/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./ TORONTO, May 30, 2024 /CNW/ - Starlight U.S. Residential Fund (TSXV:SURF) (TSX:SURF) (the "Fund") announced today its results of operations and financial condition for the three months ended March 31, 2024 ("Q1-2024"). Certain comparative figures are included for the three months ended March 31, 2023 ("Q1-2023"). All amounts in this press release are in thousands of United States ("U.S.") dollars except for average monthly rent ("AMR") 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 6.7% from Q1-2023 to Q1-2024," 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." Q1-2024 HIGHLIGHTS Q1-2024 total portfolio revenue and net operating income ("NOI")1 were $9,932 and $6,267 (Q1-2023 - $9,916 and $5,904) primarily due to strong same property revenue growth 4.0% and same property NOI1 growth of 6.7% (excluding certain tax adjustments), partially offset by the disposition of 80 single-family properties ("SF Properties") since the second quarter of 2023. The Fund completed 45 in-suite value-add upgrades including light value-add upgrades at the multi-family properties ("MF Properties") during Q1-2024, which generated an average rental premium of $81 and an average return on cost of approximately 35.9% (Q1-2023 - 54 upgrades at an average rental premium of $173 and an average return on cost of approximately 22.7%). The Fund increased economic occupancy1 during Q1-2024 to 93.7%. As at May 29, 2024, the Fund had collected approximately 99.0% of rents for Q1-2024, 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 Q1-2024 of $10,440 (Q1-2023 - $4,462), primarily resulting from the fair value loss on investment properties reported in Q4-2023 as well as increases in finance costs relative to when the Fund acquired the properties. During Q1-2024, the Fund continued with the disposition program of the SF Properties completing seven dispositions during the quarter for net proceeds of $1,859. Subsequent to March 31, 2024, the Fund extended the term of the Fund's credit facility to December 31, 2024 (see "Subsequent Events"). On May 1, 2024, the Fund amended the Ventura loan payable to extend the term to February 9, 2026, discharge its obligation to purchase a replacement interest rate cap and defer a portion of the debt service at the property, whereby the Fund can defer up to $125 per month subject to certain terms (see "Subsequent Events"). On May 30, 2024, the board of trustees of the Fund (the "Board") approved the first one-year extension of the Fund's term to November 15, 2025 to provide the Fund with the opportunity to capitalize on anticipated improvements in the real estate investment market (see "Subsequent Events"). FINANCIAL CONDITION AND OPERATING RESULTS Highlights of the financial and operating performance of the Fund as at March 31, 2024 and for Q1-2024, including a comparison to December 31, 2023 and Q1-2023, as applicable, are provided below: March 31, 2024 December 31, 2023 Key Multi-Family Operational Information Number of multi-family properties owned 6 6 Total multi-family suites 1,973 1,973 Economic occupancy(1) 93.7 % 90.5 % Physical occupancy(1)(2) 93.8 % 93.5 % AMR (in actual dollars)(1)(2) $               1,608 $               1,617 AMR per square foot (in actual dollars)(1) $                 1.69 $                 1.70 Estimated gap to market versus in-place rents(2) 0.1 % 1.4 % Number of Single-Family Rental Homes 18 25 March 31, 2024 December 31, 2023 Selected Financial Information Gross book value(2) $            555,603 $            563,338 Indebtedness(2) $            462,054 $            460,692 Indebtedness to gross book value(2)(3) 83.2 % 81.8 % Weighted average interest rate - as at period end(4) 5.78 % 5.78 % Weighted average loan term to maturity(4) 0.59 years 0.84 years Q1-2024 Q1-2023 Summarized Income Statement (Excluding Non-Controlling Interest)(5) Revenue from property operations $                9,932 $                9,916 Property operating costs $              (2,508) $              (2,668) Property taxes(6) $              (1,157) $              (1,344) Adjusted income from operations / NOI $                6,267 $                5,904 Fund and trust expenses $                 (810) $                 (732) Finance costs(7) $              (9,059) $              (8,775) Other income and expenses(8) $              (6,838) $                 (859) Net loss and comprehensive loss - attributable to unitholders(5) $            (10,440) $              (4,462) Other Selected Financial Information    Funds from operations ("FFO")(2) $              (1,740) $              (1,598)    FFO per unit - basic and diluted $                (0.05) $                (0.05)    Adjusted funds from operations ("AFFO")(2) $              (1,217) $              (1,026)    AFFO per unit - basic and diluted $                (0.04) $                (0.03)    Weighted average interest rate - average during period(4) 5.78 % 5.68 %    Interest and indebtedness coverage ratio(2)(9) 0.82 x 0.85 x    Weighted average units outstanding (000s) - basic/diluted 31,820 31,820 (1) Economic occupancy for Q1-2024 and Q4-2023 and physical occupancy as at the end of each applicable reporting period. The decrease in AMR and AMR per square foot from Q4-2023 ...