- $46.6 million ten-year mortgage
refinancing
- $13.0 million in proceeds from
sale of two properties
- 99.8% of rent collected in January and February 2021
- 76% of 604,134 square feet maturing in 2021 renewed to
date
- $35 million in operating
liquidity
MONTREAL, March 4, 2021 /CNW Telbec/ - PRO Real Estate
Investment Trust ("PROREIT" or the "REIT") (TSX: PRV.UN) today
announced new mortgage financing, the sale of two properties and
provided an update on rent collections, lease renewals and
operating liquidity.
"We have started 2021 on solid footing, with collection rates of
100% for our industrial, mixed-used commercial and office
portfolios in both January and February. Our retail assets,
dominated by grocery and pharmacy-anchored tenants, are also
performing extremely well with 99.5% of rents collected since the
beginning of the year, a testament to the sustained strong demand
for essential real estate. With 13% of our total GLA maturing this
year, we are also very pleased to have already successfully renewed
76% of our total square feet maturing in 2021. We are gratified to
have secured renewals at positive spreads to existing leases which
will generate increased income as current leases mature,"
said James Beckerleg, President and CEO, PROREIT.
"A robust balance sheet and liquidity position also remain top
priorities for PROREIT, and we further enhanced our position with
attractive new mortgage refinancing in February 2021 as well as the successful sale of
two non-core properties in the Montreal suburban region in the past months.
Our business outlook is turning more positive, and we are confident
we are well-positioned to take advantage of some new growth
opportunities as they arise in future," concluded James Beckerleg.
New Mortgage Refinancing
On February 26, 2021, PROREIT
received $46.6 million in new
mortgage financing with an extended ten-year repayment term at a
rate of 3.21%, which is secured by five industrial assets.
The mortgage's weighted average coupon was successfully reduced by
approximately 50 basis points; and yield maintenance fees totalled
$1.3 million. Proceeds were used to
repay approximately $29.0 million of
mortgages maturing in 2021 and 2022, while the remaining net
$16.3 million will be used to
reduce operating facilities and be available for general corporate
purposes.
Asset Dispositions
On December 17, 2020, PROREIT sold
a non-strategic office building located at 325 Hymus Boulevard, in
the greater Montreal area, for
gross proceeds of $5.0 million,
approximately 6% higher than its IFRS carrying value. The
sale was the result of an unsolicited offer for the property, and
proceeds were used to reduce debt, more specifically operating
facilities, as well as for general corporate purposes.
On February 18, 2021, PROREIT sold
a further non-strategic light industrial building located at 26
Hymus Boulevard, in the greater Montreal area, for gross proceeds of
$8.0 million, approximately 16%
higher than its IFRS carrying value. The sale was also the result
of an unsolicited offer for the property, and proceeds were used to
repay the property mortgage and for general corporate purposes.
Operating Liquidity and Balance Sheet
Following the mortgage refinancing and asset sales, PROREIT has
increased its operating liquidity to approximately $35 million of availability through cash on hand
and undrawn operating facilities. The transactions are expected to
improve PROREIT's debt to gross book value ratio.
Rent Collection Update
|
February
2021
|
January
2021
|
Gross rent
collections, including government
and other tenants who typically pay at the
end of the month, based on historical
collection cycles
|
99.8%
|
99.8%
|
Breakdown:
|
|
|
Industrial
tenants
|
100.0%
|
100.0%
|
Mixed-use commercial
tenants
|
100.0%
|
100.0%
|
Office
tenants
|
100.0%
|
100.0%
|
Retail
tenants
|
99.5%
|
99.5%
|
Temporary rent
deferral agreements under
fixed repayment terms
|
0%
|
0%
|
Gross rent in arrears
and discussions with
tenants ongoing and managed on a
case-by-case basis
|
0.2%
|
0.2%
|
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of applicable securities legislation. 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, the intended use of proceeds,
the future economic activity and the future performance of PROREIT.
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 nine months ended
September 30, 2020, which are
available under PROREIT's profile on SEDAR at www.sedar.com.
About PROREIT
PROREIT (www.proreit.com) is an unincorporated open-ended real
estate investment trust owning a diversified portfolio of 90
commercial properties across Canada representing over 4.5 million square
feet of gross leasable area. Established in March 2013, PROREIT is mainly focused on strong
primary and secondary markets in Québec, Atlantic Canada and Ontario, with selective exposure in
Western Canada.
SOURCE PROREIT