Granite Real Estate Investment Trust and Granite REIT Inc.
(TSX: GRT.UN; NYSE: GRP.U) (“Granite” or the “Trust”) announced
today its combined results for the three month period and year
ended December 31, 2021 and also announced that it has acquired
nine income-producing properties in Canada, the United States, and
Europe comprising approximately 3 million square feet at a combined
purchase price of approximately $510.3 million.
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Distribution Facility, Greater Toronto
Area, Ontario (Photo: Business Wire)
FOURTH QUARTER HIGHLIGHTS
Highlights for the three month period and year ended December
31, 2021, including events subsequent to the quarter, are set out
below:
Financial:
- Granite’s net operating income (“NOI”) was $86.3 million in the
fourth quarter of 2021 compared to $77.5 million in the prior year
period, an increase of $8.8 million primarily as a result of
acquisition activity beginning in the fourth quarter of 2020;
- Same property NOI — cash basis(4) increased by 4.0% for the
three month period ended December 31, 2021, excluding the impact of
foreign exchange;
- Funds from operations (“FFO”)(1) was $66.8 million ($1.02 per
unit) in the fourth quarter of 2021 compared to $59.6 million
($1.00 per unit) in the fourth quarter of 2020. The strengthening
Canadian dollar relative to the US dollar and Euro had a negative
impact on FFO of $0.04 per unit in the fourth quarter of 2021
relative to 2020;
- FFO was $255.8 million ($4.00 per unit) excluding refinancing
costs of $4.5 million, for the year ended December 31, 2021 as
compared to $226.5 million ($4.00 per unit) excluding severance
costs of $1.1 million, for the year ended December 31, 2020. The
strengthening Canadian dollar relative to the US dollar and Euro
had a negative impact on FFO of $0.20 per unit in 2021 relative to
2020;
- Adjusted funds from operations (“AFFO”)(2) was $59.2 million
($0.90 per unit) in the fourth quarter of 2021 compared to $56.1
million ($0.94 per unit) in the fourth quarter of 2020. The
strengthening Canadian dollar relative to the US Dollar and Euro
had a negative impact on AFFO of $0.04 per unit in the fourth
quarter of 2021 relative to 2020;
- AFFO was $239.7 million ($3.75 per unit) excluding refinancing
costs of $4.5 million, for the year ended December 31, 2021 as
compared to $216.8 million ($3.83 per unit) excluding severance
costs of $1.1 million, for the year ended December 31, 2020. The
strengthening Canadian dollar relative to the US dollar and Euro
had a negative impact on AFFO of $0.19 per unit in 2021 relative to
2020;
- AFFO payout ratio(3) was 84% for the fourth quarter of 2021
compared to 79% in the fourth quarter of 2020;
- Granite recognized $349.1 million in net fair value gains on
investment properties in the fourth quarter of 2021 ($1,298.9
million for the year ended December 31, 2021) which were
attributable to various factors including fair market rent
increases as well as compression in discount and terminal
capitalization rates for properties located in the GTA, the United
States and Europe. The value of investment properties was partially
offset by unrealized foreign exchange losses of $45.0 million
($159.5 million for the year ended December 31, 2021) resulting
from the relative strengthening of the Canadian dollar against the
US dollar and Euro as at December 31, 2021; and
- Granite’s net income attributable to stapled unitholders
increased to $341.2 million in the fourth quarter of 2021 from
$167.6 million in the prior year period primarily due to a $208.3
million increase in net fair value gains on investment properties
and a $8.8 million increase in net operating income as noted above,
partially offset by a $39.3 million increase in deferred and
current income tax expense.
Investments:
During the fourth quarter of 2021, Granite closed the following
acquisition previously referenced in its June 2, 2021 press release
as being the subject of exclusive negotiations:
100 and 110 Ronson Drive, Toronto, Ontario
- On December 13, 2021, Granite acquired two distribution
warehouse properties located in Toronto, comprising 0.14 million
square feet for $34.6 million. The properties are 100% leased to
two tenants, at below market rents, for a weighted average
remaining lease term of one year and are being acquired at a net
in-going yield of 2.8%. Upon expiration of the lease terms and a
mark-to-market of the in-place rents, the properties are expected
to generate a stabilized yield of approximately 5.0%. Fronting on
Highway 401, the properties benefit from exceptional access to the
400 series highways and are located within five kilometers of
Toronto’s Pearson International Airport.
In addition to the above, during the fourth quarter of 2021 and
including the subsequent events period, Granite completed the
following new acquisitions:
Distribution Facility, Greater Toronto Area, Ontario
- On December 17, 2021, Granite acquired a 0.4 million square
foot, 30-foot clear height distribution facility in the Greater
Toronto Area. The property was acquired at a purchase price of
$66.0 million through a sale-leaseback for an initial term of 15
years, representing a net in-going yield of 5.1%.
Breda, Netherlands
- On December 17, 2021, Granite acquired two, 36-foot clear
height, modern distribution facilities comprising 0.9 million
square feet in Breda, Netherlands for $142.5 million (€98.5
million). The properties are 100% leased to two prominent global
tenants for a weighted average remaining lease term of 5.7 years
and are being acquired at a net in-going yield of 3.6%. The Breda
market is well located in the south of the Netherlands between
Europe’s biggest ports, the Ports of Rotterdam and Antwerp. The
properties benefit from close proximity to the A16, A27 and A58
motorways providing direct access to the Belgian border and key
logistics markets within the Netherlands.
Indiana, U.S.
- On December 22, 2021, Granite acquired a 0.6 million square
foot, 36-foot clear height, modern distribution facility located in
the Indianapolis submarket of Whitestown, Indiana for $87.5 million
(US$68.1 million). Constructed in 2020, the property is 100% leased
to a leading fashion e-commerce retailer for an initial term of 11
years and is being acquired at a net in-going yield of 3.9%. A
value-enhancing expansion of the property, comprised of
approximately 0.3 million square feet, is underway and expected to
be completed and delivered to the tenant in the fourth quarter of
2022. The total fixed cost of $39.7 million (US$31.3 million) to
complete the expansion will be funded over the course of
construction. Upon completion of the building expansion, the lease
for the approximate 0.9 million square foot facility will be
coterminous for a ten year term, representing a stabilized yield of
4.4%. The facility is well located within the Whitestown submarket
with close proximity to major highway I-65 and in close proximity
to the FedEx Express World Hub. Indianapolis is a major logistics
and distribution hub with connectivity to five major interstate
highways.
Wiesbaden, Korbach and Erfurt, Germany
- On February 3, 2022, Granite acquired three modern distribution
facilities in Germany, together comprising 0.8 million square feet,
for $140.0 million (€96.6 million). The properties are 100% leased
to high credit-quality global tenants for a weighted average
remaining lease term of 7.3 years and are being acquired at an
in-going yield of 3.6%.
Operations:
- On November 30, 2021, Granite completed the disposition of its
asset in Ebergassing, Austria for proceeds of $13.0 million
(€9.0million);
- As at December 31, 2021, two income producing properties and
one parcel of land held for development located in Poland and Czech
Republic were classified as assets held for sale with a combined
fair value of $64.6 million. On February 18, 2022, Granite
completed the disposition of an income producing property and piece
of land held for development located in Poland that were classified
as held for sale as at December 31, 2021, for gross proceeds of
$36.2 million (€25.1 million);
- On January 1, 2022, Mr. Lawrence Clarfield was promoted to
Executive Vice President, General Counsel and Corporate Secretary;
and
- Today, Granite released its Green Bond use of proceeds report
with respect to the allocation of net proceeds of Granite’s 3.062%
$500.0 million Series 4 Senior Debentures due 2027 (the “2027 Green
Bond”) and 2.194% $500.0 million Series 6 Senior Debentures due
2028 (the “2028 Green Bond”). As at December 31, 2021, Granite has
allocated a total of $573.7 million of net Green Bond proceeds to
Eligible Green Projects, as defined in Granite’s Green Bond
Framework, representing 100% and 15% of the net proceeds of the
2027 Green Bond and the 2028 Green Bond, respectively.
Sustainalytics, a leading provider of ESG and corporate governance
research and ratings to investors, conducted the verification of
Granite’s Green Bond use of proceeds. The Green Bond use of
proceeds report can be found on Granite’s website.
Financing:
- On February 3, 2022, Granite terminated $350.0 million of a
total $500.0 million principal of the 2028 Cross Currency Interest
Rate Swap, which exchanged Canadian dollar denominated principal
and interest payments of Granite’s 2.194% Series 6 senior unsecured
debentures due August 30, 2028 (the “2028 Debentures”), for US
dollar denominated payments at a fixed interest rate of 2.096%.
Simultaneously, Granite entered into a new $350.0 million
cross-currency interest rate swap maturing August 30, 2028 to
exchange the Canadian dollar denominated principal and interest
payments of the 2028 Debentures for Euro denominated payments at a
fixed interest rate of 0.536%. The restructuring of a portion of
Granite’s hedge relating to the 2028 Debentures will result in
annual interest expense savings of approximately $5.5 million or
approximately $0.083 on a per unit basis. Upon termination, Granite
paid $6.6 million to settle the mark-to-market liability relating
to the $350.0 million principal portion of the 2028 Cross Currency
Interest Rate Swap.
GRANITE’S FINANCIAL, OPERATING AND PROPERTY
HIGHLIGHTS
Three Months Ended December
31,
Years Ended December
31,
(in millions, except as noted)
2021
2020
2021
2020
Revenue(4)
$
105.3
$
93.2
$
393.5
$
340.2
Net operating income (“NOI”)
$
86.3
$
77.5
$
332.7
$
293.0
Net income attributable to stapled
unitholders
$
341.2
$
167.7
$
1,310.0
$
429.8
Funds from operations (“FFO”)(1)
$
66.8
$
59.6
$
251.3
$
225.4
Adjusted funds from operations
(“AFFO”)(2)
$
59.2
$
56.1
$
235.2
$
215.7
Diluted FFO per stapled unit(1)
$
1.02
$
1.00
$
3.93
$
3.98
Diluted AFFO per stapled unit(2)
$
0.90
$
0.94
$
3.68
$
3.81
Monthly distributions paid per stapled
unit
$
0.75
$
0.73
$
3.00
$
2.90
AFFO payout ratio(3)
84%
79%
80%
77%
As at December 31,
2021
2020
Fair value of investment properties(9)
$
7,971.2
$
5,855.6
Assets held for sale(9)
$
64.6
—
Cash and cash equivalents
$
402.5
$
831.3
Total debt(5)
$
2,414.0
$
2,297.5
Net leverage ratio(6)
25%
25%
Number of income-producing
properties(9)
119
108
Gross leasable area (“GLA”), square
feet(9)
55.1
49.5
Occupancy, by GLA
99.7%
99.6%
Magna as a percentage of annualized
revenue(8)
29%
36%
Magna as a percentage of GLA
22%
27%
Weighted average lease term in years, by
GLA
5.8
6.3
Overall capitalization rate(7)
4.5%
5.6%
A more detailed discussion of Granite’s combined financial
results for the three months and years ended December 31, 2021 and
2020 is contained in Granite’s Management’s Discussion and Analysis
of Results of Operations and Financial Position (“MD&A”) and
the audited combined financial statements for those periods and the
notes thereto, which are available through the internet on the
Canadian Securities Administrators’ System for Electronic Document
Analysis and Retrieval (“SEDAR”) and can be accessed at
www.sedar.com and on the United States
Securities and Exchange Commission’s (the “SEC”) Electronic Data
Gathering, Analysis and Retrieval System (“EDGAR”), which can be
accessed at www.sec.gov.
COVID-19 PANDEMIC UPDATE
Granite continues to monitor developments regarding the COVID-19
pandemic and to ensure the safety of its tenants and staff. While
the full impact of the COVID-19 pandemic continues to be difficult
to predict, Granite believes at this time that its portfolio and
strong liquidity position will allow it to weather the on-going
impact of COVID-19.
During the three months and year ended December 31, 2021, there
has not been a significant impact on Granite’s operations, assets
or liabilities as a result of the COVID-19 pandemic. Throughout the
COVID-19 pandemic thus far, Granite has not realized any negative
impacts on rent collections and therefore has not recognized any
provisions for uncollected rent at this time. Granite reviewed its
future cash flow projections and the valuation of its properties
considering the impacts of the COVID-19 pandemic during the year
ended December 31, 2021 and Granite does not expect, at this time,
that COVID-19 will have a significant negative impact to the fair
value of its investment property portfolio. In addition, there have
not been any significant fair value losses on investment properties
recorded during the year ended December 31, 2021.
From a liquidity perspective, as at March 9, 2022, Granite has
total liquidity of approximately $1.3(10) billion, including its
fully undrawn operating facility which is sufficient to meet its
current commitments, development and construction projects.
Granite’s nearest debt maturity of $400.0 million does not occur
until November 2023 and of Granite’s investment property portfolio
of approximately $8.0 billion, 99.6% remains unencumbered. Granite
believes it is well-positioned to weather any short-term negative
impacts on its business; however, Granite will continue to evaluate
and monitor its liquidity as the situation prolongs.
CONFERENCE CALL
Granite will hold a conference call on Thursday, March 10, 2022
at 11:00 a.m. (ET). The toll free number to use for this call is 1
(800) 918-9578. For international callers, please call 1 (416)
641-6701. Please dial in at least 10 minutes prior to the
commencement of the call. The conference call will be chaired by
Kevan Gorrie, President and Chief Executive Officer. To hear a
replay of the scheduled call, please dial 1 (800) 558-5253 (North
America) or 1 (416) 626-4100 (international) and enter reservation
number 22014895. The replay will be available until Monday, March
21, 2022.
OTHER INFORMATION
Additional property statistics as at December 31, 2021 have been
posted to our website at https://granitereit.com/property-statistics-q4-2021.
Copies of financial data and other publicly filed documents are
available through the internet on SEDAR, which can be accessed at
www.sedar.com and on EDGAR, which can
be accessed at www.sec.gov.
Granite has filed its annual report on Form 40-F for the year
ended December 31, 2021 with the SEC. The Form 40-F, including the
audited combined financial statements, included therein, is
available at http://www.granitereit.com. Hard copies of the audited
combined financial statements are available free of charge on
request by calling (647) 925-7500 or writing to:
Investor Inquiries 77 King Street West, Suite 4010, P.O. Box 159
Toronto-Dominion Centre Toronto, Ontario M5K 1H1
Granite is a Canadian-based REIT engaged in the acquisition,
development, ownership and management of logistics, warehouse and
industrial properties in North America and Europe. Granite owns 134
investment properties representing approximately 55.9 million
square feet of leasable area.
For further information, please see our website at www.granitereit.com or contact Teresa Neto, Chief
Financial Officer, at (647) 925-7560.
NON-IFRS MEASURES, RATIOS AND RECONCILIATIONS
Readers are cautioned that certain terms used in this press
release such as FFO, AFFO, AFFO payout ratio, same property
NOI—cash basis, total debt and net debt, net leverage ratio,
available liquidity, and any related per unit amounts used by
management to measure, compare and explain the operating results
and financial performance of the Trust do not have standardized
meanings prescribed under International Financial Reporting
Standards (“IFRS”) and, therefore, should not be construed as
alternatives to net income, cash provided by operating activities
or any other measure calculated in accordance with IFRS.
Additionally, because these terms do not have a standardized
meaning prescribed by IFRS, they may not be comparable to similarly
titled measures presented by other publicly traded entities.
(1)
FFO is a non-IFRS performance measure that
is widely used by the real estate industry in evaluating the
operating performance of real estate entities. Granite calculates
FFO as net income attributable to stapled unitholders excluding
fair value gains (losses) on investment properties and financial
instruments, gains (losses) on sale of investment properties
including the associated current income tax, deferred income taxes
and certain other items, net of non-controlling interests in such
items. The Trust’s determination of FFO follows the definition
prescribed by the Real Estate Property Association of Canada
(“REALPAC”) guidelines on Funds From Operations & Adjusted
Funds From Operations for IFRS dated January 2022 (“REALPAC
Guidelines”). Granite considers FFO to be a meaningful supplemental
measure that can be used to determine the Trust’s ability to
service debt, fund capital expenditures and provide distributions
to stapled unitholders. FFO is reconciled to net income, which is
the most directly comparable IFRS measure (see below). FFO should
not be construed as an alternative to net income or cash flow
generated from operating activities determined in accordance with
IFRS.
(2)
AFFO is a non-IFRS performance measure
that is widely used by the real estate industry in evaluating the
recurring economic earnings performance of real estate entities
after considering certain costs associated with sustaining such
earnings. Granite calculates AFFO as net income attributable to
stapled unitholders including all adjustments used to calculate FFO
and further adjusts for actual maintenance capital expenditures
that are required to sustain Granite’s productive capacity, leasing
costs such as leasing commissions and tenant allowances incurred
and non-cash straight-line rent and tenant incentive amortization,
net of non-controlling interests in such items. The Trust’s
determination of AFFO follows the definition prescribed by
REALPAC’s Guidelines. Granite considers AFFO to be a meaningful
supplemental measure that can be used to determine the Trust’s
ability to service debt, fund expansion capital expenditures, fund
property development and provide distributions to stapled
unitholders after considering costs associated with sustaining
operating earnings. AFFO is also reconciled to net income, which is
the most directly comparable IFRS measure (see below). AFFO should
not be construed as an alternative to net income or cash flow
generated from operating activities determined in accordance with
IFRS.
Three Months Ended December
31,
Years Ended December
31,
(in millions, except per unit amounts)
2021
2020
2021
2020
Net income attributable to stapled
unitholders
$
341.2
$
167.6
$
1,310.0
$
429.8
Add (deduct):
Fair value gains on investment properties,
net
(349.1
)
(140.8
)
(1,298.9
)
(273.4
)
Fair value losses (gains) on financial
instruments
(0.6
)
(1.3
)
1.2
3.4
Loss on sale of investment properties
0.2
0.7
0.8
0.9
Current income tax expense associated with
the sale of an investment property
2.8
0.7
5.1
0.7
Deferred income tax expense
69.9
32.4
229.0
62.5
Fair value remeasurement expense relating
to the Executive Deferred Stapled Unit Plan
2.3
0.3
3.8
1.4
Non-controlling interests relating to the
above
0.1
—
0.3
0.1
FFO
[A]
$
66.8
$
59.6
$
251.3
$
225.4
Add (deduct):
Maintenance or improvement capital
expenditures incurred
(6.7
)
(0.4
)
(9.4
)
(3.6
)
Leasing commissions incurred
—
(0.7
)
(2.5
)
(0.8
)
Tenant allowances incurred
(0.3
)
(1.2
)
(0.5
)
(1.8
)
Tenant allowance amortization
1.2
1.3
5.1
5.3
Straight-line rent amortization
(1.8
)
(2.5
)
(8.8
)
(8.8
)
AFFO
[B]
$
59.2
$
56.1
$
235.2
$
215.7
Basic and Diluted FFO per stapled
unit
[A]/[C] and [A]/[D]
$
1.02
$
1.00
$
3.93
$
3.98
Basic and Diluted AFFO per stapled
unit
[B]/[C] and [B]/[D]
$
0.90
$
0.94
$
3.68
$
3.81
Basic weighted average number of
stapled units
[C]
65.7
59.4
64.0
56.6
Diluted weighted average number of
stapled units
[D]
65.8
59.5
64.0
56.7
(3)
AFFO payout ratio is calculated as monthly
distributions, which exclude special distributions, declared to
unitholders divided by AFFO in a period. AFFO payout ratio may
exclude revenue or expenses incurred during a period that can be a
source of variance between periods. The AFFO payout ratio is a
non-IFRS ratio widely used by analysts and investors in evaluating
the sustainability of the Trust’s monthly distributions to stapled
unitholders.
Three Months Ended December
31,
Years Ended December
31,
(in millions, except as noted)
2021
2020
2021
2020
Monthly distributions declared to
unitholders
[A]
$
49.8
$
44.3
$
192.6
$
165.4
FFO
66.8
59.6
251.3
225.4
Add (deduct):
Early redemption premium related to 2021
Debentures
—
—
4.0
—
Accelerated amortization of credit
facility deferred finance fees
—
—
0.5
—
FFO adjusted for the above
[B]
$
66.8
$
59.6
$
255.8
$
225.4
AFFO
59.2
56.1
235.2
215.7
Add (deduct):
Early redemption premium related to 2021
Debentures
—
—
4.0
—
Accelerated amortization of credit
facility deferred finance fees
—
—
0.5
—
AFFO adjusted for the above
[C]
$
59.2
$
56.1
$
239.7
$
215.7
AFFO payout ratio
[A]/[C]
84
%
79
%
80
%
77
%
(4)
Same property NOI — cash basis refers to
the NOI — cash basis (NOI excluding lease termination and close-out
fees, and the non-cash impact from straight-line rent and tenant
incentive amortization) for those properties owned by Granite
throughout the entire current and prior year periods under
comparison. Same property NOI — cash basis excludes properties that
were acquired, disposed of, classified as properties under or held
for development or assets held for sale during the periods under
comparison. Granite believes that same property NOI — cash basis is
a useful measure in understanding period-over-period organic
changes in NOI — cash basis from the same stock of properties
owned.
Sq ft(1)
Three Months Ended December
31,
Sq ft(1)
Years Ended December
31,
(in millions)
2021
2020
$ change
%
change
(in millions)
2021
2020
$ change
%
change
Revenue
$ 105.3
$ 93.2
12.1
$ 393.5
$ 340.2
53.3
Less: Property operating costs
19.0
15.7
3.3
60.8
47.2
13.6
NOI
$ 86.3
$ 77.5
8.8
11.4 %
$ 332.7
$ 293.0
39.7
13.5 %
Add (deduct):
Straight-line rent amortization
(1.8 )
(2.5 )
0.7
(8.8 )
(8.8 )
—
Tenant incentive amortization
1.2
1.3
(0.1 )
5.1
5.3
(0.2 )
NOI - cash basis
55.1
$ 85.7
$ 76.3
9.4
12.3 %
55.1
$ 329.0
$ 289.5
39.5
13.6 %
Less NOI - cash basis for:
Acquisitions
10.9
(11.4 )
(1.2 )
(10.2 )
16.3
(58.3 )
(13.0 )
(45.3 )
Developments
—
—
—
—
0.5
(2.5 )
(0.4 )
(2.1 )
Dispositions and assets held for sale
1.5
(1.3 )
(1.9 )
0.6
2.0
(5.9 )
(9.5 )
3.6
Same property NOI - cash basis
44.2
$ 73.0
$ 73.2
(0.2 )
(0.3 )%
38.3
$ 262.3
$ 266.6
(4.3 )
(1.6 )%
Constant currency same property NOI -
cash basis(2)
44.2
$ 73.0
$ 70.1
2.9
4.0 %
38.3
$ 262.3
$ 255.8
6.5
2.5 %
(1)
The square footage relating to the NOI —
cash basis represents GLA of 55.1 million square feet as at
December 31, 2021. The square footage relating to the same property
NOI — cash basis represents the aforementioned GLA excluding the
impact from the acquisitions, dispositions, assets held for sale
and developments during the relevant period.
(2)
Constant currency same property NOI—cash
basis is calculated by converting the comparative same property
NOI—cash basis at current foreign exchange rates.
(5)
Total debt is calculated as the sum of all
current and non-current debt, the net mark to market fair value of
cross-currency interest rate swaps and lease obligations as per the
consolidated financial statements. Net debt subtracts cash and cash
equivalents from total debt. Granite believes that it is useful to
include the cross-currency interest rate swaps and lease
obligations for the purposes of monitoring the Trust’s debt
levels
(6)
The net leverage ratio is calculated as
the net debt (a non-IFRS performance measure defined above) divided
by the fair value of investment properties. The net leverage ratio
is a non-IFRS ratio used in evaluating the Trust’s degree of
financial leverage, borrowing capacity and the relative strength of
its balance sheet.
As at December 31,
2021
2020
Unsecured debt, net
$
2,425.1
$
2,178.1
Cross currency interest rate swaps,
net
(44.1
)
85.6
Lease obligations
32.2
33.8
Secured debt
0.8
—
Total debt
$
2,414.0
$
2,297.5
Less: cash and cash equivalents
402.5
831.3
Net debt
[A]
$
2,011.5
$
1,466.2
Investment properties
[B]
$
7,971.2
$
5,855.6
Net leverage ratio
[A]/[B]
25
%
25
%
(7)
Overall capitalization rate is calculated
as stabilized net operating income (property revenue less property
expenses) divided by the fair value of the property.
(8)
Annualized revenue for each period
presented is calculated as rental revenue excluding tenant
recoveries, for the month of December 2021 or December 2020, as
applicable, recognized in accordance with IFRS, multiplied by 12
months.
(9)
Assets held for sale are excluded from
investment properties and related property metrics. Accordingly,
three such assets that were held for sale at December 31, 2021 were
excluded from investment properties and related metrics at December
31, 2021.
(10)
Available liquidity is a non-IFRS
performance measure defined as the sum of cash and cash equivalents
and the unused portion of the credit facility. Granite believes
that available liquidity is a useful measure to investors in
determining the Trust’s resources available as at period-end to
meet its ongoing obligations and future commitments.
FORWARD-LOOKING STATEMENTS
This press release may contain statements that, to the extent
they are not recitations of historical fact, constitute
“forward-looking statements” or “forward-looking information”
within the meaning of applicable securities legislation, including
the United States Securities Act of 1933, as amended, the United
States Securities Exchange Act of 1934, as amended, and applicable
Canadian securities legislation. Forward-looking statements and
forward-looking information may include, among others, statements
regarding Granite’s future plans, goals, strategies, intentions,
beliefs, estimates, costs, objectives, capital structure, cost of
capital, tenant base, tax consequences, economic performance or
expectations, or the assumptions underlying any of the foregoing.
Words such as “outlook”, “may”, “would”, “could”, “should”, “will”,
“likely”, “expect”, “anticipate”, “believe”, “intend”, “plan”,
“forecast”, “project”, “estimate”, “seek” and similar expressions
are used to identify forward-looking statements and forward-looking
information. Forward-looking statements and forward-looking
information should not be read as guarantees of future events,
performance or results and will not necessarily be accurate
indications of whether or the times at or by which such future
performance will be achieved. Undue reliance should not be placed
on such statements. There can also be no assurance that Granite’s
expectations regarding various matters, including the following,
will be realized in a timely manner, with the expected impact or at
all: the impact of the COVID-19 pandemic and government measures to
contain it, including with respect to Granite’s ability to weather
the impact of the COVID-19 pandemic, the effectiveness of measures
intended to mitigate such impact, and Granite’s ability to deliver
cash flow stability and growth and create long-term value for
unitholders; Granite’s ability to implement its ESG+R program and
related targets and goals; the expansion and diversification of
Granite’s real estate portfolio and the reduction in Granite’s
exposure to Magna and the special purpose properties; Granite’s
ability to accelerate growth and to grow its net asset value and
FFO and AFFO per unit; Granite’s ability to find and integrate
satisfactory acquisition, joint venture and development
opportunities and to strategically deploy the proceeds from
recently sold properties and financing initiatives; Granite’s sale
from time to time of stapled units under its ATM Program; Granite’s
intended use of the net proceeds of its equity and debenture
offerings to fund potential acquisitions and for the other purposes
described previously; the potential for expansion and rental growth
at the properties in Mississauga and Ajax, Ontario and Whitestown,
Indiana and the enhancement to the yields of such properties from
such potential expansion and rental growth; the construction on and
development yield of the site in Houston, Texas; the expected
development and construction of an e-commerce and logistics
warehouse on land in Fort Worth, Texas; the construction of the
distribution/light industrial facility on the 13-acre site in
Altbach, Germany; the construction of a modern distribution
facility on the 50.8 acre site in Murfreesboro, Tennessee; the
development of three modern distribution facilities in Lebanon,
Tennessee, and the yield from the development; the development of a
multi-phased business park on the 92.2 acre site in Brantford,
Ontario, and the potential yield from the project; the timing of
payment of associated unpaid construction costs and holdbacks;
Granite’s ability to dispose of any non-core assets on satisfactory
terms; Granite’s ability to meet its target occupancy goals;
Granite’s ability to secure sustainability or other certifications
for any of its properties; the impact of the refinancing of the
term loans on Granite’s returns and cash flow; and the amount of
any distributions and distribution increase. Forward-looking
statements and forward-looking information are based on information
available at the time and/or management’s good faith assumptions
and analyses made in light of Granite’s perception of historical
trends, current conditions and expected future developments, as
well as other factors Granite believes are appropriate in the
circumstances. Given the impact of the COVID-19 pandemic and
government measures to contain it, there is inherently more
uncertainty associated with our assumptions as compared to prior
periods. Forward-looking statements and forward-looking information
are subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond Granite’s control,
that could cause actual events or results to differ materially from
such forward-looking statements and forward-looking information.
Important factors that could cause such differences include, but
are not limited to, the impact of the COVID-19 pandemic and
government measures to contain it, and the resulting economic
downturn, on Granite’s business, operations and financial
condition; the risk that the pandemic or such measures intensify;
the duration of the pandemic and related impacts; the risk of
changes to tax or other laws and treaties that may adversely affect
Granite REIT’s mutual fund trust status under the Income Tax Act
(Canada) or the effective tax rate in other jurisdictions in which
Granite operates; economic, market and competitive conditions and
other risks that may adversely affect Granite’s ability to expand
and diversify its real estate portfolio and dispose of any non-core
assets on satisfactory terms; and the risks set forth in the “Risk
Factors” section in Granite’s AIF for 2021 dated March 9, 2022,
filed on SEDAR at www.sedar.com and attached as Exhibit 1 to the
Trust’s Annual Report on Form 40-F for the year ended December 31,
2021 filed with the SEC and available online on EDGAR at
www.sec.gov, all of which investors are strongly advised to review.
The “Risk Factors” section also contains information about the
material factors or assumptions underlying such forward-looking
statements and forward-looking information. Forward-looking
statements and forward-looking information speak only as of the
date the statements and information were made and unless otherwise
required by applicable securities laws, Granite expressly disclaims
any intention and undertakes no obligation to update or revise any
forward-looking statements or forward-looking information contained
in this press release to reflect subsequent information, events or
circumstances or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220309005912/en/
Teresa Neto Chief Financial Officer (647) 925-7560
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