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 and six month periods
ended June 30, 2022 and also announced that it has completed the
acquisitions of two income-producing properties in Canada at a
combined purchase price of approximately $38.6 million and
completed two developments and an expansion of $129.1 million
adding 1.0 million square feet of GLA. Further, Granite announced
that today it released its 2021 Environmental, Social, Governance +
Resilience (ESG+R) Report.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220810005678/en/
102 Parkshore Dr., Brampton, Ontario
(Photo: Business Wire)
SECOND QUARTER 2022 HIGHLIGHTS
Highlights for the three month period ended June 30, 2022,
including events subsequent to the quarter, are set out below:
Financial:
- Granite's net operating income ("NOI") was $92.8 million in the
second quarter of 2022 compared to $80.3 million in the prior year
period, an increase of $12.5 million primarily as a result of net
acquisition activity beginning in the second quarter of 2021;
- Same property NOI - cash basis(4) increased by 3.6% for the
three month period ended June 30, 2022, excluding the impact of
foreign exchange;
- Funds from operations ("FFO")(1) was $72.1 million ($1.09 per
unit) in the second quarter of 2022 compared to $62.2 million
($0.99 per unit) in the second quarter of 2021;
- Adjusted funds from operations ("AFFO")(2) was $68.2 million
($1.04 per unit) in the second quarter of 2022 compared to $60.1
million ($0.96 per unit) in the second quarter of 2021;
- AFFO payout ratio(3) was 75% for the second quarter of 2022
compared to 79% in the second quarter of 2021;
- Granite recognized $251.3 million in net fair value losses on
investment properties in the second quarter of 2022 which were
attributable to various factors including the expansion in discount
and terminal capitalization rates across all of Granite's markets
in response to rising interest rates, partially offset by fair
market rent increases across the Greater Toronto Area in Ontario
(the "GTA") and selective US and European markets reflecting
current market fundamentals, as well as the fair value appreciation
for certain of the Trust's distribution/e-commerce properties. The
value of investment properties was increased by unrealized foreign
exchange gains of $86.3 million in the second quarter of 2022
resulting from the relative weakening of the Canadian dollar
against the US dollar, partially offset by the strengthening of the
Canadian dollar against the Euro as at June 30, 2022; and
- Granite's net loss in the second quarter of 2022 was $122.3
million in comparison to net income of $316.9 million in the prior
year period primarily due to a $559.3 million increase in net fair
value losses on investment properties, partially offset by a $12.5
million increase in net operating income as noted above and a
$104.0 million increase in income tax recovery.
Investments:
During the second quarter of 2022, Granite completed the
following new acquisitions:
102 Parkshore Dr., Brampton, Ontario
- On May 24, 2022, Granite acquired a distribution facility
located in Brampton, Ontario, comprising of 0.1 million square feet
for total purchase price of $20.9 million. The property was
acquired through a sale-leaseback for an initial term of 7 years,
representing an in-going yield of 4.5% on the existing building.
The low-site coverage ratio provides for significant future
development potential. The property is well located within the
GTA’s Brampton sub-market, with ease of access to the 400 series
highways and is within 7 kilometers of Toronto’s Pearson
International Airport.
195 Steinway Blvd., Etobicoke, Ontario
- On May 26, 2022, Granite acquired a modern
temperature-controlled distribution facility located in Etobicoke,
Ontario, comprising of 0.1 million square feet for $17.7 million.
The property was acquired through a sale-leaseback for an initial
term of 15 years, representing an in-going yield of 5.0%. The 5.1
acre site contains excess land for which the tenant has a
contractual expansion option for 0.03 million square feet, which
will stabilize the property at a capitalization yield of
approximately 5.9%. Fronting on Highway 427, the property benefits
from immediate access to the 400 series highways and is within 10
kilometers of Toronto’s Pearson International Airport.
Subsequent to June 30, 2022, Granite closed on the previously
announced acquisition:
Swaardvenstraat 75, Tilburg, Netherlands
- On July 1, 2022, Granite took delivery and closed on the
forward purchase acquisition of a 0.5 million square foot modern
distribution facility located in Tilburg, Netherlands for $101.2
million (€75.3 million). The Class A facility is fully leased to a
leading European small appliance producer for an initial term of 10
years and represents an in-going yield of 3.2%. The property is
expected to receive BREEAM Excellent certification and is well
located within the logistics hub of Tilburg, with close proximity
to the motorways N261 and N260/A58. The recently developed Barge
Terminal Tilburg offers daily shipments to Rotterdam, and the
Railport Brabant has direct access to Central, Southern and Eastern
Europe.
Operations:
- On June 9, 2022, Granite completed the disposition of the
income producing property located in the Czech Republic that was
previously classified as held for sale, for gross proceeds of $31.5
million (€23.3 million);
- Granite transferred properties under development in Altbach,
Germany and Fort Worth, Texas with a combined fair value of $117.6
million to income producing properties, delivering approximately
0.9 million square feet of new GLA. The property in Altbach,
Germany is partially leased to a third-party logistics operator for
a 10.0 year term commencing July 1, 2022. The property in Fort
Worth, Texas has been leased to a leading North American glassware
provider commencing September 30, 2022 for approximately 10.3 years
at a year-one stabilized yield of 6.8%;
- Granite completed the approximately 0.1 million square foot
temperature controlled expansion of its property at 2095 Logistics
Drive in Mississauga, Ontario. The existing tenant of this space
was granted occupancy on June 2, 2022 resulting in an incremental
$0.8 million in rental revenue per year, representing a yield on
cost of 7.7%;
- As at June 30, 2022, two income producing properties located in
Canada and the United States were classified as assets held for
sale with a fair value of $156.2 million; and
- During the quarter, Granite completed mass grading at its
development site in Brantford, Ontario and subsequent to quarter
end signed an approximate 20-year lease agreement with a leading
manufacturer of chocolate and cocoa products for 0.4 million square
feet, known as Building 1. This state-of-the-art distribution
facility, expected to be completed in the first quarter of 2024,
will have 40’ clear heights and will obtain third-party green
building certification in accordance with Granite’s Green Bond
Framework. The development is anticipated to generate a yield on
cost of 6.5% at stabilization. In anticipation of the commencement
of vertical construction of Building 1, Granite allocated 22.0
acres of the total 92.0 acre site from land held for development to
a property under development.
Financing:
- During the period between April 1, 2022 and April 29, 2022,
Granite issued 120,300 stapled units under the ATM Program at an
average stapled unit price of $98.84 for gross proceeds of $11.9
million and incurred issuance costs of $0.3 million, for net
proceeds of $11.6 million; and
- During the period between June 15, 2022 and July 4, 2022
Granite repurchased 448,400 stapled units under its Normal Course
Issuer Bid ("NCIB") at an average stapled unit cost of $78.90 for
total consideration of $35.4 million, excluding commissions.
GRANITE’S FINANCIAL, OPERATING AND PROPERTY
HIGHLIGHTS
Three Months Ended June
30,
Six Months Ended June
30,
(in millions, except as noted)
2022
2021
2022
2021
Revenue(4)
$
109.8
$
94.0
$
218.4
$
189.9
Net operating income ("NOI")
$
92.8
$
80.3
$
184.0
$
161.9
Net (loss) income attributable to stapled
unitholders
$
(122.3
)
$
316.9
$
375.4
$
547.1
Funds from operations ("FFO")(1)
$
72.1
$
62.2
$
141.5
$
119.4
Adjusted funds from operations
("AFFO")(2)
$
68.2
$
60.1
$
134.1
$
114.9
Diluted FFO per stapled unit(1)
$
1.09
$
0.99
$
2.15
$
1.92
Diluted AFFO per stapled unit(2)
$
1.04
$
0.96
$
2.03
$
1.85
Monthly distributions paid per stapled
unit
$
0.78
$
0.75
$
1.55
$
1.50
AFFO payout ratio(3)
75
%
79
%
76
%
78
%
As at June 30, and December 31
2022
2021
Fair value of investment properties(9)
$
8,533.4
$
7,971.2
Assets held for sale(9)
$
156.2
$
64.6
Cash and cash equivalents
$
157.6
$
402.5
Total debt(5)
$
2,540.0
$
2,414.0
Net leverage ratio(6)
28
%
25
%
Number of income-producing
properties(9)
126
119
Gross leasable area (“GLA”), square
feet(9)
57.0
55.1
Occupancy, by GLA
97.8
%
99.7
%
Magna as a percentage of annualized
revenue(8)
28
%
29
%
Magna as a percentage of GLA
22
%
22
%
Weighted average lease term in years, by
GLA
5.5
5.8
Overall capitalization rate(7)
4.5
%
4.5
%
A more detailed discussion of Granite’s combined financial
results for the three and six month periods ended June 30, 2022 and
2021 is contained in Granite’s Management’s Discussion and Analysis
of Results of Operations and Financial Position ("MD&A") and
the unaudited condensed 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.
2021 GLOBAL ENVIRONMENTAL, SOCIAL, GOVERNANCE + RESILIENCE
(ESG+R) REPORT
Today, Granite released its 2021 ESG+R report which highlights
Granite's ESG+R program initiatives and updates from the 2021
calendar year. A copy of the report can be found on Granite's
website at http://www.granitereit.com/2021-global-esgr-report.
CONFERENCE CALL
Granite will hold a conference call on Thursday, August 11, 2022
at 11:00 a.m. (ET). The toll free number to use for this call is 1
(800) 786-5706. For international callers, please call 1 (416)
981-9004. 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 22019548. The replay will be available until Monday, August
22, 2022.
OTHER INFORMATION
Additional property statistics as at June 30, 2022 have been
posted to our website at
https://granitereit.com/property-statistics-q2-2022. 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 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 139
investment properties representing approximately 57.5 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 June
30,
Six Months Ended June
30,
(in millions, except per unit amounts)
2022
2021
2022
2021
Net (loss) income attributable to
stapled unitholders
$
(122.3
)
$
316.9
$
375.4
$
547.1
Add (deduct):
Fair value losses (gains) on investment
properties, net
251.3
(308.0
)
(239.3
)
(517.5
)
Fair value (gains) losses on financial
instruments, net
(3.3
)
0.2
(7.9
)
0.5
Loss on sale of investment properties,
net
0.3
0.4
0.7
0.6
Current income tax expense associated with
the sale of investment properties
—
2.3
—
2.3
Deferred tax (recovery) expense
(51.8
)
49.8
14.7
85.7
Fair value remeasurement expense relating
to the Executive Deferred Stapled Unit Plan
(1.4
)
0.6
(1.4
)
0.6
Fair value remeasurement expense relating
to the Directors Deferred Stapled Unit Plan(1)
(0.7
)
—
(0.7
)
—
Non-controlling interests relating to the
above
—
—
—
0.1
FFO
[A]
$
72.1
$
62.2
$
141.5
$
119.4
Add (deduct):
Maintenance or improvement capital
expenditures incurred
(0.5
)
(1.4
)
(1.6
)
(1.9
)
Leasing costs
(0.9
)
(0.2
)
(2.9
)
(0.2
)
Tenant allowances
(0.1
)
(0.1
)
(0.1
)
(0.2
)
Tenant incentive amortization
1.1
1.3
2.3
2.6
Straight-line rent amortization
(3.5
)
(1.7
)
(5.1
)
(4.8
)
AFFO
[B]
$
68.2
$
60.1
$
134.1
$
114.9
Basic FFO per stapled unit
[A]/[C]
$
1.10
$
0.99
$
2.15
$
1.92
Diluted FFO per stapled unit
[A]/[D]
$
1.09
$
0.99
$
2.15
$
1.92
Basic AFFO per stapled unit
[B]/[C]
$
1.04
$
0.96
$
2.04
$
1.85
Diluted AFFO per stapled unit
[B]/[D]
$
1.04
$
0.96
$
2.03
$
1.85
Basic weighted average number of
stapled units
[C]
65.8
62.7
65.7
62.2
Diluted weighted average number of
stapled units
[D]
65.9
62.8
65.9
62.2
(1)
On June 9, 2022, amendments were made to
the Granite’s Directors Deferred Stapled Unit (“DSU”) Plan to
allow, at the discretion of the Compensation, Governance and
Nominating Committee (the "CGN Committee”) for the DSUs to be
settled in cash or stapled units at the time of redemption.
Accordingly, from the amendment date of June 9, 2022, fair value
remeasurement expense relating to the DSU Plan has been included as
an add-back to FFO.
(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 June
30,
Six Months Ended June
30,
(in millions, except as noted)
2022
2021
2022
2021
Monthly distributions declared to
unitholders
[A]
$
50.9
$
47.3
$
101.9
$
93.5
FFO
72.1
62.2
141.5
119.4
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]
$
72.1
$
62.2
$
141.5
$
123.9
AFFO
68.2
60.1
134.1
114.9
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]
$
68.2
$
60.1
$
134.1
$
119.4
AFFO payout ratio
[A]/[C]
75
%
79
%
76
%
78
%
(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 June
30,
Sq ft(1)
Six Months Ended June
30,
(in millions)
2022
2021
$ change
% change
(in millions)
2022
2021
$ change
% change
Revenue
$
109.8
$
94.0
15.8
$
218.4
$
189.9
28.5
Less: Property operating costs
17.0
13.7
3.3
34.4
28.0
6.4
NOI
$
92.8
$
80.3
12.5
15.6
%
$
184.0
$
161.9
22.1
13.7
%
Add (deduct):
Straight-line rent amortization
(3.5
)
(1.7
)
(1.8
)
(5.1
)
(4.8
)
(0.3
)
Tenant incentive amortization
1.1
1.3
(0.2
)
2.3
2.6
(0.3
)
NOI - cash basis
57.0
$
90.4
$
79.9
10.5
13.1
%
57.0
$
181.2
$
159.7
21.5
13.5
%
Less NOI - cash basis for:
Acquisitions
8.2
(10.9
)
(0.1
)
(10.8
)
9.2
(22.4
)
—
(22.4
)
Developments
0.9
0.1
—
0.1
0.9
0.1
—
0.1
Dispositions and assets held for sale
2.4
(1.2
)
(3.1
)
1.9
2.4
(3.7
)
(6.3
)
2.6
Same property NOI - cash basis
47.9
$
78.4
$
76.7
1.7
2.2
%
46.9
$
155.2
$
153.4
1.8
1.2
%
Constant currency same property NOI -
cash basis(2)
47.9
$
78.4
$
75.7
2.7
3.6
%
46.9
$
155.2
$
150.4
4.8
3.2
%
(1)
The square footage relating to the NOI —
cash basis represents GLA of 57.0 million square feet as at June
30, 2022. 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 June 30, and December 31
2022
2021
Unsecured debt, net
$
2,643.5
$
2,425.1
Cross currency interest rate swaps,
net
(169.4
)
(44.1
)
Lease obligations
33.3
32.2
Secured debt
32.6
0.8
Total debt
$
2,540.0
$
2,414.0
Less: cash and cash equivalents
157.6
402.5
Net debt
[A]
$
2,382.4
$
2,011.5
Investment properties
[B]
$
8,533.4
$
7,971.2
Net leverage ratio
[A]/[B]
28
%
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 the contractual base rent for the month
subsequent to the quarterly reporting period multiplied by 12
months. Annualized revenue excludes revenue from properties
classified as assets held for sale.
(9)
Assets held for sale are excluded from
investment properties and related property metrics. Accordingly,
two such assets that were held for sale at June 30, 2022 and three
such assets that were held for sale at December 31, 2021 were
excluded from investment properties and related metrics at June 30,
2022 and December 31, 2021, respectively.
(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 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; 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 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 development of a 0.2 million square
foot built-to-suit modern distribution facility at a 13.0 acre site
in Bolingbrook, Illinois, and the potential yield from the project;
the development of the modern temperature-controlled distribution
facility at a 5.1 acre site in Etobicoke, Ontario, and the
potential yield from the project; the development of the
distribution facility comprising 0.1 million square feet and 2.5
acres of land in Brampton, 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.
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 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; the risks related
to Russia’s 2022 invasion of Ukraine that may adversely impact
Granite’s operations and financial performance; 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/20220810005678/en/
Teresa Neto Chief Financial Officer (647) 925-7560
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