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E EUROPEAN RESIDENTIAL REIT European Residential REIT Announces Second Quarter 2021 Results TORONTO , Aug. 09 , 2021 ( GLOBE NEWSWIRE ) European Residential Real Estate Investment Trust ( " ERES " or the " REIT " ) ( TSX : ERE.UN ) announced today its results for the three and six months ended June 30 , 2021 . SECOND QUARTER 2021 HIGHLIGHTS -- • On June 30 , 2021 , the REIT closed on two acquisitions of multi - residential properties in the Netherlands for a combined purchase price of € 47.0 million ( excluding transaction costs and fees ) , representing an aggregate 137 residential units as well as ancillary commercial and parking space . • The fair value of the REIT's property portfolio increased to € 1.56 billion as at June 30 , 2021 , consisting of € 1.45 billion in multi - residential properties located in the Netherlands and € 0.11 billion in commercial properties located in Germany , Belgium and the Netherlands , resulting in a gain of € 30.9 million for the six months ended June 30 , 2021 . • Strong operating results continued for the three and six months ended June 30 , 2021 , fueled by accretive acquisitions since the comparable prior year period and ongoing strong rental growth , with a 4.0 % increase in stabilized Occupied Average Monthly Rent ( " AMR " ) , from € 876 as at June 30 , 2020 , to € 911 as at June 30 , 2021 . • Turnover was 7.4 % for the six months ended June 30 , 2021 , with rental uplift on turnover of 15.1 % for the period , compared to turnover of 7.5 % and rental uplift on turnover of 9.6 % in the prior year period . • Occupancy for commercial properties remained stable at 100.0 % as at June 30 , 2021 , while occupancy for the residential properties decreased to 98.0 % as at June 30 , 2021 , compared to 98.8 % as at June 30 , 2020. However , 26 % of residential vacancy is attributable to the REIT's recently acquired newly built property , with a further 53 % of residential vacancy in the current period due to renovation . • NOI increased by 11 % for the six months ended June 30 , 2021 , primarily driven by contribution from accretive acquisitions since the prior year period as well as the aforementioned higher monthly rents , supporting an increase in NOI margin to 76.8 % compared to 76.1 % for the six months ended June 30 , 2020 . • 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 . 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 € 47 million as at June 30 , 2021 , and its total debt to gross book value is 47.9 % . • 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 six months ended June 30 , 2021 , the REIT declared monthly distributions of € 0.00875 per Unit in respect of January and February , and € 0.00917 per Unit thereafter . " ERES has continued its strong operational performance for yet another quarter , consistently growing operations through careful execution of our strategic initiatives in an increasingly complex regulatory and economic environment , " commented Phillip Burns , Chief Executive Officer . " We are pleased to continue the expansion of our portfolio once again , starting with our latest two acquisitions of high - quality multi - residential properties in the Netherlands . We continue to see significant growth opportunities in the Dutch market , thereby fueling our external growth in the coming months and years . " ANOTHER RESILIENT QUARTER OF STRONG OPERATIONS For the three months ended June 30 , 2021 , property revenues were € 18.7 million , up from € 17.2 million for the three months ended June 30 , 2020. For the six months ended June 30 , 2021 , property revenues were € 37.6 million , up from € 34.3 million for the six months ended June 30 , 2020. The increases are primarily due to accretive acquisitions since the prior year period and an increase in AMR on the stabilized portfolio . Stabilized Occupied AMR for the multi - residential portfolio increased by 4.0 % to € 911 per suite at June 30 , 2021 , from € 876 per suite at the same time last year , driven by increased rents on annual indexation , turnover and conversion of regulated suites to liberalized suites . Net Operating Income ( " NOI " ) was € 14.7 million for the three months ended June 30 , 2021 , up from € 13.1 million for the three months ended June 30 , 2020. NOI was € 28.9 million for the six months ended June 30 , 2021 , up from € 26.1 million for the six months ended June 30 , 2020. The increases in NOI were likewise driven by contribution from acquisitions since the prior year periods as well as higher monthly rents on stabilized properties . This was complemented by a decrease in property operating costs as a percentage of operating revenues , predominantly due to the recognition of a non - recurring rebate from the government for landlord levies . In aggregate , total portfolio NOI margin increased to 78.2 % and 76.8 % for the three and six months ended June 30 , 2021 , compared to 76.2 % and 76.1 % in the comparable prior year periods . Funds from Operations ( " FFO " ) for the three and six months ended June 30 , 2021 were € 8.7 million ( € 0.038 per Unit ) and € 17.0 million ( € 0.074 per Unit ) , respectively , compared to € 7.7 million ( € 0.033 per Unit ) and € 15.4 million ( € 0.067 per Unit ) in the comparable prior year periods . Adjusted Funds from Operations ( " AFFO " ) for the three and six months ended June 30 , 2021 were € 7.6 million ( € 0.033 per Unit ) and € 15.0 million ( € 0.065 per Unit ) , respectively , compared to € 6.9 million ( € 0.030 per