Tricon Sees FY23 Core FFO Per Share $0.55-$0.58; Narrows Same Home Revenue Growth From 6%-7% To 6%-6.5%

Author: Benzinga Newsdesk | November 07, 2023 09:19pm

2023 Guidance Update

The Company updated its guidance for the current fiscal year, including reiterating the midpoint of Core FFO per share guidance and tightening the range of expected same home metrics. The Company also updated its acquisitions guidance to reflect a smaller number of homes to be acquired in 2023 but with a similar equity contribution as previously expected. Subsequent to quarter end, the Company substantially completed the investment programs of SFR JV-2 and SFR JV-HD with lower leverage parameters, and continues to acquire homes at a moderated pace as part of its capital recycling program.

For the year ended December 31		Current 2023 Guidance				Previous 2023 Guidance				Update Drivers
Core FFO per share		$0.55	-	$0.58		$0.55	-	$0.58		Reiterating prior guidance to reflect tightening of same home NOI expectations, coupled with continued strength in U.S. residential development business
Same home revenue growth		6.0%	-	6.5%		6.0%	-	7.0%		Tightening of prior guidance range to reflect:   Softer rent growth on new move-ins as turnover skews towards residents with shorter tenure, partly offset by a gradual increase in rent growth on renewals   Potential for elevated property tax expense, offset by successful reduction of controllable expenses, including property management, repairs, maintenance and turnover expenses
Same home expense growth		6.0%	-	6.5%		6.0%	-	7.0%
Same home NOI growth		6.0%	-	6.5%		6.0%	-	7.0%
Single-family rental acquisitions (homes)(1)		~1,850				~2,000				Slower pace of acquisitions to allow for completion of SFR JV-2 and SFR JV-HD investment programs with lower leverage parameters, and focus on acquisitions funded by non-core dispositions as part of a capital recycling program
Single-family rental acquisitions ($ in billions)(1)		~$0.6				~$0.7

(1) Single-family rental acquisition costs include initial purchase price, closing costs and up-front renovation costs. These acquisition home counts and costs are presented on a consolidated basis and Tricon's share represents approximately 30%.

Note: Non-IFRS measures are presented to illustrate alternative relevant measures to assess the Company's performance. Refer to the "Non-IFRS Measures" section and Section 6 of the Company's MD&A for definitions. See also the "Forward-Looking Information" section of this press release, as the figures presented above are considered to be "financial outlook" for purposes of applicable securities laws and may not be appropriate for purposes other than to understand management's current expectations relating to the future of the Company. The reader is cautioned that this information is forward-looking and actual results may vary materially from those reported. Although the Company believes that its anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information. The Company reviews its key assumptions regularly and may change its outlook on a going-forward basis if necessary.

Posted In: TCN