Sun Residential Real Estate Investment Trust : Interim Consolidated Financial Statements Q2 2022 Financial Statements

sunresidential

Interim Consolidated

Financial Statements

Second quarter 2022

June 30, 2022

(unaudited)

(expressed in United States dollars)

SUN RESIDENTIAL REAL ESTATE INVESTMENT TRUST - Q2 2022 INTERIM CONSOLIDATED FINANCIAL STATEMENTS	1
Consolidated Statements of Financial Position
(in United States dollars)
			June 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		4,615,140		4,472,647
Deposits and reserves			706,212		230,772
Prepaid expenses and other assets			34,011		36,417
			5,355,363		4,739,836
		$	70,305,363	$	69,689,836
Non-current liabilities
Mortgage payable	6	$	31,440,000	$	31,440,000
Deferred income tax liability	11		1,744,075		1,647,950
			33,184,075		33,087,950
Current liabilities
Accounts payable and accrued liabilities			244,329		212,218
		$	33,428,404	$	33,300,168
Unitholders' equity
Unitholders' capital	7	$	15,252,829	$	15,252,829
Accumulated other comprehensive
loss			(102,206)		(102,206)
Retained earnings			4,682,022		4,311,102
			19,832,645		19,461,725
Non-controlling interest	14		17,044,314		16,927,943
			36,876,959		36,389,668
		$	70,305,363	$	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 - Q2 2022 INTERIM CONSOLIDATED FINANCIAL STATEMENTS	2
Consolidated Statements of Net Income and Comprehensive Income
(in United States dollars)
			Three months		Six months
			ended June 30		ended June 30
	Notes		2022		2021		2022		2021
Investment property revenue	9	$	1,354,447	$	1,189,384	$	2,644,278	$	2,365,450
Property operating expenses	10		399,126		318,649		780,216		630,314
Net rental income			955,321		870,735		1,864,062		1,735,136
General and administrative expenses	10, 13		98,373		97,279		202,758		201,644
Interest			279,746		279,746		556,418		556,418
Other expenses (income)			(2,706)		(658)		(4,265)		(2,693)
Fair value (gain) loss on investment
property	4		4,352		(5,815,980)		10,152		(5,815,980)
Loss (gain) on foreign currency translation			(5,431)		(2,507)		(3,817)		(4,833)
			374,334		(5,442,120)		761,246		(5,065,444)
Income before income taxes			580,987		6,312,855		1,102,816		6,800,580
Deferred income taxes	11		51,083		769,722		96,125		783,652
Net income and comprehensive income		$	529,904	$	5,543,133	$	1,006,691	$	6,016,928
Net income and comprehensive
income attributable to:
Unitholders			201,005		2,403,718		370,920		2,589,526
Non-controlling interest	14		328,899		3,139,415		635,771		3,427,402
Net income and comprehensive income		$	529,904	$	5,543,133	$	1,006,691	$	6,016,928
The accompanying notes are an integral part of these consolidated financial statements.

SUN RESIDENTIAL REAL ESTATE INVESTMENT TRUST - Q2 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	-		-		2,589,526		-		3,427,402		6,016,928
Distributions to non-controlling interest	-		-		-		-		(323,400)		(323,400)
Balance, June 30, 2021	203,338,999	$	15,252,829	$	1,727,110	$	(102,206)	$	13,730,850	$	30,608,583
Net income (loss) for the period	-		-		2,583,992		-		3,520,493		6,104,485
Distributions to non-controlling interest	-		-		-		-		(323,400)		(323,400)
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	-		-		370,920		-		635,771		1,006,691
Distributions to non-controlling interest	-		-		-		-		(519,400)		(519,400)
Balance, June 30, 2022	203,338,999	$	15,252,829	$	4,682,022	$	(102,206)	$	17,044,314	$	36,876,959

SUN RESIDENTIAL REAL ESTATE INVESTMENT TRUST - Q2 2022 INTERIM CONSOLIDATED FINANCIAL STATEMENTS

4

Consolidated Statements of Cash Flows
(in United States dollars)
	Notes
Operating activities
Net income	$
Adjustments for non-cash items
Fair value (gain) loss on investment property	4
Interest expense
Unrealized foreign currency loss
Deferred income tax expense	11
Interest paid
Changes in non-cash operating assets and liabilities	12
Investing activities
Capital investments	4
Financing activities
Distributions to non-controlling interest
Net increase (decrease) in cash and cash equivalents
Effect of exchange rate on cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period	$

Three months
ended June 30
2022		2021
529,904	$	5,543,133	$
4,352		(5,815,980)
279,746		279,746
(5,005)		(8,345)
51,083		769,722
(279,746)		(279,746)
(166,750)		(354,952)
413,584		133,578
(4,352)		(17,020)
(4,352)		(17,020)
(161,700)		(161,700)
(161,700)		(161,700)
247,532		(45,142)
3,004		8,344
4,364,604		4,034,096
4,615,140	$	3,997,298	$

Six months
ended June 30
2022		2021
1,006,691	$	6,016,928
10,152		(5,815,980)
556,418		556,418
(2,295)		(8,345)
96,125		783,652
(556,418)		(556,418)
(441,333)		(541,363)
669,340		434,892
(10,152)		(17,020)
(10,152)		(17,020)
(519,400)		(323,400)
(519,400)		(323,400)
139,788		94,472
2,705		7,223
4,472,647		3,895,603
4,615,140	$	3,997,298

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