Sun Residential Real Estate Investment (SRES) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $1.44M, down 2.5% year-over-year; net rental income fell 3.6% to $953K; net income was $279K, including a $358K property valuation adjustment.

• Six-month revenue rose 0.6% to $2.89M; net rental income up 3.4% to $2.04M; net income for six months was $937K, including the same valuation adjustment.

• Evergreen at Southwood performed well; Cape Coral property renovations are ongoing, with completion expected this year.

Financial highlights

• Weighted average occupancy for Q2 was 94%; net operating income margin was 49%.

• FFO for Q2 was $150K (down from $207K in Q2 2023); AFFO for Q2 was $103K (down from $183K in Q2 2023).

• FFO for six months was $351K (down from $367K in 2023); AFFO for six months was $303K (down from $317K in 2023).

• NAV per unit was $0.087 (C$0.118); debt to gross book value was 49%.

• Cash and cash equivalents at June 30, 2024, were $3.4M; working capital was $3.9M.

Outlook and guidance

• Cape Coral property renovations are expected to be completed during 2024.