TORONTO, May 8, 2018 /CNW/ – Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) announced today that it has agreed to sell a 75% interest in four properties, one located in each of Brockville, Ottawa and Mississauga, Ontario, and one in Laval, Quebec totaling 406,360 square feet, to a major Canadian institution for total proceeds of approximately $46.4 million, generating a realized gain on the sale of approximately $6.8 million. The proceeds of the sale will be used to reduce the REIT’s revolving operating credit facility and for future acquisitions. The closing of the property sales is expected on or before May 16, 2018.
The Board of Trustees has previously adopted a policy to consider a special cash distribution when the REIT generates a realized gain upon the sale of a property. As a result of the realized gain of $6.8 million or $0.10 per Unit on the sale of the 75% interest in the four properties discussed above, the Trustees today approved a special distribution of $0.018 per Unit to be paid on May 31, 2018 to Unitholders of record as of May 16, 2018.
“We continue to evaluate our property portfolio to ensure we are achieving the highest returns for our Unitholders while maximizing operating efficiencies and cost synergies. The sale of the 75% interest in these four properties allows us to strengthen our focus on our key geographic markets while recycling the capital from the sales into growing our presence in these regions,” stated Paul Dykeman, Chief Executive Officer. “With these recent sales, we now jointly own 7 properties with approximately 910,000 square feet of space with this partner and look forward to continue to grow this partnership going forward.”
“We are also pleased to be announcing the special distribution related to these property sales, a testament to our commitment to enhance unitholder value over the long term,” Mr. Dykeman concluded.
Summit Industrial Income REIT is an unincorporated open-end trust focused on growing and managing a portfolio of light industrial properties across Canada. Summit’s units are listed on the TSX and trade under the symbol SMU.UN. For more information, please visit our web site at www.summitIIreit.com.
Caution Regarding Forward Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends”, “goal” and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning the goal to build Summit’s property portfolio. The forward-looking statements and information are based on certain key expectations and assumptions made by Summit, including general economic conditions. Although Summit believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Summit can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, tenant risks, current economic environment, environmental matters, general insured and uninsured risks and Summit being unable to obtain any required financing and approvals. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward looking information for anything other than its intended purpose. Summit undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Summit Industrial Income REIT
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