- Gross proceeds of $13.2 million
generated from three dispositions
- $24.9 million of remaining 2023
mortgage maturities refinanced
- As of December 22, 2023:
- Approx. 90% of 2023 GLA renewed at approximately
44% positive average spread
- Approx. 26% of 2024 GLA renewed at approximately
28% positive average spread
MONTREAL, Dec. 28,
2023 /CNW/ - PRO Real Estate Investment Trust
("PROREIT" or the "REIT") (TSX: PRV.UN) today announced that
it has completed the sale of three non-core retail properties
totalling approximately 68,000 square feet of gross
leasable area ("GLA") for total gross proceeds of $13.2 million, excluding closing costs.
Proceeds of the sale were used to repay approximately $4.4 million in related mortgages, with the
balance used for general business purposes.
Additionally, PROREIT announced that it has refinanced its
remaining mortgages maturing in 2023 with current lenders. The
refinancing included a two-year renewal of approximately
$19.0 million at a rate of 6.64%
and a one-year renewal of approximately $5.9 million at a rate of 6.93%.
"We are pleased with the sale of these non-core assets as we
continue to optimize our portfolio and generate organic growth, as
evidenced by our successful GLA renewals for 2023 and 2024," said
Gordon G. Lawlor, President and Chief Executive Officer
of PROREIT. "With the refinancing of all mortgages for 2023
completed, we now have additional near-term financial flexibility
and are well positioned to capture future opportunities in the
industrial sector."
Portfolio Transaction
Details
Including today's announcement, PROREIT has sold
seven non-core properties in 2023, as follows:
Disposal
|
Sector
|
Address
|
GLA
(sq.ft.)
|
Gross
Proceeds
|
Use of
Proceeds
|
Date
(2023)
|
Mortgage
Repayment
|
General
Business
|
April 21
|
Office
|
26-32 Prince Arthur,
Amherst, NS
11-15 Prince Street, Amherst, NS
|
49,481
|
$2.1M
|
--
|
$2.1M
|
August 31
|
Office
|
9 Auriga Drive, Ottawa,
ON
|
30,912
|
$9.1M
|
$5.7M
|
$3.4M
|
August 31
|
Office
|
31 Auriga Drive,
Ottawa, ON
|
29,338
|
September 28
|
Retail
|
875 King Street,
Sherbrooke, QC
|
3,240
|
$2.2M
|
$1.5M
|
$0.7M
|
November 27
|
Retail
|
165 Chain Lake Drive,
Halifax, NS
|
44,720
|
$8.7M
|
$4.4M
|
$4.3M
|
November 27
|
Retail
|
800 Taniata Avenue,
Levis, QC
|
4,500
|
$2.2M
|
--
|
$2.2M
|
December 22
|
Retail
|
1670 Notre Dame Street,
Quebec City, QC (held for redevelopment)
|
19,000
|
$2.3M
|
--
|
$2.3M
|
|
TOTAL
|
|
181,191
|
$26.6M
|
$11.6M
|
$15.0M
|
Following these dispositions, PROREIT owns 123 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 82% of GLA and 73% of base rent.
Business Update
As of today's date, PROREIT's occupancy rate remains high at
approximately 98%, including committed occupancy.
About 90% of 2023 GLA has been renewed at approximately 44%
positive average spread and about 26% of 2024 GLA has been renewed
at approximately 28% positive average spread.
Mortgage maturity exposure is limited to approximately
$33 million for 2024, and PROREIT has $43 million available on its credit facility.
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 the optimization of its
portfolio. 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 nine month
periods ended September 30, 2023, which are available
under PROREIT's profile on SEDAR+ at www.sedarplus.ca.
SOURCE PROREIT