Portfolio Weighted Average Lease Term of
4.4 years and 80% Government and Credit-Rated Tenants
/NOT FOR DISTRIBUTION IN THE U.S. OR OVER U.S.
NEWSWIRES/
"This news release constitutes a "designated news release"
for the purposes of the REIT's prospectus supplement dated
April 21, 2022 to its short form base
shelf prospectus dated February 17,
2022."
TORONTO, June 29,
2023 /CNW/ - True North Commercial Real Estate
Investment Trust (TSX: TNT.UN) (the "REIT") is pleased to
announce significant progress of its lease renewals totaling
approximately 374,000 square feet and over 51,000 square feet of
new leases (the "Leases") with a combined weighted average
lease term of 4.3 years.
"The significant lease activity completed to date demonstrates
the REIT's continued focus on maintaining strong relationships with
its tenants and reinforces our strategic focus of securing and
retaining government and credit-worthy tenants" stated Daniel Drimmer the REIT's Chief Executive
Officer.
The REIT completed approximately 141,000 square feet of lease
renewals across three properties in New
Brunswick with the Province of New
Brunswick ("New Brunswick Renewal"). The New
Brunswick Renewal extends the provinces' tenancy for a further five
years to September and October 2027.
The REIT's New Brunswick portfolio
is currently 85% occupied.
The REIT also completed a five-year lease renewal totaling
approximately 58,600 square feet with the Province of Alberta, the anchor tenant at 13140 St. Albert
Trail, Edmonton, Alberta
("13140 St. Albert
Trail"). Under the terms of the renewal, the lease term
has been extended to January 2029.
13140 St. Albert Trail is 92% occupied, with the Province of
Alberta occupying 78% of its
rentable area.
Lastly, the REIT is pleased to announce a lease renewal of
approximately 44,800 square feet with General Motors of Canada
Company at 101 McNabb Street, Markham,
Ontario ("101 McNabb") to further extend its term
until December 2027. 101 McNabb is
100% occupied by General Motors of Canada and TD Insurance with an average
remaining lease term of 4.0 years.
The REIT's portfolio which is 91% occupied generates 80% of
revenue from government and credit rated tenants with a weighted
average remaining lease term of 4.4 years.
About the REIT
The REIT is an unincorporated, open-ended real estate investment
trust established under the laws of the Province of Ontario. The REIT currently owns and operates
a portfolio of 46 properties consisting of approximately 5.0
million square feet in urban and select strategic secondary markets
across Canada. The REIT is focused
on growing its portfolio principally through acquisitions across
Canada and such other
jurisdictions where opportunities exist.
For more information regarding the REIT, please visit
www.sedar.com or the REIT's website at www.truenorthreit.com.
Forward-looking
Statements
Certain statements contained in this press release constitute
forward-looking information within the meaning of Canadian
securities laws, including statements regarding anticipated
outcomes and benefits in respect of the Leases, and the REIT's
future plans (including the Board's and management's expectations
regarding the REIT's leverage, portfolio and future distributions).
Forward-looking statements are provided for the purposes of
assisting the reader in understanding the REIT's financial
performance, financial position and cash flows as at and for the
periods ended on certain dates and to present information about
management's current expectations and plans relating to the future.
Readers are cautioned that such statements may not be appropriate
for other purposes. Forward-looking information may relate to
future results, performance, achievements, events, prospects or
opportunities for the REIT or the real estate industry and may
include statements regarding the financial position, business
strategy, budgets, projected costs, capital expenditures, financial
results, taxes, plans and objectives of or involving the REIT. In
some cases, forward-looking information can be identified by such
terms as "may", "might", "will", "could", "should", "would",
"expect", "plan", "anticipate", "believe", "intend", "seek", "aim",
"estimate", "target", "goal", "project", "predict", "forecast",
"potential", "continue", "likely", or the negative thereof or other
similar expressions suggesting future outcomes or events.
Forward-looking statements necessarily involve known and unknown
risks and uncertainties, which may be general or specific and which
give rise to the possibility that expectations, forecasts,
predictions, projections or conclusions will not prove to be
accurate, assumptions may not be correct and objectives, strategic
goals and priorities may not be achieved. A variety of factors,
many of which are beyond the REIT's control, affect the operations,
performance and results of the REIT and its business, and could
cause actual results to differ materially from current expectations
of estimated or anticipated events or results. These factors
include, but are not limited to, the risks discussed in the REIT's
materials filed with Canadian securities regulatory authorities
from time to time on www.sedar.com. The reader is cautioned to
consider these and other factors, uncertainties and potential
events carefully and not to put undue reliance on forward-looking
statements as there can be no assurance actual results will be
consistent with such forward-looking statements.
Information contained in forward-looking statements is based
upon certain material assumptions applied in drawing a conclusion
or making a forecast or projection, including management's
perception of historical trends, current conditions and expected
future developments and the financial performance of the REIT
resulting from the Leases, the breadth of impact of COVID-19 on the
REIT's business, operations and performance, including the
performance of its Units; the REIT's ability to mitigate any
impacts related to fluctuating mortgage and interest rates,
inflation and COVID-19; the impact of COVID-19 on the commercial
real estate industry, property occupancy levels and the REIT;
credit, market, operational, and liquidity risks generally;
Starlight Group Property Holdings Inc., or any of its affiliates,
will continue its involvement as asset manager of the REIT in
accordance with its current asset management agreement; and
the risks identified or referenced above, collectively, will
not have a material impact on the REIT. While management considers
these assumptions to be reasonable based on currently available
information, they may prove to be incorrect.
The forward-looking statements made in this news release are
dated and relate only to events or information as of the date of
this news release. Except as specifically required by applicable
Canadian law, the REIT undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise, after the date on which
the statements are made or to reflect the occurrence of
unanticipated events.
SOURCE True North Commercial Real Estate Investment Trust