TORONTO, April 16, 2020 /CNW/ – Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) today provided an update on its key operating and finance metrics as impacted by the COVID-19 pandemic, and the steps being taken to mitigate risks to its business. The REIT continues to closely monitor developments related to the pandemic and is following all guidelines issued by the federal government and provincial governments where it operates.
“Our first priority is the safety and well-being of our people, our tenants, and our properties,” commented Paul Dykeman, Chief Executive Officer. “We continue to maintain our strong financial position with the resources and flexibility to work through the current issues facing our business. Each member of our senior team has more than 30 years of industry experience and we will leverage this knowledge to work through these challenging times together.”
We are in continuous communication with our tenant base, working with them to collect rents and discuss, on a case-by-case basis, any economic hardship caused by the coronavirus pandemic. As of April 15, 2020, approximately 95% of April rents have been collected and occupancy was a very strong 98.9%. Additionally, we have minimal exposure to lease rollover with only 4% of the portfolio’s gross leasable area set to mature through the remainder of 2020.
From a financial perspective, we continue to maintain a strong and flexible financial position. As of April 15, 2020, the REIT had significant liquidity with approximately $200 million available including cash, cash equivalents, borrowing on its credit lines, and potential new financing placed on unencumbered properties. The REIT has also temporarily suspended any acquisition activity and postponed the start of new development projects, except in cases where strong long-term tenancies would create immediate full occupancy and significant returns on investment.
“We believe we have taken the necessary steps to mitigate the current impact of the coronavirus on our business,” Mr. Dykeman stated. “We have adjusted our business plan to conserve capital, we have significant liquidity and the financial resources to work through this situation, and our property portfolio remains strong and resilient with good quality, well maintained buildings and high stable occupancies.”
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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