/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./ TORONTO, April 29, 2024 /CNW/ - Starlight U.S. Multi-Family (No. 2) Core Plus Fund (TSXV:SCPT) (TSX:SCPT) (the "Fund") announced today its results of operations and financial condition for the three months ended December 31, 2023 ("Q4-2023") and year ended December 31, 2023 ("YTD-2023"). Certain comparative figures are included for the three months ended December 31, 2022 ("Q4-2022") and year ended December 31, 2022 ("YTD-2022"). All amounts in this press release are in thousands of United States ("U.S.") dollars except for average monthly rent ("AMR")1 or unless otherwise stated. All references to "C$" are to Canadian dollars.  "The Fund owns a high-quality, well located portfolio of multi-family communities which achieved a 3.9% increase in average monthly rents during 2023," commented Evan Kirsh, the Fund's President. "The Fund continues to focus on increasing net operating income at its properties through active asset management and navigating the current challenging capital markets environment with the goal of maximizing the total return for investors upon exit." Q4-2023 HIGHLIGHTS Q4-2023 revenue from property operations and net operating income ("NOI")1 were $5,266 and $3,248 (Q4-2022 - $5,146 and $3,174), respectively, representing an increase of 2.3% for both items relative to Q4-2022. The Fund achieved a 3.9% increase in AMR from Q4-2022 to Q4-2023. The Fund completed six in-suite value-add upgrades at Summermill at Falls River ("Summermill") during Q4-2023, which generated an average rental premium of $280 and an average return on cost of approximately 22.0%. The Fund achieved physical occupancy of 92.6% during Q4-2023, which subsequently increased to 95.0% physical occupancy as at April 25, 2024. As at April 28, 2024, the Fund had collected 98.3% of rents for Q4-2023, with further amounts expected to be collected in future periods, demonstrating the Fund's high quality resident base and operating performance. The Fund reported a net loss and comprehensive loss for Q4-2023 of $30,780 (Q4-2022 - $9,200), primarily resulting from the fair value loss on investment properties reported in Q4-2023 and increases in finance costs, partially offset by NOI growth in Q4-2023. On January 22, 2024, the Fund modified the Summermill loan payable to discharge its obligation to purchase a replacement interest rate cap and defer a portion of the debt service at the property, up to a maximum of $290 per month subject to certain terms. The amendment will allow the Fund to retain additional liquidity of up to $3,480, per annum, highlighting the Fund's focus on preserving liquidity to allow the Fund to capitalize on more robust market dynamics upon the eventual sale of the Fund's properties (see "Subsequent Events"). On February 27, 2024, Summermill was selected as a winner of the Carbon Reduction and Energy Conservation Award under the US multi-family asset class for exceptional water conservation, as part of the Institute of Real Estate Management submissions. On August 9, 2023, Starlight U.S. Multi-Family (No.2) Core Plus, GP Inc., the general partner of the Fund ("Starlight GP") approved the first one-year extension of the Fund's term to January 8, 2025. On April 29, 2024, Starlight GP amended the one-year extension of the Fund's term to March 31, 2025 to coincide with the close date of the Fund and provide the Fund with the opportunity to capitalize on more robust market dynamics. 1 This  metric is a non-IFRS measure. Non-IFRS financial measures do not have standardized meanings prescribed by IFRS (see "non-IFRS financial measures"). YTD-2023 HIGHLIGHTS  Revenue from property operations and NOI for YTD-2023 were $21,129 and $13,208 (YTD-2022 - $18,238 and $11,837), respectively, representing a $2,891 and $1,371 increase relative to YTD-2022. The significant increases were primarily due to the acquisition of Summermill in Q2-2022, same property revenue growth of 5.7% and same property NOI1 growth of 1.5%. Net loss and comprehensive loss for YTD-2023 was $42,068 (YTD-2022 - $6,214) primarily as a result fair value loss on investment properties reported during YTD-2023 as well as increases in finance costs, partially offset by the increases in NOI including same property NOI growth and recoveries recorded during YTD-2023 for the non-cash provisions for carried interest and deferred taxes. The Fund completed 54 in-suite value-add upgrades at Summermill during YTD-2023, which generated an average rental premium of $298 and an average return on cost of approximately 21.0%. On July 26, 2023, the Fund amended the existing loan payable to modify the loan at Hudson at East ("Hudson") to a fixed rate loan bearing interest only payments at 5.75% from the date of the amendment to the initial maturity date of May 7, 2025. As part of such amendment, the Fund discharged its obligation to purchase a replacement interest rate cap in November 2023, allowing the Fund to retain liquidity that otherwise would have been utilized for the purchase of a replacement interest rate cap. FINANCIAL CONDITION AND OPERATING RESULTS Highlights of the financial and operating performance of the Fund as at December 31, 2023, for Q4-2023 and YTD-2023, including a comparison to December 31, 2022, Q4-2022 and YTD-2022 as applicable, are provided below: December 31, 2023 December 31, 2022 Operational Information(1) Number of properties 3 3 Total suites 995 995 Economic occupancy(2)(3) 92.2 % 94.1 % Physical occupancy(2)(3) 92.6 % 94.4 % AMR (in actual dollars) $           1,744 $           1,678 AMR per square foot (in actual dollars) $             1.72 $             1.67 Estimated gap to market versus in-place rents(3) 2.4 % 8.0 % Selected Financial Information Gross book value(3) $       301,600 $       355,500 Indebtedness(3) $       252,054 $       243,684 Indebtedness to gross book value(3)(4) 83.6 % 68.5 % Weighted average interest rate - as at period end(3)(5) 5.78 % 5.42 % Weighted average loan term to maturity 1.19 years 3.63 years Q4-2023 Q4-2022 YTD-2023 YTD-2022 Summarized Income Statement Revenue from property operations $           5,266 $           5,146 $         21,129 $         18,238 Property operating costs (1,356) (1,309) (5,568) (4,428) Property taxes(6) (662) (663) (2,353) (1,973) Adjusted income from operations / NOI $           3,248 $           3,174 $         13,208 $         11,837 Fund and trust expenses (330) (373) (1,438) (1,351) Finance costs (including non-cash items)(7) (5,523) (3,187) (20,248) (4,484) Other income and expenses(8) (28,175) (8,814) (5,415) (12,216) Net loss and comprehensive loss $        (30,780) $          (9,200) $        (42,068) $          (6,214) Other Selected Financial Information    Funds from operations ("FFO")(3)