STARLIGHT U.S. RESIDENTIAL FUND COMPLETES PROPERTY REFINANCING TO STRENGTHEN LIQUIDITY PROFILE

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TORONTO, June 28, 2024 /CNW/ - Starlight U.S. Residential Fund (TSXV: SURF.A) (TSXV: SURF.U) (the "Fund") previously announced the extension of the Fund's term to November 2025 in order to provide the Fund the opportunity to capitalize on anticipated improvements in the real estate investment market. The Fund announced today the completion of the refinancing of Indigo Apartments which, along with the Fund's intention to amend the Fund's credit facility ("Credit Facility") which is expected to be completed in Q3 2024, allows the Fund to enhance its liquidity position and further improve its ability to benefit from ongoing improvements in the real estate investment market.

The gross proceeds from the refinancing amount to approximately $80.5M and were primarily used to repay the existing first mortgage at Indigo Apartments and repay approximately $14.7M towards the Credit Facility.  Approximately $62.2M of the proceeds relates to a new first mortgage loan with the remaining $18.3M from an unsecured financing entered into by a subsidiary of the Fund.  The weighted average interest rate for the interest only monthly payments is approximately 5.43%. The unsecured financing has additional interest which is accrued and payable upon repayment of such loan resulting in an all-in weighted average interest rate for the Indigo refinancing (including the accrued amount) of 7.25%.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release may constitute forward-looking statements within the meaning of applicable Canadian securities laws. These statements relate to future events or the Fund's future performance. All statements other than statements of historical fact may be forward-looking statements. The use of any of the words "may", "might", "will", "could", "should", "would", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "goal", "project", "predict", "forecast", "potential", "continue", "likely" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are often, but not always, identified by such words. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. In particular, and without limiting the foregoing, this news release contains forward-looking statements with respect to the Fund's intentions with respect to amending its Credit Facility. Such forward-looking information is based on certain assumptions and analysis made by the Fund in light of its experience and perception of current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to the Fund's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Fund's expectations. Further information regarding the assumptions and risks inherent in the making of the forward-looking statements can be found in the Fund's 2024 annual management's discuss and analysis, along with the Fund's other public disclosure documents, available on SEDAR+ website at www.sedarplus.ca. The forward-looking information included in this news release is expressly qualified in its entirety by the foregoing cautionary statements. Unless otherwise stated, the forward-looking information included in this news release is made as of the date of this news release and the Fund assumes no obligation to update or revise any forward-looking information to reflect new events or circumstances, except as required by law.

ABOUT STARLIGHT U.S. RESIDENTIAL FUND

The Fund is a "closed-end" fund formed under and governed by the laws of the Province of Ontario, pursuant to a declaration of trust dated September 23, 2021, as amended and restated The Fund was established for the primary purpose of directly or indirectly acquiring, owning and operating a portfolio primarily composed of income producing residential properties in the U.S. residential real estate market that can achieve significant increases in rental rates as a result of undertaking high return, value-add capital expenditures and active asset management. The Fund owns interests in six multi-family properties consisting of 1,973 suites as well as a small portfolio of single-family rental homes.

Please visit us at www.starlightinvest.com and connect with us on LinkedIn at www.linkedin.com/company/starlight-investments-ltd-

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

SOURCE Starlight U.S. Residential Fund

Evan Kirsh, President, Starlight U.S. Residential Fund, [phone], [email protected]; Martin Liddell, Chief Financial Officer, Starlight U.S. Residential Fund, [phone], [email protected]