The Becker Milk Company Limited

2023 Annual Financial Results - Seite 2

Changes in Net Income - Year ended April 30, 2023
compared to year ended April 30, 2022
Increase in recovery of deferred income taxes	$968,366
Increase in net operating income	172,134
Increase in finance income	108,475
Decrease in administrative expenses	74,463
Decrease in expenses related to strategic review	62,110
Increase in loss on disposal	(10,494)
Increase in current taxes	(136,034)
Unfavourable change in fair value adjustment	(7,683,358)
Decrease in net income	($6,444,338)

The large unfavourable change in the fair value adjustment to investment properties was the result of revised assumptions with respect to capitalization rates as at April 30, 2023.

ADJUSTED FUNDS FROM OPERATIONS

For the year ended April 30, 2023 the Company recorded adjusted funds from operations of $612,280 ($0.34 per share) compared to $553,929 ($0.31 per share) in 2022.

		Year ended
		April 30
		2023		2022
Net income (loss)		($778,354)		$5,665,984
Add (deduct) items not affecting cash:
	Adjustment to fair value of investment properties	1,690,358		(5,993,000)
	Loss (gain) on sale of investment properties	15,077		4,583
	Tax on gains from sale of property	54,736		9,065
	Deferred income taxes	(169,820)		798,546
	Expenses related to strategic review	40,641		102,751
	Sustaining capital expenditures	(240,358)		(34,000)
Adjusted funds from operations		$612,280		$553,929
Adjusted funds from operations per share		$0.34		$0.31