/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
TORONTO, Sept. 20, 2013 /CNW/ - Starlight U.S. Multi-Family Core Fund
(TSX.V: UMF.A, UMF.U) (the "Fund") announced today an update on its performance to date. Appraisals
commissioned by the manager of the Fund for each of its properties
resulted in a total appraised value of US$128.4 million, which amount
exceeds the aggregate purchase price of the properties by US$10 million
or 8.4%. Each of the properties of the Fund was appraised by CBRE Inc.
in September, 2013 to confirm the Fund's strong performance to date.
The increase in appraised value is the direct result of net operating
income ("NOI") growth and not capitalization rate compression, and reflects strong
underlying fundamentals and market conditions as well as the manager of
the Fund's active asset management strategy.
The Fund also announced that the weighted average occupancy for the
period ending August 31, 2013 for the Fund's properties was 96.3%,
which was 2.3% above the forecasted occupancy for the period ending
September 30, 2013 as set out in the Fund's final prospectus dated
March 31, 2013 (the "Forecast"). Further, NOI for the Fund's properties was 9% ahead of the Forecast
for the period ending June 30, 2013. The increase in occupancy is
believed to be attributable to the strength of market conditions in
Houston and Dallas, the cities where the Fund's properties are located,
and the seasonal nature of multi-family leasing, with summer being a
historically strong leasing period. Other than results stemming from
the acquisition of Greenhaven and the 35% interest in the Falls at
Eagle Creek which will impact the comparability of income, operating
expenses and NOI, management of the Fund is not aware of any events and
circumstances that occurred between the closing of the Fund's initial
public offering on April 18, 2013 and the date of this news release
that are reasonably likely to cause actual operating results to differ
materially from those contained in the Forecast for the current or
Given the strong occupancies at the properties, the Fund has
aggressively increased rental rates on both new and renewal leases and
curtailed concessions. Renewal rents for existing tenants are being
increased between 3% and 8%, whereas asking rents for new tenants are
being increased by 4% to 9% versus asking rents when the properties
were acquired. Only moderate concessions are currently being offered on
new leases at any of the Fund's properties.
Property management for the Falls at Copper Lake and the Falls at Eagle
Creek is being provided by Greystar Real Estate Partners, the largest
third party, multi-family property manager in the United States.
Property Management for the Bridgemoor at Denton, Villages of Towne
Lake and Greenhaven is being provided by the Pinnacle Family of
Companies, the fourth largest third party, multi-family property
manager in the United States.
Further details regarding the Fund's unit performance and distributions,
market conditions where the Fund's properties are located, performance
by the Fund's properties and a capital investment update are available
in the Fund's September 2013 Newsletter which is available at http://starlightinvest.com/starlight-u-s-multi-family-core-fund.
About Starlight U.S. Multi-Family Core Fund
The Fund is a limited partnership formed under the Limited Partnerships Act (Ontario) for the primary purpose of indirectly acquiring, owning and
operating a portfolio of diversified income producing rental properties
in the U.S. multi-family real estate market.
Certain terms used in this news release, such as NOI, are not measures
defined under International Financial Reporting Standards ("IFRS") as prescribed by the International Accounting Standards Board, do not
have standardized meanings prescribed by IFRS and should not be
construed as alternatives to profit/loss, cash flow from operating
activities or other measures of financial performance calculated in
accordance with IFRS. NOI as computed by the Fund may not be comparable
to similar measures as reported by other trusts or companies in similar
or different industries. The Fund uses these non-IFRS measures to
better assess the Fund's underlying performance and provides these
additional non-IFRS measures so that investors may do the same.
NOI is defined as all property revenue, less direct property costs such
as utilities, realty taxes, repairs and maintenance, on-site salaries,
insurance, bad debt expenses, property management fees, and other
property specific administrative costs.
NOI is presented in this news release because management considers this
non-IFRS measure to be an important measure of the Fund's operating
performance and uses this measure to assess the Fund's property
operating performance on an unlevered basis.
This news release contains statements that may constitute
forward-looking information within the meaning of Canadian securities
laws and which reflect the Fund's current expectations regarding future
events, including statements concerning: the payment of distributions;
the value of the Fund's properties; performance relative to the
Forecast; national and local real estate market conditions and economic
variables; rental rates; and occupancy rates. Particularly, statements
regarding future results, performance, achievements, prospects or
opportunities for the Fund or the real estate industry are
forward-looking statements. In some cases, forward-looking information
can be identified by terms such as "may", "might", "will", "could",
"should", "would", "occur", "expect", "plan", "anticipate", "believe",
"intend", "seek", "aim", "estimate", "target", "project", "predict",
"forecast", "potential", "continue", "likely", "schedule", or the
negative thereof or other similar expressions concerning matters that
are not historical facts.
The forward-looking information in this news release involves risks and
uncertainties, including those set forth in the Fund's materials filed
with the Canadian securities regulatory authorities from time to time
at www.sedar.com. Actual results could differ materially from those projected herein.
Those risks and uncertainties include, among other things, risks
related to: reliance on the Fund's manager; the experience of the
Fund's officers and directors; substitutes for residential real estate
rental suites; reliance on property management; competition for real
property tenants; U.S. market factors; and currency exchange rates.
Information contained in forward-looking information is based upon
certain material assumptions that were applied in drawing a conclusion
or making a forecast or projection, including management's perceptions
of historical trends, current conditions and expected future
developments, as well as other considerations that are believed to be
appropriate in the circumstances, including the following: the
inventory of multi-family real estate properties; the extent of
competition between properties; the population of multi-family real
estate market participants; assumptions about the markets in which the
Fund operates; the ability of the manager of the Fund to manage and
operate the properties; the global and North American economic
environment; foreign currency exchange rates; and governmental
regulations or tax laws. Readers are cautioned against placing undue
reliance on forward-looking statements. Except as required by
applicable Canadian securities laws, neither the Fund nor its manager
undertakes any obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements are
made or to reflect the occurrence of unanticipated events.
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.
SOURCE Starlight U.S. Multi-Family Core Fund