Yorkton Equity Group Inc. Announces Financial Results for Three-Months Ended March 31, 2022
Edmonton, Alberta – TheNewswire - (May 26, 2022) – Yorkton Equity Group Inc. (“Yorkton” or the “Company”) (TSXV:YEG) is pleased to announce its financial results for the three-months ended March 31, 2022.
Mr. Ben Lui, President and CEO of Yorkton stated that, “Our first quarter financial results for 2022 continue to show the significance of the rapid pace of property acquisitions completed in 2021 and in the first quarter of 2022. Our total portfolio value has more than tripled as compared to March 31, 2021 and our net rental income has essentially quadrupled as compared to the first quarter of 2021. We intend to continue acquisitions of new investment properties through the remainder of 2022 and to focus on streamlining our operations to improve net operating income (NOI) by investing in cost saving efficiencies, utilizing technology and leveraging economies of scale.”
Q1 2022 Financial Highlights
The Company acquired two (2) new multi-family properties on January 31, 2022, being Canterbury Estates and Midtown Apartments, located in Fort St. John, BC.
Total rental revenue increased by approximately 440% from $113,625 to $615,061 in Q1 2022. Net rental income increased by approximately 300% from $92,701 to $367,822 in Q1 2022. This increase was driven primarily by the acquisition of multi-family properties in 2021 and Q1 2022 and was partially offset by a decrease in rental revenue from the Pacific Mall acquired in 2020 (Edmonton, AB) due to government imposed COVID-19 health mandates. The Company expects rental revenue from the Pacific Mall to improve in the remainder of 2022 as the COVID-19 health mandate has been relaxed.
During the first quarter of 2022, Yorkton successfully completed non-brokered private placements of unsecured convertible debentures for total gross proceeds of $2,809,000 together with the issuance of 1,552,800 common share purchase warrants. The convertible debentures bear interest at a rate of 7% per annum, payable annually in cash and mature on the date that is five (5) years from the date of issuance. The principal amount of each convertible debenture may, at the option of the convertible debenture holder, be convertible, in whole or in part, into common shares at a conversion price of $0.60 per common share. The common share purchase warrant may be exercisable into one common share of the Company at a price of $0.60 per common share for a period of five (5) years from the date of issuance.
Yorkton Equity Group Inc. is a growth-oriented real estate company committed to providing shareholders with growing assets through the accretive acquisitions, organic growth, and the active management of multi-family rental properties with significant upside potential. Our geographical focus is in secondary markets in British Columbia with diversified, growing economies, and strong population in-migration. Our business objectives are to achieve stable Net Operating Income (“NOI”) and growing Net Asset Value (“NAV”) in our multi-family rental property portfolio by deploying a risk averse business model to create the ultimate value proposition for our shareholders. Yorkton Equity Group Inc. is built on the solid foundations of the Yorkton Group of companies with strong financial capacity, and well over 30 years of real estate experience.
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
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.