Financial Statements

Summary of financial statements

Toronto Community Housing is committed to transparency. We provide our financial results to the City of Toronto, as well as other key stakeholders. We post the State of Good Repair Fund financials and board and employee expenses on our website.


Report on financial performance

Toronto Community Housing strengthened its financial position by $23.4 million with total net assets increasing from $927.7 million in 2014 to $951.1 million in 2015.

Net income for 2015 was $27.3 million compared with $73.3 million in 2014. The decrease of $46 million is primarily a result of:

  • Decrease of joint venture income of $11.2 million as compared with the prior year
  • Decrease of sale of stand-alone homes of $19.7 million as compared with the prior year
  • Increase of operating and maintenance, utilities, security, tenancy management, information technology and other administrative expenses of $10.4 million as compared with prior year

Cash position decreased by $32.9 million in 2015 compared with an increase of $0.1 million in 2014. The decrease of $33.0 million is a result of a net change of the following:

  • $13.3 million in cash out-flows from operations due to cash requirement in working capital
  • $105.7 million in cash out-flows for investing activities, predominantly to establish cash reserves for capital spending
  • $74.5 million in cash out-flows for capital activities, to fund capital repair needs and investments in newly developed properties
  • $160.5 million in cash in-flows from financing activities, resulting from the success of the Infrastructure Ontario mortgage transaction and the City of Toronto loan transaction

2015 key financial highlights

We finalized a mortgage transaction with Infrastructure Ontario for $232 million which will provide significant new capital funding.

Favourable financial results in 2015 included an improvement to our net asset position, which is needed to address a growing and significant capital repair backlog.

In 2015, we substantially completed all internal controls recommended by the City Auditor General which continue to strengthen our financial discipline.

Consolidated statement of financial position

(in 1000's of $)December 31, 2015December 31, 2014
  $$
Assets
Current Assets
Cash 2,201  31,034
Restricted cash for internally restricted purposes  15,181 19,264
Restricted cash for externally restricted purposes 32,416 60,841
Investments  17,391 20,781
Restricted investments - 25,000
Accounts receivable  66,108 67,543
Loans receivable  2,001 676
Prepaid expenses  5,653 5,127
   140,951 230,266
     
Loans receivable  14,153 14,250
Grants receivable  13,741 17,217
Equity investments 17,055  28,364
Investments for capital asset replacement reserve 41,482  37,132
Investments for internally restricted purposes 153,259  149,072
Investments for capital expenditures
under restrictions with lenders
244,097  43,649
Receivable from the City of Toronto  21,325 21,325
Housing projects acquired or developed  1,561,490 1,574,121
Improvements to housing projects 1,038,066 943,955
Guaranteed equity housing project 8,164  8,679
Prepaid lease 1,023  1,078
     
Total assets 3,254,806  3,069,108

Consolidated statement of financial position ... continued

(in 1000's of $)December 31, 2015December 31, 2014
  $$
Liabilities
Current liabilities
Bank loan 15,000 -
Accounts payable and accrued liabilities  163,012 141,120
Tenants’ deposits and rents received in advance 13,826  12,892
Deferred revenue 3,776  3,771
Deferred revenue on long-term leases 71  71
Project financing 138,782  79,723
  334,782  237,577
     
Capital asset replacement reserve 41,482  37,132
Deferred revenue on long-term leases 975  1,045
Employee benefits 82,859  81,402
Project financing 1,353,804  1,244,098
Interest rate swap 2,244  2,732
Debenture loans 15,637
Deferred capital contributions 487,926  521,771
Total liabilities 2,303,757  2,141,394
 
Accumulated surplus
Share capital
Authorized and issued    
100 common shares 1
Internally restricted funds 169,296  170,037
Contributed surplus 5,136  5,136
Unrestricted surplus 775,332  751,702
Accumulated remeasurement gains (losses) 1,284  838
Total net assets 951,049  927,714
  3,254,806  3,069,108

Consolidated statement of operations

(in 1000's of $)December 31, 2015December 31, 2014
  $$
Revenue
Current liabilities
Subsidies 226,048  228,790
Rent    
  Residential 295,992  288,674
  Commercial 14,330  14,065
Amortization of deferred capital contributions 47,065  47,220
Parking, laundry and cable fees 16,773  16,663
Investment income 11,063  10,354
Joint venture income 20,303  31,499
Gain of easement 625
Gain on sale of housing projects 9,815  29,508
Gain on sale of land 19  3,432
Gain on sale of capital assets 33  23
Plant 1,335  1,330
Other 3,007  2,434
  645,783  674,617
     
Expenses    
Operating and maintenance 143,154  141,396
Utilities 124,448  122,937
Municipal taxes 14,646  17,357
Depreciation 141,934  134,369
Interest 71,629  69,913
Rent supplement program 24,854  24,859
Community safety services 16,365  14,619
Residential services 9,415  9,441
Tenancy management 23,415  21,691
Corporate services 27,671  27,064
Human resources 8,840  7,606
Information technology 9,202  7,385
Plant 2,408  2,140
Loss from guaranteed equity housing project 541  534
  618,522  601,311
Excess of revenue over expenses for the year 27,261  73,306