(TheNewswire)
Edmonton,Alberta– TheNewswire - August 25, 2022 – YorktonEquityGroupInc. (“Yorkton” or the “Company”) (TSXV:YEG) is pleased to announce its financial results for the six-months ended June 30, 2022.
Mr. Ben Lui, President and CEO of Yorkton stated that, “I am pleased by our second quarter financial results for 2022, indicating growing revenue and positive cash flow achieved from our operating activities that reflects our rapid pace of property acquisitions. This is an important milestone for our company which we believe validates our business strategy. In addition, we believe that recent increases in the interest rates are an opportunity to purchase rental assets as some property owners may face challenges due to higher interest rates upon mortgage renewals. Our company is well positioned to leverage lender relationships and CMHC lending programs to obtain favorable mortgage terms and we plan to continue with further property acquisitions.”
Q2 2022 Financial Highlights
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On April 11, 2022, Yorkton acquired a residential 50-unit townhouse portfolio located in Fort St. John, BC comprising of two townhouse complexes situated adjacent to each other, being Shamrock Townhomes and Windsor Estates.
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Total rental revenue increased by approximately 417% from $157,193 to $812,531 in the three months ended June 30, 2022 and increased by approximately 427% from $270,818 to $1,427,592 in the six months ended June 30, 2022. Net rental income increased by approximately 450% from $89,214 to $490,765 in the three months ended June 30, 2022 and increased by approximately 372% from $181,915 to $858,587 in the six months ended June 30, 2022. These increases were driven primarily by the acquisition of multi-family properties in 2021 and in Q1 and Q2 2022 and were partially offset by a decrease in rental revenue from the Pacific Mall acquired in 2020 (Edmonton, AB) due to the previous government imposed COVID-19 health mandates. The Company expects rental revenue from the Pacific Mall in 2022 to continue to improve through the remainder of the year as the COVID-19 health mandate has now been relaxed.
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Net loss and comprehensive loss improved to a loss of $59,962 in the three months ended June 30, 2022 as compared to a loss of $150,313 in the same period in 2021. During the six months ended June 30, 2022, the net loss and comprehensive loss was $278,889 as compared to $266,956 during the six months ended June 30, 2021. The improvement in the net loss and comprehensive loss during the three months ended June 30, 2022 is primarily due to the increase in net rental income.
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Cash provided in operating activities during the three months ended June 30, 2022 was $690,238 as compared to cash used in operating activities of $862,270 during the same period in 2021 and cash provided in operating activities during the six months ended June 30, 2022 was $248,376 as compared to cash used in operating activities of $1,065,992 in the same period in 2021. This increase in cash flows from operating activities is driven primarily by the acquisition of multi-family properties in 2021 and in Q1 and Q2 2022 which are now more integrated into Yorkton’s operations.
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 secondary markets in British Columbia and Alberta with diversified and growing economies, and strong population in-migration. Our business objectives are to achieve growing Net Operating Income (“NOI”) as well as Net Asset Value (“NAV”) in our multi-family rental property portfolio in strategic markets across Canada.
The management team at Yorkton Equity Group Inc. has well over 30 years of real estate experience in acquiring and managing rental assets.
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@yorktongroup.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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