Edmonton, Alberta – Yorkton Equity Group Inc. (TSXV:YEG) (“Yorkton” or the “Company”) is very pleased to announce its financial results for the second quarter ended June 30, 2023.
Mr. Ben Lui, President and CEO of Yorkton says, “As a direct result of our recent acquisitions of multi-family rental properties in Alberta and British Columbia our total rental revenue continues to show strong growth, increasing to approximately $1.7 million during Q2 2023 and $2.9 million during the six months ended June 30, 2023, an increase of over 100% in both periods. The acquisition of The Dwell, a 188-unit multi-family property, has played a pivotal role in our growth trajectory and Yorkton remains focused on growing its residential property portfolio with similar acquisitions in Alberta, where the housing demand is strong as a result of international and inter-provincial in-migration due to Alberta’s strong economy and job market, low cost of living, and affordable housing.”
Q2 2023 Financial Highlights
Total rental revenue increased by $924,904 or 113.8% to $1,737,435 in Q2 2023.
Total rental revenue increased by $1,483,635 or 103.9% to $2,911,227 in the six months ended June 30, 2023.
Net rental income increased by $576,828 or 117.5% to $1,067,593 in Q2 2023 and increased by 120.4% to $1,892,651 during the six months ended June 30, 2023.
The acquisition of The Dwell (Edmonton, AB) on February 27, 2023 added $870,065 of total rental revenue and $558,403 of net rental income during Q2 2023 and $1,180,199 of total rental revenue and $837,302 of net rental income to June 30, 2023.
Yorkton holds 393 residential rental units and 28,036 sq.ft. of commercial space for a total portfolio value of $96,723,775, which grew by 104.2% as compared to June 30, 2022.
Despite an overall net loss of $134,837 during Q2 2023 compared to $59,962 during Q2 2022 and $134,264 during the six months ended June 30, 2023 compared to $252,185 in the same period in 2022, Yorkton expects its financial performance to improve through the remainder of 2023 from planned increases in its operating efficiency as well as regular residential tenant turnover and upcoming lease renewals, allowing the Company to increase its rental rates to current market rates which have begun to trend upwards. In addition, the Company plans to continue to acquire additional investment properties with anticipated positive operating cash flows.
Highlights of the residential rental portfolio for the three and six months ended June 30, 2023 are:
About Yorkton
Yorkton Equity Group Inc. is a growth-oriented real estate investment company committed to providing shareholders with growing assets through accretive acquisitions, organic growth, and the active management of multi-family rental properties with significant upside potential. Our current geographical focus is in Alberta and British Columbia with diversified and growing economies, and strong population in-migration. Our business objectives are to achieve growing Net Operating Income (“NOI”) as well as the asset values in our multi-family rental property portfolio in strategic markets across Western Canada.
The management team at Yorkton Equity Group Inc. has well over 30 years of prior real estate experience in acquiring and managing rental assets.
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
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 press 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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