Mr. Ben Lui reports

YORKTON EQUITY GROUP INC. ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER ENDED MARCH 31ST, 2023

Yorkton Equity Group Inc. has released its financial results for the first quarter ended March 31, 2023.

Ben Lui, president and chief executive officer of Yorkton, says: "We are delighted to announce the financial results of Q1 2023, reflecting the continued growth and success of Yorkton. Our total rental revenue has increased to approximately $1.2-million during the three months ended March 31, 2023, which is an increase of over 90 per cent as compared to Q1 2022, due to acquisitions of multifamily rental properties in Alberta and British Columbia. We are proud of our expanding investment property portfolio, which is now approaching $100-million as at March 31, 2023, demonstrating an increase of over 100 per cent as compared to March 31, 2022. the Dwell played a significant role in driving this growth, adding 188 condo grade units and total rental revenue of $310,134 in the last month of Q1 2023, as the acquisition closed on Feb. 27, 2023. These achievements highlight our commitment to delivering exceptional value and experiences to our residents and stakeholders. We look forward to building upon this momentum and capitalizing on future additional accretive opportunities."

Q1 2023 financial highlights

Total rental revenue increased by $558,731 or 90.8 per cent to $1,173,792 in Q1 2023 compared with $615,061 in Q1 2022 and net rental income increased by $457,236 or 124.3 per cent to $825,058 in Q1 2023 as compared with $367,822 in Q1 2022. These increases were primarily due to the purchase of the Dwell (Edmonton, Alta.) on Feb. 27, 2023, and Shamrock Townhomes and Windsor Estates (Fort St. John, B.C.) on April 11, 2022.

During Q1 2023, Yorkton acquired the Dwell, a significant new investment property to add to its growing portfolio. The Dwell is a 188-unit multifamily residential complex, with construction completed in 2022, comprising two luxury condominium grade buildings located in Edmonton, Alta. Total aggregate consideration paid was $41,736,000 and the company financed the purchase with additional new CMHC insured mortgage debt of $40,159,300 at an interest rate of 3.617 per cent per annum amortized over 50 years. From the date of acquisition, on Feb. 27, 2023, to March 31, 2023, the Dwell generated total rental revenue of $310,134 and net rental income of $147,985.

The company also achieved a net income and comprehensive income in Q1 2023 compared with a net loss and comprehensive loss of $218,927 in Q1 2022. This was primarily driven by the increases in rental revenue from the rental property additions described herein.

Net cash generated from operating activities in Q1 2023 was $965,194 as compared with net cash spent on operating activities of $441,862 in Q1 2022. This increase in cash generated from operating activities of $1,407,056 is due to the rental property additions described herein together with changes in non-cash operating working capital and other factors.

Highlights of the residential rental portfolio as at March 31, 2023, and 2022 are as described herein.

The total investment property portfolio grew by $49,265,826 or 104.2 per cent to $96,548,352 as at March 31, 2023, as compared with $47,282,526 as at March 31, 2022.

On Jan. 26, 2023, the company completed a non-brokered private placement of 258 unsecured convertible debentures at an issue price of $1,000 per convertible debenture for gross proceeds of $258,000. Each convertible debenture has an interest rate equal to 8 per cent per annum and will mature on the date that is five years from the date of issuance subject to certain terms and conditions. The principal amount of each convertible debenture may, at the option of the holder, be converted into common shares at a conversion price of 30 cents.

About Yorkton Equity Group Inc.

Yorkton is a growth-oriented real estate investment company committed to providing shareholders with growing assets through accretive acquisitions, organic growth and the active management of multifamily rental properties with significant upside potential. Its current geographical focus is in markets in Alberta and British Columbia with diversified and growing economies and strong population in-migration. Its business objectives are to achieve growing net operating income, as well as net asset value in its multifamily rental property portfolio in strategic markets across Canada.

We seek Safe Harbor.