MONTRÉAL, Sept. 17, 2019 /CNW
Telbec/ - PRO Real Estate Investment Trust (TSX: PRV.UN)
("PROREIT" or the "REIT") is pleased to report that it has closed
its previously announced 100% interest acquisitions of five
light industrial buildings in Halifax,
Nova Scotia, and a boutique office tower in Ottawa, Ontario. The six properties, acquired
from two separate vendors for an aggregate purchase price of
$49.3 million before closing
costs and representing a going-in capitalization rate of 6.70%, add
416,027 square feet of gross leasable area ("GLA") to the REIT's
current portfolio.
"We are pleased to have successfully closed these six
properties, which represent slightly over 50% of the total purchase
price of the seven acquisitions announced last month, with the
remaining mixed-used industrial property located in Kanata, Ontario, expected to close in the
coming weeks," said Jim Beckerleg,
President and CEO, PROREIT.
"Our financial position has never been stronger. Our recent
successful equity raise and exceptional mortgage offerings allow us
to finance these purchases on a accretive basis to our AFFO
per unit, while also reducing our leverage," added Mr. Beckerleg.
"The focus will now be on integrating these new assets, and on
continuing to build and diversify our high-quality portfolio."
Halifax Light Industrial Properties, Halifax, Nova Scotia
Located in Burnside Industrial Park, the portfolio of five light
industrial buildings was acquired for an aggregate purchase price
of $28.1 million from a domestic
institution, representing $78 per
square foot. The portfolio consists of 357,824 square feet of
GLA, with an overall occupancy rate of 93% and a weighted average
lease term of 4.0 years. With clear heights between 18 and 24 feet,
the buildings will increase PROREIT's industrial and commercial
mixed-used exposure to more than 2 million square feet,
representing 48% of total GLA. This acquisition provides PROREIT a
good presence in the strengthening Halifax industrial market that has received
increased interest from institutional investors recently.
The $28.1 million purchase price
was financed by the proceeds from a new $19.7 million 10-year first mortgage at a rate of
2.93%. The balance of the purchase price was satisfied with cash on
hand of $8.4 million received from
the recent equity financing.
Property
Address
|
GLA (sq.
ft.)
|
26-28 Topple
Drive
|
201,132
|
45 Wright
Avenue
|
15,360
|
71 Ilsley
Avenue
|
47,104
|
81 Ilsley
Avenue
|
47,044
|
101 Ilsley
Avenue
|
47,184
|
Total
|
357,824
|
251 Laurier Avenue West, Ottawa,
Ontario
The Laurier property is an
institutionally-owned and managed 11-storey boutique office tower
situated in the heart of Ottawa's
central business district, acquired for $21.2 million. The building, which features
58,203 square feet of premium office and ground floor retail space,
occupies a valuable corner location that benefits from excellent
visibility and accessibility. The property is 100% leased to a
diverse roster of exceptional private sector tenants with a
weighted average lease term of approximately 4.6 years.
The Laurier property is in the
commercial and economic centre of Ottawa, surrounded by popular tourist sites
and retail amenities. The area is well-serviced by multiple
restaurants and retail offerings. The new O-train LRT expansion,
the Confederation Line, is set to further bolster transit services
when it becomes operational. Given the high concentration of
technology talent, some of the most innovative companies in
North America – including Amazon,
Bell, IBM, Nokia and Shopify – are present in downtown Ottawa.
The $21.2 million purchase price
was financed by the proceeds from a new $13.3 million 10-year first mortgage at an
interest rate of 2.94%. The balance of the purchase price was
satisfied with cash on hand of $7.9
million received from the recent equity financing.
About PRO Real Estate Investment Trust
PROREIT (www.proreit.com) is an unincorporated open-ended real
estate investment trust owning a diversified portfolio of 90
commercial properties across Canada representing over 4.1 million square
feet of GLA, which will increase to 91 commercial properties
representing over 4.4 million square feet of GLA, following the
completion of the REIT's announced acquisitions. Established in
2013, PROREIT is mainly focused on strong primary and secondary
markets in Quebec, Atlantic Canada and Ontario, with selective exposure in
Western Canada.
For more information on PROREIT, please visit the REIT's website
at: https://proreit.com.
Non-IFRS and Operational Key Performance Indicators
PROREIT's condensed consolidated financial statements are
prepared in accordance with International Financial Reporting
Standards ("IFRS"). In this press release, as a complement to
results provided in accordance with IFRS, PROREIT discloses and
discusses certain non-IFRS financial measures, including adjusted
funds from operations ("AFFO"). These non-IFRS measures are not
defined by IFRS, do not have a standardized meaning and may not be
comparable with similar measures presented by other issuers.
PROREIT has presented such non-IFRS measures as management believes
they are relevant measures of PROREIT's underlying operating
performance and debt management. Non-IFRS measures should not be
considered as alternatives to net income, cash generated from
(utilized in) operating activities or comparable metrics determined
in accordance with IFRS as indicators of PROREIT's performance,
liquidity, cash flow, and profitability. For a full description of
these measures and, where applicable, a reconciliation to the most
directly comparable measure calculated in accordance with IFRS,
please refer to the "Non-IFRS and Operational Key Performance
Indicators" section in PROREIT's Management's Discussion and
Analysis for the three and six months ended June 30, 2019, available on SEDAR at
www.sedar.com.
Forward-Looking Information
This news release contains forward-looking statements within the
meaning of applicable securities legislation. Forward-looking
statements are based on a number of assumptions and are
subject to a number of risks and uncertainties, many of which are
beyond PROREIT's control, that could cause actual results and
events to differ materially from those that are disclosed in or
implied by such forward-looking statements.
Forward-looking statements contained in this press release
include, without limitation, statements pertaining to the impact of
the acquisitions on the REIT's AFFO per unit, the anticipated
closing of the remaining mixed-used industrial property located in
Kanata, Ontario and the timing
thereof, and the ability of PROREIT to execute its growth
strategies. PROREIT's objectives and forward-looking statements are
based on certain assumptions, including that (i) PROREIT will
receive financing on favorable terms; (ii) the future level of
indebtedness of PROREIT and its future growth potential will remain
consistent with REIT's current expectations; (iii) there will be no
changes to tax laws adversely affecting PROREIT's financing
capacity or operations; (iv) the impact of the current economic
climate and the current global financial conditions on PROREIT's
operations, including its financing capacity and asset value, will
remain consistent with PROREIT's current expectations; (v) the
performance of PROREIT's investments in Canada will proceed on a basis consistent with
PROREIT's current expectations; and (vi) capital markets will
provide PROREIT with readily available access to equity and/or
debt.
The forward-looking statements contained in this news release
are expressly qualified in their entirety by this cautionary
statement. All forward-looking statements in this press release are
made as of the date of this press release. PROREIT does not
undertake to update any such forward-looking information whether as
a result of new information, future events or otherwise, except as
required by law.
Additional information about these assumptions and risks and
uncertainties is contained under "Risk Factors" in PROREIT's latest
annual information form, which is available on SEDAR at
www.sedar.com.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) accepts responsibility
for the adequacy or accuracy of this release.
SOURCE PROREIT