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WINNIPEG, MB, May 22, 2025 /CNW/ - Marwest Apartment Real Estate Investment Trust (the "REIT") (TSXV: MAR.UN) reported financial results for the three months ended March 31, 2025. This press release should be read in conjunction with the REIT's Unaudited Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis ("Q1 2025 MD&A") for the three months ended March 31, 2025, which are available on the REIT's website at www.marwestreit.com and at www.sedarplus.ca.

"We are pleased with the ongoing positive operating results we achieved throughout the quarter. Same Property Revenue from Investment Properties increased by 3.73% and average rental rates per suite increased by 4.79%, both over Q1 2024. Throughout 2025 we will see the impact of the Manitoba government removing a property tax rebate that had been in place since 2021. Although this will impact how certain comparisons to 2024 results are represented, we are proud of the positive operations we achieved in the quarter on the items within our control." commented Mr. William Martens, Chief Executive Officer of the REIT.

Q1 2025 Quarterly Highlights

   -- Same Property Revenue from Investment Properties increased by 3.73% in 
      the three months ended March 31, 2025 compared to same period 2024 
 
   -- Reported Net Asset Value per Unit ("NAV") of $2.39 at March 31, 2025 
      compared to $2.37 at December 31, 2024 
 
   -- Average occupancy rate of 98.14% reported for the three months ended 
      March 31, 2025 compared to 99.01% in the same period 2024 
 
   -- Weighted average mortgage term to maturity of over 5 years 

Operations Summary

 
                                                 Three months ended March 31 
Portfolio Operation Information                  2025            2024 
Number of properties                                          4              4 
Number of suites                                            516            516 
Average occupancy ate                                   98.14 %        99.01 % 
Average rental rate to date                              $1,727         $1,648 
 
                                                   Three months ended March 31 
Reconciliation of Same Property NOI(1) to IFRS             2025           2024 
Revenue from investment properties                  $ 2,635,142    $ 2,540,498 
Expenses: 
Property operating expenses                             694,292        653,557 
Realty taxes                                            317,432        230,375 
Total property operating expenses                     1,011,724        883,932 
Same Property NOI(1)                                $ 1,623,418    $ 1,656,566 
 

(1) Same Property Portfolio consists of 4 multi-residential properties owned by the REIT for comparable periods in Q1 2025 and Q1 2024 -- See "Notice with respect to Non-IFRS Measures" below.

 
 
Reconciliation of                At March 31, 2025    At December 31, 2024 
Debt-to-Gross Book Value ratio 
Total interest-bearing debt     $       101,347,592  $         101,678,601 
Total assets on balance sheet           150,132,730            150,093,432 
Debt-to-Gross Book Value ratio              67.51 %                67.74 % 
 
Reconciliation of Debt Service   Three months ended             Year ended 
Coverage ratio                       March 31, 2025      December 31, 2024 
 
 Net Operating Income for the 
 period ended                   $         1,623,418  $           6,875,434 
Mortgage payments for the 
 period ended                             1,244,130              4,959,081 
Debt Service Coverage ratio                    1.30                   1.39 
Weighted average term to               60.57 months           63.56 months 
maturity on fixed rate debt 
Weighted average interest rate 
 on fixed debt                               3.09 %                 3.09 % 
 

Financial Summary

The REIT generated FFO and AFFO per Unit of $0.0254 and $0.0234, respectively, during the three months ended March 31, 2025. FFO and AFFO are defined in "Non-IFRS Measures" in the March 31, 2025 MD&A and below under "Notice with respect to Non-IFRS Measures".

 
Reconciliation of Net Income and Comprehensive   Three months ended March 31 
Income 
to FFO and AFFO 
                                                2025            2024 
Revenue from investment properties                 $ 2,635,142     $ 2,540,498 
Property operating expenses                          (694,292)       (653,557) 
Realty taxes                                         (317,432)       (230,375) 
Net Operating Income                                 1,623,418       1,656,566 
NOI Margin                                             61.61 %         65.21 % 
General and administrative                           (224,660)       (189,091) 
Interest income                                         33,920          31,175 
Finance costs                                        (978,909)     (1,009,371) 
Fair value (loss) gain on: 
Investment properties                                 (38,785)         128,630 
Unit-based compensation                               (18,454)             115 
Exchangeable Units                                 (1,148,795)               - 
Net (loss) income and 
comprehensive (loss) income                        $ (752,265)       $ 618,024 
 
 
                                                 Three months ended March 31 
Reconciliation of FFO                            2025            2024 
Net (loss) income and comprehensive (loss) 
 income                                               (752,265)        618,024 
Distributions on Exchangeable Units                      40,730         41,467 
Fair value loss (gain) on properties                     38,785      (128,630) 
Fair value loss (gain) on unit-based 
 compensation                                            18,454          (115) 
Fair value loss on Exchangeable Units                 1,148,795              - 
FFO                                                     494,499        530,746 
Weighted average number of Units                     19,498,838     19,498,838 
FFO/unit                                               $ 0.0254       $ 0.0272 
 
Reconciliation of AFFO 
FFO                                                   $ 494,499      $ 530,746 
Capital expenditures                                   (38,785)       (14,348) 
Leasing costs                                                 -        (2,022) 
AFFO                                                    455,714        514,376 
Weighted average number of Units                     19,498,838     19,498,838 
AFFO/unit                                              $ 0.0234       $ 0.0264 
AFFO payout ratio                                       16.69 %        14.50 % 
 
 
NAV and NAV per Unit Reconciliation   At March 31, 2025  At December 31, 2024 
Unitholders' Equity                         $39,113,552           $39,901,132 
Exchangeable Units                            7,937,133             6,788,338 
NAV                                          47,050,685            46,689,470 
Trust Units                                   9,055,242             9,055,242 
Exchangeable Units                           10,443,596            10,443,596 
Deferred Units                                  170,206               169,608 
Total Units oustanding                       19,669,044            19,668,446 
NAV per unit                                      $2.39                 $2.37 
 

The overall increase in NAV from $2.37 at December 31, 2024 to $2.39 at March 31, 2025, was primarily due to 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 structure of the REIT is all at 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 that demand for rental housing will remain due to the affordability gap in rental vs. home ownership and the potential tariffs with the United States. As interest rates remain at elevated levels and costs of construction remain relatively high, the increased costs of home ownership maintains the affordability gap.

Any 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 March 31, 2025 is not under rent control or restrictive financing agreements.

About Marwest Apartment Real Estate Investment Trust

The REIT is an unincorporated open-ended trust governed by the laws of the Province of Manitoba. The REIT was formed to provide holders of Units with the opportunity to invest in the Canadian multi-family rental sector through the ownership of high-quality income-producing properties, with an initial focus on stable markets throughout Western Canada.

Forward-looking Statements

The information in this news release includes certain information and statements about management's views of future events, expectations, plans and prospects that constitute forward--looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward--looking statements. A number of factors could cause actual results to differ materially from these forward--looking statements, including the risks described in the REIT's latest annual information form and management's discussion and analysis. The payment of cash distributions, and the amount of such cash distributions, will be dependent upon a number of factors, including but not limited to the financial performance, financial condition and financial requirements of the REIT. Although management of the REIT believes that the expectations reflected in forward--looking statements are reasonable, it can give no assurances that the expectations of any forward--looking statements will prove to be correct. Except as required by law, the REIT disclaims any intention and assumes no obligation to update or revise any forward--looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward--looking statements or otherwise.

Notice with respect to Non-IFRS Measures Disclosure

The REIT's financial statements are prepared in accordance with IFRS. In addition to IFRS measures, this news release and the REIT's Q1 2025 MD&A disclose certain non-IFRS financial measures that are commonly used by Canadian real estate investment trusts as an indicator of performance. Non-IFRS measures and ratios include the following:

Net Operating Income ("NOI")

The Trust calculates net operating income as revenue less property operating expenses such as utilities, repairs and maintenance and realty taxes. Charges for interest or other expenses not specific to the day--to--day operations of the Trust's properties are not included. The Trust regards NOI as an important measure of the income generated by income-producing properties and is used by management in evaluating the performance of the Trust's properties. NOI is also a key input in determining the value of the Trust's properties. For reconciliation to IFRS measures, refer to "Financial Operations and Results" in the REIT's Q1 2025 MD&A

Funds from Operations ("FFO")

The Trust calculates FFO substantially in accordance with the guidelines set out in the white paper titled "White Paper on Funds from Operations & Adjusted Funds from Operations for IFRS" by the Real Property Association of Canada ("REALpac") as revised in January 2022. FFO is defined as IFRS consolidated net income adjusted for items such as unrealized changes in the fair value of the investment properties, effects of puttable instruments classified as financial liabilities and changes in fair value of financial instruments and derivatives. FFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS. The Trust regards FFO as a key measure of operating performance. For reconciliation to IFRS measures, refer to "Financial Operations and Results" in the REIT's Q1 2025 MD&A

Adjusted Funds from Operations ("AFFO")

The Trust calculates AFFO substantially in accordance with the guidelines set out in the white paper titled "White Paper on Funds from Operations & Adjusted Funds from Operations for IFRS" by REALpac as revised in January 2022. AFFO is defined as FFO adjusted for items such as maintenance capital expenditures and straight--line rental revenue differences. AFFO should not be construed as an alternative to net income or cash flows provided by or used in operating activities determined in accordance with IFRS. The Trust regards AFFO as a key measure of operating performance. The Trust also uses AFFO in assessing its capacity to make distributions. For reconciliation to IFRS measures, refer to "Financial Operations and Results" in the REIT's Q1 2025 MD&A

The following other non--IFRS measures are defined as follows:

   -- "FFO per unit" is calculated as FFO divided by the weighted average 
      number of Trust Units and Exchangeable Units of the Partnership 
      outstanding over the period. 
 
   -- "AFFO per unit" is calculated as AFFO divided by the weighted average 
      number of Trust Units and Exchangeable Units of the Partnership 
      outstanding over the period. 
 
   -- "AFFO Payout Ratio" is the proportion of the total distributions on Trust 
      Units and Exchangeable Units of the Partnership to AFFO per Unit. 
 
   -- "Net Asset Value" is calculated as the sum of unitholders' equity and 
      Exchangeable Units 
 
   -- "Net Asset Value per Unit" or "NAV per Unit" is calculated as the sum of 
      unitholders' equity and Exchangeable Units divided by the sum of Trust 
      Units, Exchangeable Units and Deferred Units outstanding at the end of 
      the period. 
 
   -- "Debt--to--Gross Book Value ratio" is calculated by dividing total 
      interest--bearing debt consisting of mortgages by total assets and is 
      used as the REIT's primary measure of its leverage. 
 
   -- "Debt Service Coverage ratio" is the ratio of NOI to total debt service 
      consisting of interest expenses recorded as finance costs and principal 
      payments on mortgages. 
 
   -- "Stabilized net operating income" is the estimated 12-month net operating 
      income that a property could generate at full occupancy, less a vacancy 
      rate and stable operating expenses. 
 
   -- "Average occupancy rate" is defined as the ratio of occupied suites to 
      the total suites in the portfolio for the period. 
 
   -- "Same Property NOI" is defined as Net Operating Income from properties 
      owned by the REIT throughout comparative periods, which removes the 
      impact of situations that result in the comparative period to be less 
      meaningful, such as acquisitions, or properties going through a lease-up 
      period. 

Management believes that these measures are helpful to investors because, while not necessarily calculated comparably among issuers, they are widely recognized measures of the REIT's performance and tend to provide a relevant basis for comparison among real estate entities. These non-IFRS financial measures are not defined under IFRS and are not intended to represent financial performance, financial position or cash flows for the period and should not be viewed as an alternative to net income, cash flow from operations 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 financial statements of the REIT. Readers should be further cautioned that the above measures as calculated by the REIT may not be comparable to similar measures presented by other issuers. For further information, refer to the sections entitled "Non-IFRS measures" and "Financial Operations and Results" in the REIT's Q1 2025 MD&A, which is incorporated by reference herein, for further information (available on SEDAR+ at sedarplus.ca or the REIT's website www.marwestreit.com).

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 news release.

The Units are not registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons, except in certain transactions exempt from the registration requirements of the U.S. 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 the United States or in any other jurisdiction.

SOURCE Marwest Apartment Real Estate Investment Trust

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2025/22/c3800.html

/CONTACT:

REIT Contact: For further information, please contact Mr. William Martens, Chief Executive Officer, Telephone: (204) 947-1200

Copyright CNW Group 2025 
 

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May 22, 2025 18:41 ET (22:41 GMT)