NexLiving Communities Reports Q2 2026 Results and Declares Quarterly Dividend
TORONTO, Aug. 13, 2026 (GLOBE NEWSWIRE) -- (TSXV: NXLV) -- NexLiving Communities Inc. (“NexLiving” or the “Company”) announced operating and financial results for the three and six months ended June 30, 2026.
Stavro Stathonikos, President & CEO commented: “We delivered another operationally strong quarter, with occupancy of 98% and a 140 basis point improvement in NOI margin, which drove 5.0% organic NOI growth and 14% growth in fully diluted FFO per share. This operating performance also contributed to a 7% increase in NAV per share in the first half of the year and allowed us to release meaningful capital from the portfolio. The Company now has $12.6 million of cash on the balance sheet and is well positioned to pursue accretive acquisition opportunities and continue growing the portfolio and cash flow per share in the second half of the year.”
Summary of Results:
- Net operating income (“NOI”) increased by +4.6% to $5.5 million for the three months ended June 30, 2026.
- Same property NOI increased +5.0%, driven by a +3.2% increase in revenue, partially offset by a +0.5% rise in expenses for the three months ended June 30, 2026.
- Funds from operations (“FFO”) increased +13.3% to $1.8 million and fully diluted FFO per share increased +13.6% to $0.06 for the three months ended June 30, 2026.
Q2 2026 Operating and Financial Highlights:
| As at | 30-Jun-26 | 31-Dec-25 | Change | ||||||
| Number of suites | 2,058 | 2,073 | (15 | ) | |||||
| Occupancy | 98.0 | % | 96.8 | % | 120 bps | ||||
| Net Debt to GBV* | 67.5 | % | 68.7 | % | (120) bps | ||||
| Weighted average term to debt maturity (years) | 3.1 | 3.5 | (0.4) yrs | ||||||
| Weighted average contractual interest rate | 3.39 | % | 3.11 | % | 28 bps | ||||
| Net asset value | 149,209,618 | 139,136,844 | 7.2 | % | |||||
| Net asset value per share | $ | 4.54 | $ | 4.23 | 7.3 | % | |||
| For the three months ended June 30, | 2026 | 2025 | Change | ||||||
| NOI | 5,458,186 | 5,220,018 | 4.6 | % | |||||
| NOI margin | 61.8 | % | 60.4 | % | 140 bps | ||||
| FFO* | 1,825,253 | 1,610,790 | 13.3 | % | |||||
| FFO per share - diluted* | 0.06 | 0.05 | 13.6 | % | |||||
| FFO payout ratio* | 18.1 | % | 20.6 | % | (250) bps | ||||
| Same property revenue* | 8,837,976 | 8,561,679 | 3.2 | % | |||||
| Same property operating expenses* | (3,379,790 | ) | (3,362,228 | ) | 0.5 | % | |||
| Same property NOI* | 5,458,186 | 5,199,451 | 5.0 | % | |||||
| Same property NOI margin* | 61.8 | % | 60.7 | % | 110 bps | ||||
| For the six months ended June 30, | 2026 | 2025 | Change | ||||||
| NOI | 10,546,792 | 10,087,929 | 4.5 | % | |||||
| NOI margin | 59.9 | % | 58.7 | % | 120 bps | ||||
| FFO* | 3,697,127 | 3,298,982 | 12.1 | % | |||||
| FFO per share - diluted* | 0.11 | 0.10 | 12.4 | % | |||||
| FFO payout ratio* | 18.1 | % | 20.6 | % | (250) bps | ||||
| Same property revenue* | 17,600,722 | 17,038,653 | 3.3 | % | |||||
| Same property operating expenses* | (7,056,753 | ) | (6,995,873 | ) | 0.9 | % | |||
| Same property NOI* | 10,543,969 | 10,042,780 | 5.0 | % | |||||
| Same property NOI margin* | 59.9 | % | 58.9 | % | 100 bps | ||||
*Refer to section “Non-IFRS Financial Measures”
Occupancy:
At the end of the quarter, the Company’s wholly-owned portfolio had an occupancy rate of 98.0%, representing a 120 basis point increase from December 31, 2025 and a 140 basis point increase from March 31, 2026, driven by occupancy gains across all regions of the Company’s portfolio.
Fair Value of Investment Properties:
The Company’s overall weighted average capitalization rate at quarter end was 5.05%, compared to 5.04% at December 31, 2025. The Company recorded fair value gains on investment properties of $9.5 million for the three month period and $11.0 million for the six month period, reflecting an upward revision to forecasted NOI driven by higher in-place rents across the portfolio, expected insurance savings following a review of the Company’s portfolio insurance program, and lower operating costs at certain Ontario properties that transitioned from external to internal management during the period.
Property Sale:
Subsequent to quarter end, the Company entered into agreements to sell three of the eight duplexes comprising its Rue du Progrès property in Gatineau, Quebec for gross proceeds of approximately $1.6 million. The agreed sale price implies a capitalization rate of approximately 4.25% on the NOI attributable to the three duplexes and implies a 15% premium to the Company’s previous IFRS fair value for the property, without taking into consideration the effect of leverage. Closing is expected to occur on or about September 1, 2026, subject to customary closing conditions. The Company intends to discharge the entire property’s $2.0 million mortgage in full on closing and to dispose of the remaining five duplexes over the next 12 months.
As part of its ongoing portfolio optimization strategy, the Company continues to evaluate additional non-core assets for potential disposition.
NCIB Activity:
For the period April 1 to June 30, 2026, the Company purchased and cancelled a total of 125,800 shares pursuant to its NCIB for a total cost of $250,739, representing an average share price of $1.99. Subsequent to June 30, 2026, the Company purchased and cancelled 61,600 shares for a total cost of $139,715 at an average of $2.27 per share. This brings NCIB activity for the year to 281,700 shares for a total cost of $603,246 representing an average share price of $2.14.
Dividend:
The Company’s Board of Directors has approved and declared a dividend of $0.01 per common share for the quarter ending September 30, 2026, representing $0.04 per share on an annualized basis. The dividend is payable on September 25, 2026, to shareholders of record at the close of business on September 4, 2026.
About the Company
NexLiving Communities Inc. (TSXV: NXLV) is a Canadian multi-family real estate company focused on acquiring, operating, and growing a portfolio of recently built and refurbished, highly leased residential properties in secondary markets across Canada.
NexLiving is developing a new standard in Canadian multi-family real estate, with a focus on long-term tenants who value proximity to healthcare, nature trails, parks, public transportation, and convenient services, and who hold modern, condo-style expectations of their homes and communities. The Company's portfolio consists of Class A, low- and mid-rise buildings featuring modern and high-end finishes, elevators, heated underground parking, and a range of amenities designed to support a hassle-free, maintenance-free lifestyle. NexLiving aims to deliver exceptional living experiences to our residents and provide comfortable, affordable housing solutions that cater to a wide range of demographics. The Company currently owns 2,058 units in New Brunswick, Quebec, Ontario and Manitoba and has 108 townhomes under construction in the Barrhaven suburb of Ottawa, with construction expected to be completed in early 2027.
NexLiving is executing a disciplined and accretive growth strategy acquiring high-quality assets with strong day-one cash flow, optimizing operations, and recycling capital into higher-yielding opportunities. The Company continues to evaluate both acquisition targets and non-core asset dispositions as part of its ongoing portfolio optimization strategy, with a scalable growth pipeline extending well beyond 2026.
For more information about NexLiving, please refer to our website at www.nexliving.ca and our public disclosure at www.sedarplus.ca.
Forward-Looking Statements
This news release contains forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking statements”). All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “projects”, “estimates”, “forecasts”, “intends”, “continues”, “anticipates”, or “does not anticipate” or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements contained in this news release include, but are not limited to, management’s expectations of additional rental increases to come into effect by year end and the further enhancement of the Company’s financial results. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. These forward-looking statements reflect the current expectations of the Company’s management regarding future events and operating performance, but involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual events could differ materially from those projected herein and depend on a number of factors. These risks and uncertainties are more fully described in regulatory filings, which can be obtained on SEDAR+ at www.sedarplus.ca, under NexLiving’s profile, as well as under Risks and Uncertainties section of the MD&A released on August 12, 2026. Although forward-looking statements contained in this news release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.
Non-IFRS Financial Measures
The Company prepares and releases unaudited consolidated interim financial statements and audited consolidated annual financial statements prepared in accordance with IFRS. In this and other earnings releases, as a complement to results provided in accordance with IFRS, NexLiving discloses financial measures not recognized under IFRS which do not have standard meanings prescribed by IFRS. These include FFO, FFO (cents per share) – diluted, FFO payout ratio, Debt to GBV and same-property metrics (collectively, the “Non-IFRS Measures”). These Non-IFRS Measures are further defined and discussed in the MD&A dated August 12, 2026, which should be read in conjunction with this news release. Since these measures are not recognized under IFRS, they may not be comparable to similar measures reported by other issuers. The Company presents the Non-IFRS measures because management believes these Non-IFRS measures are relevant measures of the ability of NexLiving to earn revenue and to evaluate its performance and cash flows. A reconciliation of these Non-IFRS measures is included in the MD&A dated August 12, 2026. The Non-IFRS measures should not be construed as alternatives to net income (loss) or cash flows from operating activities determined in accordance with IFRS as indicators of the Company’s performance.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
For further information please contact:
Stavro Stathonikos
sstathonikos@nexliving.ca
647-847-2030
