Sun Residential Real Estate Investment Trust : Q1 2023 Financial Statements

sunresidential

Interim

Consolidated

Financial

Statements

First quarter 2023

March 31, 2023

(unaudited)

(expressed in United States dollars)

SUN RESIDENTIAL REAL ESTATE INVESTMENT TRUST - Q1 2023 INTERIM CONSOLIDATED FINANCIAL STATEMENTS	1
Consolidated Statements of Financial Position
(in United States dollars)
			March 31		December 31
	Notes		2023		2022
Non-current assets
Investment property	4	$	70,600,000	$	70,600,000
Current assets
Cash and cash equivalents	5		4,367,767		4,683,505
Deposits and reserves			593,603		211,965
Prepaid expenses and other assets			40,382		55,872
			5,001,752		4,951,342
		$	75,601,752	$	75,551,342
Non-current liabilities
Mortgage payable	6	$	31,440,000	$	31,440,000
Deferred income tax liability	11		2,443,502		2,399,599
			33,883,502		33,839,599
Current liabilities
Accounts payable and accrued liabilities		211,219		371,070
		$	34,094,721	$	34,210,669
Unitholders' equity
Unitholders' capital	7	$	15,252,829	$	15,252,829
Accumulated other comprehensive
loss			(102,206)		(102,206)
Retained earnings			6,852,333		6,651,004
			22,002,956		21,801,627
Non-controlling interest	14		19,504,075		19,539,046
			41,507,031		41,340,673
		$	75,601,752	$	75,551,342

Approved on behalf of the board of trustees

"Robert C. Wetenhall Jr." "Daniel Argiros"

TrusteeTrustee

The accompanying notes are an integral part of these consolidated financial statements.

SUN RESIDENTIAL REAL ESTATE INVESTMENT TRUST - Q1 2023 INTERIM CONSOLIDATED FINANCIAL STATEMENTS	2
Consolidated Statements of Net Income and Comprehensive Income
(in United States dollars)
			Three months
			ended March 31
	Notes		2023		2022
Investment property revenue	9	$	1,395,353	$	1,289,831
Property operating expenses	10		408,382		381,090
Net rental income			986,971		908,741
General and administrative expenses	10, 13		126,270		104,385
Interest			276,672		276,672
Other expenses (income)			(35,291)		(1,559)
Fair value loss on investment
property	4		51,669		5,800
Loss (gain) on foreign currency translation		(310)		1,614
			419,010		386,912
Income before income taxes			567,961		521,829
Deferred income taxes	11		43,903		45,042
Net income and comprehensive income		$	524,058	$	476,787
Net income and comprehensive
income attributable to:
Unitholders			201,329		169,915
Non-controlling interest	14		322,729		306,872
Net income and comprehensive income		$	524,058	$	476,787
The accompanying notes are an integral part of these consolidated financial statements.

SUN RESIDENTIAL REAL ESTATE INVESTMENT TRUST - Q1 2023 INTERIM CONSOLIDATED FINANCIAL STATEMENTS	3
Consolidated Statements of Changes in Unitholders' Equity
(in United States dollars)
							Accumulated
							other
	Trust		Unitholders'		Retained	comprehensive	Non-controlling
Notes	units		capital	earnings (deficit)	income (loss)		interest			Total
									(note 14)
Balance, December 31, 2021	203,338,999	$	15,252,829	$	4,311,102	$	(102,206)	$	16,927,943	$	36,389,668
Net income for the period	-		-		169,915		-		306,872			476,787
Distributions to non-controlling interest	-		-		-		-		(357,700)			(357,700)
Balance, March 31, 2022	203,338,999	$	15,252,829	$	4,481,017	$	(102,206)	$	16,877,115	$	36,508,755
Net income for the period	-		-		2,312,423		-		3,147,031			5,459,454
Distributions to unitholders (note 7)	-		-		(142,436)		-					(142,436)
Distributions to non-controlling interest	-		-		-		-		(485,100)			(485,100)
Balance, December 31, 2022	203,338,999	$	15,252,829	$	6,651,004	$	(102,206)	$	19,539,046	$	41,340,673
Net income for the period	-		-		201,329		-		322,729			524,058
Distributions to non-controlling interest	-		-		-		-		(357,700)			(357,700)
Balance, March 31, 2023	203,338,999	$	15,252,829	$	6,852,333	$	(102,206)	$	19,504,075	$	41,507,031

SUN RESIDENTIAL REAL ESTATE INVESTMENT TRUST - Q1 2023 INTERIM CONSOLIDATED FINANCIAL STATEMENTS

4

Consolidated Statements of Cash Flows
(in United States dollars)
			Three months
			ended March 31
	Notes		2023		2022
Operating activities
Net income		$	524,058	$	476,787
Adjustments for non-cash items
Fair value loss on investment property	4		51,669		5,800
Interest expense			276,672		276,672
Unrealized foreign currency loss			(2,914)		2,710
Deferred income tax expense	11		43,903		45,042
Interest paid			(276,672)		(276,672)
Changes in non-cash operating assets and liabilitie	12		(383,357)		(274,583)
			233,359		255,756
Investing activities
Capital investments	4		(51,669)		(5,800)
			(51,669)		(5,800)
Financing activities
Distibutions to unitholders	7, 12		(142,436)		-
Distributions to non-controlling interest			(357,700)		(357,700)
			(500,136)		(357,700)
Net decrease in cash and cash equivalents			(318,446)		(107,744)
Effect of exchange rate on cash and cash equivalents		2,707		(299)
Cash and cash equivalents, beginning of period			4,683,506		4,472,647
Cash and cash equivalents, end of period		$	4,367,767	$	4,364,604