Toronto, Ontario – February 27, 2024 – Tricon Residential Inc. (NYSE: TCN, TSX: TCN) (“Tricon”
or the “Company”), an owner, operator and developer of single-family rental homes in the U.S.
Sun Belt and multi-family rental apartments in Canada, announced today its consolidated
financial results for the three and twelve months ended December 31, 2023.
All financial information is presented in U.S. dollars unless otherwise indicated.
The Company’s operational and financial highlights of the quarter include:
- Net loss from continuing operations was $35.5 million in Q4 2023; basic and diluted loss per
share from continuing operations were both $0.14; - Core funds from operations (“Core FFO”) was $45.7 million and Core FFO per share was
$0.15 in Q4 2023, compared to $96.8 million and $0.31 in the prior year, a decrease of 52.9%
and 51.6% year-over-year, respectively. The prior-year result included $50.3 million of net
performance fees earned on the sale of the U.S. multi-family rental portfolio;1 - Same home NOI growth for the single-family rental portfolio in Q4 2023 was 6.2% year-overyear and same home NOI margin was 69.3%. Same home operating metrics remained
consistently strong, including occupancy of 97.4%, annualized turnover of 14.8% and blended
rent growth of 6.0%;(1) - The Company acquired 264 homes during the quarter for a total acquisition cost of $75.6
million, and disposed of 135 non-core homes for total proceeds of $49.2 million; and - On January 19, 2024, the Company announced that it had entered into an arrangement
agreement (the “Arrangement Agreement”), under which Blackstone Real Estate Partners X
L.P. (“BREP X”) together with Blackstone Real Estate Income Trust, Inc. (collectively with
BREP X and their respective affiliates, “Blackstone”) will acquire all outstanding common
shares of the Company and each holder of common shares (other than Blackstone and
dissenting shareholders) will be entitled to receive $11.25 per common share in cash. The
transactions contemplated by the Arrangement Agreement (collectively, the “Transaction”) are
expected to be completed in the second quarter of 2024 and are subject to customary closing
conditions, including court approval, the approval of Tricon shareholders and regulatory
approval under the Canadian Competition Act (which was obtained on February 19, 2024)
and Investment Canada Act. Subject to and upon completion of the Transaction, the
Company expects that the common shares will no longer be listed on the NYSE or TSX and
that the Company will apply to cease to be a reporting issuer under applicable Canadian
securities laws.
“Tricon ended 2023 on a high note, with strong same home NOI growth of 6.2% and Core FFO
per share of $0.56 for the year, solidly within the range of our financial guidance. We achieved
these results in the face of economic uncertainty and rising interest rates, while delivering an
exceptional resident experience”, said Gary Berman, President & CEO of Tricon. “I would like to
commend the entire Tricon team for their commitment to resident satisfaction and operational
excellence that are instrumental to our success.” - (1) Non-IFRS measures are presented to illustrate alternative relevant measures to assess the Company’s performance. For the basis of presentation of the Company’s non-IFRS measures and reconciliations, refer to the “Non-IFRS Measures” section and Appendix A. For definitions of the Company’s non-IFRS measures, refer to Section 6 of Tricon’s MD&A.