MARWEST APARTMENT REIT ANNOUNCES 2021 ANNUAL RESULTS

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WINNIPEG, MB, March 15, 2022 /CNW/ – Marwest Apartment Real Estate Investment Trust (“Marwest Apartment REIT” or the “REIT”) (TSXV: MAR.UN) released its financial results for the year ended December 31, 2021.

Marwest Apartment Real Estate Investment Trust Logo (CNW Group/Marwest Apartment Real Estate Investment Trust)

The consolidated financial statements and MD&A for the year ended December 31, 2021 are available on the REIT’s website at www.marwestreit.com and at www.sedar.com.

2021 Highlights

  • Net Asset Value per Unit (“NAV per Unit”) of $1.27 at December 31, 2021

  • Net operating income (“NOI”) generated from $2,022,976 since the completion of the Qualifying Transaction (the “QT”) on April 30, 2021

  • Adjusted funds from operations (“AFFO”) of $0.06 per unit for the year ended December 31, 2021reflecting eight months of operation from QT

  • NOI margin of 60.57% for the year ended December 31, 2021

  • Occupancy rate of 98.49% since the Eligible Transaction

  • Average monthly rent as a result of December 31, 2021 of $1,510

Sir. William MartensCEO and Trustee, said: “We are very pleased to have completed our first year of operation. We look forward to further expanding our portfolio.

Summary of operations

Portfolio operational information

As of December 31, 2021

Number of properties

3

Number of suites

363

Average occupancy rate to date

98.49%

Average rental rate to date

$1,510

Financial Summary

Year ended December 31, 2021

Real estate income

$

3,339,846

Net operating income

2,022,976

Net revenue

9,215,064

FFO

824 005

FFO per unit

0.07

AFFO

704 205

AFFO per unit

$

0.06

Debt indicators at

As of December 31, 2021

Debt to Total Assets

71.70%

Weighted Average Mortgage Interest Rate

2.82%

Weighted average months to maturity of debt

82.47

Debt service coverage ratio

1.35

Financial Summary

The REIT generated funds from operations (“FFO”) per unit and AFFO per unit from $0.07 and $0.06 during the year ended the 31st of December, 2021. The presentation of FFO and AFFO is attributable to the recent acquisitions of the REIT’s three properties. As indicated above, the REIT’s first real estate acquisitions were concluded on April 30, 2021therefore the results for the year ended December 31, 2021 essentially reflect only the eight months of activity of the REIT.

FFO and AFFO are defined in the “Non-IFRS Measures” section in the 2021 Annual MD&A.

Reconciliation of net income to FFO

Year ended December 31, 2021

Net revenue

$

9,215,064

Distribution on Exchangeable Units

13,557

Fair value adjustments

(8,404,616)

FFO

824 005

FFO per unit

$

0.07

Reconciliation of FFOs with AFFOs

FFO

824 005

Capital expenditure

(96,466)

Rental fees

(23,334)

AFFO

704 205

AFFO per unit

$

0.06

NAV as of December 31, 2021

Equity

15,893,174

Tradable units

9,106,671

NAV

24,999,845

Trust units as of December 31, 2021

8,831,564

Exchangeable units as of December 31, 2021

10,841,274

Deferred shares as of December 31, 2021

53,595

Total number of units in circulation

19,726,433

NAV per unit

1.27

Outlook

Management believes it will continue to see a stable rental market for rental apartments. With rising vaccination rates, provincial reopening plans in effect and easing border restrictions favoring immigration, management believes demand for multi-family housing will increase.

The rising cost of homeownership has widened the affordability gap between renting and homeownership in the REIT-operated market, further fueling demand for multi-family housing. The REIT’s next-generation portfolio includes amenities such as pavilions and gymnasiums, further increasing demand.

About Marwest Apartment REIT

The REIT is an unincorporated open-ended trust governed by the laws of the Province of Manitoba. The REIT was created to provide Unitholders with the opportunity to invest in the Canadian multi-family rental sector by owning high-quality, income-generating properties, with an initial focus on stable markets across Western Canada.

Forward-looking statements

The information in this press release includes certain information and statements about management’s beliefs about future events, expectations, plans and prospects that constitute forward-looking statements. These statements are based on assumptions subject to significant risks and uncertainties. Due to these risks and uncertainties and due to various factors, actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, the implementation of a cash distribution policy. A number of factors could cause actual results to differ materially from these forward-looking statements. The payment of cash distributions will depend on a number of factors, including, but not limited to, the financial performance, financial condition and financial needs of the REIT. Although the management of the REIT believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the expectations in the forward-looking statements will prove to be correct. Except as required by law, the REIT disclaims any intention and undertakes no obligation to update or revise forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting these forward-looking statements. forward-looking or other statements.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

The Trust Units are not registered under the United States Securities Act of 1933, as amended (the “United States Securities Act”) and may not be offered or sold in United States or for the benefit of or on behalf of or for the benefit of US Persons, except in certain transactions exempt from the registration requirements of the US Securities Act. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of the REIT in United States or in any other jurisdiction.

Notice Regarding Disclosure of Non-IFRS Measures

In addition to IFRS measures, certain non-IFRS financial measures are commonly used by Canadian real estate investment trusts as indicators of performance. Non-IFRS measures and ratios include net operating income (“NOI), debt service coverage ratio, FFO, AFFO, FFO per unit, AFFO per unit and net asset value per unit. go.

Management believes these measures are useful to investors because they are widely accepted measures of Marwest’s performance and provide a meaningful basis for comparison between real estate entities. These non-IFRS financial measures are not defined by IFRS and are not intended to represent financial performance, financial position or cash flows for the period and should not be considered as an alternative to profit or loss. operating cash flow or other measures of financial performance. calculated in accordance with IFRS.

The above measures are not standardized under the financial reporting framework used to prepare the REIT’s financial statements. Readers should further be cautioned that the above measures as calculated by the REIT may not be comparable to similar measures presented by other issuers. Refer to Non-IFRS Measures in Marwest’s 2021 Annual MD&A, which is incorporated by reference herein, for additional information (available on SEDAR at www.sedar.com or the REIT’s website www.marwestreit.com)

SOURCE Marwest Apartment Real Estate Investment Trust

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