HALIFAX, NS, April 25, 2025 /CNW/ - (TSXV: NXLV) – NexLiving Communities Inc. ("NexLiving" or the "Company") announced operating and financial results for the three- and twelve-month periods ended December 31, 2024.
NexLiving Communities Inc. logo (CNW Group/NexLiving Communities Inc.)
Stavro Stathonikos, President & CEO commented: "2024 was an inflection year for NexLiving. The acquisition of the Devcore portfolio nearly doubled the size of our platform and materially improved our free cash flow profile. We delivered strong results, highlighted by a +38% increase in FFO, and took strategic steps to optimize our capital structure and strengthen our balance sheet. We also made investments into our operating platform to support future growth. As we look ahead to 2025, we are well-positioned to deploy our growing free cash flow into high-return opportunities that can scale the business and drive long-term value for our shareholders."
Summary of Results:
Suite count increased year-over-year from 1,166 to 1,998 (+71% Y/Y).
Net operating income ("NOI") increased by +69% to $4.9 million for the three-month period and +29% to $14.3 million for the year ended December 31, 2024.
Funds from operations ("FFO") increased +54% for the three-month period to $1.3 million and +38.2% for the year ended December 31, 2024, to $3.9 million.
Same property NOI for the year increased +4.8%, driven by a +4.5% increase in revenue and a +4.0% rise in expenses.
The Devcore portfolio delivered NOI of $2.3 million and incurred interest expense of $1.1 million in Q4.
Leverage improved from 68.6% to 67.7% and the weighted average interest rate improved from 3.71% to 3.17% Y/Y.
Q4 2024 Operating and Financial Highlights:
As at
31-Dec-24
31-Dec-23
Change
Number of suites
1,998
1,166
832
Occupancy
96.4 %
96.8 %
(40) bps
Net Debt to GBV*
67.7 %
68.6 %
(91) bps
Weighted average term to debt maturity (years)
4.2
4.6
(0.4) yrs
Weighted average contractual interest rate
3.17 %
3.71 %
(54) bps
Net asset value
136,225,487
74,633,442
82.5 %
Net asset value per share
$ 4.12
$ 4.49
(8.3) %
For the three months ended December 31,
2024
2023
Change
NOI
4,906,359
2,905,709
68.9 %
NOI margin
57.9 %
60.4 %
(93) bps
FFO*
1,317,642
856,707
53.8 %
FFO per share - diluted*
0.04
0.05
(22.9) %
FFO payout ratio*
25 %
19 %
6 %
Same property revenue*
3,703,916
3,568,653
3.8 %
Same property operating expenses*
1,515,337
1,405,187
7.8 %
Same property NOI*
2,188,579
2,163,466
1.2 %
Same property NOI margin*
59.1 %
60.6 %
(154) bps
For the twelve months ended December 31,
2024
2023
Change
NOI
14,264,653
11,036,516
29.2 %
NOI margin
59.4 %
59.7 %
(38) bps
FFO*
3,922,019
2,837,887
38.2 %
FFO per share - diluted*
0.18
0.17
1.7 %
FFO payout ratio*
23 %
23 %
-
Same property revenue*
14,617,654
13,989,555
4.5 %
Same property operating expenses*
5,852,465
5,629,738
4.0 %
Same property NOI*
8,765,189
8,359,817
4.8 %
Same property NOI margin*
60.0 %
59.8 %
21 bps
*Refer to section "Non-IFRS Financial Measures"
Occupancy:
As of December 31, 2024, the portfolio had an occupancy rate of 96.4%, reflecting a 30 basis point decrease from September 30, 2024, driven by increased vacancy in New Brunswick, partially offset by improvement in Ontario.
In New Brunswick, occupancy decreased 50 basis points from the previous quarter, reaching 95.0% as of December 31, 2024, with the majority of vacancy related to the Company's two newly constructed properties, Calabria in Saint John and Northpoint in Moncton.
As a result of the Company's active leasing program, portfolio occupancy improved by 100 bps to 97.4% as of March 31, 2025. Occupancy gains were made across the portfolio with New Brunswick occupancy increasing 130 basis points to 96.3%, Ontario occupancy increasing 90 basis points to 98.0% and Quebec occupancy increasing 80 basis points to 98.7%.
Fair Value of Investment Properties:
As of December 31, 2024, the Company's overall weighted average capitalization rate was 4.82%, an increase of 3 basis points from December 31, 2023. The same property weighted average capitalization rate increased by 7 basis points during 2024 to 4.91%, reflecting higher capitalization rates applied in both New Brunswick and Ontario.
The fair value gain of $3.1 million for the three months and $12.3 million for the year ended December 31, 2024, reflects NOI growth realized during the period, as well as forecasted NOI improvements from anticipated rent increases and operating expense efficiencies.
NCIB Activity:
During the three-month and twelve-month period ended December 31, 2024, the Company purchased for cancellation 33,700 shares at a cost of $66,900, representing a weighted average share price of $1.99. Subsequent to the end of the year, the Company purchased for cancelation 153,200 shares at a cost of $256,421, representing a weighted average share price of $1.67.
Refinancing Activity:
Subsequent to the end of the year, the Company refinanced its mortgage on the 51 Noel property and entered into a new $10.6 million CMHC insured mortgage for a five-year term with a fixed interest rate of 3.56%. The new mortgage replaced the maturing $7.7 million mortgage.
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. 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 April 25, 2025. 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 25, 2025, 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 April 25, 2025. 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.
