Delavaco Residential Properties Corp. Reports Annual and Fourth Quarter Results
01 Mai 2014 - 2:30PM
Marketwired Canada
Delavaco Residential Properties Corp. ("Delavaco" or the "Company") (TSX
VENTURE: DVO.U) (OTCQX: DELAF) today announced its results for the year and
fourth quarter ended December 31, 2013.
HIGHLIGHTS
*All amounts stated in USD, unless otherwise stated.
Corporate
-- On December 30, 2013, Delavaco completed a reverse takeover transaction
with Sereno Capital. The Company began trading on the TSX-V under the
symbol DVO.U in USD on January 3, 2014.
Operational and Financial Performance
-- Revenue increased $3,013,007 or 97% year over year to $6,121,841
-- NOI increased $638,185 or 54% year over year to $1,829,406
Portfolio
-- Fair value of investment properties and assets held for sale as at
December 31, 2013 was $99,960,201, an increase of $49,375,201 or 98%
year over year.
-- Realized a fair value gain on investment properties of $5,936,866.
-- During 2013, Delavaco grew its single-family homes portfolio by 209
units, bringing the unit count to 823 as at December 31, 2013.
-- On December 30, 2013 Delavaco successfully acquired three garden style
multi-family buildings with a total of 311 units for $32,418,634. The
buildings are located in Ft. Lauderdale, FL and Austin, TX.
-- Aggregate portfolio occupancy rate increased 14% year over year to 79%
as at December 31, 2013. Adjusted occupancy of the owned and operated
portfolio was 87% as at December 31, 2013.
-- Fully transitioned portfolio to an external property management company in
Q3, 2013.
Occupancy (as at December 31, 2013)
Number of Units Units Adjusted
Region Units Leased Vacant Occupancy Occupancy (1)
-------------------- --------- --------- --------- ---------- --------------
Florida single-
family 525 347 178 66.1% 72.7%
Georgia single-
family 298 253 45 84.9% 92.3%
Florida multi-family 153 150 3 98.0% 98.0%
Texas multi-family 158 144 14 91.1% 91.1%
--------- --------- --------- ---------- --------------
Total - owned
properties 1,134 894 240 78.8% 84.2%
Properties managed
(not owned)(2) 316 309 7 97.8% 97.8%
--------- --------- --------- ---------- --------------
Total - owned and
operated 1,450 1,203 247 83.0% 87.3%
========= ========= ========= ========== ==============
1. Excludes units under renovation
2. Includes properties managed not yet owned - consists solely of Park
Colony which Delavaco is currently in the process of acquiring
Financings
-- During 2013, the Company completed a multi tranche convertible debenture
financing to raise gross proceeds of $21,600,000. The convertible
debentures bear interest at 7%, are convertible at $1.15 per share, and
mature on July 31, 2018.
-- On December 30, in conjunction with the reverse takeover transaction,
the $10,000,000 unsecured convertible debenture originally issued on
December 20, 2013 was converted into common shares at a price of $1.06
per share.
-- In conjunction with the acquisition of the three multi-family buildings,
the Company obtained three mortgages in the amount of $15,225,351 with
an average interest rate of 3.98% per annum maturing in 2022 and 2023.
Recent Announcements
-- On March 26, 2014, Delavaco entered into an agreement to purchase 96
units in 19 multi-family buildings in Patterson, New Jersey for an
aggregate purchase price of $6,250,000. Half of the purchase price is
payable through the issuance of 3,120,000 common shares at $1.00 per
share, and the remainder through two six month promissory notes secured
by a first ranking lien on the properties. The acquisition is scheduled
to close on May 1, 2014 and is subject to TSXV approval and other
customary closing conditions.
-- On April 10, 2014 Delavaco began trading on the OTCQX under the ticker
symbol DELAF.
"We are pleased with how far we've come since the creation of Delavaco
Residential Properties Corp. in 2011. We continue to expand our growth in both
single and multi family properties while finding opportunities in strong urban
areas, providing a healthy base of renters and desired cap rates with continued
focus on property appreciation," 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
525 single-family homes in Florida, 298 single-family homes in Georgia, 311
multi-family units in Florida and Texas and 96 multi-family units in New Jersey.
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 with tenants
who qualify for government funding under the United States rental voucher
assisted program. 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
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: michael@delavaco.com
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: lisa-marie@delavaco.com
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