Sun Residential Real Estate Investment Trust : Q3 2022 Financial Statements

sunresidential

Interim Consolidated

Financial Statements

Third quarter 2022

September 30, 2022

(unaudited)

(expressed in United States dollars)

SUN RESIDENTIAL REAL ESTATE INVESTMENT TRUST - Q3 2022 INTERIM CONSOLIDATED FINANCIAL STATEMENTS	1
Consolidated Statements of Financial Position
(in United States dollars)
			September 30		December 31
	Notes		2022		2021
Non-current assets
Investment property	4	$	64,950,000	$	64,950,000
Current assets
Cash and cash equivalents	5		4,704,061		4,472,647
Deposits and reserves			850,738		230,772
Prepaid expenses and other assets			23,868		36,417
			5,578,667		4,739,836
		$	70,528,667	$	69,689,836
Non-current liabilities
Mortgage payable	6	$	31,440,000	$	31,440,000
Deferred income tax liability	11		1,753,997		1,647,950
			33,193,997		33,087,950
Current liabilities
Accounts payable and accrued liabilities			262,065		212,218
		$	33,456,062	$	33,300,168
Unitholders' equity
Unitholders' capital	7	$	15,252,829	$	15,252,829
Accumulated other comprehensive
loss			(102,206)		(102,206)
Retained earnings			4,814,740		4,311,102
			19,965,363		19,461,725
Non-controlling interest	14		17,107,242		16,927,943
			37,072,605		36,389,668
		$	70,528,667	$	69,689,836
Approved on behalf of the board of trustees
"Gordon Wiebe"		"Daniel Argiros"
Trustee			Trustee
The accompanying notes are an integral part of these consolidated financial statements.

SUN RESIDENTIAL REAL ESTATE INVESTMENT TRUST - Q3 2022 INTERIM CONSOLIDATED FINANCIAL STATEMENTS	2
Consolidated Statements of Net Income and Comprehensive Income
(in United States dollars)
			Three months			Nine months
			ended September 30		ended September 30
	Notes		2022		2021		2022		2021
Investment property revenue	9	$	1,403,333	$	1,284,107	$	4,047,611	$	3,649,557
Property operating expenses	10		480,371		364,141		1,260,587		994,455
Net rental income			922,962		919,966		2,787,024		2,655,102
General and administrative expenses	10, 13		94,399		87,323		297,157		288,967
Interest			282,820		282,820		839,238		839,238
Other expenses (income)			(11,137)		(1,583)		(15,402)		(4,276)
Fair value (gain) loss on investment
property	4		181,714		-		191,866		(5,815,980)
Loss (gain) on foreign currency translation			7,898		2,326		4,081		(2,507)
			555,694		370,886		1,316,940		(4,694,558)
Income before income taxes			367,268		549,080		1,470,084		7,349,660
Deferred income taxes	11		9,922		66,808		106,047		850,460
Net income and comprehensive income		$	357,346	$	482,272	$	1,364,037	$	6,499,200
Net income and comprehensive
income attributable to:
Unitholders			132,718		170,071		503,638		2,759,597
Non-controlling interest	14		224,628		312,201		860,399		3,739,603
Net income and comprehensive income		$	357,346	$	482,272	$	1,364,037	$	6,499,200
The accompanying notes are an integral part of these consolidated financial statements.

SUN RESIDENTIAL REAL ESTATE INVESTMENT TRUST - Q3 2022 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, 2020	203,338,999	$	15,252,829	$	(862,416)	$	(102,206)	$	10,626,848		24,915,055
Net income (loss) for the period	-		-		2,759,597		-		3,739,603		6,499,200
Distributions to non-controlling interest	-		-		-		-		(485,100)		(485,100)
Balance, September 30, 2021	203,338,999	$	15,252,829	$	1,897,181	$	(102,206)	$	13,881,351	$	30,929,155
Net income (loss) for the period	-		-		2,413,921		-		3,208,292		5,622,213
Distributions to non-controlling interest	-		-		-		-		(161,700)		(161,700)
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	-		-		503,638		-		860,399		1,364,037
Distributions to non-controlling interest	-		-		-		-		(681,100)		(681,100)
Balance, September 30, 2022	203,338,999	$	15,252,829	$	4,814,740	$	(102,206)	$	17,107,242	$	37,072,605

SUN RESIDENTIAL REAL ESTATE INVESTMENT TRUST - Q3 2022 INTERIM CONSOLIDATED FINANCIAL STATEMENTS

4

Consolidated Statements of Cash Flows
(in United States dollars)
			Three months			Nine months
			ended September 30		ended September 30
	Notes		2022		2021		2022		2021
Operating activities
Net income		$	357,346	$	482,272	$	1,364,037	$	6,499,200
Adjustments for non-cash items
Fair value (gain) loss on investment property	4		181,714		-		191,866		(5,815,980)
Interest expense			282,820		282,820		839,238		839,238
Unrealized foreign currency loss			(2)		(337)		(2,297)		(8,682)
Deferred income tax expense	11		9,922		66,808		106,047		850,460
Interest paid			(282,820)		(282,820)		(839,238)		(839,238)
Changes in non-cash operating assets and liabilities	12		(113,386)		(166,079)		(554,719)		(707,442)
			435,594		382,664		1,104,934		817,556
Investing activities
Capital investments	4		(181,714)		-		(191,866)		(17,020)
			(181,714)		-		(191,866)		(17,020)
Financing activities
Distributions to non-controlling interest			(161,700)		(161,700)		(681,100)		(485,100)
			(161,700)		(161,700)		(681,100)		(485,100)
Net increase in cash and cash equivalents			92,180		220,964		231,968		315,436
Effect of exchange rate on cash and cash equivalents			(3,259)		1,866		(554)		9,089
Cash and cash equivalents, beginning of period			4,615,140		3,997,298		4,472,647		3,895,603
Cash and cash equivalents, end of period		$	4,704,061	$	4,220,128	$	4,704,061	$	4,220,128

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