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Dream Residential REIT Reports Q3 2024 Financial Results

Business Wire - Wed Nov 6, 4:17PM CST

DREAM RESIDENTIAL REAL ESTATE INVESTMENT TRUST (TSX: DRR.U, TSX: DRR.UN) (“Dream Residential REIT” or the “REIT” or “we” or “us”) today announced its financial results for the three and nine months ended September 30, 2024 (“Q3 2024”). Management will host a conference call to discuss the financial results on November 7, 2024 at 10:00 a.m. (ET).

HIGHLIGHTS

  • Comparative properties net operating income (“comparative properties NOI”) 1 was $6.1 million in Q3 2024, a 2.5% increase when compared to $6.0 million in Q3 2023, primarily due to a $0.4 million increase in comparative investment properties revenue. Net rental income was $7.8 million in Q3 2024 or $0.4 million higher than the prior year comparative quarter, mainly due to a decrease in investment properties operating expenses.
  • Diluted funds from operations (“FFO”) per Unit 2 was $0.18 for Q3 2024 , consistent with Q3 2023.
  • Portfolio occupancy was 93.3% as at September 30, 2024 compared to 94.0% at the end of Q2 2024, with Greater Oklahoma City region at 95.6%, Greater Dallas-Fort Worth region at 90.4% and Greater Cincinnati region at 93.3%. Occupancy was consistent with market conditions as management advanced rents late in the summer before shifting towards seasonal stability beginning in the fourth quarter.
  • Average monthly rent at September 30, 2024 was $1,175 per unit, increasing 0.7% quarter-over-quarter, compared to $1,167 per unit at June 30, 2024.
  • Maintaining conservative balance sheet and financial flexibility. Net total debt-to-net total assets 3 was 32.7% as at September 30, 2024 compared to 31.6% as at December 31, 2023. Total mortgages payable were $138.5 million, consisting of 11 fixed rate mortgages with a weighted average contractual interest rate of 4.0%. Total assets (per condensed consolidated financial statements) were $407.8 million as at September 30, 2024. Total assets comprised primarily $396.4 million of investment properties and $7.7 million of cash and cash equivalents.

_______________________________

1 Comparative properties NOI is a non-GAAP financial measure. The tables included in the Appendices section of this press release reconcile comparative properties NOI to net rental income for the three and nine months ended September 30, 2024 and September 30, 2023. For further information on this non-GAAP financial measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

2 Diluted FFO per Unit is a non-GAAP ratio. Diluted FFO per Unit comprises FFO (a non-GAAP financial measure) divided by the weighted average number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

3 Net total debt-to-net total assets is a non-GAAP ratio. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

“In Q3 2024, the REIT delivered stable financial operational performance with a continued focus on the middle market,” said Brian Pauls, Chief Executive Officer of Dream Residential REIT. “Year-to-date comparative NOI growth was approximately 4.2% and in our targeted range for the year.”

  • Q3 2024 net income (loss) was $(2.0) million, which comprises net rental income of $7.8 million, fair value adjustments to investment properties of $(3.0) million and fair value adjustments to financial instruments of $(3.8) million, primarily from the revaluation of Class B units of DRR Holdings LLC, a subsidiary of the REIT (“Class B Units” – together with the Trust Units, “Units”). Other income and expenses totalled $(3.0) million.
  • Total equity (per condensed consolidated financial statements) was $237.9 million as at September 30, 2024, compared to $218.0 million as at December 31, 2023, primarily due to 3.3 million Class B Units exchanged for REIT Units for a total market value of $22.5 million for the nine months ended September 30, 2024.
  • Net asset value (“NAV”) 4 per Unit was $13.47 as at September 30, 2024, compared to $13.50 as at December 31, 2023.
  • The REIT declared distributions totalling $0.105 per Unit during Q3 2024.
  • During Q3 2024, 40,991 Class B Units were redeemed and exchanged for Trust Units for $0.3 million.

_______________________________

4 NAV per Unit is a non-GAAP ratio. NAV per Unit comprises total equity (including Class B Units) (a non-GAAP financial measure) divided by the number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

FINANCIAL HIGHLIGHTS

 

Three months ended September 30,

Nine months ended September 30,

(in thousands unless otherwise stated)

2024

2023

2024

2023

Operating results

 

 

 

 

 

 

 

 

Net income (loss)

$

(2,023)

$

(2,104)

$

2,139

$

(1,967)

FFO (1)

 

3,483

 

3,460

 

10,446

 

10,447

Net rental income

 

7,839

 

7,413

 

22,456

 

22,208

Comparative properties NOI (10)

 

6,127

 

5,979

 

18,570

 

17,823

Comparative properties NOI margin (11)

 

51.1%

 

51.4%

 

51.4%

 

51.6%

Per Unit amounts

 

 

 

 

 

 

 

 

Distribution rate per Trust Unit

$

0.105

$

0.105

$

0.315

$

0.315

Diluted FFO per Unit (2)(3)

 

0.18

 

0.18

 

0.53

 

0.53

See footnotes at end

Net income (loss) for Q3 2024 was $(2.0) million compared to $(2.1) million in Q3 2023, primarily due to a change in fair value adjustments to investment properties of $(11.2) million and a change in fair value adjustments to financial instruments of $10.5 million from the comparative quarter. FFO for Q3 2024 and the prior year comparative quarter was $3.5 million, with an increase in comparative properties NOI partially offset by lower interest and other income. Q3 2024 diluted FFO per Unit was $0.18, consistent with the prior year comparative quarter.

Net rental income for Q3 2024 was $7.8 million compared to $7.4 million for the prior year quarter. Comparative properties NOI for Q3 2024 increased to $6.1 million compared to $6.0 million in the prior year quarter. Comparative properties NOI margin for Q3 2024 was 51.1% compared to 51.4% in the prior year quarter. Q3 2024 comparative properties NOI includes comparative investment properties revenue of $12.0 million, which increased $0.4 million from the prior year quarter as a result of rental rate growth combined with rental premiums from our value-add program. Investment properties operating expenses increased by $0.2 million from the prior year quarter (excluding the impact of IFRIC 21 and one sold property in Q4 2023). This was largely a result of increased property insurance and property taxes, partially offset by reduced maintenance expenses.

PORTFOLIO INFORMATION

 

 

 

 

 

 

As at

 

 

September 30,
2024

 

June 30,
2024

 

September 30,
2023

Total portfolio

 

 

 

 

 

 

Number of assets

 

15

 

15

 

16

Investment properties fair value (in thousands)

$

396,390

$

396,800

$

414,830

Units

 

3,300

 

3,300

 

3,432

Occupancy rate – in place (period-end)

 

93.3%

 

94.0%

 

93.4%

Average in-place base rent per month per unit

$

1,175

$

1,167

$

1,143

Estimated market rent to in-place base rent spread (%) (period-end)

 

7.7%

 

8.8%

 

6.1%

Tenant retention ratio (12)

 

53.8%

 

59.2%

 

51.2%

See footnotes at end

ORGANIC GROWTH

Weighted average monthly rent as at September 30, 2024 was $1,175 per unit compared to $1,167 at June 30, 2024. Rental rates increased 1.3% in the Greater Cincinnati region, 1.3% in the Greater Oklahoma City region and 0.3% in the Greater Dallas-Fort Worth region since June 30, 2024.

During Q3 2024, blended lease trade-outs averaged 2.5% compared to 2.2% in Q2 2024. This comprises an average increase on renewals of approximately 4.5% (June 30, 2024 – 3.7%) and an average increase on new leases of approximately 0.3% (June 30, 2024 – 0.1%). As at September 30, 2024, estimated market rents were $1,266 per unit, or an average gain-to-lease for the portfolio of 7.7%. The retention rate for the quarter ended September 30, 2024 was 53.8% compared to 59.2% for the three months ended June 30, 2024.

Value-add initiatives

During Q3 2024, renovations were completed on 42 suites across the portfolio, with 31 suites under renovation as at September 30, 2024. For the three months ended September 30, 2024, the average new lease trade-out on renovated suites was $82 per unit higher than expiring leases, or a lease trade-out of 6.9%.

“We were pleased with the increase in blended trade-outs in Q3 2024,” said Scott Schoeman, Chief Operating Officer of Dream Residential REIT. “Our focus heading into the winter leasing season will be on driving occupancy and continuing to manage controllable operating expenses.”

FINANCING AND CAPITAL INFORMATION

 

 

 

 

As at

(unaudited)

(dollar amounts presented in thousands, except for per Unit amounts)

 

September 30,
2024

 

December 31,
2023

Financing

 

 

 

 

Net total debt-to-net total assets (4)

 

32.7%

 

31.6%

Average term to maturity on debt (years)

 

4.5

 

5.3

Interest coverage ratio (times) (5)

 

2.9

 

2.9

Undrawn credit facility

$

70,000

$

70,000

Available liquidity (6)

$

77,701

$

80,943

Capital

 

 

 

 

Total equity

$

237,925

$

218,032

Total equity (including Class B Units) (7)

$

264,951

$

265,358

Total number of Trust Units and Class B Units (8)

 

19,675,182

 

19,656,471

Net asset value (“NAV”) per Unit (9)

$

13.47

$

13.50

Trust Unit price

$

7.32

$

6.75

See footnotes at end

As at September 30, 2024, net total debt-to-net total assets was 32.7%, total mortgages payable were $138.5 million and total assets were $407.8 million. The REIT ended Q3 2024 with total available liquidity of approximately $77.7 million, (6) comprising $7.7 million of cash and cash equivalents and $70.0 million available on its undrawn revolving credit facility.

Total equity of $237.9 million increased from December 31, 2023 by $19.9 million, primarily due to 3.3 million Class B Units exchanged for REIT Units in Q1 2024 for a total market value of $22.3 million. As at September 30, 2024, there were approximately 16.0 million Trust Units and 3.7 million Class B Units.

NAV per Unit as at September 30, 2024 was $13.47 compared to $13.50 as at December 31, 2023.

CONFERENCE CALL

Senior management will host a conference call to discuss the financial results on Thursday, November 7, 2024 at 10:00 a.m. (ET). To access the conference call, please dial 1-800-806-5484 (toll free) or 416-340-2217 (toll) and enter passcode 1741135#. To access the conference call via webcast, please go to Dream Residential REIT’s website at www.dreamresidentialreit.ca and click the link for the webcast. A taped replay of the conference call and the webcast will be available for ninety (90) days following the call.

OTHER INFORMATION

Information appearing in this press release is a select summary of financial results. The condensed consolidated financial statements and management’s discussion and analysis for the REIT will be available at www.dreamresidentialreit.ca and under the REIT’s profile on www.sedarplus.com .

Dream Residential REIT is an unincorporated, open-ended real estate investment trust established and governed by the laws of the Province of Ontario. The REIT owns a portfolio of garden-style multi-residential properties, primarily located in three markets across the Sunbelt and Midwest regions of the United States. For more information, please visit www.dreamresidentialreit.ca .

Non-GAAP financial measures, ratios and supplementary financial measures

The REIT’s condensed consolidated financial statements are prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). In this press release, as a complement to results provided in accordance with IFRS, the REIT discloses and discusses certain non-GAAP financial measures and ratios, including FFO, diluted FFO per Unit, comparative properties NOI, comparative investment properties revenue, NOI, comparative properties NOI margin, net total debt-to-net total assets ratio, net total debt, net total assets, adjusted EBITDAFV, trailing 12-month adjusted EBITDAFV, trailing 12-month interest expense on debt, interest coverage ratio (times), available liquidity, total equity (including Class B Units) and NAV per Unit as well as other measures discussed elsewhere in this press release. These non-GAAP financial measures and ratios are not defined by or recognized under IFRS Accounting Standards and do not have a standardized meaning under IFRS Accounting Standards. The REIT’s method of calculating these non-GAAP financial measures and ratios may differ from other issuers and may not be comparable with similar measures presented by other issuers. The REIT has presented such non-GAAP financial measures and ratios as management believes they are relevant measures of the REIT’s underlying operating and financial performance. Certain additional disclosures such as the composition, usefulness and changes, as applicable, of the non-GAAP financial measures and ratios included in this press release are expressly incorporated by reference from Management’s Discussion and Analysis of the financial condition and results of operations of the REIT as at and for the three and nine months ended September 30, 2024, dated November 6, 2024 (the “Q3 2024 MD&A”) and can be found under the section “Non-GAAP Financial Measures and Ratios” and respective sub-headings labelled “FFO and diluted FFO per Unit”, “NAV per Unit”, “Comparative properties NOI and comparative properties NOI margin”, “Adjusted earnings before interest, taxes, depreciation, amortization and fair value adjustments (Adjusted EBITDAFV)”, “Trailing 12-month adjusted EBITDAFV”, “Trailing 12-month interest expense on debt”, “Available liquidity”, “Total equity (including Class B Units)”, “Interest coverage ratio (times)” and “Net total debt-to-net total assets”. In this press release, the REIT also discloses and discusses certain supplementary financial measures, including tenant retention ratio and weighted average number of units. The composition of supplementary financial measures included in this press release is expressly incorporated by reference from the Q3 2024 MD&A and can be found in the section “Supplementary Financial Measures and Other Disclosures”. The Q3 2024 MD&A is available on SEDAR+ at www.sedarplus.com under the REIT’s profile and on the REIT’s website at www.dreamresidentialreit.ca under the Investors section. Non-GAAP financial measures and ratios should not be considered as alternatives to net income (loss), net rental income, investment properties revenue, cash flows generated from (utilized in) operating activities, cash and cash equivalents, total assets, non-current debt, total equity, or comparable metrics determined in accordance with IFRS Accounting Standards as indicators of the REIT’s performance, liquidity, cash flow and profitability.

Forward-looking information

This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes statements regarding our ability to drive rental rate growth; future market conditions; our ability to maintain a safe and flexible balance sheet which will drive operations; our anticipated investments in our properties and their effect on portfolio quality and rent growth; our intention to implement our value enhancing renovation initiatives across our portfolio; the resiliency of our portfolio; and the ability of our value-add program and regional diversification to enhance the safety of our business. Forward-looking information generally can be identified by the use of forward-looking terminology such as “will”, “expect”, “believe”, “plan” or “continue”, or similar expressions suggesting future outcomes or events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dream Residential REIT’s control and could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, risks inherent in the real estate industry; financing risks; inflation, interest and currency rate fluctuations; global and local economic and business conditions; risks associated with unexpected or ongoing geopolitical events; changes in law; tax risks; competition; environmental and climate change risks; insurance risks; cybersecurity; and uncertainties surrounding public health crises and epidemics. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable; that there are no unforeseen changes in the legislative and operating framework for our business; that we will have access to adequate capital to fund our future projects and plans and that we will receive financing on acceptable terms; that inflation and interest rates will not materially increase beyond current market expectations; and that geopolitical events will not disrupt global economies. All forward-looking information in this press release speaks as of the date of this press release. Dream Residential REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions, risks and uncertainties is contained in Dream Residential REIT’s filings with securities regulators, including its latest Annual Information Form and Management’s Discussion and Analysis. These filings are also available on the REIT’s website at www.dreamresidentialreit.ca.

FOOTNOTES

(1)

 

FFO is a non-GAAP financial measure. The most directly comparable financial measure to FFO is net income (loss). For further information on this non-GAAP measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. The table included in the Appendices section of this press release reconciles FFO for the three and nine months ended September 30, 2024 and September 30, 2023 to net income (loss).

(2)

Diluted FFO per Unit is a non-GAAP ratio. Diluted FFO per Unit comprises FFO (a non-GAAP financial measure) divided by the weighted average number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

(3)

A description of the determination of diluted amounts per Unit can be found in the REIT’s 2024 MD&A in the section “Supplementary Financial Measures and Other Disclosures”, under the heading “Weighted average number of Units”.

(4)

Net total debt-to-net total assets is a non-GAAP ratio. Net total debt-to-net total assets comprises net total debt (a non-GAAP financial measure) divided by net total assets (a non-GAAP financial measure). The most directly comparable financial measure to net total debt is mortgages payable, and the most directly comparable financial measure to net total assets is total assets. For further information on this non-GAAP ratio and these non-GAAP financial measures, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

(5)

Interest coverage ratio (times) is a non-GAAP ratio. Interest coverage ratio comprises trailing 12-month adjusted EBITDAFV (a non-GAAP financial measure) divided by trailing 12-month interest expense on debt (a non-GAAP financial measure). The most directly comparable financial measure to adjusted EBITDAFV is net income (loss). The table included in the Appendices section of this press release reconciles adjusted EBITDAFV to net income (loss) and trailing 12-month adjusted EBITDAFV and trailing 12-month interest expense on debt to adjusted EBITDAFV and interest expense on debt, respectively, for the trailing 12-month period ended September 30, 2024. For further information on this non-GAAP ratio and non-GAAP financial measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

(6)

Available liquidity is a non-GAAP financial measure. The most directly comparable financial measure to available liquidity is the undrawn credit facility. The table included in the Appendices section of this press release reconciles available liquidity to the undrawn credit facility as at September 30, 2024 and December 31, 2023. For further information on this non-GAAP measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

(7)

Total equity (including Class B Units) is a non-GAAP financial measure. The most directly comparable financial measure to total equity (including Class B Units) is total equity. For further information on this non-GAAP measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release. The table included in the Appendices section of this press release reconciles total equity (including Class B Units) to total equity (per the condensed consolidated financial statements) as at September 30, 2024 and December 31, 2023.

(8)

Total number of Units includes 15,983,098 Trust Units and 3,692,084 Class B Units which are classified as a liability under IFRS Accounting Standards.

(9)

NAV per Unit is a non-GAAP ratio. NAV per Unit comprises total equity (including Class B Units) (a non-GAAP financial measure) divided by the total number of Units. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

(10)

Comparative properties NOI is a non-GAAP financial measure. The most directly comparable financial measure to comparative properties NOI is net rental income. The table included in the Appendices section of this press release reconciles comparative properties NOI for the three and nine months ended September 30, 2024 and September 30, 2023 to net rental income. For further information on this non-GAAP financial measure, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

(11)

Comparative properties NOI margin is a non-GAAP ratio. Comparative properties NOI margin is defined as Comparative properties NOI (a non-GAAP financial measure) divided by comparative investment properties revenue, as a percentage. For further information on this non-GAAP ratio, please refer to the statements under the heading “Non-GAAP financial measures, ratios and supplementary financial measures” in this press release.

(12)

Tenant retention ratio is defined as the number of renewed leases divided by the total number of leases signed during the period. Tenant retention ratio is a supplementary financial measure.

Appendices

Reconciliation of FFO to net income (loss)

The table below reconciles FFO to net income (loss) for the three and nine months ended September 30, 2024 and September 30, 2023:

 

Three months ended September 30,

Nine months ended September 30,

(in thousands of dollars, unless otherwise stated)

2024

 

2023

2024

 

2023

Net income (loss) for the period

$

(2,023)

 

$

(2,104)

$

2,139

 

$

(1,967)

Add (deduct):

 

 

 

 

 

 

 

 

Fair value adjustments to investment properties

 

3,034

 

 

13,558

 

8,817

 

 

12,897

Fair value adjustments to financial instruments

 

3,793

 

 

(7,433)

 

2,088

 

 

990

Property tax liability adjustment (IFRIC 21)

 

(1,712)

 

 

(1,297)

 

(3,886)

 

 

(3,940)

Debt settlement costs

 

 

 

 

 

 

259

Interest expense on Class B Units

 

391

 

 

736

 

1,288

 

 

2,208

Funds from operations (“FFO”) for the period

$

3,483

 

$

3,460

$

10,446

 

$

10,447

Diluted weighted average number of Units (in thousands)

 

19,826

 

 

19,734

 

19,802

 

 

19,784

Diluted FFO per Unit

$

0.18

 

$

0.18

$

0.53

 

$

0.53

Reconciliation of NOI and Comparative properties NOI to net rental income

The table below reconciles NOI and Comparative properties NOI to net rental income for the three and nine months ended September 30, 2024 and September 30, 2023:

 

Three months ended September 30,

Nine months ended September 30,

(in thousands of dollars, unless otherwise stated)

2024

2023

2024

2023

Investment properties revenue

$

11,993

$

11,970

$

36,106

$

35,564

Less: Investment properties revenue from sold properties

 

 

330

 

 

992

Comparative investment properties revenue

 

11,993

 

11,640

 

36,106

 

34,572

 

 

 

 

 

 

 

 

 

Net rental income

 

7,839

 

7,413

 

22,456

 

22,208

Property tax liability adjustment (IFRIC 21)

 

(1,712)

 

(1,297)

 

(3,886)

 

(3,940)

Net operating income (“NOI”)

$

6,127

$

6,116

$

18,570

$

18,268

Less: NOI from sold properties

 

 

137

 

 

445

Comparative properties NOI

 

6,127

 

5,979

 

18,570

 

17,823

Comparative properties NOI margin

 

51.1%

 

51.4%

 

51.4%

 

51.6%

Reconciliation of adjusted EBITDAFV to net income (loss)

The table below reconciles adjusted earnings before interest, taxes, depreciation, amortization and fair value adjustments to net income (loss) for the three and nine months ended September 30, 2024 and September 30, 2023:

 

Three months ended September 30,

Nine months ended September 30,

(in thousands, unless otherwise stated)

2024

2023

2024

2023

Net income (loss) for the period

$

(2,023)

$

(2,104)

$

2,139

$

(1,967)

Add (deduct):

 

 

 

 

 

 

 

 

Interest expense – debt

 

1,850

 

1,885

 

5,505

 

5,553

Interest expense – Class B Units

 

391

 

736

 

1,288

 

2,208

Fair value adjustments to investment properties

 

3,034

 

13,558

 

8,817

 

12,897

Fair value adjustments to financial instruments

 

3,793

 

(7,433)

 

2,088

 

990

Property tax liability adjustment (IFRIC 21)

 

(1,712)

 

(1,297)

 

(3,886)

 

(3,940)

Debt settlement costs

 

 

 

 

259

Adjusted EBITDAFV for the period

$

5,333

$

5,345

$

15,951

$

16,000

Reconciliation of available liquidity to undrawn credit facility

The table below reconciles available liquidity to undrawn credit facility as at September 30, 2024 and December 31, 2023:

(in thousands of dollars)

As at September 30, 2024

As at December 31, 2023

Undrawn credit facility

$

70,000

$

70,000

Cash and cash equivalents

 

7,701

 

10,943

Available liquidity

$

77,701

$

80,943

Trailing 12-month adjusted EBITDAFV and trailing 12-month interest expense on debt

 

 

Trailing 12-month period
ended September 30, 2024

Adjusted EBITDAFV for the nine months ended September 30, 2024

$

15,951

Add: Adjusted EBITDAFV for the year ended December 31, 2023

 

21,371

Less: Adjusted EBITDAFV for the nine months ended September 30, 2023

 

 

(16,000)

Trailing 12-month adjusted EBITDAFV

$

21,322

 

 

Trailing 12-month period
ended September 30, 2024

Interest expense on debt for the nine months ended September 30, 2024

$

5,505

Add: Interest expense for the year ended December 31, 2023

 

7,427

Less: Interest expense for the nine months ended September 30, 2023

 

(5,553)

Trailing 12-month interest expense on debt

$

7,379

Interest coverage ratio (times)

 

For the trailing 12-month period ended

 

 

September 30, 2024

 

December 31, 2023

Trailing 12-month adjusted EBITDAFV

$

21,322

$

21,371

Trailing 12-month interest expense on debt

$

7,379

$

7,427

Interest coverage ratio (times)

 

2.9

 

2.9

Reconciliation of total equity (including Class B Units) and NAV per Unit to total equity

The table below reconciles total equity (including Class B Units) and NAV per Unit to total equity as at September 30, 2024 and December 31, 2023:

 

As at September 30, 2024

 

As at December 31, 2023

(in thousands of dollars, except number of Units)

Units

 

Amount

 

Units

 

Amount

Unitholders’ equity

15,983,098

$

150,839

 

12,645,268

$

128,179

Retained earnings

 

87,086

 

 

89,853

Total equity per condensed consolidated financial statements

15,983,098

 

237,925

 

12,645,268

 

218,032

Add: Class B Units

3,692,084

 

27,026

 

7,011,203

 

47,326

Total equity (including Class B Units)

19,675,182

 

264,951

 

19,656,471

 

265,358

NAV per Unit

 

$

13.47

 

 

$

13.50

Reconciliation of net total debt to mortgages payable and net total assets to total assets, and calculation of net total debt-to-net total assets

The following table reconciles net total debt to mortgages payable and net total assets to total assets, and calculates net total debt-to-net total assets as at September 30, 2024 and December 31, 2023:

 

 

As at September 30, 2024

 

As at December 31, 2023

(in thousands of dollars, unless otherwise stated)

 

Amount

 

Amount

Mortgages payable

$

138,504

$

137,632

Less: Cash and cash equivalents

 

(7,701)

 

(10,943)

Net total debt

$

130,803

$

126,689

Total assets

$

407,784

$

411,926

Less: Cash and cash equivalents

 

(7,701)

 

(10,943)

Net total assets

$

400,083

$

400,983

Net total debt-to-net total assets

 

32.7%

 

31.6%