Mr. Michael Galloro reports
DELAVACO RESIDENTIAL PROPERTIES CORP. REPORTS SECOND QUARTER FINANCIAL AND OPERATING RESULTS
Delavaco Residential Properties Corp. has released its results for the quarter ended June 30, 2014. (All amounts are stated in U.S. dollors, unless otherwise stated.)
Highlights:
Corporate:
- On April 10, 2014, Delavaco began trading on the OTCQX under the ticker symbol DELAF.
- On May 5, 2014, Delavaco purchased 96 single-family-style units within 19 multifamily buildings in Paterson, N.J., for consideration equal to 120,000 common shares, and two secured promissory notes totalling $3.12-million by a first-ranking lien on the properties.
- The promissory notes bear interest of 5.5 per cent per annum and have a maturity date of Nov. 1, 2014. On June 13, 2014, Delavaco secured mortgage financing on 120 homes in Georgia.
- The $4-million interest-only mortgage bears interest of 5.23 per cent per annum and has a maturity date of July 1, 2019.
- Portfolio fair value of investment properties and assets held for sale as at June 30, 2014, were $107,826,373, an increase of $5,897,096 or 6 per cent quarter over quarter.
- The company recorded a fair value gain on investment properties of $1,195,418.
- As at June 30, 2014, Delavaco owned 851 single-family units and 311 multifamily units and managed a 316-unit multifamily building, bringing the total owned and operated unit count to 1,478.
- Occupancy and adjusted occupancy of the aggregate owned and operated portfolio as at June 30, 2014, increased to 81 per cent and 84 per cent, respectively.
Operational and financial performance:
- Revenue for the three months ended June 30, 2014, increased $1,097,396 or 75 per cent year over year and $141,431 or 6 per cent quarter over quarter to $2,561,291.
- Adjusted funds from operations for the three months ended June 30, 2014, increased $139,532 or 8 per cent quarter over quarter.
Occupancy (as at June 30, 2014)
The attached table provides a leasing performance summary of the company's owned and operated portfolio as at June 30, 2014.
OCCUPANCY
Number Average
of Units Units Adjusted monthly
Region units leased vacant Occupancy occupancy rent
Florida single
family 434 285 149 65.7% 70.5% $ 1,058
Georgia single family 312 238 74 76.3% 79.3% 841
New Jersey single
family 105 82 23 78.1% 90.1% 1,152
Florida multifamily 153 148 5 96.7% 97.4% 1,058
Texas multifamily 158 144 14 91.1% 92.3% 826
Total -- owned
properties 1,162 897 265 77.2% 81.3% $ 972
Properties managed
(not owned) 316 294 22 93.0% 93.6%
Total -- owned and
operated 1,478 1,191 287 80.6% 84.1%
SUMMARY OF PROPERTIES
Quarter total Q2 2014 Q1 2014 Q4 2013 Q3 2013
Single-family doors:
Florida 434 525 525 525
Single-family doors:
Georgia 312 312 298 257
Single-family doors:
New Jersey 105 -- -- --
Multifamily units:
Florida 153 153 153 --
Multifamily units:
Texas 158 158 158 --
Total units 1,162 1,148 1,134 782
Fair value of
properties $ 107,826,373 $ 101,929,277 $ 99,960,201 $ 62,545,842
Average fair value
per unit $ 92,794 $ 88,789 $ 88,148 $ 79,982
"Delavaco has completed the quarter by entering a new marketplace with the closing of 96 units in New Jersey while solidifying a strategic relationship with a U.S.-based financial institution focused on rental housing portfolios by providing leverage on 120 of our single-family homes. Consistent with the U.S. residential real estate industry, Delavaco also continues to experience significant gains on both the single- and multifamily home portfolios," commented Andrew DeFrancesco, chief executive officer.
We seek Safe Harbor.
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