Mr. Todd Cook reports

NORTHVIEW RESIDENTIAL REIT, NEWLY TRANSFORMED $2.7 BILLION REIT, REPORTS STRONG 2023 RESULTS, INCLUDING MULTI-RESIDENTIAL SAME DOOR NOI GROWTH OF 7.8% AND WESTERN CANADA OCCUPANCY GAINS OF 390 BPS

Northview Residential REIT has released financial results for the three months and year ended Dec. 31, 2023.

"Two thousand twenty-three was a successful year for Northview with strong same door [net operating income] growth and completion of the recapitalization event in August," noted Todd Cook, president and chief executive officer of Northview Residential. "Same door NOI growth was driven by improved performance in the Western Canada portfolio with NOI growth of 22 per cent, where both occupancy and monthly rents increased throughout the year.

"The recapitalization event included the acquisition of properties consisting of 3,301 multiresidential suites and 119,643 commercial square feet for $742-million, in addition to reducing total leverage, converting into a traditional [real estate investment trust] and internalizing management. With our diversified portfolio, strengthened balance sheet and improved distribution payout ratio, Northview is well positioned to continue to provide value and stable distributions to unitholders," concluded Mr. Cook.

2023 annual highlights:

• Total net operating income increased $19.4-million or 17.3 per cent for the year ended Dec. 31, 2023, due to the impact of the new acquisitions and same door NOI growth. The acquisitions contributed $13.1-million of NOI, and the results were consistent with management's expectations.
• Same door NOI of $118.5-million in 2023 was higher than $112.5-million for 2022 driven by higher revenue in Western Canada and Atlantic Canada. This was partially offset by lower revenue in Northern Canada due to wildfire evacuations in Yellowknife, NWT, and higher operating costs.
• During 2023, Northview Residential decreased its credit facilities balance by 30.3 per cent as Northview Residential continued to focus on repaying borrowings on the credit facilities and repaid $246.2-million through the use of net proceeds from mortgage financing. To further mitigate Northview Residential's exposure to floating-interest rates, Northview Residential also completed $485.8-million of mortgage financing with a weighted-average interest rate of 4.33 per cent average term to maturity of 7.3 years.
• Northview Residential decreased its debt to gross book value by 440 basis points to 65.1 per cent as at Dec. 31, 2023, from 69.5 per cent as at Dec. 31, 2022, driven by lower leverage ratios from the acquired portfolios.
• Northview Residential's total assets grew to $2.7-billion following completion of the previously announced recapitalization event in August, 2023, which included the acquisition of three high-quality portfolios consisting of 3,301 multiresidential suites and a transformation into Northview Residential REIT, an open-ended real estate investment trust. This provides further geographic diversification and a strong foundation for future growth opportunities through a strengthened balance sheet, and enhances Northview Residential's ability to broaden and deepen its access to capital.
• Funds from operations for 2023 of $45.4-million were lower than $51.2-million for the year ended Dec. 31, 2022, as higher financing costs exceeded NOI growth. FFO per basic and diluted unit of $1.73 and $1.67 was lower than $2.49 and $2.49, respectively, for the comparative period due to lower FFO and additional units issued for the recapitalization event.
• Net and comprehensive income of $163.2-million for 2023 was higher than $70.8-million for 2022 driven by a higher fair value gain on investment properties and NOI, as well as the reclassification on distributions expense, partially offset by recapitalization event costs and higher financing costs.

Fourth quarter 2023 highlights:

• Total NOI increased $11.0-million or 38.9 per cent from the fourth quarter of 2022 mainly due to the new acquisitions contributing NOI of $9.4-million, along with multiresidential same door NOI growth of 7.8 per cent. Significant same door occupancy gains of 390 basis points in Western Canada led to an increase in multiresidential same door occupancy of 120 basis points to 94.6 per cent from the fourth quarter of 2022. Average monthly rent gains were most prominent in Western Canada and Atlantic Canada, also contributing to same door NOI growth. Northview Residential's properties have reached stabilized occupancy, allowing for increased focus on AMR management.
• FFO of $14.4-million was higher compared with $9.5-million for the three months ended Dec. 31, 2022, due to higher NOI, reflecting the first full quarter of operating results from the acquisitions, partially offset by higher financing costs. FFO per basic and diluted unit of 40 cents and 34 cents were lower than 46 cents and 46 cents, respectively, for the comparative period due to additional units issued for the recapitalization event.
• For the three months ended Dec. 31, 2023, distributions declared to unitholders of $9.9-million represented 68.6 per cent of FFO in the fourth quarter of 2023.
• Net and comprehensive income of $20.2-million was lower than $25.1-million from the fourth quarter of 2022 due to lower fair value gains on investment properties, a fair value loss on exchangeable units and higher financing cost, which was partially offset by NOI growth and reclassification on distribution expense.

Financial information

Northview Residential's audited consolidated annual financial statements, the notes thereto, and management's discussion and analysis for the years ended Dec. 31, 2023, and 2022, can be found on Northview Residential's website and on SEDAR+.

All amounts in this news release are in thousands of dollars unless otherwise indicated. In August, 2023, Northview Residential's units were consolidated on a one-for-1.75 basis. All references to the number of units and per-unit amounts in this news release have been restated and are reflected on a postconsolidation basis.

About Northview Residential REIT

Northview Residential is a publicly traded real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario for the primary purpose of indirectly acquiring, owning and operating a portfolio of income-producing rental properties in secondary markets within Canada.

We seek Safe Harbor.