TORONTO, Oct. 20, 2020 /CNW/ – Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) today has provided an update on its recent financing activities.
Approximately $250 million of the REIT’s $350 million non-revolving bridge loan has been repaid through proceeds from the REIT’s recent offering of $250 million 5-year 2.15% Series A senior unsecured debentures. The remaining balance of $100 million on the bridge facility, which was arranged last year to facilitate certain acquisitions, has been extended for one year on the same terms and conditions, to November 2021 to provide the REIT with additional financing flexibility.
In addition, approximately $30.5 million of new ten-year secured mortgage financing has been placed on four of the REIT’s unencumbered properties at an average interest rate of 2.9%. This results in an increase to the REIT’s average debt term to maturity to 5.9 years. Proceeds from the new mortgage financing have been used to repay part of the REIT’s unsecured revolving credit facility. The resulting balance available to be drawn on the REIT’s unsecured revolving credit facility is approximately $168 million.
“We continue to capitalize on attractive financing opportunities to ensure that the REIT has the capacity and flexibility to execute on our strategy of portfolio growth and maintaining our track record of generating unitholder value over the long term,” commented Paul Dykeman, Chief Executive Officer. “In addition to our strong liquidity profile, we are pleased that our leverage ratio remains conservative at approximately 43%, while our pool of unencumbered assets has grown to over $1.0 billion.”
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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