Edmonton, Alberta – (August 21, 2024) – TheNewswire – Yorkton Equity Group Inc. (TSXV YEG) (“Yorkton” or the “Company”) is pleased to announce its financial results for the second quarter ended June 30tht, 2024.

 

Mr. Ben Lui, President and CEO of Yorkton, is very excited to announce, “Yorkton’s residential rental revenue continues its robust growth, increasing by 36.4% to $2.4 million in Q2 2024 and 61.1% to $4.7 million for the six months ending June 30, 2024, compared to the same periods in 2023. This sustained growth has contributed to a $1.4 million increase in the fair market value of our investment properties in Q2 2024, driven largely by strong organic growth and strategic property acquisitions.  We remain confident that Alberta’s multi-family rental market will continue to grow throughout 2024, and Yorkton is well positioned to capitalize on this growth.”

 

Q2 2024 Financial Highlights

 

• During Q2 2024, total rental revenue increased by $631,965 or 36.4% to $2,369,400, as compared to Q2 2023.  This was composed of an increase in rental revenue from the residential investment properties of $658,261 or 40.5% to $2,283,243 and a decrease in rental revenue from the commercial investment property of $26,296 or 23.4% to $86,157. 

 

• During the six months ended June 30, 2024, total rental revenue increased by $1,778,988 or 61.1% to $4,690,215, as compared to the same period in 2023.  This was composed of an increase in rental revenue from the residential investment properties of $1,844,222 or 68.8% to $4,523,181 and a decrease in rental revenue from the commercial investment property of $65,234 or 28.1% to $167,034. 

 

• Net rental income increased by $381,616 or 35.7% to $1,449,209 in Q2 2024, as compared to Q2 2023, and increased by $999,681 or 52.8% to $2,892,332 in the six months ended June 30, 2024, as compared to the same period in 2023. 

 

• The Company recognized a fair value adjustment on the investment properties of $1,398,018 during Q2 2024. This reflects improvements in the stabilized net operating income, primarily from increases in market rents due to continued strong rental demand in Edmonton, Alberta. 

 

• The Company recognized deferred income tax expense of $305,205 during Q2 2024, which is primarily related to the expected future tax impact of the increase in the fair market value of investment properties, as described above.  

 

• Overall there was net income and comprehensive income of $1,046,365 and $1,047,403, respectively, in Q2 2024 and the six months ended June 30, 2024, as compared to a net loss and comprehensive loss of $134,837 and $134,264, respectively, in the same periods in 2023. 

 

• As at June 30th, 2024, Yorkton holds 518 residential rental units and 28,036 sq.ft. of commercial space with a total portfolio value of $128,135,744, which grew by 32.5% as compared to June 30th, 2023.  

 

Highlights of the residential rental portfolio for the three and six months ended June 30th, 2024 are:

 

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