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E EUROPEAN RESIDENTIAL REIT European Residential REIT Announces Strong Third Quarter 2021 Results TORONTO , Nov. 04 , 2021 ( GLOBE NEWSWIRE ) -- European Residential Real Estate Investment Trust ( " ERES " or the " REIT " ) ( TSX : ERE.UN ) announced today its results for the three and nine months ended September 30 , 2021 . ERES's unaudited consolidated financial statements and management's discussion and analysis ( " MD & A " ) for the three and nine months ended September 30 , 2021 can be found at www.eresreit.com or under ERES's profile at www.sedar.com . HIGHLIGHTS Business Update • On June 30 , 2021 , the REIT closed on two acquisitions in the Netherlands for a combined purchase price of € 47.0 million ( excluding transaction costs and fees ) , representing an aggregate 137 residential units . • On September 29 , 2021 , the REIT secured mortgage financing on its June 30 , 2021 acquisition properties , combined with refinancing of certain existing properties , in the total principal amount of € 91.75 million , bearing a six - year term to maturity with a weighted average interest rate of 1.12 % over the term of the mortgage . This lowered the REIT's weighted average effective interest rate to 1.53 % . • On March 10 , 2021 , the REIT extended its € 165 million Pipeline Agreement with CAPREIT for an additional two - year period ending on March 29 , 2023 , under the same terms and conditions . • On February 23 , 2021 , the Board of Trustees approved an increase of 4.8 % to 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 ) . Outperforming Operating Metrics Strong operating results continued for the three months ended September 30 , 2021 , fueled by accretive acquisitions and ongoing strong rental growth , with a 3.6 % increase in stabilized Occupied Average Monthly Rent ( " AMR " ) , from € 895 as at September 30 , 2020 , to € 927 as at September 30 , 2021 . • Turnover was 3.5 % for the three months ended September 30 , 2021 , with rental uplift on turnover of 16.3 % for the period , compared to turnover of 3.2 % and rental uplift on turnover of 8.2 % in the comparable prior year period . Occupancy for commercial properties remained stable at 100.0 % as at September 30 , 2021 , while occupancy for the residential properties also remained strong at 98.2 % as at September 30 , 2021 , compared to 98.4 % as at September 30 , 2020. A significant proportion of residential vacancy in the current period is due to renovation , which will provide further rental uplifts once the suites are leased out again . • Net Operating Income ( " NOI " ) increased by 13 % for the three months ended September 30 , 2021 , primarily driven by contribution from accretive acquisitions as well as the aforementioned higher monthly rents and lower property operating costs as a percentage of revenues , in aggregate supporting a strong increase in NOI margin to 77.9 % compared to 75.6 % for the three months ended September 30 , 2020 . Consistent Fair Value Appreciation on Portfolio • The fair value of the REIT's property portfolio increased to € 1.64 billion as at September 30 , 2021 , consisting of € 1.54 billion in multi - residential properties and € 0.10 billion in commercial properties , resulting in a significant gain of € 76.9 million for the three months ended September 30 , 2021. The increase in market value was driven by steady and strong portfolio fundamentals resulting in a compression of capitalization rates , the successful execution of the REIT's value- adding capital expenditure program and the REIT's exceptional operating metrics , including its continually increasing rental revenues and consistently high occupancy . Accretive Financial Performance • FFO per Unit increased significantly by 15 % to € 0.039 for the three months ended September 30 , 2021 , compared to € 0.034 in the prior year period , predominantly due to the positive impact of accretive acquisitions . • AFFO per Unit similarly increased significantly by 13 % to € 0.034 for the three months ended September 30 , 2021 , compared to € 0.030 in the three months ended September 30 , 2020 . • Distributions Declared per Unit increased by 4.8 % to € 0.028 for the three months ended September 30 , 2021 , up from € 0.026 in the prior year period , due to an increase in the REIT's monthly distribution effective March 2021 onward . • AFFO Payout Ratio was 80.4 % for the three months ended September 30 , 2021 , at the lower end of the REIT's long- term target range and down from 87.6 % in the comparative prior year period . Strong Financial Position with Ample Liquidity • 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 1.53 % . The REIT has immediately available liquidity of € 98 million as at September 30 , 2021 , and its total debt to gross book value is 47.2 % .