Sun Residential REIT Reports Second Quarter 2025 Results and Provides Update Regarding Asset Sales and Distributions
Revenue for the three months ended June 30, 2025, was $1,490,690, an increase of 3.6% compared with the same period in the prior year. Net income and comprehensive income for the three months ended June 30, 2025 was $69,303, compared to $279,332 in the prior year. Funds from operations (FFO) of $145,049 and adjusted funds from operations (AFFO) of $143,391 increased by 39% from the previous year.
Revenue for the six months ended June 30, 2025, was $2,966,837, an increase of 2.8% compared with the same period in the prior year. Net income and comprehensive income for the six months ended June 30, 2025 was $803,117, a decrease of $14.3%, after recording loss on sale of $567,573. Funds from operations (FFO) of $328,440 and adjusted funds from operations (AFFO) of $326,782 increased by 7.7% from the previous year.
At June 30, 2025, Sun had total assets of $17.7 million (December 31, 2024 - $64.5 million), and cash and cash equivalents of $17.7 million (December 31, 2024 - $3.3 million). Working capital at June 30, 2025, was $16.8 million (December 31, 2024 - $3.3 million).
During June, Sun sold its two properties and is in the process of being wound-up, terminated and delisted. The first of two wind-up distributions, of C$0.10 per unit, was paid on July 24, 2025. A second distribution, which will be for less than 10% of the proceeds will be paid at a future date.
"The sale of our two primary assets and the subsequent return of capital and profit benefits our unitholders," noted Robert C. Wetenhall, Jr., Chief Executive Officer. "We thank our unitholders for their patience and loyalty."
Additional highlights (at June 30, 2025 or for the three and six months then ended, unless otherwise noted)
Net operating income margin - 55%
FFO (funds from operations) for the three months ended June 30, 2025 - $145,049 (previous year - $150,185).
FFO (funds from operations) for the six months ended June 30, 2025 - $328,440 (previous year - $350,515).
AFFO (adjusted funds from operations) for the three months ended June 30, 2025 - $143,391 (previous year - $102,997).
AFFO (adjusted funds from operations) for the six months ended June 30, 2025 - $326,782 (previous year - $303,327).
A reconciliation to non-IFRS measures is set out below. For further information on the financial results as well as analysis of operational statistics, please refer to Sun's consolidated financial statements and its management's discussion and analysis for the period ended June 30, 2025 available on SEDAR+ at www.sedarplus.com and on Sun's website at www.sunresreit.com.
Non-IFRS Financial Measures
FFO, AFFO and net operating income margin, are key measures of performance commonly used by real estate investment trusts. They are not measures recognized under International Financial Reporting Standards (IFRS) and do not have meanings prescribed by IFRS. FFO, AFFO, and net operating income margin as calculated by Sun may not be comparable to similar measures presented by other issuers. Please see the table below for reconciliations to IFRS measures.Three months endedSix months ended
June 30June 30
2025202420252024Net income (loss) attributable to unitholders
unitholders
$(389,920
)
$
(5,207
)
$
(215,103
)
$
255,288Adjustments to arrive at FFO
Fair value adjustment to
income producing investment properties
3,251
92,525
(346,749
)92,525Realty taxes not accounted for under
IFRIC 21
(245,100
)(250,200
)(490,200
)(500,400
)
Non-controlling interest
118,506
77,261
410,105
199,859Fair value adjustment to
property under development
-
265,557
272,506
265,557Loss on sale of properties
567,573
-
567,573
-Professional fees related to windup
75,468
-
75,468
-Income taxes
2,933
(30,357
)43,028
36,203Loss (gain) on foreign currency translation12,338
606
11,814
1,483Funds from operations (FFO)
145,049
150,185
328,442
350,515Adjustments to arrive at AFFO
Capital expenditures
(3,251
)(92,525
)(3,251
)(92,525
)
Non-controlling interest
1,593
45,337
1,593
45,337Adjusted funds from operations (AFFO)
$143,391$
102,997$
326,784$
303,327
Weighted average number of units
203,338,999203,338,999203,338,999203,338,999FFO per unit
$0.0007$
0.0007$
0.0016$
0.0017AFFO per unit
$0.0007$
0.0005$
0.0016$
0.0015
About Sun Residential REIT
Sun Residential Real Estate Investment Trust is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust dated January 22, 2019, as amended and restated on March 22, 2019 and November 4, 2020. As announced previously, Sun is in the process of distributing its net cash to its unitholders and will then terminate the trust.
Caution regarding forward-looking statements
Forward-looking statements in this news release, and elsewhere reflect Sun's current assumptions, expectations, and projections. Often, but not always, forward‐looking statements can be identified by words such as "planned," "expects," "expecting," "anticipated," "have confidence," or "believes," or variations of such words and phrases or state that certain actions, events, or results "may," "could," "would," or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Sun's actual results or achievements to be materially different from those expressed or implied by the forward-looking statements. The forward-looking statements made in this news release relate only to events or information as of the date hereof. All forward-looking statements are based on assumptions that may prove to be incorrect. Furthermore, forward-looking statements are qualified in their entirety by the inherent risks, uncertainties and changes in circumstances surrounding future expectations that are difficult to predict and mostly beyond the control of Sun.
Except as specifically required by Canadian securities law, Sun undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Many factors will cause actual results to differ, perhaps materially, from results in the forward-looking statements: for a description of such factors please refer to the Management's Discussion and Analysis for the three and six month periods ended June 30, 2025, available at www.sedarplus.ca or at www.sunresreit.com.
For further information, please contact: Robert C. Wetenhall Jr.Chief Executive Officer rwetenhall@sunresreit.com
Jeffrey D. Sherman,Chief Financial Officer jsherman@sunresreit.com(416) 214-2228
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/260529
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