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, 2022 and provided an update with respect to its
development and expansion pipeline.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230308005713/en/
2120 Logistics Way, Murfreesboro, TN
(Photo: Business Wire)
FOURTH QUARTER 2022 HIGHLIGHTS
Highlights for the three month period and year ended December
31, 2022, including events subsequent to the quarter, are set out
below:
Financial:
- Granite's net operating income ("NOI") was $102.4 million in
the fourth quarter of 2022 compared to $86.3 million in the prior
year period, an increase of $16.1 million primarily as a result of
net acquisition activity and the completion of developments and
expansions beginning in the fourth quarter of 2021 and contractual
rent adjustments;
- Same property NOI - cash basis(4) increased by 6.0% for the
fourth quarter of 2022, excluding the impact of foreign
exchange;
- Funds from operations ("FFO")(1) was $77.2 million ($1.20 per
unit) in the fourth quarter of 2022 compared to $66.8 million
($1.02 per unit) in the fourth quarter of 2021;
- FFO was $289.3 million ($4.43 per unit) for the year ended
December 31, 2022 as compared to $255.8 million ($4.00 per unit)
excluding financing costs of $4.5 million, for the year ended
December 31, 2021;
- Adjusted funds from operations ("AFFO")(2) was $67.0 million
($1.05 per unit) in the fourth quarter of 2022 compared to $59.2
million ($0.90 per unit) in the fourth quarter of 2021;
- AFFO was $264.2 million ($4.05 per unit) for the year ended
December 31, 2022 as compared to $239.7 million ($3.75 per unit)
excluding financing costs of $4.5 million, for the year ended
December 31, 2021;
- During both the three month period and year ended December 31,
2022, the Canadian dollar weakened against the US dollar and
strengthened against the Euro. The impact of foreign exchange for
FFO for the three month period and year ended December 31, 2022,
relative to the same period in 2021, was $0.04 per unit and $nil
per unit, respectively, and for AFFO, the impact of foreign
exchange was $0.03 per unit and ($0.02) per unit,
respectively;
- AFFO payout ratio(3) was 75% for the fourth quarter of 2022
compared to 84% in the fourth quarter of 2021;
- Granite recognized $229.9 million in net fair value losses on
investment properties in the fourth quarter of 2022 ($219.7 million
for the year ended December 31, 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. The value of investment properties was increased by
unrealized foreign exchange gains of $80.0 million in the fourth
quarter of 2022 ($338.2 million for the year ended December 31,
2022) primarily resulting from the relative weakening of the
Canadian dollar against the US dollar as at December 31, 2022;
and
- Granite's net loss in the fourth quarter of 2022 was $126.3
million in comparison to net income of $341.2 million in the prior
year period primarily due to a negative change in the fair value of
investment properties of $579.0 million, partially offset by a
$16.1 million increase in net operating income as noted above and a
$95.7 million increase in income tax recovery.
Developments:
During the fourth quarter of 2022 and in 2023 to date, Granite
achieved the following milestones with respect to its development
and expansion pipeline:
2120 Logistics Way, Murfreesboro,
Tennessee
- Granite achieved substantial completion of its 844,000 square
foot, 40’ clear height, state-of-the-art modern distribution
facility in Murfreesboro, Tennessee that was leased starting
December 1, 2022 to a leading investment-grade producer of
specialized commercial vehicles for the entire space, for a term of
10.4 years.
Houston, Texas, Phase One and Phase
Two
- Granite has signed leases with third-party logistics operators
for approximately 521,000 square feet of its phase one development
at 13220 and 13230 Crosby Freeway in Houston, Texas. The leases
executed range in length between 5 and 7 years. Phase one, which
consists of two buildings totaling 669,000 square feet, reached
substantial completion in March 2023.
- On January 30, 2023, Granite achieved substantial completion of
its phase two development, comprising of one building that is
approximately 689,000 square feet at 13250 Crosby Fairway in
Houston, Texas. Concurrent with completion, the lease with a
leading e-commerce retailer, commenced for an initial term of 10.9
years.
The Houston and Murfreesboro development properties are expected
to receive green building certifications and to meet the criteria
of Eligible Green Projects (as defined in Granite's Green Bond
Framework, which is available on Granite’s website).
5400 E. 500 S., Whitestown,
Indiana
- On January 19, 2023, Granite completed the 329,000 square foot,
value-enhancing expansion of its approximate 633,000 square foot
modern distribution facility in Whitestown, Indiana. Upon
completion the lease for the entire facility was extended for a ten
year term.
Operations:
- During the fourth quarter of 2022, Granite achieved average
rental rate spreads on new and renewal leasing of 24% over prior or
expiring rents, driven primarily by renewals in Canada executed at
78% over expiring rent, by new leases and renewals in the United
States executed at an average of 24% over prior or expiring rents,
and the impact of consumer price index rent escalations on leases
renewing in Netherlands at an average of 9%, reflecting the
continued strong demand for industrial space in these regions.
- As at December 31, 2022, two income-producing properties
located in Canada and the United States were classified as assets
held for sale with a combined fair value of $41.2 million.
- 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, 2022, Granite has
allocated a total of $862.3 million of net Green Bond proceeds to
Eligible Green Projects, as defined in Granite’s Green Bond
Framework, representing 100% and 73.5% 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:
- During the fourth quarter of 2022, Granite repurchased
1,022,000 stapled units at an average stapled unit cost of $67.60
for total consideration of $69.1 million (2,165,600 stapled units
at an average stapled unit cost of $71.81 for total consideration
of $155.5 million for the year ended December 31, 2022).
- On March 3, 2023, Granite amended its existing unsecured
revolving credit facility (the "Credit Facility") agreement to
extend the maturity date for a new five-year term to March 31,
2028.
GRANITE’S FINANCIAL, OPERATING AND PROPERTY
HIGHLIGHTS
Three Months Ended December
31,
Years Ended
December 31,
(in millions, except as noted)
2022
2021
2022
2021
Revenue(4)
$
125.6
$
105.3
$
455.6
$
393.5
Net operating income ("NOI")
$
102.4
$
86.3
$
380.4
$
332.7
Net (loss) income attributable to stapled
unitholders
$
(126.3
)
$
341.2
$
155.8
$
1,310.0
Funds from operations ("FFO")(1)
$
77.2
$
66.8
$
289.3
$
251.3
Adjusted funds from operations
("AFFO")(2)
$
67.0
$
59.2
$
264.2
$
235.2
Diluted FFO per stapled unit(1)
$
1.20
$
1.02
$
4.43
$
3.93
Diluted AFFO per stapled unit(2)
$
1.05
$
0.90
$
4.05
$
3.68
Monthly distributions paid per stapled
unit
$
0.78
$
0.75
$
3.10
$
3.00
AFFO payout ratio(3)
75
%
84
%
77
%
80
%
As at December 31,
2022
2021
Fair value of investment properties(9)
$
8,839.6
$
7,971.2
Assets held for sale(9)
$
41.2
$
64.6
Cash and cash equivalents
$
135.1
$
402.5
Total debt(5)
$
2,930.3
$
2,414.0
Net leverage ratio(6)
32
%
25
%
Number of income-producing
properties(9)
128
119
Gross leasable area (“GLA”), square
feet(9)
59.4
55.1
Occupancy, by GLA
99.6
%
99.7
%
Magna as a percentage of annualized
revenue(8)
26
%
29
%
Magna as a percentage of GLA
20
%
22
%
Weighted average lease term in years, by
GLA
5.9
5.8
Overall capitalization rate(7)
4.9
%
4.5
%
A more detailed discussion of Granite’s combined financial
results for the three months and years ended December 31, 2022 and
2021 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.
CONFERENCE CALL
Granite will hold a conference call on Thursday, March 9, 2023
at 11:00 a.m. (ET). The toll free number to use for this call is 1
(800) 754-1366. 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 22025151. The replay will be available until Monday, March
20, 2023.
OTHER INFORMATION
Additional property statistics as at December 31, 2022 have been
posted to our website at
https://granitereit.com/property-statistics-q4-2022. 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 has filed its annual report on Form 40-F for the year
ended December 31, 2022 with the SEC. The Form 40-F, including the
audited combined financial statements, included therein, is
available at http://www.granitereit.com and on EDGAR at
http://www.sec.gov. 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 140
investment properties representing approximately 59.4 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 the REALPAC
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)
2022
2021
2022
2021
Net (loss) income attributable to
stapled unitholders
$
(126.3
)
$
341.2
$
155.8
$
1,310.0
Add (deduct):
Fair value losses (gains) on investment
properties, net
229.9
(349.1
)
219.7
(1,298.9
)
Fair value (gains) losses on financial
instruments, net
(2.1
)
(0.6
)
(11.4
)
1.2
Loss on sale of investment properties
—
0.2
0.7
0.8
Current income tax expense associated with
the sale of investment properties
—
2.8
—
5.1
Deferred tax (recovery) expense
(24.4
)
69.9
(71.0
)
229.0
Fair value remeasurement of the Executive
Deferred Stapled Unit Plan
—
2.3
(2.7
)
3.8
Fair value remeasurement of the Directors
Deferred Stapled Unit Plan(1)
0.1
—
(1.8
)
—
Non-controlling interests relating to the
above
—
0.1
—
0.3
FFO
[A]
$
77.2
$
66.8
$
289.3
$
251.3
Add (deduct):
Maintenance or improvement capital
expenditures incurred
(2.7
)
(6.7
)
(8.6
)
(9.4
)
Leasing costs
(4.5
)
—
(9.4
)
(2.5
)
Tenant allowances
(0.2
)
(0.3
)
(0.6
)
(0.5
)
Tenant incentive amortization
0.8
1.2
4.1
5.1
Straight-line rent amortization
(3.6
)
(1.8
)
(10.6
)
(8.8
)
AFFO
[B]
$
67.0
$
59.2
$
264.2
$
235.2
Basic FFO per stapled unit
[A]/[C]
$
1.21
$
1.02
$
4.44
$
3.93
Diluted FFO per stapled unit
[A]/[D]
$
1.20
$
1.02
$
4.43
$
3.93
Basic and Diluted AFFO per stapled
unit
[B]/[C] and [B]/[D]
$
1.05
$
0.90
$
4.05
$
3.68
Basic weighted average number of
stapled units
[C]
63.9
65.7
65.2
64.0
Diluted weighted average number of
stapled units
[D]
64.1
65.8
65.3
64.0
(1) On June 9, 2022, amendments were made to Granite’s Directors
Deferred Stapled Unit (“DSU”) Plan (the “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 of the DSU
Plan has been included as an adjustment 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 December
31,
Years Ended December
31,
(in millions, except as noted)
2022
2021
2022
2021
Monthly distributions declared to
unitholders
[A]
$
50.0
$
49.8
$
202.3
$
192.6
FFO
77.2
66.8
289.3
251.3
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]
$
77.2
$
66.8
$
289.3
$
255.8
AFFO
67.0
59.2
264.2
235.2
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]
$
67.0
$
59.2
$
264.2
$
239.7
AFFO payout ratio
[A]/[C]
75
%
84
%
77
%
80
%
(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)
2022
2021
$ change
%
change
(in millions)
2022
2021
$ change
%
change
Revenue
$
125.6
$
105.3
20.3
$
455.6
$
393.5
62.1
Less: Property operating costs
23.2
19.0
4.2
75.2
60.8
14.4
NOI
$
102.4
$
86.3
16.1
18.7
%
$
380.4
$
332.7
47.7
14.3
%
Add (deduct):
Straight-line rent amortization
(3.6
)
(1.8
)
(1.8
)
(10.6
)
(8.8
)
(1.8
)
Tenant incentive amortization
0.8
1.2
(0.4
)
4.1
5.1
(1.0
)
NOI - cash basis
59.4
$
99.6
$
85.7
13.9
16.2
%
59.4
$
373.9
$
329.0
44.9
13.6
%
Less NOI - cash basis for:
Acquisitions
4.8
(7.8
)
(0.5
)
(7.3
)
10.5
(50.8
)
(9.2
)
(41.6
)
Developments
0.9
(0.6
)
—
(0.6
)
0.9
(0.5
)
(0.1
)
(0.4
)
Dispositions and assets held for sale
1.1
(0.6
)
(1.9
)
1.3
1.1
(3.7
)
(8.1
)
4.4
Same property NOI - cash basis
53.7
$
90.6
$
83.3
7.3
8.8
%
48.0
$
318.9
$
311.6
7.3
2.3
%
Constant currency same property NOI -
cash basis(2)
53.7
$
90.6
$
85.5
5.1
6.0
%
48.0
$
318.9
$
308.5
10.4
3.4
%
(1) The square footage relating to the NOI — cash basis
represents GLA of 59.4 million square feet as at December 31, 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 period average 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 derivatives
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 derivatives 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,
2022
2021
Unsecured debt, net
$
2,983.6
$
2,425.1
Derivatives, net
(138.4
)
(44.1
)
Lease obligations
33.7
32.2
Secured debt
51.4
0.8
Total debt
$
2,930.3
$
2,414.0
Less: cash and cash equivalents
135.1
402.5
Net debt
[A]
$
2,795.2
$
2,011.5
Investment properties
[B]
$
8,839.6
$
7,971.2
Net leverage ratio
[A]/[B]
32
%
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 December 31, 2022 and three such assets that
were held for sale at December 31, 2021 were excluded from
investment properties and related metrics at December 31, 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 Ajax, Ontario and Whitestown, Indiana
and the enhancement to the yields of such properties from such
potential expansion and rental growth; the expected completion of
the two industrial properties in Indiana that Granite has committed
to purchase; the construction on and development yield of the 89.0
acre site in Houston, Texas; the development of three modern
distribution facilities in Lebanon, Tennessee, and the yield from
the development; the development of a 0.4 million square foot
distribution facility on the 22.0 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 a 2.7 million square foot
multi-phased business park on the remaining 101.0 acres of land in
Houston, Texas and the potential yield from the project; the
development of 12.9 acres of land in West Jefferson, Ohio and the
potential yield from that project; the development of a 1.3 million
square foot multi-phased business park on the remaining 70.0 acre
parcel of land in Brantford, Ontario and the potential yield from
that project; the development of a 0.2 million square foot modern
distribution/logistics facility in Brant County, Ontario and the
potential yield of 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 2022 dated March 8, 2023, 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, 2022 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/20230308005713/en/
Teresa Neto, Chief Financial Officer, (647) 925-7560
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