STARLIGHT U.S. RESIDENTIAL FUND ANNOUNCES Q3-2025 OPERATING RESULTS

Executive Summary

• The Fund reported Q3‑2025 revenue of $6.9 M and NOI of $4.0 M, both down ~30% YoY, resulting in a net loss of $317 K for the quarter (net loss YTD‑2025 of $37.9 M).
• Completed dispositions of Lyric Apartments ($86.7 M) and Eight at East ($64.7 K), repaying associated loans and reducing credit‑facility availability to $2.4 M.
• Entered into a reorganization agreement with Starlight Group; all units will be exchanged for limited‑partnership units of MF Investment LP, with the Fund expected to dissolve and the new entity listed on the TSX Venture Exchange before year‑end 2025.

Key Details

• Revenue & NOI – Q3‑2025 revenue $6,866 K (‑30.3% YoY); NOI $3,964 K (‑36.4% YoY). YTD‑2025 revenue $24,975 K (‑16.4% YoY); NOI $14,882 K (‑20.8% YoY).
• Net Loss – Q3‑2025 net loss $317 K (vs. $4,727 K loss in Q3‑2024); YTD‑2025 net loss $37,900 K (vs. $19,007 K loss in YTD‑2024).
• Property Dispositions – Lyric Apartments sold 29 Apr 2025; proceeds $86,697 K used to fully repay its loan and the Fund’s credit facility ($13,605 K), leaving $2,395 K of available capacity. Eight at East sold 12 Aug 2025 for $64,700 K; mortgage repaid $64,225 K.
• Loan Activity – Sunlake loan extended to 1 Jun 2026 (interest‑only 8.56%). Emerson loan default notice received; foreclosure auction on 21 Oct 2025 transferred ownership to a third party with no net proceeds.
• Value‑Add Upgrades – Completed 18 in‑suite upgrades Q3‑2025 (average rent premium $147, return on cost ~23.9%); 114 upgrades YTD‑2025 (premium $105, ROc ~24.6%).
• Occupancy & Rent Metrics – Economic occupancy Q3‑2025 92.7%; physical occupancy 92.5%; AMR $1,505 per unit (down from $1,591 YoY).
• Balance Sheet Highlights – Gross book value $321,216 K; indebtedness $311,214 K (96.9% of book value); weighted‑average interest rate 7.73%.
• Liquidity Ratios – Interest coverage ratio Q3‑2025 0.76×; indebtedness coverage ratio Q3‑2025 0.80× (both down from 0.84× in Q3‑2024).
• Reorganization Details – All current units to be exchanged for limited partnership units of MF Investment LP; Fund will dissolve and the new entity will list on TSX Venture Exchange before end‑2025, subject to unitholder approval, lender consents, and regulatory acceptance.

Notable Quotes

“The Fund continues to own a high‑quality, well diversified portfolio… focusing on maximizing net operating income while navigating challenging capital markets.” – Evan Kirsh, President

Materiality Assessment: Material – Negative (significant quarterly loss, major asset disposals, and a pending corporate reorganization that could affect unit holders).