Alignvest Student Housing – Q2 2023 Management Report

by on August 3, 2023 with No Comments

JUNE 30, 2023 – MANAGEMENT REPORT

 

We are pleased to send you Alignvest Student Housing Real Estate Investment Trust’s Q2 2023 Management Report. We launched ASH REIT in June 2018, with the objective of consolidating the Canadian student housing real estate sector. Over the past five years, we have successfully grown to become Canada’s largest university-focused student housing owner/operator, with 5,208 beds across our 12 properties.

Over this period, we have been battle-tested, first through the pandemic, and then with rising inflation and interest rates. Through all of this, our portfolio has proven to be resilient and continued to deliver attractive risk-adjusted returns to our investors. We have delivered an 11.9% annualized net return since inception, with limited volatility.

With strong pre-leasing, we are at ~93% occupancy for September 2023 with strong growth in rental rates. We are on target to deliver ~$42.5 million of net operating income for the 2023/2024 academic year. The strength of our portfolio is reflected in the increasing value of our properties, which were appraised at $945.3 million as of June 30, 2023.

We continue to monitor and effectively manage our capital structure to optimize our returns. We have an attractive loan-to-value ratio of 47% on our mortgage debt, with a weighted average interest rate of 3.47% and staggered maturity dates. With the growth in our property values, we are confident that we will be able to effectively refinance our maturing debt in 2024 and 2025.

As of June 30, 2023, we have liquidity of $43.6 million. This is sufficient to manage our day-to-day working capital requirements, service normal-course redemptions and complete our next acquisition. Accordingly, to optimize our returns, on May 26, 2023, we announced a temporary suspension of acceptance of subscriptions for units of the REIT. We expect to announce an end to the suspension in Fall 2023.

As we reflect on the past five years, we would like to thank our investors who have supported us on this journey. We look forward to delivering continued growth and strong results.

Below are the links to our Q2 2023 Management Report and Q2 2023 Financial Statements. Please contact us if you have any questions or need additional information.

 

Q2 2023 Management Report Q2 2023 Financial Statements

Alignvest Student Housing – Update

by on June 29, 2023 with No Comments

Alignvest Student Housing (“Alignvest”) is pleased to announce an increase in the Fair Market Value (“FMV”) of the Units of Alignvest Student Housing Real Estate Investment Trust (“ASH REIT”) to $134.00 per Class F Unit and $130.83 per Class A Unit (collectively, the “Unit”) as at June 30, 2023.

Additionally, ASH REIT’s Board of Trustees have approved ASH REIT’s Monthly Distribution of $0.50 per Unit ($6.00 per Unit on annual basis), effective June 30, 2023, for unitholders of record as of June 1, 2023.

Please refer to the press release for additional information.

Press Release

Alignvest Student Housing- Management Report

by on May 16, 2023 with No Comments
MARCH 31, 2023

We are pleased to send you Alignvest Student Housing Real Estate Investment Trust’s Q1 2023 Management Report.

Despite the continuing volatility in both the equity and debt markets, our fair market value has remained stable and is starting to show growth due to our strong operating performance and our portfolio’s NOI growth in 2023. Our REIT’s performance speaks for itself – as of March 31, 2023, our privately managed portfolio is over 99% occupied, and as of May 5, 2023, is ~85% pre-leased for September 2023 at rates that exceed our budgets. We are building an attractive gap-to-market in rents of over $6 million, which bodes for well continued growth in 2024 and beyond.

As part of our continuing growth, we have increased our disclosure this quarter by providing comparative financial and operating metrics, as well as quarterly financials, which provides investors with enhanced tools to evaluate our performance. We are also pleased to announce the release of our 2023 ESG Report, which incorporates reporting on our Greenhouse Gas emissions. Below are the links to our Q1 2023 Financial Statements and ESG Report.

Below is the link to our Management Report. Please contact us if you have any questions or need additional information.

Q1 2023 Management Report

 

Q1 2023 Financial Statements

 

2022 Audited Financial Statements

 

2023 ESG Report

 

 

 

 

 

 

 

 

 

SEE-MORE, HALIFAX

Pictured above is See-More, our newest acquisition located in Halifax, Nova Scotia. Throughout the due diligence process, our team analyzed the Environmental and Social components of the building in relation to our overall ESG strategy. The rooftop solar panel installation feeds directly into the domestic hot water and offsets the energy in all common areas of the building. This contributes to our goal of lowering our GHG emissions and sourcing non-emitting sources of energy. The art installation on the exterior wall is inspired by Mi’kmaw traditional porcupine quill work, petroglyphs, weavings, and other aspects of the local indigenous culture. The sentiment of the art speaks to the welcoming environment we want to create for our students; one that is inclusive, safe and also fun!

Alignvest Student Housing Management Report

by on February 9, 2023 with No Comments

We are pleased to send you Alignvest Student Housing Real Estate Investment Trust’s Q4 2022 Management Report.

Our fair market value remains stable due to our strong operating performance and forecasted NOI growth in 2023. Demand for high-quality student housing continues to outpace supply, which has translated into upward pressure on rental rates and resulted in low vacancy rates (99.6% occupancy as at December 31, 2022). Our current pre-leasing velocity is providing confidence that the 2023/2024 academic year will follow similar trends; we are budgeting 2023 NOI at ~8% higher than 2022 on a same-property basis. We are pleased to report that we are already over 60% pre-leased at our privately-managed properties for September 2023 (over 20% ahead last year at the same time).

We are pleased to have delivered a 10.5% annualized net return since inception, with limited volatility. Our annualized distribution yield is 4.9% as at December 2022, equivalent to approximately a 10% pre-tax equivalent yield as it is delivered as a tax-efficient return of capital. We believe our REIT will continue to perform well in 2023 given our market leading position and our strong business fundamentals.

Below is the link to our Management Report. Please contact us if you have any questions or need additional information.

Management Report

 

SEE-MORE, HALIFAX

We acquired 1400 Seymour Street in Halifax, Nova Scotia in January 2023 for $90 million. See-More is a 6-storey, newly constructed (2022) student housing facility located steps away from Dalhousie University. See-More has 141 fully furnished units, including bachelors, 3-bedroom, 4-bedroom and 5-bedroom suites.  Additionally, See-More features several student-oriented amenities, including a yoga and wellness studio, games room, on-site laundry facilities, social rooms, common study areas and an underground parking garage.

Alignvest Student Housing – Announcement

by on January 30, 2023 with No Comments

ALIGNVEST STUDENT HOUSING ACQUIRES HIGH-QUALITY STUDENT HOUSING ASSET IN HALIFAX, NOVA SCOTIA

 

We are pleased to announce that Alignvest Student Housing Real Estate Investment Trust (“ASH REIT”) has completed the acquisition of a purpose-built student accommodation (“PBSA”) asset known as See-More, located at 1402-1424 Seymour Street in Halifax, Nova Scotia.

See-More is a six-floor, newly constructed student housing facility located steps away from Dalhousie University. See-More is one of only a few purpose-built student housing properties serving Dalhousie University and is 100% leased for the 2022/23 academic year.

See-More is equipped with 491 beds in 141 fully furnished units, including studios, three-, four- and five-bedroom suites, which provides a wide variety of configurations for potential tenants. Additionally, See-More features several student-oriented amenities, including a yoga and wellness studio, games room, on-site laundry facilities, social rooms, common study areas and an underground parking garage.

This strategic acquisition further diversifies ASH REIT’s portfolio and solidifies the REIT’s position as the leading owner and operator of Canadian PBSA. With this acquisition, ASH REIT owns in excess of 5,200 student housing beds across Canada. Further, this acquisition marks ASH REIT’s entry into Atlantic Canada, which is home to several universities and colleges in need of housing for their students. We look forward to further growth in the Maritimes.

Below is the link to the press release announcing the acquisition.

Press Release Announcement

Alignvest Student Housing – Management Report

by on November 10, 2022 with No Comments

We are pleased to send you Alignvest Student Housing Real Estate Investment Trust’s (“ASH REIT”) Q3 2022 Management Report.

We are excited to have completed our September 2022 leasing season with record high occupancy of 99.9% across our portfolio. As of today, we only have four vacant beds across our entire privately-managed portfolio. We are also very pleased to have achieved an average net effective rent increase of 13.2% compared to September 2021.

Student housing continues to provide strong protection against the high inflation that we have been experiencing for several months now. In 2022, we turned over of 55% of our beds, resulting in the opportunity to close the gap-to-market on rental rates on these beds. With the remaining beds expected to turn over next year, we still have substantial upside ahead of us. Student housing offers a significant advantage compared to multi-family and other real estate sectors, which traditionally experience much lower turnover, especially in inflationary periods.

Below is the link to our Management Report. Please contact us if you have any questions or need additional information.

Management Report

Alignvest Student Housing Q2 – Management Report

by on August 24, 2022 with No Comments

We are pleased to send you the June 30, 2022 Management Report of Alignvest Student Housing Real Estate Investment Trust (“ASH REIT”).

We continue to experience high inflation in Canada, with the inflation rate rising to 8.1% in June 2022. We are seeing that student housing provides very effective protection against inflation due to the natural, high turnover of student leases. For the 2022/2023 academic year, we are executing leases at rental rates that are 3% to 23% higher than the previous year. We also continue to experience very strong pre-leasing, with our portfolio being over 94% leased for September 2022 (compared to 76% at this time last year). The demand for high quality beds continues to be very strong and our portfolio is performing as expected.

 

In response to high inflation, the Bank of Canada continues to increase benchmark interest rates. We are pleased to have stable and attractive financing in place, with no material near-term financing requirements. With respect to potential acquisitions, we have been building up a robust cash reserve on our balance sheet to focus on acquiring strategic, high-quality acquisitions. We are seeing previously unavailable properties become available for purchase, providing us with the potential opportunity to further expand our portfolio across new markets.

Below is the link to our Management Report. Please contact us if you have any questions or need additional information

Management Report

Alignvest Student Housing – Q1 2022 Management Report

by on May 2, 2022 with No Comments

We are pleased to send you the March 31, 2022 Management Report of Alignvest Student Housing Real Estate Investment Trust (“ASH REIT”).

We are currently experiencing high inflation in Canada, with the inflation rate rising to 6.7% in March 2022. We are seeing that student housing provides very effective protection against inflation due to the natural, high turnover of student leases. While we are still in the midst of our pre-leasing season, we are executing leases at higher than budget rates and expect to achieve strong year-over-year growth in rents. Further, we continue to experience strong demand for our beds, with our pre-leasing  for September 2022 currently 16% ahead of last year at this time. We expect to have another year of strong occupancy next year, consistent with our current occupancy of 98%.

In response to high inflation, the Bank of Canada increased its benchmark interest rate by 50bps on April 13, 2022 and has indicated that further rate hikes should be expected. This, combined with the uncertainty from Russia’s invasion of Ukraine, has created a volatile financing environment, with base rates and lender spreads increasing. We are pleased to have stable and attractive financing in place, with no material near-term financing requirements. With respect to potential acquisitions, we have been building up a robust cash reserve on our balance sheet to capitalize on the expected opportunities that may arise over the next few months.

Even in an inflationary and volatile financing environment, there continues to be strong interest in the student housing sector both nationally and globally. On April 19, 2022, Blackstone announced the acquisition of American Campus Communities, the largest owner/operator of student housing in the United States, for ~USD$13 billion, demonstrating the continuing confidence in the sector.

Below is the link to our Management Report.

Management Report

Alignvest Student Housing – Q4 2021 Management Report

by on January 28, 2022 with No Comments
DECEMBER 31, 2021 – MANAGEMENT REPORT

We are pleased to send you the December 31, 2021 Management Report of Alignvest Student Housing Real Estate Investment Trust (“ASH REIT”).

We are proud of ASH REIT’s achievements in 2021. We finished the year with three transformative acquisitions, which increased the REIT’s asset base by 1,323 beds and over $215 million in asset value; we maintained near-full occupancy and very attractive collection rates across the portfolio through another year under COVID-19; and we have experienced positive leasing and operational results which have set the foundation for a successful 2022/23 academic year. With these achievements, we were able to deliver a net return of 12.1% in 2021, and an annualized return since inception of 11.1% (applicable to Class F unitholders, assuming DRIP participation).

While we are currently persevering through another wave of the COVID-19 pandemic, we remain optimistic that the impacts on the economy and student demographic will not hinder our operations, similar to the prior two years. We are at 98% occupancy and we expect our buildings to have near-full physical occupancy as students return to campus over the next several weeks.

Student housing continues to prove itself to be a resilient asset class and we remain excited about the outlook for the sector. Following a successful fundraising period in Q4 2021, we are now focused on acquiring additional properties in 2022 to continue to build on our track record of delivering attractive risk-adjusted returns to our investors.

Below is the link to our Management Report. Please contact us if you have any questions or need additional information.

Management Report

Alignvest Student Housing – Q3 Management Report

by on October 19, 2021 with No Comments

We are pleased to send you the September 30, 2021 Management Report of Alignvest Student Housing Real Estate Investment Trust (“ASH REIT”).

Q3 2021 included the long-anticipated resumption of in-person classes at Canadian universities, making this arguably the most important period in our short history. We are extremely pleased to see students return to campus and confirm that online classes have not disrupted the traditional in-person teaching model.

In Q3 2021, we experienced robust leasing activity. We have returned to pre-pandemic occupancy with 96% of our beds leased for the 2021/2022 school year, and we are continuing to see additional interest from students who are still making plans to return for January 2022. Importantly, we have achieved this occupancy while also growing our gross and net rent on a year-over-year basis.

We also successfully closed our previously announced acquisition of THEO, a 507-bed property with ~18,000 square feet of retail space, on July 30, 2021. Since closing, renovations were completed to increase the bed count to 528 beds. We were successful in securing attractive financing for this deal and are proud to add this high quality property to our portfolio.

 

Below is the link to our Management Report. Please contact us if you have any questions or need additional information.
Management Report

 

 

THEO, OTTAWA

On July 30, 2021, we closed the acquisition of THEO, a recently renovated, multi-unit student housing building located at 305 Rideau Street in Ottawa, Ontario. The 12-storey building is comprised of 193 units and 528 beds. THEO offers top of the market interior finishes including a premium modern furniture package, stainless steel appliances, quartz countertops and in suite laundry. In addition to the residential space, there is approximately 18,000 square feet of street level retail space with tenants such as Bank of Montreal, PiCo and Dollarama.
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