WINNIPEG, MB, July 30,
2024 /CNW/ - Artis Real Estate Investment Trust
("Artis" or the "REIT") (TSX: AX.UN) announced today that it has
entered into an unconditional agreement to sell a portfolio of nine
industrial properties located in the Greater Phoenix Area, Arizona, and the
Twin Cities Area, Minnesota
(the "Arizona and Minnesota
Industrial Portfolio").
"We continue to make solid progress in the execution of our
disposition strategy," said Samir
Manji, President and Chief Executive Officer of Artis.
"Along with the closing of the sale of Park 8Ninety announced
earlier this month, this portfolio disposition will move us closer
to achieving our goal of reducing overall leverage to below 45% and
will lower our borrowing costs significantly moving forward. With
today's announcement, we are on track to completing a billion
dollars of dispositions this year. This will result in a profound
change to our balance sheet by year end relative to where we
finished 2023. At the same time, it will put Artis in a strong
liquidity position that we intend to harness on an opportunistic
basis going forward. We look forward to providing further updates
with our second quarter results on August
8th."
The Arizona and Minnesota
Industrial Portfolio comprises six properties located in the
Greater Phoenix Area, Arizona, totalling 822,393 square feet of
leasable area and three properties located in the Twin Cities Area, Minnesota, totalling 317,646 square feet of
leasable area. The sale price of US$197.4
million represents a price per square foot of US$173, and the properties have approximately
US$58.8 million of mortgage
financing. The transaction is expected to close in the third
quarter of 2024.
Proceeds from the sale of the Arizona and Minnesota Industrial Portfolio
will be used to reduce overall debt.
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Artis is a diversified Canadian real estate investment trust
with a portfolio of industrial, office and retail properties in
Canada and the United States. Artis's vision is to become
a best-in-class real estate asset management and investment
platform focused on value investing.
For further information please contact Mr. Samir Manji, President and Chief Executive
Officer, Ms. Jaclyn Koenig, Chief
Financial Officer or Ms. Heather
Nikkel, Senior Vice-President - Investor Relations and
Sustainability of the REIT at 1.204.947.1250.
Cautionary Statements
This press release contains forward-looking statements. For this
purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements.
Without limiting the foregoing, the words "expects", "anticipates",
"intends", "estimates", "projects", "seeks", and similar
expressions or variations of such words and phrases or state that
certain actions, events or results ''may'', ''would'' or ''will''
occur or be achieved are intended to identify forward-looking
statements. Particularly, statements regarding building Artis into
a best-in-class asset management and investment platform focused on
value investing in real estate, the REIT's ability to strengthen
its balance sheet, strengthen its liquidity position, reduce
leverage, lower borrowing costs and use of proceeds of the
transaction are forward-looking statements. Forward-looking
statements are based on a number of factors and assumptions which
have been used to develop such statements, but which may prove to
be incorrect. Artis cannot assure investors that actual results
will be consistent with any forward-looking statements and Artis
assumes no obligation to update or revise such forward-looking
statements to reflect actual events or new circumstances. All
forward-looking statements contained in this press release are
qualified by this cautionary statement.
SOURCE Artis Real Estate Investment Trust