Yorkton Equity Group Inc. Announces Financial Results for Fiscal Year Ended 2021 and Provides Corporate Update

(TheNewswire)

Edmonton, Alberta–TheNewswire – (May 2, 2022) – Yorkton Equity Group Inc. (“Yorkton” or the “Company”) (TSXV:YEG) is pleased to announce its financial results for the year ended December 31, 2021 and provides a corporate update.Mr. Ben Lui, President and CEO of Yorkton stated that, “After completing a very busy first full year as a public company, we are pleased with our 2021 financial results. Total assets have more than tripled to $45.9 million while the value of our net assets have almost doubled to $20.5 million. In addition, our net rental income has increased by around 26%. The above significant results reflect the rapid pace of property acquisitions completed in 2021 which will provide a strong positive cash flow and net operating income (“NOI”) moving forward. These accomplishments have built a very solid foundation for our future growth. At Yorkton, we are all looking forward to another successful year in 2022.”

2021 Financial Highlights

• The Company acquired four (4) new multi-family properties in 2021, including Riviera Gardens (Edmonton, AB) on April 30, 2021, Larson Place (Kelowna, BC) on July 8, 2021, Pacific Central (Langford (Metro Victoria), BC) on September 15, 2021 and Winton Terrace (Penticton, BC) on December 14, 2021 (collectively the “Multi-Family Properties”).
• Total rental revenue increased by approximately 122% from $484,770 to $1,076,916 in 2021. Net rental income increased by approximately 26% from $443,597 to $560,704 in 2021. This increase was driven primarily by the acquisition of the Multi-Family Properties and was offset by a decrease in rental revenue from the Pacific Mall acquired in 2020 (Edmonton, AB) due to government imposed COVID-19 health mandates. Additionally, renovation work at Riviera Garden’s in 2021 resulted in one-time property renovation costs and a lower occupancy for accommodating the in-suite renovations. The Company expects rental revenue from the Pacific Mall to improve in 2022 as the COVID-19 health mandate is relaxed. Moreover, the Riviera Garden’s renovation work has been completed in Q1 2022 with the property now approaching full occupancy.
• Total assets in 2021 grew from $14,944,188 to $45,861,654 and net assets grew in 2021 from $10,861,474 to $20,511,160.
• The Company’s growth in 2021 is related primarily to the acquisition of the Multi-Family Properties which confirms the success of Yorkton’s business plan of acquiring properties in strategically targeted real estate markets.
• The Company recorded a one-time, non-recurring and non-cash impairment loss of $1,144,343 in respect of the Company’s investment in Yorkton 108 Limited Partnership, which contributed to the comprehensive loss of $1,256,526 in 2021. The purchase of this investment was on a non-cash basis and was acquired solely through the issuance of common shares from the treasury of the Company.
• Yorkton 108 Limited Partnership’s project was divested in October 2021, and as a result, the Company received an interim cash distribution of $2,498,962 from the sale proceeds in 2021. These funds were then promptly deployed for acquiring further multi-family properties in early 2022.

Corporate Update

Below is a summary of certain events that have occurred since the December 31, 2021 year end:

• The Company has acquired an additional four (4) multi-family properties in Fort St. John, British Columbia, including Canterbury Estates on January 31, 2022, Midtown Apartments on January 31, 2022, Shamrock Townhomes on April 11, 2022 and Windsor Estates on April 11, 2022 for an aggregate purchase price of approximately $11.1 million.
• These four (4) new acquisitions were financed by additional aggregate mortgages of approximately $10.5 million at a weighted average interest rate of approximately 3.03% per annum at inception. In addition, the Company has refinanced three (3) existing mortgages with an aggregate outstanding principal balance of approximately $8.7 million for approximately $11.3 million, resulting in an equity take-out of approximately $2.6 million at a weighted average interest rate of approximately 2.93% per annum.
• Yorkton continues to actively seek advantageous interest rates that are backed by the Canada Housing and Mortgage Corporation (CMHC) to finance our multi-family properties to achieve a strong positive cash flow and NOI for the Company.
• The Company has completed non-brokered private placements of unsecured convertible debentures for total gross proceeds of $2,809,000 together with the issuance of 1,552,800 common share purchase warrants. The convertible debentures bear interest at a rate of 7% per annum, payable annually only in cash without any conversion of that interest component into common shares and mature on the date that is five (5) years from the date of issuance. The principal amount of each convertible debenture may, at the option of the convertible debenture holder, be convertible, in whole or in part, into common shares at a conversion price of $0.60 per common share. The common share purchase warrant may be exercisable into one common share of the Company at a price of $0.60 per common share for a period of five (5) years from the date of issuance.

About Yorkton

Yorkton Equity Group Inc. is a growth-oriented real estate company committed to providing shareholders with growing assets through the accretive acquisitions, organic growth, and the active management of multi-family rental properties with significant upside potential. Our geographical focus is in secondary markets in British Columbia with diversified, growing economies, and strong population in-migration. Our business objectives are to achieve stable Net Operating Income (“NOI”) and growing Net Asset Value (“NAV”) in our multi-family rental property portfolio by deploying a risk averse business model to create the ultimate value proposition for our shareholders. Yorkton Equity Group Inc. is built on the solid foundations of the Yorkton Group of companies with strong financial capacity, and well over 30 years of real estate experience.

Further information about Yorkton is available on the Company’s website at www.yorktonequitygroup.com and the SEDAR website at www.sedar.com.

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 – 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 the meaning of Canadian securities legislation concerning the business of Yorkton. Forward-looking information is based on certain key expectations and assumptions made by the management of Yorkton. Although Yorkton believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Yorkton can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. Yorkton disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable securities laws or any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from the registration requirement.

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