TORONTO, ON
-- (Marketwired)
-- 08/22/14
Delavaco Residential Properties Corp. ("Delavaco" or the "Company") (TSX VENTURE: DVO.U) (OTCQX: DELAF) today announced its results for the quarter ended June 30, 2014.
HIGHLIGHTS
*All amounts stated in USD, unless otherwise stated.
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 multi-family buildings in Paterson, New Jersey, for consideration equal to, 120,000 common shares and two promissory notes secured totalling $3,120,000 by a first ranking lien on the properties. The promissory notes bear interest of 5.5% per annum and have a maturity date of November 1, 2014.
- On June 13, 2014, Delavaco secured mortgage financing on 120 homes in Georgia. The $4,000,000 interest-only mortgage bears interest of 5.23% 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, was $107,826,373, an increase of $5,897,096 or 6% quarter over quarter.
- 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 multi-family units and managed a 316 unit multi-family 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% and 84% respectively.
Operational and Financial Performance
- Revenue for the three months ended June 30, 2014, increased $1,097,396 or 75% year over year and $141,431 or 6% quarter over quarter to $2,561,291.
- Adjusted Funds From Operations for the three months ended June 30, 2014, increased $139,532 or 8% quarter over quarter.
Occupancy (as at June 30, 2014)
The following table provides a leasing performance summary of our owned and operated portfolio as at June 30, 2014:
Number Average
of Units Units Adjusted Monthly
Region Units Leased Vacant Occupancy Occupancy(1) Rent
--------------------- ------ ------ ------ --------- ------------ --------
Florida single-
family(2) 434 285 149 65.7% 70.5% $ 1,058
Georgia single-family 312 238 74 76.3% 79.3% 841
New Jersey single-
family(3) 105 82 23 78.1% 90.1% 1,152
Florida multi-family 153 148 5 96.7% 97.4% 1,058
Texas multi-family 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%
====== ====== ====== ========= ============
- Excludes units under renovation
- Includes assets held for sale. As at June 30, 2014, 27 units in Florida were held for sale.
- Excludes 5 units ruined by fire damage
Summary of
Properties
Quarter Total 2014 Q2 2014 Q1 2013 Q4 2013 Q3
-------------------- ------------- ------------- ------------- -------------
Single-Family Doors:
Florida(1) 434 525 525 525
Single-Family Doors:
Georgia 312 312 298 257
Single-Family Doors:
New Jersey(2) 105 - - -
Multi-Family Units:
Florida 153 153 153 -
Multi-Family 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
============= ============= ============= =============
- Includes assets held for sale
- Excludes 5 units ruined by fire damage
"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 US based financial institution focused on rental housing portfolios by providing leverage on 120 of our single family homes. Consistent with the US 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.
About Delavaco Residential Properties Corp.
Delavaco Residential Properties Corp. was formed on January 27, 2011 to take advantage of the U.S. housing crisis with the goal of significant capital appreciation through the recovery of the housing sector. Now a public company, Delavaco has its shares listed for trading on the TSX Venture Exchange and the OTCQX marketplace in the U.S. Delavaco is focused on the ownership and management of single and multi-family residential properties located principally in the south-eastern United States. Delavaco's real estate portfolio consists of 434 single-family homes in Florida, 312 single-family homes in Georgia, 311 multi-family units in Florida and Texas and 105 single-family units in New Jersey. Delavaco also manages a 316 multi-family unit portfolio in Hollywood Florida. Delavaco's acquisition strategy involves the identification and purchase of under-valued residential properties located in highly populated and dynamic urban centers within the lower to middle income demographic sector. Delavaco's security holders include some of the leading Canadian institutional investors and real estate holding companies.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward- looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to Delavaco's intended acquisition focus. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; volatility of real estate prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of Delavaco to implement its business strategies; competition; currency and interest rate fluctuations and other risks.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Additional information about Delavaco Residential Properties Corp. is available at www.delavacoproperties.com or www.sedar.com.
For more information please contact:
Michael Galloro
Chief Financial Officer
Delavaco Residential Properties Corp.
The Exchange Tower
130 King Street West, Suite 2210
Toronto, ON M5X 1A9
Phone: (416) 362-4441
E-mail: Email contact
Lisa-Marie Iannitelli
Director of Investor Relations & Business Development
Delavaco Residential Properties Corp.
The Exchange Tower
130 King Street West, Suite 2210
Toronto, ON M5X 1A9
Phone: (416) 362-4441
E-mail: Email contact
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