STARLIGHT U.S. RESIDENTIAL (MULTI-FAMILY) INVESTMENT LP ANNOUNCES Q4-2025 OPERATING RESULTS

Executive Summary

• Starlight U.S. Residential (Multi‑Family) Investment LP reported a Q4‑2025 net loss of $1.65 M (vs. a $41.3 M loss in Q4‑2024) driven by lower revenue and NOI after disposing three properties.
• Revenue fell 43.6% YoY to $5.49 M; NOI declined 39.4% YoY to $3.75 M. The company completed value‑add upgrades generating an average rental premium of $177 per suite.
• Indebtedness remained high at $256.4 M (96.5% of gross book value) with weighted‑average interest rate up to 7.81%; the firm received a default notice on its Ventura loan and continues negotiations on several other loan extensions.

Key Details

• Revenue & NOI – Q4‑2025 revenue $5,494 K (‑43.6% YoY); NOI $3,754 K (‑39.4% YoY). YTD‑2025 revenue $30,469 K (‑22.7% YoY); NOI $18,636 K (‑25.2% YoY).
• Net Loss – Q4‑2025 net loss attributable to partners $(1,647 K) vs. $(41,306 K) in Q4‑2024; YTD‑2025 net loss $(38,795 K) vs. $(58,119 K) in YTD‑2024.
• Property Dispositions – Completed sales of Lyric Apartments (Apr 29 2025), Eight at East (Aug 12 2025, proceeds $64.7 M), and Emerson (Oct 21 2025, no cash proceeds). Proceeds used to repay related mortgages and credit facility balances.
• Value‑Add Upgrades – 117 in‑suite upgrades YTD‑2025; average rental premium $107 per suite; avg. return on cost ~24.7%. Q4‑2025: three upgrades, premium $177, ROIC ≈21.5%.
• Liquidity & Debt – Indebtedness $256.4 M (96.5% of book value); weighted‑average interest rate 7.81%; term to maturity 1.13 yr. Sunlake loan extended to Jun 1 2026; Ventura loan received default notice (maturity Feb 9 2026).
• Occupancy – Economic occupancy Q4‑2025 93.5% (up from 93.3% YoY); physical occupancy 94.2%; rent collection ~99.9% for Q4‑2025.
• Asset Base – Number of properties reduced to 3 (from 6); suites down to 1,029 (from 1,973). Gross book value $265.7 M; net asset value declined sharply due to higher capitalization rates.
• Future Outlook – Ongoing negotiations for loan extensions on Ventura, Sunlake, and Emerson‑related debt; no material impact expected on NAV if remedies are exercised. Company may seek additional financing or asset sales to preserve liquidity.

Notable Quotes

“SURF LP continues to own a high‑quality, well diversified portfolio of multi‑family communities… focusing on maximizing net operating income while navigating the current challenging capital markets environment.” – Evan Kirsh, President

All forward‑looking statements are subject to risks and uncertainties described in the release.