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E EUROPEAN RESIDENTIAL REIT European Residential REIT Announces First Quarter 2021 Results TORONTO , May 04 , 2021 ( GLOBE NEWSWIRE ) -- European Residential Real Estate Investment Trust ( " ERES " or the " REIT " ) ( TSX : ERE.UN ) announced today its results for the three months ended March 31 , 2021 . FIRST QUARTER 2021 HIGHLIGHTS Strong operating results continued for the three months ended March 31 , 2021 , fueled by accretive acquisitions since the comparable prior year period and ongoing strong rental growth , with a 3.9 % increase in both stabilized Net Average Monthly Rent ( " AMR " ) and stabilized Occupied AMR . • Turnover was 3.8 % for the three months ended March 31 , 2021 , with rental uplift on turnover of 13.3 % for the period , compared to turnover of 4.1 % and rental uplift on turnover of 7.9 % in the prior year period . Occupancy for both the residential and commercial properties remained stable at 98.3 % and 100.0 % , respectively , as at March 31 , 2021 , with 78 % of residential vacancy in the current period due to renovation . • NOI increased by 10 % for the three months ended March 31 , 2021 compared to the first quarter of 2020 , primarily due to contribution from accretive acquisitions since the prior year period as well as the aforementioned higher monthly rents , supporting a stable NOI margin of 75.5 % . • The REIT continues to collect residential rental revenue at a rate consistent with its historical average , and its two office properties also provide stable and consistent cash flows . • The fair value of the REIT's property portfolio remained stable at € 1.47 billion as at March 31 , 2021 , consisting of € 1.36 billion in multi - residential properties and € 0.11 billion in commercial properties . Liquidity and leverage remain strong , supported by the REIT's staggered mortgage profile with a four - year weighted average term to maturity and a weighted average effective interest rate of 1.61 % . The REIT has immediately available liquidity of € 101 million as at March 31 , 2021 , and its total debt to gross book value is 47.3 % . • On March 10 , 2021 , the REIT extended its Pipeline Agreement with CAPREIT for an additional two - year period , ending on March 29 , 2023 , under the same terms and conditions , which makes available to the REIT a further € 165 million to acquire properties . • On February 23 , 2021 , the Board of Trustees approved an increase in the REIT's monthly distribution from its previous rate of € 0.00875 per Unit ( equivalent to € 0.105 per Unit annualized ) to € 0.00917 per Unit ( equivalent to € 0.110 per Unit annualized ) . Accordingly , during the three months ended March 31 , 2021 , the REIT declared monthly distributions of € 0.00875 per Unit in respect of January and February , and € 0.00917 per Unit in respect of March . " In passing the two - year milestone since ERES's inception , we reflect on what has proven to be an extremely atypical operating environment , characterized by extraordinary uncertainty and volatility , and these circumstances have provided the backdrop to more than half of our historical record thus far , " commented Phillip Burns , Chief Executive Officer . " In this context , we are very pleased with ERES's strong and stable performance and the track record it has established to date , which highlights the core value inherent in our strategy . This first quarter of 2021 has been no exception to that trend , and while we will continue to strengthen operationally and grow internally , we continue to aim to grow externally through accretive acquisitions in the quarters to come . " 1 STEADFAST OPERATIONAL GROWTH , DESPITE CONTINUING ADVERSITY For the three months ended March 31 , 2021 , property revenues were € 18.8 million , up from € 17.1 million for the three months ended March 31 , 2020. The increase is primarily due to accretive acquisitions since the prior year period and an increase in AMR on the stabilized portfolio . Stabilized Net AMR for the multi - residential portfolio increased by 3.9 % to € 890 per suite at March 31 , 2021 , from € 857 per suite at the same time last year , driven by increased rents on annual indexation , turnover and conversion of regulated suites to liberalized suites . Stabilized Occupied AMR also increased by 3.9 % compared to the prior year period . Net Operating Income ( " NOI " ) was € 14.2 million for the three months ended March 31 , 2021 , up from € 13.0 million for the three months ended March 31 , 2020. The increase in NOI was likewise driven by contribution from acquisitions since the prior year period as well as higher monthly rents on stabilized properties . This was offset by higher property operating costs as a percentage of operating revenues , primarily due to higher R & M , including an increase in cleaning costs associated with the third wave of the COVID - 19 pandemic , as well as certain one - time recoverable R & M expenses incurred in the REIT'S commercial portfolio . In aggregate , total portfolio NOI margin remained strong at 75.5 % for the three months ended March 31 , 2021 , compared to 76.0 % in the quarter ended March 31 , 2020 . Funds from Operations ( " FFO " ) for the three months ended March 31 , 2021 were € 8.3 million ( € 0.036 per Unit ) , compared to € 7.6 million ( € 0.033 per Unit ) in the prior year period . Adjusted Funds from Operations ( " AFFO " ) for the three months ended March 31 , 2021 were € 7.3 million ( € 0.032 per Unit ) , compared to € 6.8 million ( € 0.030 per Unit ) in the same prior year period . The increases in FFO and AFFO were driven by the positive impact of increased stabilized NOI and accretive acquisitions since the prior year period . FFO and AFFO are calculated in accordance with the recommendations of the Real Property Association of Canada ( " REALpac " ) as published in its white paper in February 2019 with the exception of certain adjustments which are : ( i ) general and administrative expenses related to structuring and ( ii ) acquisition research costs .