HALIFAX,
NS, Dec. 23, 2024 /CNW/ - (TSXV:
NXLV) – NexLiving Communities Inc. ("NexLiving" or the
"Company") announced today the completion of a series of
transactions, including the previously announced sale of the 39
Pleasant property and multiple mortgage activities, which combined
will result in annual interest savings of approximately
$0.4 million and a reduction in net
debt of $2.4 million.
Property Sale
On December 12, 2024, the Company
closed on its previously announced sale of the 39 Pleasant property
in Moncton, NB. The sale price of
$5.8 million represents a 4.56%
capitalization rate based on the trailing twelve months of
operations as of September 30, 2024.
NexLiving received approximately $2.4
million in cash proceeds after the repayment of the
$3.3 million mortgage associated with
the property.
Mortgage Repayments
On December 2, 2024, the Company
fully repaid the combined $2.3
million balance on two maturing mortgages within its
Quebec portfolio. These mortgages
bore blended interest costs at 2.80%, and the repayment was
completed using cash on hand.
On December 16, 2024, the Company
fully repaid the $1.4 million balance
on its maturing land loan, which carried interest at 7.35%, for a
parcel of vacant land adjacent to its 50 Calabria property.
Mortgage Refinancings
On December 18, 2024, the Company
refinanced the mortgage on its 542-550 Ryan property in
Moncton, NB and secured a new
$7.3 million CMHC insured mortgage.
The new mortgage carries a five-year term at a fixed interest rate
of 3.75%, replacing the maturing $3.5
million mortgage, which bore interest at 3.45%.
On December 18, 2024, the Company
refinanced the mortgage on its 294 Saulsbury property in
Strathroy, ON and secured a new
$7.9 million CMHC-insured mortgage.
The new mortgage carries a five-year term at a fixed interest rate
of 3.81%, replacing the maturing $7.4
million mortgage, which bore interest at 6.37%.
On December 20, 2024, the Company
refinanced a $4.1 million maturing
floating interest rate construction loan on a portion of its
Roland Audet property in
Val-d'Or, QC with a new mortgage
of the same amount. The new mortgage carries a one-year term and
bears interest at 4.69%, replacing the maturing loan, which bore
interest at 6.45% (prime + 1.00%).
About the Company
NexLiving continues to execute on its plan to acquire recently
built or refurbished, highly leased multi-residential properties in
bedroom communities across Canada.
NexLiving 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. NexLiving 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 1,998 units in
New Brunswick, Ontario and Quebec. 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 Board.
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 November 25, 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
earnings 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, 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
April 23, 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 November 25,
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.
