Starlight U.S. Residential Fund: Q2 2025 Performance and Outlook

The Starlight U.S. Residential Fund (TSXV: SURF.A and SURF.U) announced its operating results for the three months ended June 30, 2025 (Q2-2025) and the six months ended June 30, 2025 (YTD-2025) on August 28, 2025. The fund, focused on income-producing residential properties in the U.S., reported a decrease in revenue compared to the same period in the previous year, while maintaining high occupancy rates.

Q2 2025 Financial Highlights

Revenue from property operations for Q2-2025 was $8,311 (in thousands of U.S. Dollars), a decrease of 17.7% compared to the $10,097 reported in Q2-2024. This decline is primarily attributed to the completion of property dispositions, including the Lyric Apartments in Q2-2025 and single-family properties sold throughout 2024. A 3.3% decrease in same property revenue, driven by lower average monthly rent (AMR) in Austin and Phoenix, also contributed to the decrease.

Net operating income (NOI) for Q2-2025 was $4,865, representing a 22.2% decrease from the $6,306 recorded in Q2-2024.

Operational Performance

Despite the revenue decrease, the Fund demonstrated strong operational performance with an economic occupancy rate of 93.9% during Q2-2025. As of August 27, 2025, approximately 99.6% of rents for Q2-2025 had been collected, with further amounts expected.

Strategic Outlook

Evan Kirsh, President of the Fund, commented that the Fund continues to own a high-quality, diversified portfolio and has extended certain loans to capitalize on potential improvements in the real estate investment market. The Fund’s focus remains on maximizing net operating income at its remaining properties while navigating challenging capital markets and managing liquidity.

Recent Transactions

The Fund completed the sale of the Lyric Apartments in Q2-2025 and previously sold its remaining single-family properties throughout 2024. In August 2025, the Fund also completed the sale of a property in Orlando, Florida, comprising 264 multi-family residential suites.

Stock Information

As of March 13, 2026, Starlight U.S. Residential Fund CAD (SURF-A-X) is traded on the TSX Venture Exchange.