a fair value gain of $77,494. Funds from operations (FFO) and adjusted funds from operations (AFFO) of $183,391 decreased by 8.5% from the previous year.
At March 31, 2025, Sun had total assets of $63.5 million (December 31, 2024 - $64.5 million), and cash and cash equivalents of $2.7 million (December 31, 2024 - $3.3 million). Working capital at March 31, 2025, was $3.1 million (December 31, 2024 - $3.3 million).
On April 1, 2025, Sun announced that it had entered into separate purchase agreements for the sale of its interests in its two properties: a 51% interest in Evergreen at Southwood, a "Class A" multi-family residential property located in Tallahassee, Florida comprising 12 buildings with 288 rental units, and 4815 Tudor Drive, an 8-unit multi-family property located in Cape Coral, Florida which is currently being renovated. Those properties represent substantially all of Sun's assets. The sales must be approved by unitholders, the mortgage lender, and regulators. Following the sale, subject to approval by regulators and unitholders, Sun intends to distribute all of the assets in cash and terminate the trust.
Evergreen at Southwood is being sold to Westdale Galesi Partners, LLC, the current owner of the remaining 49% interest in Evergreen at Southwood. Under the purchase agreement, Westdale Galesi Partners, LLC has agreed to acquire our 51% in Westdale Evergreen Southwood LLC, the owner of Evergreen at Southwood, for $14,055,600. The mortgage loan for Evergreen at Southwood will remain with Westdale Evergreen Southwood LLC.
Tudor is being sold to 4815 Tudor Drive, LLC, a company controlled by Robert C. Wetenhall Jr., a trustee and the Chief Executive Officer of Sun. Under the purchase agreement, 4815 Tudor Drive, LLC has agreed to acquire Tudor for $1,250,000, an amount consistent with recent broker opinions of value obtained by Sun. Tudor is mortgage free and its renovation is expected to be completed before its sale closes.
"We are pleased that the two asset sales potentially enable us to maximize value for our unitholders," noted Dan Argiros, Chair of the Board of Trustees. "Provided that we receive the required approvals, we expect to distribute most of the proceeds to our unitholders in late June, 2025, with a final distribution around the end of September." For further details please refer to the management information circular for the annual and special unitholders meeting scheduled for May 28, 2025, which may be found on Sedar+ at www.sedarplus.ca.
Additional highlights (at March 31, 2025 or for the year then ended, unless otherwise noted)
- Occupancy - 94% (currently 95%)
- Net operating income margin - 56%
- FFO (funds from operations - $183,391 (previous year-- $200,330).
- AFFO (adjusted funds from operations) - $183,391 (previous year - $200,330).
- Debt to gross book value - 49.5%
- NAV (net asset value) per unit - $0.084 (C$0.121)
A reconciliation to non-IFRS measures is set out below. For further information on the financial results as well as analysis of operational statistics, please refer to Sun's consolidated financial statements and its management's discussion and analysis for the period ended March 31, 2025 available on SEDAR+ at www.sedarplus.ca and on Sun's website at www.sunresreit.com.
Non-IFRS Financial Measures
Weighted average leased rate, FFO, AFFO, rent collection, net operating income margin, NAV per unit and debt to gross book value are key measures of performance commonly used by real estate investment trusts. They are not measures recognized under International Financial Reporting Standards (IFRS) and do not have meanings prescribed by IFRS. Weighted average leased rate, FFO, AFFO, rent collection for March 2024, net operating income margin, NAV per unit and debt to gross book value as calculated by Sun may not be comparable to similar measures presented by other issuers. Please see the table below for reconciliations to IFRS measures.
| Three months ended | |||||
| March 31 | |||||
| 2025 | 2024 | ||||
| Net income (loss) attributable to unitholders | |||||
| unitholders | $ | 174,817 | $ | 260,495 | |
| Adjustments to arrive at FFO | |||||
| Fair value adjustment to | |||||
| income producing investment properties | (350,000) | - | |||
| Realty taxes not accounted for under | |||||
| IFRIC 21 | (245,100) | (250,200) | |||
| Non-controlling interest | 291,599 | 122,598 | |||
| Fair value adjustment to | |||||
| property under development | 272,506 | - | |||
| Deferred income taxes | 40,093 | 66,560 | |||
| Loss (gain) on foreign currency translation | (524) | 877 | |||
| Funds from operations (FFO) | 183,391 | 200,330 | |||
| Adjustments to arrive at AFFO | |||||
| Capital expenditures | - | - | |||
| Non-controlling interest | - | - | |||
| Adjusted funds from operations (AFFO) | $ | 183,391 | $ | 200,330 | |
| Weighted average number of units | 203,338,999 | 203,338,999 | |||
| FFO per unit | $ | 0.0009 | $ | 0.0010 | |
| AFFO per unit | $ | 0.0009 | $ | 0.0010 | |
About Sun Residential REIT
Sun Residential Real Estate Investment Trust is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust dated January 22, 2019, as amended and restated on March 22, 2019 and November 4, 2020. On April 1, 2025, Sun announced its intention to sell its assets, distribute net cash to its unitholders and then terminate the trust.
Caution regarding forward-looking statements
Forward-looking statements in this news release, including the timing of the development of our Cape Coral property, and elsewhere reflect Sun's current assumptions, expectations, and projections. Often, but not always, forward-looking statements can be identified by words such as "planned," "expects," "expecting," "anticipated," "have confidence," or "believes," or variations of such words and phrases or state that certain actions, events, or results "may," "could," "would," or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Sun's actual results or achievements to be materially different from those expressed or implied by the forward-looking statements. The forward-looking statements made in this news release relate only to events or information as of the date hereof. All forward-looking statements are based on assumptions that may prove to be incorrect. Furthermore, forward-looking statements are qualified in their entirety by the inherent risks, uncertainties and changes in circumstances surrounding future expectations that are difficult to predict and mostly beyond the control of Sun.
Except as specifically required by Canadian securities law, Sun undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Many factors will cause actual results to differ, perhaps materially, from results in the forward-looking statements: for a description of such factors please refer to the Management's Discussion and Analysis for the year ended March 31, 2025, available at www.sedarplus.ca or at www.sunresreit.com.
For further information, please contact:
Robert C. Wetenhall Jr.
Chief Executive Officer
rwetenhall@sunresreit.com
Jeffrey D. Sherman,
Chief Financial Officer jsherman@sunresreit.com
(416) 214-2228
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/250166
SOURCE: Sun Residential Real Estate Investment Trust
