TSX:HOM.DB.U - Post by User
Post by
DanielDardenon May 17, 2023 6:53pm
161 Views
Post# 35453544
CIBC
CIBC Q1 Update: Winning With The Blend
Operating Results: HOM reported exceptionally strong operating results, delivering SP-NOI growth of 17.8%, reflective of the strong fundamentals afforded to the multi-family residential space in the core Texas markets. The portfolio’s weighted average rent increased 10.3% to $1,489, and when excluding short-term leases, reported blended spreads of +3.6% (+7.7% on renewals while new leases remained the same). Blended rental uplifts remained robust across all markets, led by Little Rock (+6.9%), Dallas (+5.7%), and Austin (+2.7%). Oklahoma did, however, witness negative blended leasing growth rates during the period. SP- Occupancy improved 140 bps to 95.9% during the quarter, with increases across all the REIT’s markets. While operating costs increased 11.2% as a result of inflationary increases in payroll, repairs and maintenance, and the cost of insurance over the prior period, we note that revenue growth outpaced cost increases, resulting in SP-NOI margins expanding to 55.3% for the quarter, a 320-bps improvement from Q1/22, with a tenant retention rate of 52.5%.