Edmonton, Alberta – (April 24, 2025) – TheNewswire - Yorkton Equity Group Inc. (TSXV YEG) (“Yorkton” or the “Company”) is very pleased to announce its financial results for the year ended December 31, 2024 and provide a corporate update.

 

“In today’s environment of market volatility, we believe residential real estate may offer relatively greater stability and the potential for more predictable long-term returns,” said Mr. Ben Lui, President and CEO of Yorkton.  “We are excited to see continued strong momentum in our residential rental business.  While our direction remains unchanged in acquiring properties to build a robust portfolio of quality multi-family rental assets that deliver solid cash flow and capital appreciation as opportunities arise, we are cautiously monitoring market conditions to safeguard the integrity and prosperity of our business during current economic uncertainties amid the tariff war. At the same time, we are committed to further enhancing the performance of our existing portfolio by increasing net operating income through delivering exceptional value and service to our tenants, driving rental revenue growth, and improving operational efficiencies.”

 

2024 Financial Highlights

 

As at December 31, 2024, Yorkton had total assets of $137.08 million, which included 518 residential rental units and one commercial rental unit across 10 multi-family rental properties with a total fair market value of $122.89 million and one commercial rental property with 28,026 square feet of net leasable area, together with an adjacent parking lot, with a total fair market value of $11.95 million.

 

For the residential units, during the year ended December 31, 2024, as compared to 2023, Yorkton reported:

 

• an increase in rental revenue of 42%; 

 

• an increase in net rental income of 38%; 

 

• a consistently high average occupancy rate of 98%; 

 

• an increase in its weighted average number of units of 33%; and 

 

• an increase in the average monthly rental revenue per unit of 5%. 

 

The Company’s commercial rental revenue and net rental income, from its Alberta commercial property and British Columbia commercial unit, were not significant during the year ended December 31, 2024.

 

In addition, the Company recognized during the year ended December 31, 2024:

 

• a fair value adjustment on the investment properties of $7,947,369, which reflects improvements in the stabilized net operating income, primarily from increases in market rents due to continued strong rental demand in Edmonton, Alberta; 

 

• deferred income tax expense of $1,242,774, which is primarily related to the expected future tax impact of the increase in the fair market value of investment properties, as described above; and 

 

• overall net income and comprehensive income of $6,567,281. 

Additional highlights of the residential rental portfolio for the year ended December 31, 2024 are:

 

Corporate Update

 

Below is a summary of certain events that have occurred since the December 31, 2024 fiscal year end:

 

• The Company entered into an asset purchase agreement to sell certain restaurant assets to an arm’s-length party (the “Purchaser”) for total consideration of $483,030. In connection with the transaction, the Company executed a new five-year lease agreement with the Purchaser for the restaurant premises located within its commercial property. In addition to this, the existing tenant agreed to an early lease surrender and settled the outstanding balance owing under the lease for total consideration of $90,000, to be paid in instalments. 

 

• The Company entered into a loan agreement with Lui Holdings Corporation (the “Lender”), a company directly controlled by Mr. Ben Lui, the President and CEO, director, and majority shareholder of the Company, to borrow $1,400,000.  The loan bears interest at an annual rate of 3.05%, with interest payable monthly.  The principal is repayable on demand.  The Company has invested the loan proceeds in a guaranteed investment certificate (“GIC”) at a commensurate rate of interest while it identifies potential investment property acquisitions.   

 

The loan is considered a related party transaction under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and the policies of the TSX Venture Exchange (the “TSXV”) and Mr. Lui has abstained from voting on the loan in his capacity as a director of the Company.  The Company is exempt from the formal valuation requirement under MI 61-101 as its common shares are listed for trading on the TSXV.  The Company is also exempt from the minority approval requirement under MI 61-101 as the loan has been provided on reasonable commercial terms that are not less advantageous to the Company than if it were obtained from an arm’s length party. Further, the loan is not convertible into or repayable in securities of the Company.

 

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”) and 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.

 

Further information about Yorkton is available on the Company’s website at www.yorktonequitygroup.com and the SEDAR+ website at www.sedarplus.ca.

 

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

Telephone: (780) 409-8228

Email: investors@yorktonequitygroup.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 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