/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./ TORONTO, Aug. 14, 2024 /CNW/ - Starlight U.S. Residential Fund (TSXV:SURF) and (TSXV:SURF) (the "Fund") announced today its results of operations and financial condition for the three months ended June 30, 2024 ("Q2-2024") and six months ended June 30, 2024 ("YTD-2024"). Certain comparative figures are included for the three months ended June 30, 2023 ("Q2-2023") and six months ended June 30, 2023 ("YTD-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 4.4% from Q2-2023 to Q2-2024," 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." Q2-2024 HIGHLIGHTS Q2-2024 total portfolio revenue and net operating income ("NOI")1 were $10,097 and $6,306 (Q2-2023 - $9,953 and $6,072), respectively, representing an increase of $144 and $234, primarily due to strong same property revenue growth of 5.1% and normalized same property NOI1 growth of 4.4%, partially offset by the disposition of 86 single-family properties ("SF Properties") since the second quarter of 2023 ("Primary Variance Driver"). The Fund completed 23 in-suite light value-add upgrades at the multi-family properties ("MF Properties") during Q2-2024, which generated an average rental premium of $108 and an average return on cost of approximately 33.3%. The Fund achieved economic occupancy1 during Q2-2024 of 93.9%. As at August 13, 2024, the Fund had collected approximately 99.1% of rents for Q2-2024, 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 Q2-2024 of $3,840 (Q2-2023 - $33,682). Q2-2023 included an amount for fair value loss on investment properties. During Q2-2024, the Fund continued with the disposition program of the SF Properties completing six dispositions during the quarter for net proceeds of $1,760 (YTD-2024 - 13 SF Property dispositions for net proceeds of $3,619). On June 28, 2024, the Fund refinanced the existing Indigo Apartments loan payable by entering into a new first mortgage for $62,223 with a five-year term and monthly interest only ("IO") payments bearing interest at a fixed rate of 5.85%. In addition, a subsidiary of the Fund entered into an unsecured financing amounting to $18,277 for a three-year term, bearing monthly IO payments at a minimum of 4.00% per annum with interest accrued up to a maximum of an additional 8.00% payable upon the repayment of the unsecured financing ("Unsecured Financing"). Upon completion of the Unsecured Financing, a portion of the proceeds were used to repay $14,700 towards the Fund's credit facility ("Fund Credit Facility"). 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-2024 HIGHLIGHTS  YTD-2024 total portfolio revenue and NOI were $20,029 and $12,574 (YTD-2023 - $19,869 and $11,976), respectively, with the increases resulting primarily from the same property revenue growth of 4.6% and normalized same property NOI growth of 5.5% from YTD-2023 to YTD-2024. The Fund completed 68 in-suite light value-add upgrades at the MF Properties during YTD-2024, which generated an average rental premium of $90 and an average return on cost of approximately 29.3%. The Fund reported a net loss and comprehensive loss attributable to unitholders for YTD-2024 of $14,280 (YTD-2023 - $38,144), with the decrease primarily resulting from the higher fair value loss on investment properties reported in YTD-2023. 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. 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. FINANCIAL CONDITION AND OPERATING RESULTS Highlights of the financial and operating performance of the Fund as at June 30, 2024 and for Q2-2024 and YTD-2024, including a comparison to December 31, 2023 and Q2-2023 and YTD-2023, as applicable, are provided below: June 30, 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) 93.9 % 90.5 % Physical occupancy(1)(2) 93.8 % 92.7 % AMR (in actual dollars)(1)(2) $               1,607 $               1,617 AMR per square foot (in actual dollars)(1) $                 1.69 $                 1.70 Estimated gap to market versus in-place rents(2) 1.0 % 1.4 % Number of Single-Family Rental Homes 12 25 June 30, 2024 December 31, 2023 Selected Financial Information Gross book value(2) $            554,708 $            563,338 Indebtedness(2) $            466,722 $            460,692 Indebtedness to gross book value(2)(3) 84.1 % 81.8 % Weighted average interest rate - as at period end(4) 5.92 % 5.78 % Weighted average loan term to maturity(4) 2.04 years 0.84 years Q2-2024 Q2-2023 YTD-2024 YTD-2023 Summarized Income Statement (Excluding Non-Controlling Interest)(5) Revenue from property operations $        10,097 $          9,953 $             20,029 $             19,869 Property operating costs $         (2,645) $         (2,554) $              (5,153) $              (5,222) Property taxes(6) $         (1,146) $         (1,327) $              (2,302) $              (2,671) Adjusted income from operations / NOI $           6,306 $           6,072 $              12,574 $              11,976 Fund and trust expenses $            (797) $         (1,092) $              (1,607) $              (1,824) Finance costs(7) $         (9,341) $         (6,533) $            (18,400) $            (15,308) Other income and expenses(8) $                (8) $       (32,129) $              (6,847) $            (32,988) Net loss and comprehensive loss - attributable to unitholders(5) $         (3,840) $       (33,682) $            (14,280) $            (38,144) Other Selected Financial Information    Funds from operations ("FFO")(2) $         (1,693) $         (2,078) $              (3,431) $              (3,676)    FFO per unit - basic and diluted $           (0.05) $           (0.07) $                (0.11) $                (0.12)    Adjusted funds from operations ("AFFO")(2)