(TheNewswire)
Edmonton, Alberta – TheNewswire- May 30, 2023 – Yorkton Equity Group Inc.(TSXV:YEG) (“Yorkton” or the “Company”) is very pleased toannounce its financial results for the first quarter ended March 31,2023.
Mr. Ben Lui, President and CEO of Yorkton says,"We are delighted to announce the financial results of Q1 2023,reflecting the continued growth and success of Yorkton. Our totalrental revenue has increased to approximately $1.2 million during thethree months ended March 31, 2023, which is an increase of over 90% ascompared to Q1 2022, due to acquisitions of multi-family rentalproperties in Alberta and British Columbia. We are proud of ourexpanding investment property portfolio, which is now approaching $100million as at March 31, 2023, demonstrating an increase of over 100%as compared to March 31, 2022. The Dwell played a significant rolein driving this growth, adding 188 condo grade units and total rentalrevenue of $310,134 in the last month of Q1 2023, as the acquisitionclosed on February 27, 2023. These achievements highlight ourcommitment to delivering exceptional value and experiences to ourresidents and stakeholders. We look forward to building upon thismomentum and capitalizing on future additional accretiveopportunities."
Q1 2023 Financial Highlights
Total rental revenue increased by $558,731 or 90.8% to$1,173,792 in Q1 2023 compared to $615,061 in Q1 2022 and net rentalincome increased by $457,236 or 124.3% to $825,058 in Q1 2023 ascompared to $367,822 in Q1 2022. These increases were primarily dueto the purchase of The Dwell (Edmonton, AB) on February 27, 2023 andShamrock Townhomes and Windsor Estates (Fort St. John, BC) on April11, 2022.
During Q1 2023, Yorkton acquired “The Dwell”, asignificant new investment property to add to its growing portfolio. The Dwell is a 188 unit multi-family residential complex, withconstruction completed in 2022, comprising of two luxury condominiumgrade buildings located in Edmonton, Alberta. Total aggregateconsideration paid was $41,736,000 and the Company financed thepurchase with additional new CMHC insured mortgage debt of $40,159,300at an interest rate of 3.617% per annum amortized over fifty (50)years. From the date of acquisition, on February 27, 2023, to March31, 2023, the Dwell generated total rental revenue of $310,134 and netrental income of $147,985.
The Company also achieved a net income andcomprehensive income in Q1 2023 compared to a net loss andcomprehensive loss of $218,927 in Q1 2022. This was primarily drivenby the increases in rental revenue from the rental property additionsdescribed above.
Net cash generated from operating activities in Q1 2023was $965,194 as compared to net cash spent on operating activities of$441,862 in Q1 2022. This increase in cash generated from operatingactivities of $1,407,056 is due to the rental property additionsdescribed above together with changes in non-cash operating workingcapital and other factors.
Highlights of the residential rental portfolio as atMarch 31, 2023 and 2022 are:
The total investment property portfolio grew by$49,265,826 or 104.2% to $96,548,352 as at March 31, 2023 as comparedto $47,282,526 as at March 31, 2022.
The growth of Yorkton is illustrated by the graphsbelow:
On January 26, 2023, the Company completed anon-brokered private placement of 258 unsecured convertible debenturesat an issue price of $1,000 per convertible debenture for grossproceeds of $258,000. Each convertible debenture has an interest rateequal to 8% per annum and will mature on the date that is 5 years fromthe date of issuance subject to certain terms and conditions. Theprincipal amount of each convertible debenture may, at the option ofthe holder, be converted into common shares at a conversion price of$0.30.
About Yorkton
Yorkton Equity Group Inc. is a growth-oriented real estate investmentcompany committed to providing shareholders with growing assetsthrough accretive acquisitions, organic growth, and the activemanagement of multi-family rental properties with significant upsidepotential. Our current geographical focus is markets in Alberta andBritish Columbia with diversified and growing economies, and strongpopulation in-migration. Our business objectives are to achievegrowing Net Operating Income (“NOI”) as well as the asset valuesin our multi-family rental property portfolio in strategic marketsacross Western Canada.
The management team at Yorkton Equity Group Inc. has well over 30years of real estate experience in acquiring and managing rentalassets.
Further information about Yorkton is available on the Company’swebsite at www.yorktonequitygroup.com and the SEDAR website at www.sedar.com.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
For further information on Yorkton,please contact:
Ben Lui, CEO - Corporate Office: (780) 409-8228
Yorkton Equity Group Inc. – Shareholder Communications: (780)907-5263
Email: investors@yorktonequitygroup.com
Forward-looking information
This press release may include forward-looking information within themeaning of Canadian securities legislation concerning the business ofYorkton. Forward-looking information is based on certain keyexpectations and assumptions made by the management of Yorkton.Although Yorkton believes that the expectations and assumptions onwhich such forward-looking information is based are reasonable, unduereliance should not be placed on the forward-looking informationbecause Yorkton can give no assurance that they will prove to becorrect. Forward-looking statements contained in this press releaseare made as of the date of this press release. Yorkton disclaims anyintent or obligation to update publicly any forward-lookinginformation, whether as a result of new information, future events orresults or otherwise, other than as required by applicable securitieslaws.
This press release does not constitute an offer to sell or asolicitation of an offer to buy any of the securities described hereinin the United States. The securities described herein have not beenand will not be registered under the United States Securities Act of1933, as amended, or any applicable securities laws or any state ofthe United States and may not be offered or sold in the United Statesor to the account or benefit of a person in the United States absentan exemption from the registration requirement.
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