/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./ TORONTO, April 29, 2024 /CNW/ - Starlight U.S. Residential Fund (TSXV:SURF) (TSXV:SURF) (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 reported an increase in same property net operating income of 1.7% from Q4-2022 to Q4-2023," 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 total portfolio revenue and net operating income ("NOI")1 were $9,808 and $5,916 (Q4-2022 - $9,912 and $6,973), with the reduction in revenue primarily due to the disposition of 73 single-family properties ("SF Properties") during YTD-2023, partially offset by same property revenue growth of 3.2%. The increase in NOI is primarily due to a 1.7% increase in same property NOI1, excluding the impact of certain property tax adjustments in both periods. The Fund completed 34 in-suite value-add upgrades at the multi-family properties ("MF Properties") during Q4-2023, which generated an average rental premium of $156 and an average return on cost of approximately 31.0% (YTD-2023 - 225 upgrades at an average rental premium of $155 and an average return on cost of approximately 28.6%). The Fund achieved physical occupancy of 92.7% during Q4-2023, which subsequently increased to 93.9% physical occupancy as at April 25, 2024. As at April 28, 2024, the Fund had collected approximately 97.9% 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 attributable to unitholders for Q4-2023 of $53,592 (Q4-2022 - $15,424), primarily resulting from the fair value loss on investment properties reported in Q4-2023. During Q4-2023, the Fund continued with the disposition program of the SF Properties completing six dispositions during the quarter for net proceeds of $1,605 (YTD-2023 - 73 dispositions for net proceeds of $18,583). Subsequent to December 31, 2023, the Fund extended $78,187 of debt maturing in 2024 (see "Subsequent Events") and is actively working through an extension of the Ventura loan payable prior to its initial maturity. This, together with the SF Properties disposition program, highlights the Fund's continued focus on preserving liquidity for the duration of the Fund's term to allow the Fund to capitalize on more robust market dynamics upon the eventual sale of the Fund's properties. 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 YTD-2023 total portfolio revenue and NOI were $39,386 and $24,331 (YTD-2022 - $34,530 and $22,224), respectively, with the increases primarily as a result of the acquisition of The Ventura and Eight at East in YTD-2022, partially offset with the disposition of certain SF Properties during YTD-2023 (the "Primary Variance Drivers"). The Fund reported a net loss and comprehensive loss attributable to unitholders for YTD-2023 of $106,299 (YTD-2022 - $21,709), primarily resulting from the fair value loss on investment properties reported in YTD-2023. On January 25, 2023, the Fund entered into an interest rate swap relating to the Indigo Apartments property loan payable at a swap rate of 3.75%, fixing the all-in interest rate at 5.70% until maturity. On July 26, 2023, the Fund amended the existing Eight at East loan payable to a fixed rate loan bearing interest only ("IO") payments at 5.75% from the date of the amendment to the initial maturity date of May 7, 2025. As part of the amendment, the Fund discharged its obligation to purchase a replacement interest rate cap in January 2024, which is expected to allow the Fund to retain liquidity that otherwise would have been utilized for the purchase of a replacement interest rate cap. On May 23, 2023, the Fund entered into a $25,000 credit facility which bears IO payments until maturity in May 2024 ("Fund Credit Facility"). On April 24, 2024, the Fund extended the Fund Credit Facility term to December 31, 2024 (see "Subsequent Events"). 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, Q3-2022 and YTD-2022, as applicable, are provided below: December 31, 2023 December 31, 2022 Key Multi-Family Operational Information Number of multi-family properties owned 6 6 Total multi-family suites 1,973 1,973 Economic occupancy(1)(2) 90.5 % 93.2 % Physical occupancy(1)(2) 92.7 % 93.5 % AMR (in actual dollars) $               1,617 $               1,623 AMR per square foot (in actual dollars) $                 1.70 $                 1.70 Estimated gap to market versus in-place rents(2) 1.4 % 6.0 % Number of Single-Family Rental Homes 25 98 December 31, 2023 December 31, 2022 Selected Financial Information Gross book value(2) $            563,338 $            672,025 Indebtedness(2) $            460,692 $            469,479 Indebtedness to gross book value(2)(3) 81.8 % 69.9 % Weighted average interest rate - as at period end(4) 5.78 % 5.68 % Weighted average loan term to maturity(4) 0.84 years 1.78 years Q4-2023 Q4-2022 YTD-2023 YTD-2022 Summarized Income Statement (Excluding Non-Controlling Interest)(5) Revenue from property operations $           9,808 $          9,912 $             39,386 $             34,530 Property operating costs $          (2,681) $         (2,539) $            (10,498) $              (8,395) Property taxes(6) $          (1,211) $            (400) $              (4,557) $              (3,911) Adjusted income from operations / NOI $           5,916 $          6,973 $             24,331 $             22,224 Fund and trust expenses $             (744) $            (768) $              (3,389) $              (2,683) Finance costs(7) $          (9,773) $         (6,759) $            (34,228) $            (14,787) Other income and expenses(8) $        (48,991) $       (14,870) $            (93,013) $            (26,463) Net loss and comprehensive loss - attributable to unitholders(5) $        (53,592) $       (15,424) $          (106,299) $            (21,709) Other Selected Financial Information