MARWEST APARTMENT REAL ESTATE INVESTMENT TRUST ANNOUNCES Q2 2025 RESULTS

Executive Summary

• Marwest Apartment Real Estate Investment Trust reported its financial results for the three and six months ended June 30, 2025, highlighting a decline in occupancy and net income compared to the prior year, despite revenue growth driven by rental increases.
• The REIT announced a distribution increase of approximately 9.62%, raising the annualized distribution from $0.0156 to $0.0171 per Trust Unit, with the increase effective June 30, 2025.
• Key operational metrics show an average occupancy rate of 96.82% for the six-month period (down from 99.25% in 2024), while Same Property Revenue increased by 2.10%. Net Asset Value (NAV) per unit rose to $2.43 from $2.37 at year-end 2024.

Key Details

• Financial Performance (Six Months Ended June 30, 2025):
  • Revenue: $5,214,192 (up from $5,107,070 in 2024).
  • Net Operating Income (NOI): $3,174,502 (down from $3,410,630 in 2024).
  • Net Loss: $(763,091) compared to Net Income of $3,123,230 in 2024.
  • FFO per Unit: $0.0461 (down from $0.0601 in 2024).
  • AFFO per Unit: $0.0401 (down from $0.0467 in 2024).
  • AFFO Payout Ratio: 19.75%.
• Distribution Update:
  • Distributions increased by 9.62% on an annualized basis.
  • New distribution rate: $0.0171 per Trust Unit (up from $0.0156).
  • Unitholders received an increase of approximately 10% on July 15, 2025.
• Operational Metrics:
  • Portfolio Size: 4 properties with 516 suites.
  • Average Occupancy: 96.82% for the six months ended June 30, 2025 (vs. 99.25% in 2024).
  • Average Rental Rate: $1,728 for the six months ended June 30, 2025 (vs. $1,658 in 2024).
  • Same Property Revenue Growth: 2.10% increase in the six months ended June 30, 2025.
• Balance Sheet & Debt:
  • NAV per Unit: $2.43 at June 30, 2025 (up from $2.37 at Dec 31, 2024).
  • Total Interest-Bearing Debt: $101,022,365.
  • Debt-to-Gross Book Value Ratio: 67.32%.
  • Debt Service Coverage Ratio: 1.28.
  • Weighted Average Term to Maturity: 57.58 months.
  • Weighted Average Interest Rate: 3.09%.
• Cost Drivers:
  • Operating expenses increased due to the removal of the provincial school tax rebate, which had previously reduced property taxes by $146,990 for the six months ended June 30, 2024.
  • General and administrative expenses were $463,242 for the six months ended June 30, 2025.
  • Finance costs were $1,959,975 for the six months ended June 30, 2025.

Notable Quotes

• "This quarter we have seen higher turnover than anticipated and a longer re-lease period for our rental inventory. The increase in vacancy is offset by rental increases providing a modest same period revenue growth of 2.10%. We anticipate a stronger occupancy rate for the remainder of the year." — William Martens, CEO and Trustee
• "On July 15th, Unitholders received an increase of approximately 10 percent in their distribution. With continued growth in the portfolio's rental rates we look forward to continue to deliver positive financial results for our Unitholders in the future." — William Martens, CEO and Trustee