HALIFAX,
NS, June 4, 2024 /CNW/ - (TSXV:
NXLV) – NexLiving Communities Inc. ("NexLiving" or
the "Company") announced today the sale of its 127-suite property
located at 145-155 McLaughlin Road in Moncton, New Brunswick ( "McLaughlin") for
$19.4 million.
The McLaughlin property
consists of a 7-building complex located in east Moncton and constructed approximately 18 years
ago. The buildings range in size from 2 to 4 storeys and 6 to 24
units and offer residents surface parking and is in close proximity
to the Université de Moncton
campus. The sale price of $19.4
million represents a 4.87% capitalization rate and is at a
5% premium to the property's IFRS fair value as of March 31, 2024. The asset disposition represents
an attractive 40+% IRR on the Company's initial investment of
$14.7 million made in 2020.
NexLiving expects to receive approximately $4.7 million in cash proceeds, net of the current
$14.7 million mortgage balance. These
proceeds will enable the Company to reduce its indebtedness and
will decrease the Company's Net Debt to Gross Book Value ratio by
approximately 300 basis points.
The transaction is expected to close on June 24, 2024.
About the Company
The Company continues to execute on its plan to acquire recently
built or refurbished, highly leased multi-residential properties in
bedroom communities across Canada.
The Company aims to deliver exceptional living experiences to our
residents and provide comfortable, affordable housing solutions
that cater to a wide range of demographics. The properties offer a
range of modern and updated suites, with a variety of amenities and
features that allow residents to experience a hassle-free and
maintenance-free lifestyle. The Company is committed to investing
in its properties to ensure that they are modern and up-to-date.
For its recently acquired properties in Ontario, the Company has undertaken a targeted
value-add capital program to modernize and reposition the large
existing suites. The Company currently owns 1,166 units in
New Brunswick and Ontario. NexLiving has also developed a robust
pipeline of qualified properties for potential acquisition. By
screening the properties identified to match the criteria set out
by the Company (proximity to healthcare, amenities, services and
recreation), management has assembled a significant pipeline of
potential acquisitions for consideration by the Company's Board of
Directors.
For more information about NexLiving, please refer to our
website at www.nexliving.ca and our public disclosure at
www.sedarplus.ca.
Forward-Looking Statements
This news release forward-looking information within the meaning
of applicable Canadian securities laws ("forward-looking
statements"). All statements other than statements of
historical fact are forward-looking statements. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "projects", "estimates", "forecasts", "intends",
"continues", "anticipates", or "does not anticipate" or "believes"
or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may",
"could", "should", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements contained in this news release
include, but are not limited to, management's expectations of
additional rental increases to come into effect by year end and the
further enhancement of the Company's financial results. Such
forward-looking statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations.
These forward-looking statements reflect the current expectations
of the Company's management regarding future events and operating
performance, but involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Actual events could differ
materially from those projected herein and depend on a number of
factors. These risks and uncertainties are more fully described in
regulatory filings, which can be obtained on SEDAR at
www.sedarplus.ca, under NexLiving's profile, as well as under Risk
Factors section of the MD&A released on May 15, 2024. Although
forward-looking statements contained in this new release are based
upon what management believes are reasonable assumptions, there can
be no assurance that actual results will be consistent with these
forward-looking statements. Accordingly, readers should not place
undue reliance on forward-looking statements. The forward-looking
statements in this new release speak only as of the date of this
news release. Except as required by applicable securities laws, the
Company does not undertake, and specifically disclaims, any
obligation to update or revise any forward-looking statements,
whether as a result of new information, future developments or
otherwise, except as required by applicable law.
Non-IFRS Financial Measures
The Company prepares and releases unaudited consolidated interim
financial statements and audited consolidated annual financial
statements prepared in accordance with IFRS. In this and other
releases, as a complement to results provided in accordance with
IFRS, NexLiving discloses financial measures not recognized under
IFRS which do not have standard meanings prescribed by IFRS. These
include FFO, FFO (cents per share) – diluted, FFO payout ratio, Net
Debt to GBV and same-property metrics (collectively, the
"Non-IFRS Measures"). These Non-IFRS Measures are further
defined and discussed in the MD&A dated May 15, 2024, which should be read in conjunction
with this news release. Since these measures are not recognized
under IFRS, they may not be comparable to similar measures reported
by other issuers. The Company presents the Non-IFRS measures
because management believes these Non-IFRS measures are relevant
measures of the ability of NexLiving to earn revenue and to
evaluate its performance and cash flows. A reconciliation of these
Non-IFRS measures is included in the MD&A dated May 15, 2024. The Non-IFRS measures should
not be construed as alternatives to net income (loss) or cash flows
from operating activities determined in accordance with IFRS as
indicators of the Company's performance.
Neither the TSX Venture 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 press release.
SOURCE NexLiving Communities Inc.