SOURCE: Delavaco Residential Properties Corp.

Delavaco Residential Properties Corp.

December 01, 2014 18:00 ET

Delavaco Residential Properties Corp. Reports Third Quarter Financial and Operating Results

TORONTO, ON--(Marketwired - December 01, 2014) - Delavaco Residential Properties Corp. ("Delavaco" or the "Company") (TSX VENTURE: DVO.U) (OTCQX: DELAF) today announced its results for the quarter ended September 30, 2014.

HIGHLIGHTS
*All amounts stated in USD, unless otherwise stated.

Portfolio

  • Fair value of investment properties and assets held for sale as at September 30, 2014, was $109,227,102, an increase of $1,400,729 or 1% quarter over quarter.
  • Recorded a fair value gain on investment properties of $892,495.
  • As at September 30, 2014, Delavaco owned 854 single-family units and 311 multi-family units and managed a 316 unit multi-family building, bringing the total owned and operated unit count to 1,481.
  • Occupancy and adjusted occupancy of the aggregate owned and operated portfolio as at September 30, 2014, was 80% and 83% respectively.

Operational and Financial Performance

  • Revenue for the three and nine months ended September 30, 2014, increased $864,440 or 54% and $3,126,544 or 72% year over year, respectively.
  • Funds From Operations for the three months ended September 30, 2014, improved by $442,974 or 20% quarter over quarter and $1,034,129 or 37% year over year.
  • Adjusted Funds From Operations for the three months ended September 30, 2014, improved by $169,032 or 11% quarter over quarter and $832,203 or 37% year over year.

Occupancy (as at September 30, 2014)

The following table provides a leasing performance summary of our owned and operated portfolio as at September 30, 2014:

                
Region  Number of
Units
 Units Leased  Units Vacant  Occupancy   Adjusted
Occupancy
(1)
    Average
Monthly Rent
Florida single-family(2)  434  264  170  60.8 % 62.0 % $ 1,051
Georgia single-family  312  235  77  75.3 % 82.7 %   835
New Jersey single-family  108  89  19  82.4 % 88.1 %   1,143
Florida multi-family  153  149  4  97.4 % 98.7 %   1,070
Texas multi-family  158  151  7  95.6 % 95.6 %   825
Total - owned properties  1,165  888  277  76.2 % 79.3 % $ 968
Properties managed (not owned)  316  298  18  94.3 % 94.6 %    
Total - owned and operated  1,481  1,186  295  80.1 % 82.6 %    
                
(1)Excludes units under renovation
  
(2)Includes assets held for sale. As at September 30, 2014, 27 units in Florida were held for sale.
  
             
Summary of Properties
 
Quarter Total  2014 Q3    2014 Q2    2014 Q1    2013 Q4
Single-Family Doors: Florida(1)   434    434    525    525
Single-Family Doors: Georgia   312    312    312    298
Single-Family Doors: New Jersey   108    105    -    -
Multi-Family Units: Florida   153    153    153    153
Multi-Family Units: Texas   158    158    158    158
Total Units   1,165    1,162    1,148    1,134
Fair Value of Properties  $109,227,102  $107,826,373 $101,929,277   $99,960,201
Average Fair Value per Unit  $93,757  $ 92,794  $ 88,789  $ 88,148
             
(1)Includes assets held for sale
  

"Delavaco has completed the quarter by entering a new phase in its growth strategy. We are excited to have successful transacted a limited amount of homes from our south Florida portfolio while having achieved impressive gains. The realization of gains on this portfolio clearly confirms our model of taking advantage of the US housing recovery. Consistent with the US residential real-estate industry, Delavaco also continues to experience gains with the balance of our single family and multifamily home portfolios," commented Andrew DeFrancesco, Chief Executive Officer.

About Delavaco Residential Properties Corp.

Delavaco Residential Properties Corp. was formed on January 27, 2011 to take advantage of the U.S. housing crisis with the goal of significant capital appreciation through the recovery of the housing sector. Now a public company, Delavaco has its shares listed for trading on the TSX Venture Exchange and the

OTCQX marketplace in the U.S. Delavaco is focused on the ownership and management of single and multi-family residential properties located principally in the south-eastern United States. Delavaco's real estate portfolio consists of 842 single-family homes in Florida, Georgia and New Jersey, and 311 multi-family units in Florida and Texas. Delavaco also manages a 316 multi-family unit portfolio in Hollywood Florida. Delavaco's acquisition strategy involves the identification and purchase of under-valued residential properties located in highly populated and dynamic urban centers within the lower to middle income demographic sector. Delavaco's security holders include some of the leading Canadian institutional investors and real estate holding companies.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to Delavaco's intended acquisition focus. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; volatility of real estate prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of Delavaco to implement its business strategies; competition; currency and interest rate fluctuations and other risks.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the 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 release.

Additional information about Delavaco Residential Properties Corp. is available at www.delavacoproperties.com or www.sedar.com.

Contact Information

  • For more information please contact:

    Michael Galloro
    Chief Financial Officer
    Delavaco Residential Properties Corp.
    The Exchange Tower
    130 King Street West, Suite 2210
    Toronto, ON M5X 1A9
    Phone: (416) 362-4441
    E-mail: Email contact

    Lisa-Marie Iannitelli
    Director of Investor Relations & Business Development
    Delavaco Residential Properties Corp.
    The Exchange Tower
    130 King Street West, Suite 2210
    Toronto, ON M5X 1A9
    Phone: (416) 362-4441
    E-mail: Email contact