- Gross proceeds of $11.3 million
from three completed dispositions
- As of September 28, 2023:
- Approx. 87% of 2023 GLA renewed at approximately 44%
positive average spread
- Approx. 12% of 2024 GLA renewed at approximately 21%
positive average spread
- $46 million available and undrawn
on credit facility
MONTREAL, Sept. 29,
2023 /CNW/ - PRO Real Estate Investment Trust
("PROREIT" or the "REIT") (TSX: PRV.UN) today announced that
it has completed the sale of two non-core office properties and one
non-core retail property totalling approximately
63,000 square feet of gross leasable area ("GLA")
for total gross proceeds of $11.3 million, excluding closing costs.
Proceeds of the sale were used to repay approximately $7.2 million in related mortgages maturing
in 2023, with the balance used for general business purposes.
"We are pleased to complete the sale of these three non-core
properties, as we continue to focus on the high-quality industrial
sector in Canada. Our portfolio
continues to generate organic growth as evidenced by our successful
GLA renewal and sustained high occupancy rate. Our capital
allocation strategy remains on course, which includes paying
regular distributions to unitholders and reducing our debt to gross
book value. We also look forward to incremental cash flows
resulting from our organic growth and GLA renewal," said
Gordon G. Lawlor, President and
Chief Executive Officer of PROREIT.
As of today's date, PROREIT's occupancy rate remains high at
approximately 99%, including committed occupancy. About 87% of
2023 GLA has been renewed at approximately 44% positive
average spread and about 12% of 2024 GLA has been renewed at
approximately 21% positive average spread.
As previously announced, our 102,000 square foot industrial
property located in St. Laurent,
Quebec, which had a temporary vacancy in Q2 2023, will be
fully occupied as of October 1, 2023 at an average
positive spread of 55% under long-term leases with annual rent
steps.
Portfolio Transaction
Details
To date in 2023, including today's announcement, PROREIT has
sold four non-core properties as follows:
Sector
|
Address
|
GLA
(sq.ft.)
|
Gross
Proceeds
|
Use of
Proceeds
|
Mortgage
Repay
|
General
Business
|
Office
|
26-32 Prince
Arthur/11-15
Prince Street, Amherst, NS
|
49,481
|
$2.1M
|
--
|
$2.1M
|
Office
|
9 Auriga Drive, Ottawa
ON
|
30,912
|
$9.1M
|
$5.7M
|
$3.4M
|
Office
|
31 Auriga Drive,Ottawa
ON
|
29,338
|
Retail
|
875 King Street,
Sherbrooke,
QC
|
3,240
|
$2.2M
|
$1.5M
|
$0.7M
|
TOTAL
|
|
112,971
|
$13.4M
|
$7.2M
|
$6.2M
|
Following these dispositions, PROREIT owns 126 investment
properties (including a 50% ownership interest in
42 investment properties) representing approximately 6.4
million square feet of GLA, with the industrial segment accounting
for 81% of GLA and 72% of base rent.
As of today's date, PROREIT has $46
million available on its credit facility. Mortgage maturity
exposure is limited to approximately $25
million for the remainder of 2023 and approximately
$26 million for 2024.
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,
projections, 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 and capital allocation strategy,
the future financial and operating performance of PROREIT, and the
REIT's intention to pay distributions to unitholders and reduce its
debt to gross book value. 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 and six months
ended June 30, 2023, which are available under PROREIT's
profile on SEDAR+ at www.sedarplus.ca.
SOURCE PROREIT