ViveRe provides 2020 operating highlights and corporate updateApril 22 2021
Halifax, Nova Scotia – April 22, 2021 – ViveRE Communities Inc. (TSXV:VCOM) (“ViveRE” or the “Company”) provides the following corporate update.
“We are very pleased with the Company’s performance over the past year. ViveRE has successfully grown its’ portfolio of properties, more than doubled revenue and net operating income and has established a significant pipeline of premium 55+ active living properties for potential acquisition in the near term,” noted Mike Anaka, President and CEO. “We are well positioned to continue increasing operating income and asset values, as well as generating funds for reinvestment in the business throughout 2021 and beyond.”
2020 Operating Highlights
1) Portfolio Growth from Acquisitions
ViveRE completed $62.8 million in acquisitions in 2020. The total portfolio increased to 533 units and over $81 million in value at cost. The Company added 347 units in Moncton NB, 47 units in Saint John NB and 20 units in Oshawa ON. The Emma Street property in Oshawa is the Company’s first step toward geographic diversification into secondary markets outside the Maritime provinces.
2) Revenue and NOI Growth
Property revenue increased by $2.5 million (233%) to $3.6 million and net operating income increased by $1.4 million to over $2 million (226%) during the year. Due to the timing of 2020 acquisitions, if revenue and NOI from the current portfolio are maintained at the current monthly run rate annual amounts are expected to be approximately double in the 2021 fiscal year.
3) Below Market Rents
Management estimates that comparable market rents are approximately 10-20% higher than ViveRE’s average in- place rents. The differential between in-place and market rents provides the Company with the potential opportunity to raise rents and increase yields while still providing very affordable, competitive rents to our tenants.
4) Limited Exposure to Rent Control
Approximately 95% of the Company’s properties are located in New Brunswick and are presently not subject to rent control. As a result ViveRE can adjust rental rates annually in order to close the differential between in-place and market rents.
5) Financing at Attractive Interest Rates
The Company has acquired it’s portfolio of properties at an average cap rate of approximately 5.70%. ViveRE has also been able to take advantage of low interest rates on conventional mortgages. The Company placed mortgage debt of approximately $46 million on it’s 2020 property acquisitions at a fixed weighted average interest rate of 1.89%.
The 2020 Annual and Special Meeting of shareholders has been scheduled for May 25, 2021 at 11am AST. The meeting will mark the launch of the next phase of the Company’s development including rebranding and a strengthened management team. Further details will be provided in the ViveRE Management Information Circular.
ViveRE reports that at the Annual and Special Meeting of the shareholders of the Corporation held on June 29, 2020, a majority of the disinterested shareholders of the Corporation approved the increase in the maximum number of common shares issuable under the Corporation’s Deferred Share Unit Plan (DSU Plan) from 3,000,000 to 7,000,000.
The Board of Directors, in accordance with the terms of the Company’s DSU Plan, have approved the issuance of 2,185,000 deferred share units (DSUs) to directors, management and consultants of the Company. The DSU’s vest over three years in accordance with the provisions of the Company’s DSU plan.
The Board of Directors, in accordance with the provisions of the Company’s Stock Option Plan, also approved the issuance of 750,000 options to a consultant of the Company. The options are exercisable at $0.19 per common share; vest in two equal tranches of 375,000 options on April 15 , 2021 and October 15, 2021 and are exercisable for a ten year term.
Further to the Company’s press release dated February 22, 2021, ViveRE reports that it has issued 1,152,636 common shares of the Company to settle outstanding indebtedness owed to an arm's-length creditor of the company in the amount of $238,400 of which $86,600 was settled at a price of $0.22 per share and $151,800 was settled at a price of $0.20 per share.
ViveRE continues to execute its plan to acquire recently built or refurbished, highly leased multi-residential properties in bedroom communities across Canada. The Company aims to satisfy the needs of the newly emerging 55+ resident. The demographic that has changed the world is now changing the way residential rental apartments cater to their requirements. Their desire for community, along with service, quality and convenience has led to the emergence of the 55+ active living segment. “Apartments” are the next home, after years of owning they look forward to the carefree lifestyle provided through renting in a community of their peers. ViveRE intends to consolidate this emerging market niche. The company currently owns 533 units in New Brunswick and Ontario. ViveRE has developed a robust pipeline of qualified properties for potential acquisition. By screening properties identified to match the criteria set out by the company (proximity to healthcare, amenities, services and recreation), management has identified a significant pipeline of potential acquisitions for consideration by the Company’s Board of Directors.
On behalf of the Board of Directors of ViveRE Communities Inc.
Chief Executive Officer
For further information contact:
Chief Executive Officer
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This news release contains forward-looking statements relating to the future operations of ViveRE and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of ViveRE Communities Inc, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from ViveRE Communities Inc.’s expectations include other risks detailed from time to time in the filings made by ViveRE Communities Inc. with securities regulators.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of ViveRE Communities Inc. The reader is cautioned not to place undue reliance on any forward-looking information. 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. The forward-looking statements contained in this news release are made as of the date of this news release and ViveRE Communities Inc. will only update or revise publicly the included forward-looking statements as expressly required by Canadian securities law.