The balance of approximately $40,000 was satisfied with cash on hand, including cash from the proceeds of the sale of a 50% interest in existing properties to Crestpoint. This was financed from the proceeds of a 50% interest in approximately $148,000 of new fixed-rate mortgages. As part of the JV transaction, which is expected to be immediately accretive to earnings, the REIT and Crestpoint each acquired a 50% interest in 21 primarily industrial properties owned by a third party, for a total purchase price of $228M (before closing costs). The portfolio contains nearly 3.1 million square feet of GLA. On August 4, 2022, the REIT closed its JV transaction with Crestpoint to jointly own an industrial-focused portfolio of 42 properties located in Atlantic Canada, including 41 properties in Dartmouth, Nova Scotia, and one property in Moncton, New Brunswick. The good times have carried over into 2022. Case-in-point the REIT has locked in very attractive rates at less than 4% relative to the ~6 cap rates realized.Ģ021 was indeed a year of explosive growth with total assets, revenues and AFFO increasing YoY by 56%, 11%, and 14% respectively. The REIT took advantage of generous capital markets by refinancing $71.4M in mortgages at lower rates and extended terms, eliminated an expensive alternative lender, and expanded the credit facility from $45 to $60 Million in availability for 3 years on improved terms. The acquisitions were financed by disposing of $276 Million in non-core assets which were sold above carrying value. 34 institutional quality industrial assets were acquired for $297 Million at very attractive capitalization rates of at least 5.9%. In 2020 the acquisition activity was quite low but the dividend was reduced from $0.55/share to $0.37/share and net debt was paid down by 1.5%.Ģ021 was where the REIT really took off with an influx of acquisition activity at very attractive cap rates. The REIT navigated the COVID years of 2020-2021 quite well. The rising market rents makes this less scary and 71.1% of base rent from investment grade national and government tenants The only thing worth fretting over is the WALT at 4.2 years which is very low for a portfolio primarily invested in industrial assets as lease terms are typically over 5 years. The portfolio of the REIT is fairly strong with 98% occupancy and a well staggered lease maturity profile with 42% of leases not maturing until after 2027. and by 2018 was up to $500 Million in assets and 84 properties with 3.7M sq. It began with one $6 Million property at 397K sq. Lawlor, with the goal of building a mid-cap commercial REIT in Canada. The REIT was co-founded in 2013 by CEO James W. They tend to be low rise buildings less than 100,000 square feet. The office portfolio is suburban and mixed use flex office buildings, outside large metropolitan areas. The retail portfolio is high-quality community service centers with about 67% from national grocery stores, pharmacies, financial institutions, government and medical offices. Recent acquisitions were completed with under market rents which I will get into more later on. Industrial properties are multi-tenant and single-tenant properties in high-demand industrial nodes with embedded annual rent escalations. The majority of the properties in the portfolio are high-quality properties, located in prime locations along major traffic arteries benefitting from high visibility and convenient access. PRV has 131 properties located in 10 Canadian provinces, with a strong presence in the Maritime Provinces and Ontario. The REIT is primarily industrial focused but would technically be considered a "diversified" REIT with 14% and 7% of its portfolio in retail and office properties respectively. Pro REIT ( TSX: PRV.UN:CA) is an internally managed Canadian unincorporated, open-ended real estate investment trust.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |