- Completion of previously announced sale of two non-core retail
properties for gross proceeds of $7.0M
- Completion of sale of one flex industrial property for gross
proceeds of $6.5M
- Refinanced two industrial properties with new $9.8M mortgage
MONTREAL, June 27,
2024 /CNW/ - PRO Real Estate Investment Trust
("PROREIT" or the "REIT") (TSX: PRV.UN) today announced the
completion of the sale of three properties, totalling approximately
57,500 square feet of gross leasable area ("GLA"),
for total gross proceeds of $13.5 million, excluding closing costs.
Additionally, PROREIT successfully completed a $9.8 million debt refinancing on two industrial
properties with a new four-year mortgage.
"As part of PROREIT's previously announced plan to recycle
capital from the sale of certain non-core properties, these
property dispositions underscore the strength of our asset base as
well as our ability to attract buyers despite challenging market
conditions," said Gordon G. Lawlor, President and
Chief Executive Officer of PROREIT.
"We are particularly pleased with the opportunistic sale of our
flex industrial property in Winnipeg to a major tenant under favourable
terms. With $39.6 million of
dispositions year to date, we have the financial flexibility to
opportunistically pursue potential acquisitions in our core
industrial sector, complementing our capacity to generate organic
cash flow growth," concluded Mr. Lawlor.
Portfolio Transaction Details
The details for the completed dispositions are as follows:
Disposal
Date
(2024)
|
Sector
|
Address
|
GLA
(sq.ft.)
|
Gross
Proceeds
|
Use of
Proceeds
|
Mortgage
Repayment
|
Credit Facility
Repayment or
General
Business
(excluding
closing costs)
|
May 15
(previously
announced)
|
Retail
|
420 Albert Street,
Regina,
Saskatchewan
|
11,000
|
$4.8M
|
̶
|
$4.8M
|
May 27
(previously
announced)
|
Retail
|
789 Main Street,
Pincher Creek,
Alberta
|
8,500
|
$2.2M
|
̶
|
$2.2M
|
June 7 (not
previously
announced)
|
Flex
Industrial
|
61-85 Muir Road, in
Winnipeg, Manitoba
|
38,000
|
$6.5M
|
$5.9M (6.93%
unrelated mortgage
maturing in 2024)
|
$0.6M
|
|
TOTAL
|
|
57,500
|
$13.5M
|
$5.9M
|
$7.6M
|
Following the three completed dispositions, PROREIT owns
117 investment properties (including a 50% ownership interest
in 42 investment properties), representing approximately 6.2
million square feet of GLA, with the industrial segment accounting
for approximately 83% of GLA and 75% of base rent.
Refinancing Details
On June 21, 2024, PROREIT
completed the refinancing of two industrial properties in
Edmonton, Alberta, with a new
$9.8 million, four-year mortgage at a
rate of 4.99%. Proceeds were used to repay approximately
$7.2 million of mortgages expiring in
2024, with the remaining balance allocated to repaying a portion of
the outstanding credit facility or for general business
purposes.
Following these refinancings and mortgage repayments, PROREIT
has approximately $4.2 million in
remaining mortgages expiring in 2024, which can be either renewed
at market terms or repaid at the time of renewal with cash on
hand.
About PROREIT
PROREIT (TSX:PRV.UN) is an unincorporated open-ended real
estate investment trust established pursuant to a declaration of
trust under the laws of the Province of Ontario. Founded in 2013, PROREIT owns a
portfolio of high-quality commercial real estate properties in
Canada, with a strong industrial
focus in robust secondary markets.
For more information on PROREIT, please visit the website
at: https://proreit.com.
Forward-Looking Statements
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable securities
legislation, including statements relating to certain expectations,
growth plans and other information related to REIT's business
strategy and future plans. 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 execution
by PROREIT of its growth strategy, the use of proceeds from the
completed refinancings, and the renewal or repayment of mortgages
expiring in 2024. PROREIT's objectives and forward-looking
statements are based on certain assumptions, including that
(i) PROREIT will receive financing on favourable terms;
(ii) the future level of indebtedness of PROREIT and its
future growth potential will remain consistent with the 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 and "Risk and Uncertainties" in PROREIT's
management's discussion and analysis for the three months ended
March 31, 2024, which are available
under PROREIT's profile on SEDAR+ at www.sedarplus.ca.
SOURCE Pro Real Estate Investment Trust