MINOT, N.D., Feb. 2, 2017 /PRNewswire/ -- IRET (NYSE:
IRET) today announced that on January 31,
2017, its operating partnership, IRET Properties, a North
Dakota Limited Partnership, entered into a new unsecured,
syndicated revolving credit facility with commitments totaling
$250 million. The new facility
has a four year initial term and one year extension option, and a
$250 million accordion feature, the
exercise of which is subject to certain conditions. Borrowings
on the new facility will bear interest at grid pricing either of
the Lender's Base Rate plus 60 to 125 basis points or of LIBOR plus
160 to 225 basis points, based on corporate leverage.
Additionally, IRET today announced that it has completed the
sale of ten senior housing properties, containing 900 units, on
January 18, 2017 and February 1, 2017, by closing on two of the six
previously announced sale agreements, for a combined total sales
price of $119.5 million. After
retiring mortgage debt and paying other closing costs,
IRET received net cash proceeds of approximately $105.5 million, of which $48 million was used to pay down IRET's prior
credit facility, which was retired on January 31, 2017, $40
million was applied to the new credit facility with the
remaining proceeds used for general corporate purposes. The
properties were sold to wholly-owned subsidiaries of Edgewood
Properties, LLLP, which is an affiliate of the tenants that leased
and operated the properties prior to the sales. Including
sales of senior housing properties in 2016, IRET has now sold 18 of
its 34 senior housing properties for a combined sales price of
$163.4 million. IRET expects to
close on the sale of the remaining 16 senior housing properties and
one multifamily asset pursuant to the four outstanding sale
agreements no later than by April 28,
2017.
"With the sales of another ten senior housing properties, and
the execution of a new, larger, unsecured credit facility, we
continue to make meaningful strides in our transition to a premier
multifamily company built on financial flexibility," said Chief
Executive Officer, Tim
Mihalick. "These steps will not only strengthen our
financial position, but allow us to recycle capital into
multifamily assets and help support our future growth. We have
made significant progress to date, and are focused on executing on
our strategic initiatives and building long term value for our
shareholders."
About IRET
IRET focuses on the acquisition, development, redevelopment and
management of multifamily communities located primarily in select
growth markets throughout the Midwest. As of October 31, 2016, IRET owned interests in 130
properties that were held for investment, consisting of: (1) 86
multifamily properties consisting of 12,751 units, and (2) 44
commercial properties, including 30 healthcare properties,
containing a total of approximately 2.7 million square feet of
leasable space. IRET's common shares and Series B preferred shares
are publicly traded on the New York Stock Exchange (NYSE symbols:
IRET and IRETPRB, respectively). IRET's press releases and
supplemental information are available on its website at
www.iret.com or by contacting Investor Relations at
701-837-7104.
Forward-Looking Statements
Certain statements in this press release, including statements
regarding IRET's plans and expectations with respect to its
strategic transformation, are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results to
differ materially from projected results. Such risks,
uncertainties and other factors include, but are not limited
to: changes in operating costs; the effect of government
regulation; the availability of capital; changes in general and
local economic and real estate market conditions; IRET's ability to
complete acquisitions and dispositions on attractive terms, or at
all; IRET's ability to manage its current debt levels and repay or
refinance its indebtedness upon maturity or other payment dates;
IRET's ability to maintain financial covenant compliance under its
debt agreements; fluctuations in interest rates; IRET's ability to
maintain effective internal controls over financial reporting and
disclosure controls and procedures; competition; IRET's ability to
attract and retain skilled personnel; and those risks and
uncertainties detailed from time to time in IRET's filings with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K for the fiscal year ended April
30, 2016. We assume no obligation to update or
supplement forward-looking statements that become untrue because of
subsequent events.
CONTACT INFO
Investor Relations
Stephen Swett
phone: 701-837-7104
email: IR@iret.com
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SOURCE IRET