/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./ TORONTO, May 30, 2024 /CNW/ - Starlight U.S. Multi-Family (No. 2) Core Plus Fund (TSXV:SCPT) (TSXV:SCPT) (the "Fund") announced today its results of operations and financial condition for the three months ended March 31, 2024 ("Q1-2024"). Certain comparative figures are included for the three months ended March 31, 2023 ("Q1-2023"). All amounts in this press release are in thousands of United States ("U.S.") dollars except for average monthly rent ("AMR") or unless otherwise stated. All references to "C$" are to Canadian dollars.  "The Fund owns a high-quality, well located portfolio of multi-family communities which achieved a 3.4% year-over-year increase in average monthly rents," commented Evan Kirsh, the Fund's President. "The Fund continues to focus on increasing net operating income at its properties through active asset management and navigating the current challenging capital markets environment with the goal of maximizing the total return for investors upon exit." Q1-2024 HIGHLIGHTS Q1-2024 revenue from property operations and net operating income ("NOI")1 were $5,346 and $3,279 (Q1-2023 - $5,279 and $3,271), respectively, representing an increase of 1.3% and 0.2%, respectively relative to Q1-2023. The Fund achieved a 3.4% increase in AMR1 from Q1-2023 to Q1-2024. The Fund achieved economic occupancy1 of 93.4% during Q1-2024, with physical occupancy1 subsequently increasing to 95.7% as at May 29, 2024. The Fund completed 13 in-suite value-add upgrades at Summermill at Falls River ("Summermill") during Q1-2024, which generated an average rental premium of $296 and an average return on cost of approximately 21.0%. As at May 29, 2024, the Fund had collected 98.5% of rents for Q1-2024, with further amounts expected to be collected in future periods, demonstrating the Fund's high quality resident base and operating performance. The Fund reported a net loss and comprehensive loss for Q1-2024 of $3,370 (Q1-2023 - $1,872), primarily resulting from the fair value loss on investment properties reported in Q1-2024 as well as increases in finance costs relative to when the Fund acquired the properties. On January 22, 2024, the Fund modified the Summermill loan payable to discharge its obligation to purchase a replacement interest rate cap and defer a portion of the debt service at the property, up to a maximum of $290 per month subject to certain terms. The amendment will allow the Fund to retain additional liquidity of up to $3,480, per annum, highlighting the Fund's focus on preserving liquidity to allow the Fund to capitalize on more robust market dynamics upon the eventual sale of the Fund's properties. On February 27, 2024, Summermill was selected as a winner of the Carbon Reduction and Energy Conservation Award under the US multi-family asset class for exceptional water conservation, as part of the Institute of Real Estate Management submissions. On April 29, 2024, Starlight U.S. Multi-Family (No.2) Core Plus, GP Inc., the general partner of the Fund ("Starlight GP") approved the first one-year extension of the Fund's term ("Term Extension") to provide the Fund with the opportunity to capitalize on anticipated improvements to the real estate investment market. 1 This  metric is a non-IFRS measure. Non-IFRS financial measures do not have standardized meanings prescribed by IFRS (see "non-IFRS financial measures"). FINANCIAL CONDITION AND OPERATING RESULTS Highlights of the financial and operating performance of the Fund as at March 31, 2024 and for Q1-2024,  including a comparison to December 31, 2023 and Q1-2023 as applicable, are provided below: March 31, 2024 December 31, 2023 Operational Information Number of properties 3 3 Total suites 995 995 Economic occupancy(1) 93.4 % 92.2 % Physical occupancy(1) 94.4 % 92.6 % AMR (in actual dollars) $           1,748 $           1,744 AMR per square foot (in actual dollars) $             1.73 $             1.72 Estimated gap to market versus in-place rents(2) 2.0 % 2.4 % Selected Financial Information Gross book value(2) $       301,600 $       301,600 Indebtedness(2) $       252,944 $       252,054 Indebtedness to gross book value(2) 83.9 % 83.6 % Weighted average interest rate - as at period end(2)(3) 6.54 % 5.78 % Weighted average loan term to maturity 0.95 years 1.19 years Q1-2024 Q1-2023 Summarized Income Statement Revenue from property operations $           5,346 $           5,279 Property operating costs (1,403) (1,417) Property taxes(4) (664) (591) Adjusted income from operations / NOI $           3,279 $           3,271 Fund and trust expenses (388) (352) Finance costs (including non-cash items)(5) (5,391) (4,575) Other income and expenses(6) (870) (216) Net loss and comprehensive loss $          (3,370) $          (1,872) Other Selected Financial Information    Funds from operations ("FFO")(2) $          (1,800) $             (327)    FFO per unit - basic and diluted $            (0.17) $            (0.03)    Adjusted funds from operations ("AFFO")(2) $          (1,298) $             (120)    AFFO per unit - basic and diluted $            (0.12) $            (0.01)    Weighted average interest rate - average during period(3) 6.53 % 5.45 %    Interest coverage ratio(2)(7) 0.70 x 0.98 x    Indebtedness coverage ratio(2)(7) 0.70 x 0.98 x    Weighted average units outstanding (000s) - basic/diluted 10,902 10,902 (1) Economic occupancy for Q1-2024 and Q4-2023 and physical occupancy as at the end of each applicable reporting period. As at May 29, 2024, the Fund increased occupancy to 95.7%.