(TheNewswire)
Edmonton, Alberta – (April 25, 2024) – TheNewswire– Yorkton Equity Group Inc. (TSXV YEG)(“Yorkton” or the “Company”) is very pleased to announce itsfinancial results for the year ended December 31, 2023.
Mr. Ben Lui, President and CEO of Yorkton, is veryexcited to report, “Yorkton experienced strong growth in 2023;residential rental revenue increased by 150% to $6.8 million andresidential net rental income increased by 172% to $4.3 million. Yorkton also reported a net income and comprehensive income of $3.4million and basic and diluted income per common share of $0.03 in2023. This performance is due to our strong organic growth, achievedby streamlining our operations through utilizing the newly implementedproperty management software and ERP system, together with ourstrategic investment property acquisitions, which added 313 luxuriouscondominium grade units in Edmonton, Alberta to our multi-familyrental property portfolio. These acquisitions well positionedYorkton to capitalize on the growth in Alberta’s multi-family rentalmarket, which has recently been driven by factors such as a rapidlyexpanding population from interprovincial and internationalimmigration, a resilient economy, a robust labor market, affordablehousing costs and fewer regulations around rent controls compared toother markets in Canada. Based on our sound business foundation,Yorkton will continue this growth strategy in 2024.”
2023 Financial Highlights
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Total rental revenue increased by $3,824,546 or 127.8%to $6,817,880. This was composed of an increase in rental revenuefrom the residential investment properties of $3,918,704 or 150.2% to$6,527,070 and a decrease in rental revenue from the commercialinvestment property of $94,158 or 24.4% to $290,810.
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Net rental income increased by $2,455,022 or 133.0% to$4,300,233.
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The acquisition of The Dwell (Edmonton, AB) on February27 th , 2023, added $2,967,685 of rental revenue and $1,931,372 ofnet rental income during 2023.
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The acquisition of The FUSE (Edmonton, AB) on October16 th , 2023, added $447,907 of rental revenue and $313,934 of netrental income during 2023.
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Overall there was net income and comprehensive incomeof $3,437,960 in 2023 as compared to a net loss and comprehensive lossof $161,973 in 2022.
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As at December 31 st , 2023, Yorkton holds 518 residentialrental units and 28,036 sq.ft. of commercial space with a totalportfolio value of $126,630,000, which grew by 131.8% as compared toDecember 31 st , 2022.
Highlights of the residential rental portfolio for theyear ended December 31 st , 2023 are:
Corporate Update
Below is a summary of certain events that have occurredsince the December 31 st , 2023 fiscal year end:
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On February 21, 2024, the Company consolidated thethree (3) mortgages payable held by 1421526 Alberta Ltd. into one (1) demand non-revolving mortgage with a principalbalance of $3,252,300. The consolidated mortgage payable bearsinterest at prime plus 1.25% per annum and is repayable in equalblended monthly payments based on an amortization of 264 months,unless demanded earlier by the lender. The consolidated mortgagepayable is secured by specific charges against the commercial propertyand land held for development, general assignment of rent, generalsecurity agreement and a personal guarantee from the CEO of theCompany equal to 100% of the loan. In addition, 1421526 Alberta Ltd.is required to maintain an annual DSCR of 1.25:1 on the consolidatedmortgage payable, which is measured and tested at December31 st of each year, during the term of the consolidated mortgage payable,based on the financial results of the previous twelve (12) monthperiod.
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 in Alberta and BritishColumbia with diversified and growing economies, and strong populationin-migration. Our business objectives are to achieve growing NetOperating Income (“NOI”) as well as the asset values in ourmulti-family rental property portfolio in strategic markets acrossWestern Canada.
The management team at Yorkton Equity Group Inc. has well over 30years of prior 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.sedarplus.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider(as that term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.
For further information on Yorkton, please contact:
Ben Lui, CEO
Telephone: (780) 409-8228
Email: investors@yorktonequitygroup.com
Forward-looking information
This press release may include forward-lookinginformation within the meaning of Canadian securities legislationconcerning the business of Yorkton. Forward-looking information isbased on certain key expectations and assumptions made by themanagement of Yorkton. Although Yorkton believes that the expectationsand assumptions on which such forward-looking information is based arereasonable, undue reliance should not be placed on the forward-lookinginformation because Yorkton can give no assurance that they will proveto be correct. Forward-looking statements contained in this pressrelease are made as of the date of this press release. Yorktondisclaims any intent or obligation to update publicly anyforward-looking information, whether as a result of new information,future events or results or otherwise, other than as required byapplicable securities laws.
This press release does not constitute an offer to sellor a solicitation of an offer to buy any of the securities describedherein in the United States. The securities described herein have notbeen and will not be registered under the United States Securities Actof 1933, 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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