NEWS RELEASES

Milestone Apartments REIT Reports Financial Results for Period Ended March 31, 2013

TORONTO and DALLAS, May 14, 2013 /CNW/ - Milestone Apartments REIT (TSX: MST.UN) (the "REIT") today announced its financial results for the 26-day period ended March 31, 2013 (the "26-day period"). The REIT completed its initial public offering ("IPO") and commenced trading on the Toronto Stock Exchange on March 6, 2013. The REIT had no operations prior to March 6, 2013. Due to the short duration of the reporting period, the REIT's financial results for the 26-day period may not be indicative of future full quarter or annualized financial results.

The following summary of the REIT's financial results for the 26-day period are presented in comparison to the pro-rated financial forecast presented in the REIT's prospectus dated February 27, 2013. All dollar amounts are in U.S. currency unless otherwise noted. Full Financial Statements and Management's Discussion and Analysis are available on the REIT's website at www.milestonereit.com and at www.SEDAR.com.

Period Highlights

  • Completed IPO of 20 million REIT units for gross proceeds of C$200 million
  • Issued an additional 2.85 million REIT units for gross proceeds of C$28.5 million, pursuant to the exercise of the over-allotment option granted to the underwriters of the IPO
  • Reported Net Operating Income ("NOI"), Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO") for the 26-day period that were higher than pro-rated forecast
  • Paid initial distribution of C$0.04543 per REIT unit for the stub period March 6, 2013 to March 31, 2013  on April 15, 2013 to unitholders of record on March 28, 2013

"We exceeded our pro-rated financial forecast for NOI, FFO and AFFO for the 26-day period ended March 31, 2013. Our performance was supported by increased average occupancy rates and rents across our portfolio," said Robert Landin, CEO of Milestone Apartments REIT. "Looking ahead, our performance is anticipated to continue its positive trend through the remainder of the year. We remain focused on continued effective management of our existing portfolio, and identifying and acquiring additional multifamily assets in key U.S. markets where we can leverage our vertically integrated operating platform to build value for our unitholders."            

Financial Summary

($ amounts in millions,
except for average rents)
26 days ended
March 31, 2013
Pro-rated 2013
Forecast
Average total occupancy 95.2% 93.7%
Average monthly in-place rent $695 $684
Rental Revenue 9.7 9.4
Total Revenue 11.3 10.9
Property Operating Expenses 5.3 5.6
Net Operating Income (NOI) 5.9 5.2
Funds From Operations (FFO) 3.6 3.1
Adjusted Funds From Operations (AFFO) 3.1 2.4
Total Cash Distributions 2.2 n/a

For the 26-day period ended March 31, 2013, revenues totalled $11.3 million, compared to the pro-rated forecast of $10.9 million. The favorable variance is primarily attributable to actual occupancy for the entire portfolio being 95.2% compared to forecasted occupancy of 93.7%.

For the 26-day period, property operating expenses were $5.3 million, compared to $5.6 million for the pro-rated forecast period. The favorable variance is primarily related to unit turn over costs being less than anticipated.

NOI for the 26-day period totaled $5.9 million, compared to $5.2 million for the pro-rated 2013 forecast period.

FFO was $3.6 million for the 26-day period, or $0.07 per unit. The favorable variance resulted from increased revenue and NOI. AFFO was $3.1 million, or $0.06 per unit, for the 26-day period and cash distributed to unitholders and Class B unitholders totalled $2.2 million.

As at March 31, 2013, the REIT had total mortgage notes payable of $644 million with a weighted average interest rate of 3.7%. Debt to Gross Book Value was 56%.  The REIT had cash and cash equivalents of $8.9 million as at March 31, 2013, and a further committed undrawn $50 million revolving credit facility with an affiliate of BMO Harris Bank.

The total number of Units outstanding as of March 31, 2013 was 36,850,000.  In addition, there are currently 12,864,265 Class B Redeemable Units of Milestone Multifamily Investors LP outstanding and 1,425,000 Unit options outstanding.

About Milestone Apartments REIT

Milestone Apartments REIT (the REIT) is an unincorporated, open-ended real estate investment trust that is governed under the laws of Ontario. The REIT's portfolio is made up of 52 multifamily garden-style residential properties, comprising 16,944 units that are located in 10 major metropolitan markets throughout the Southeast and Southwest United States. Milestone Apartments REIT is the largest REIT listed on the TSX focused solely on the U.S. multifamily sector. The Milestone Group, based in Dallas, Texas, is the external asset manager of the REIT. For more information, please visit www.milestonereit.com

About The Milestone Group
The Milestone Group is a privately-held real estate investment management company with expertise and presence in major metropolitan markets throughout the United States. Founded in 2004, The Milestone Group has a strong track record of investing in the U.S. multifamily sector, including completion of more than $4.5 billion in multifamily transactions.

Non-IFRS Financial Measures
NOI, FFO and AFFO are key measures of performance commonly used by real estate operating companies and real estate investment trusts. They are not measures recognized under International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS. NOI, FFO and AFFO as calculated by the REIT may not be comparable to similar measures presented by other issuers. Please refer to the REIT's Management's Discussion and Analysis for the initial period ended March 31, 2013 for a reconciliation of NOI, FFO and AFFO to standardized IFRS measures.

Forward-looking information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of the REIT and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the REIT's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. These risks and uncertainties are discussed in the REIT's prospectus dated February 27, 2013 available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The REIT undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.

SOURCE: Milestone Apartments REIT


For more information, please contact:

Robert P. Landin, CEO
Milestone Apartments REIT 
Tel: 214.561.1206

Bruce Wigle
Investor Relations
Tel: 416.447.4740, x 232

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