This is a great hold + dividend option. At current rates it is paying a stable an growing dividend. Current Price - 1.80 Current Dividend - 0.21/year Current Yield - ~12% The last public offering was filled at $2.30. More information at: http://proreit.com/en/ Fact Sheet located at : http://proreit.com/files/investor-fact-sheet/en-fact_sheet_1_15_2016.pdf (even if the stock price does not move - you are looking at 12%/year!!)
PROREIT Announces Strong Financial Results for Fourth Quarter and Year Ended December 31, 2015 20 Apr 2016 17:45 ET Marketwire Canada - NFD NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS OR WIRE SERVICES. PRO Real Estate Investment Trust ("PROREIT") (TSX VENTURERV.UN) is pleased to report financial and operating results for the fourth quarter and twelve-months ("year-end") ended December 31, 2015. The period was characterized by strong growth in property revenues, net operating income ("NOI") and adjusted funds from operations ("AFFO"), and by strong operating performance. "We are gratified that in 2015, we were able to complete two major transactions that have added significant new revenues, net operating income and AFFO, despite the period being a challenging one for REITs in equity markets," said James W. Beckerleg, President and Chief Executive Officer. "As a result, our operations are stable and our cash distributions are consistent and predictable. Our strategy of focusing on well-leased properties, chiefly in regional markets, is paying off." 2015 Review and Significant Events During the year, PROREIT completed two accretive acquisitions that added significantly to assets, property revenue and net operating income (NOI), and to an increase in adjusted funds from operations (AFFO): -- On June 30, 2015, PROREIT closed a transaction to acquire seven commercial properties for total consideration of $40.5 million, representing a going-in capitalization rate of 7.5%. These accretive acquisitions increased total gross leasable area by 41.1% and have had a strong positive impact on net operating income and adjusted funds from operations. The seven properties are anchored by government and high quality national tenants. The $40.5 million purchase price was financed by the issuance of new equity, new first mortgages, the assumption of certain existing mortgages and the issuance of a vendor take-back mortgage. -- On September 30, 2015, PROREIT closed the friendly acquisition of Boulevard Industrial REIT ("Boulevard"). By way of the acquisition, PROREIT acquired three high quality, well tenanted, light industrial buildings in the strong Moncton regional market. The properties fit closely into PROREIT's existing expansion strategy. The acquisition added 236,692 square feet of gross leasable area to the portfolio, expanding total gross leasable area by more than 10%, and increasing PROREIT's assets to more than $200 million. -- The Boulevard transaction, which was carried out by way of a court- approved plan of arrangement through an exchange of units, was accretive to net asset value and to adjusted funds from operations. In addition to the financial and operating benefits of the acquisition, PROREIT welcomed Boulevard unitholders to its base of unitholders, which has contributed to the increased trading in PROREIT's trust units ("Units"). Financial Highlights 3 Months 3 Months 12 Months 12 Months Ended Ended Ended Ended (CAD $ thousands except per unit December December December December amounts and unless otherwise 31 31 31 31 stated) 2015 2014 2015 2014 ---------------------------------------------------------------------------- Property Revenue $5,558 $3,429 $18,190 $9,189 Net Operating Income ("NOI")(1) $3,371 $2,189 $11,207 $5,758 Total Assets $203,194 $141,501 $203,194 $141,501 Debt to Gross Book Value(1) 61.28% 59.5% 61.28% 59.5% Adjusted Funds from Operations ("AFFO")(1) $1,863 $1,192 $6,258 $2,944 Basic AFFO per unit(1) $0.0546 $0.0507 $0.2158 $0.2134 AFFO Payout Ratio - Basic(1) 96.1% 103.5% 97.3% 98.4% ---------------------------------------------------------------------------- (1)Non IFRS financial measure. See "Non-IFRS Measures". Operating Results and Development Opportunities As in prior years, PROREIT once again met its operational targets in 2015, increasing the quality and diversity of its portfolio, adding new government and quality national tenants to an already strong tenant profile, and achieving higher occupancy rates. PROREIT also moved into the Ontario market for the first time with the acquisition of two industrial properties in suburban Toronto. OPERATIONAL HIGHLIGHTS December 31 December 31 2015 2014 ---------------------------------------------------------------------------- Operational data Number of Properties 32 23 Gross leasable area ("GLA") (square feet) 1,669,947 1,044,095 Occupancy rate(1) 95.9% 93.1% Weighted average lease term to maturity (years) 6.6 7.6 ---------------------------------------------------------------------------- (1)Occupancy rate includes lease contracts for future occupancy of currently vacant space. Management believes the inclusion of this committed space provides a more balanced reporting. The committed space at December 31, 2015 was approximately 2,500 square feet. At year-end, PROREIT's total portfolio consisted of 32 properties, including 16 retail properties representing 525,082 square feet of GLA, four office properties representing 154,357 square feet of GLA, nine industrial properties representing 765,976 square feet of GLA and three commercial mixed use properties representing 224,532 square feet of GLA. During 2015, PROREIT actively pursued opportunities to add gross leasable area to its existing space, and to increase occupancy rates across all segments of the portfolio. During the autumn, PROREIT began construction on a new 7,200 square foot development at its Hall's Creek development in Moncton. The strip mall, which is built on excess land subdivided from another PROREIT property, was completed subsequent to year-end, and was turned over to tenants in March 2016. It is currently 73% leased. PROREIT's positive operating performance in 2015 has continued into the first quarter of 2016 with approximately 67% of the space coming due in 2016 already leased. Substantial progress is also being made on the lease-up and development of 6,271 square feet of vacant space. Debt Profile and Liquidity PROREIT continues to focus on managing its debt profile and liquidity. PROREIT has formally completed the expansion of its operating lines of credit by $9 million at a marginally lower rate of interest. The successful renegotiation reflects the increased size, quality and stability of PROREIT's portfolio. PROREIT's debt maturity profile remains strong with no significant maturities this year. PROREIT's first mortgages carry an average contractual rate of 3.71%, down 3 basis points from a year ago and its interest coverage ratio improved to 2.7x compared to 2.4x. The dividend reinvestment program (the "DRIP program") participation rate stands currently at 10% of the outstanding Units, a level that helps to increase equity and preserve cash. In addition, PROREIT has maintained its normal course issuer bid, by which it can acquire in accordance with applicable rules up to 1,411,832 Units, representing 5% of PROREIT's outstanding Units, over a one-year period. A total of 87,300 Units were acquired during 2015 and an additional 32,000 Units since the beginning of the first quarter of 2016. Such purchases can help offset some of the minor net asset value dilution arising from the DRIP program. It is also worth noting that PROREIT is selling two excess parcels of land at two properties in Woodstock and Moncton New Brunswick for a total of approximately $500,000, the proceeds of which will be added to cash reserves upon closing. Outlook Because of PROREIT's strategies, operations are stable and cash distributions are consistent and predictable and should remain so for the foreseeable future. Fiscal 2015 being a challenging year for the Canadian economy and for the REIT industry, investors acknowledged PROREIT's successes as, during 2015, PROREIT was one of the only small capitalization real estate investment trust able to broadly access the market for new equity. With weak market conditions in late 2015 and the first quarter of 2016, REITs including PROREIT have been trading at sufficient discounts to their net asset value such that raising new capital would be significantly dilutive. However, there has been a rebound in the value of REIT units generally since the January lows, with the S&P/TSX Capped REIT Index rising approximately 15% to current levels. While large capitalization trusts have led this rebound, PROREIT is seeing substantially increased volume and trading in its Units. This increased liquidity brings with it a wide range of new intermediaries and unitholders. Management believes this is a sign that its efforts are being recognized by a broader market and is providing a solid foundation when more favourable market pricing returns. Management also believes that the above factors, combined with a stabilization of financial markets generally, can contribute to improve the market for smaller cap REITs as well and therefore looks forward to the balance of the year with cautious optimism. PROREIT may also look to opportunities to finance acquisitions by way of private placement if opportunities present themselves to issue units to vendors at acceptable price terms as part of the consideration for a property or portfolio purchase.
Price is up to 2.00 today. New presentation out on company website: http://proreit.com/files/info-presentation/11-PROREIT_presentation_-_May_2016.pdf
Price is up to $2.10 today and close to the company being able to do some fundraising for more properties. This stock has a dividend of 10% at the current price. Long term hold here and it has been great.
PROREIT Reports Strong Second Quarter 2016 Financial and Operating Results MONTREAL, QUEBEC--(Marketwired - Aug. 17, 2016) - Not for dissemination in the United States or distribution through U.S. news or wire services PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSX VENTURERV.UN) is pleased to report financial and operating results for the three and six-months ended June 30, 2016 (or "second quarter"). The second quarter was characterized by solid year-over-year expansion in property revenues, net operating income ("NOI") and adjusted funds from operations ("AFFO"). "Our accretive acquisitions during the past two years continue to generate strong cash flow and solid financial and operating results," said James W. Beckerleg, President and Chief Executive Officer. "We are also pleased to see that equity and debt markets improved for our sector from earlier in the year, and we are optimistic that the opportunity these improvements provide will enable us to continue to pursue our growth and control our re-financing costs, as we were able to do in transactions subsequent to the end of the quarter." Second Quarter 2016 Financial Results (CAD $ thousands except per unit amounts and unless otherwise stated) 3 Months Ended June 30 2016 3 Months Ended June 30 2015 6 Months Ended June 30 2016 6 Months Ended June 30 2015 Financial data Property revenue $ 5,620 $ 3,854 $ 11,290 $ 7,754 Net operating income (NOI) (1) $ 3,495 $ 2,413 $ 6,941 $ 4,774 Total assets $ 208,972 $ 186,367 $ 208,972 $ 186,367 Debt to gross book value(1) 61.67 % 58.68 % 61.67 % 58.68 % Interest coverage ratio (1) (3) 2.5x 2.7x 2.5x 2.7x Debt service coverage ratio (1) (3) 1.5x 1.7x 1.5x 1.7x Weighted average interest rate on mortgage debt 3.71 % 3.73 % 3.71 % 3.73 % Funds from Operations (FFO) (1) $ 1,485 $ 1,154 $ 3,129 $ 2,366 Basic FFO per unit (1) (2) $ 0.0434 $ 0.0448 $ 0.0915 $ 0.0954 Diluted FFO per unit (1) (2) $ 0.0422 $ 0.0438 $ 0.0904 $ 0.0941 Adjusted Funds from Operations (AFFO) (1) $ 1,852 $ 1,329 $ 3,702 $ 2,660 Basic AFFO per unit (1) (2) $ 0.0541 $ 0.0516 $ 0.1084 $ 0.1072 Diluted AFFO per unit (1) (2) $ 0.0527 $ 0.0505 $ 0.1070 $ 0.1058 AFFO payout ratio - Basic(1) 96.9 % 101.8 % 96.9 % 97.9 % AFFO payout ratio - Diluted (1) 99.7 % 104.0 % 98.2 % 99.3 % (1) Non-IFRS measure. See "Non-IFRS and Operational Key Performance Indicators". (2) Total units consist of trust units of the REIT and Class B limited partnership units of PRO REIT Limited Partnership, a subsidiary of the REIT. (3) The pro forma impact of the refinancing as described in the "Subsequent Events" section would increase the respective ratios as at June 30, 2016 on a positive basis by 0.1% to 2.6x (interest coverage ratio) and 1.6x (debt service coverage ratio). NOI increased 44.8% to $3.50 million in the second quarter, compared to $2.41 million in the second quarter of 2015. For the six month period ended June 30, 2016, NOI increased 45.4% to $6.94 million, compared to the same period last year. The strong increase in NOI was due primarily to major acquisitions in the second and third quarters of 2015, and to the lease-up of a property that PROREIT developed in latter half of 2015 and the first quarter of 2016. In the second quarter, the REIT generated AFFO of $1.85 million or $0.0541 of AFFO per basic unit, compared to $1.33 million, or $0.0516 per basic unit in the second quarter of 2015. Underlying revenue and cash flow growth reflect the acquisition of ten properties acquired by way of major transactions during the second and third quarters of 2015. For the six month period ended June 30, 2016, AFFO increased 39.2% to $3.70 million, compared to the same period last year, and AFFO per basic unit increased modestly to $0.1084. For the three months ended June 30, 2016, the REIT declared three distributions totalling $0.0525 per trust unit. The AFFO payout ratio in the second quarter was 96.9% on a basic weighted average of 34,223,901 units outstanding, compared to approximately 102% for the comparable period last year. At June 30, 2016, the total assets of the REIT stood at $208.98 million, an increase of 12.13% compared total assets of $186.37 million at June 30, 2015. The increase is due to assets acquired in the Boulevard Industrial REIT transaction on September 30, 2015. Total debt to gross book value was stable at 61.67%, compared to 58.68% at the end of the second quarter in 2015. The increase in total debt is due to debt acquired in the Boulevard Industrial REIT transaction. Average interest rates declined on a year-over-year basis, with the weighted average interest rate on mortgage debt improving to 3.71% at June 30, 2016 from 3.73%. Second Quarter 2016 Operating Results June 30 2016 June 30 2015 Operational data Number of properties 33 29 Gross leasable area ("GLA") (square feet) 1,677,247 1,431,296 Occupancy rate (1) 95.0 % 95.9 % Weighted average lease term to maturity (years) 6.3 7.2 (1) Occupancy rate includes lease contracts for future occupancy of currently vacant space. Management believes the inclusion of this committed space provides a more balanced reporting. The committed space at June 30, 2016 was approximately 22,000 square feet of GLA. The REIT's portfolio properties continue to perform well. At June 30, 2016 the total portfolio consisted of 33 properties, including four office properties representing 154,357 square feet of GLA, 17 retail properties representing 532,382 square feet of GLA, nine industrial properties representing 765,976 square feet of GLA and three commercial mixed use properties representing 224,532 square feet of GLA. GLA increased 17.2% to 1,677,247 square feet, compared to June 30, 2015. At 95% occupancy, the REIT's occupancy rate was unchanged at the end of the second quarter compared to the first quarter of 2016. It was down slightly compared to the same quarter in 2015, this being attributable to vacancy in certain of the buildings purchased since the earlier date. Management has already been successful in leasing up the great majority of properties with leases coming due in 2016. Subsequent Events Subsequent to the end of the second quarter, PROREIT took the opportunity to lower its average interest rate and extend the average term on a significant portion of its long-term debt. On July 21, 2016, PROREIT announced that it had received commitments totaling $19.6 million for the refinancing of approximately 15 percent of its total debt. The refinancing transactions closed on August 4, 2016. As part of the refinancing transactions, following receipt of a commitment for a $17.8 million new mortgage with a 10-year term, amortized over 25 years, PROREIT refinanced the primary loans against four of the REIT's assets, including the three industrial buildings acquired in the Boulevard Industrial REIT transaction, which closed on September 30, 2015. The interest rate on the new mortgage is 3.89 percent. Proceeds of this portion of the refinancing were used to repay and extend the term on certain existing mortgages of $6 million due in 2017, $1.5 million due in 2018, $6.8 million due in 2019 and $2.5 million maturing in 2023, as well as all related fees. Also as part of the refinancing transactions, following receipt of a $1.8 million commitment for a second mortgage on an existing asset, PROREIT used proceeds of the mortgage to repay a $1.3 million vendor take back mortgage that was due in September 2016 for an asset purchased in June 2015. The balance of $0.5 million will be used for general working capital purposes. These refinancing transactions create significant value and improvements in AFFO, with anticipated annualized interest savings for PROREIT of $180 thousand. In addition to the cash savings, the refinancing enables us to mitigate our interest rate renewal risk on the near term maturities, and extends the overall debt maturity profile of our portfolio. Outlook Management continues to work diligently to find new acquisitions and internal development opportunities that will add to cash flow and net operating income. PROREIT's current focus is to make accretive acquisitions of high quality commercial properties in retail, industrial and mixed use market segments, with some selective office exposure in the right markets. In addition, the REIT looks to increase occupancy and build additional leasable area at some of the acquired properties as development returns from such transactions are attractive. In support of this strategy, the REIT occasionally accesses capital markets when conditions are favourable in order to provide funding for the equity component of its acquisitions. "Equity markets improved considerably in the second quarter, and both the market valuation and trading volume of PROREIT continued to improve," said Mr. Beckerleg. "We are pleased that a major Canadian financial services firm has initiated coverage on the REIT. Together, all these factors and an enduring low interest rate financial environment, provide us with the right conditions and the confidence to move ahead with our growth strategies." Additional Financial Information Information appearing in this news release is a select summary of results. The condensed consolidated financial statements and management's discussion and analysis of PROREIT for the three and six-months ended June 30, 2016 will be filed on SEDAR at www.sedar.com and will be available on PROREIT's website at www.proreit.com. About PROREIT PROREIT is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. PROREIT owns a portfolio of diversified commercial real estate properties in Canada, with growth objectives focused on primary and secondary markets in Québec and Atlantic Canada, with selective expansion into Ontario and Western Canada. Non-IFRS and Operational Key Performance Indicators PROREIT's condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). In this press release, as a complement to results provided in accordance with IFRS, PROREIT discloses and discusses certain non-IFRS financial measures, including Adjusted Funds From Operations ("AFFO"), Funds From Operations ("FFO"), debt-to-Gross Book Value, Net Operating Income ("NOI"), and payout ratios as well as other measures discussed elsewhere in this release. These non-IFRS measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. PROREIT has presented such non-IFRS measures as Management believes they are relevant measures of PROREIT's underlying operating performance and debt management. Non-IFRS measures should not be considered as alternatives to net income, cash generated from (utilized in) operating activities or comparable metrics determined in accordance with IFRS as indicators of PROREIT's performance, liquidity, cash flow, and profitability. For a full description of these measures and, where applicable, a reconciliation to the most directly comparable measure calculated in accordance with IFRS, please refer to the "Non-IFRS and Operational Key Performance Indicators" section in PROREIT's Management's Discussion and Analysis for the three months ended June 30, 2016, available on SEDAR at www.sedar.com.
IIROC Trading Halt due to the following news: PROREIT Announces $63 Million of Proposed Property Acquisitions and Public Offering of $25 Million of Trust Units PROREIT Announces $63 Million of Proposed Property Acquisitions and Public Offering of $25 Million of Trust Units Canada NewsWire MONTRÉAL, Sept. 26, 2016 /NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS OR WIRE SERVICES./ MONTRÉAL, Sept. 26, 2016 /CNW/ - PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSXV: PRV.UN) is pleased to announce the proposed acquisition of 12 commercial properties for an aggregate purchase price of $63.3 million, representing an implied weighted average capitalization rate of 7.4% (collectively, the "Acquisitions"). Highlights of the Acquisitions Enhanced portfolio scale and diversification: Following the Acquisitions, PROREIT's portfolio will be comprised of 45 income producing commercial properties representing approximately 2.2 million square feet of gross leasable area ("GLA"). The Acquisitions will increase PROREIT's weighted average remaining lease term from 6.3 years to 6.9 years, and will increase overall occupancy to approximately 96%, from 95% as at June 30, 2016. High quality tenants: The Acquisitions are anchored by high quality tenants under long term leases. Government and national tenants represent 86% of the Acquisitions' base rent. The weighted average lease term for the Acquisitions will be 8.8 years. Accretive: The purchase price of $63.3 million (excluding closing costs) represents an attractive 7.4% weighted average capitalization rate. The Acquisitions are expected to be immediately accretive to PROREIT's AFFO (as defined below) per unit. Reduced leverage: Following the closing of the Offering, the Acquisitions and the repayment of certain indebtedness, PROREIT estimates that its ratio of debt to GBV (as defined below) will decline. "PROREIT continues to deliver on its core business plan of delivering accretive acquisitions of high-quality retail, office, and industrial properties with strong tenants and long-term leases" said James W. Beckerleg, President and Chief Executive Officer. "Additionally, we are capitalizing on opportunities to execute square foot optimization at existing properties at significant returns on invested capital, while reducing financial leverage. PROREIT continues to demonstrate that it is capable of delivering significant and high-quality accretive growth." Property Acquisitions The 12 Acquisitions represent an aggregate of approximately 553,000 square feet of GLA, comprised of 10 retail properties (332,000 square feet comprising primarily grocery-anchored and other necessity based retail), one industrial property (171,000 square feet), and one commercial mixed-use property (50,000 square feet). The properties are located in primary and secondary markets throughout Quebec (six properties representing 234,000 square feet), Nova Scotia(four properties representing 252,000 square feet), New Brunswick (one property representing 42,000 square feet), andPrince Edward Island (one property representing 25,000 square feet). The properties have a weighted average in-place occupancy rate of 99%, and a weighted average remaining lease term of 8.8 years. Government and national tenants represent 86% of the Acquisitions' base rent. The aggregate purchase price (excluding closing costs) for the Acquisitions is anticipated to be approximately $63.3 million. The completion of the Acquisitions on the terms proposed is expected to be accretive to the REIT's unitholders. The purchase price of the Acquisitions is expected to be satisfied by a combination of the following funding sources: (i) approximately $14.8 million in cash from the Offering (as defined below), (ii) the issuance to the vendors of certain Acquisitions of an aggregate of approximately $4.0 million of Class B limited partnership units of PROREIT Limited Partnership ("Class B LP Units"), a subsidiary of the REIT, at a price of $2.25 per Class B LP Unit, (iii) the assumption of approximately $10.0 million aggregate principal amount of existing mortgage debt, and (iv) approximately $34.5 millionaggregate principal amount of new mortgage financing. The REIT has entered into conditional agreements in respect of seven of the Acquisitions with three separate vendors. These acquisitions represent an aggregate of approximately 369,000 square feet of GLA. The aggregate purchase price (excluding closing costs) for these acquisitions is anticipated to be approximately $48.3 million. These acquisitions are subject to customary due diligence and closing conditions, including with respect to financing and regulatory approvals. The REIT has also executed letters of intent with two separate vendors for the five other Acquisitions (the "LOI Acquisitions"). The LOI Acquisitions represent an aggregate of approximately 184,000 square feet of GLA. The aggregate purchase price (excluding closing costs) for the LOI Acquisitions is anticipated to be approximately $15.0 million, of which approximately $8.9 million is for four properties owned by one of the vendors and $6.1 million is for the one property owned by the other vendor. The vendors for the LOI Acquisitions are two separate related parties of the REIT and each of the LOI Acquisitions constitutes a "related party transaction" under Multilateral Instrument 61-101 –Protection of Minority Shareholders in Special Transactions ("MI 61-101"). The REIT intends to rely on applicable exemptions from the minority approval and valuation requirements of MI 61-101 for related party transactions on the basis that the LOI Transactions each have a value of less than 25% of the REIT's market capitalization (as calculated in accordance with MI 61-101). The LOI Acquisitions remain subject to satisfactory due diligence review in accordance with the REIT's standard operating procedures, including a review of independent appraisals, and are subject to regulatory approvals, including the approval of the TSX Venture Exchange. While there can be no assurance that any or all of the LOI Acquisitions will become subject to a binding purchase agreement, the REIT currently expects these transactions to proceed and is announcing the LOI Acquisitions as it intends to use a small portion of the net proceeds of the Offering (as defined below) to satisfy a portion of the purchase price. Square Foot Optimization and Deleveraging In addition to the Acquisitions, PROREIT has identified five of its properties that offer expansion potential with both existing and new tenants, including fit-out of currently vacant space and future pad development. PROREIT intends to use $1.0 million of the proceeds from the Offering to fund construction costs associated with the expansion projects. PROREIT estimates that such projects, upon completion, will generate a weighted average return on invested capital of more than 20%. Additionally, PROREIT intends to use approximately $4.8 million of the proceeds of the Offering to repay amounts outstanding under the REIT's credit facilities. Following the closing of the Offering, the Acquisitions, and the repayment of certain indebtedness, PROREIT estimates that its ratio of debt to GBV will decline. Impact of the Acquisition Properties on PROREIT's Portfolio Upon closing of the Acquisitions, the REIT's portfolio will be comprised of 45 commercial properties (the "Portfolio") totalling 2.2 million square feet of GLA. The Portfolio will be diversified by property type and geography across New Brunswick, Québec, Nova Scotia, Prince Edward Island, Ontario and Alberta. The Portfolio will consist of four office properties representing 154,000 square feet of GLA, 27 retail properties representing 864,000 square feet of GLA, 10 industrial properties representing 937,000 square feet of GLA and four commercial mixed use properties representing 274,000 square feet of GLA. The Acquisitions will increase PROREIT's weighted average remaining lease term from 6.3 years to 6.9 years. The Offering In connection with the Acquisitions, the REIT announced today that it has entered into an agreement to sell to a syndicate of underwriters led by Canaccord Genuity Corp. and TD Securities Inc. (collectively, the "Underwriters"), on a bought deal basis, 11,200,000 trust units ("Units") at a price of $2.25 per Unit (the "Offering Price") for gross proceeds to the REIT of approximately $25.2 million (the "Offering"). The REIT has also granted the Underwriters an over-allotment option to purchase up to an additional 1,680,000 Units on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the Offering (the "Over-Allotment Option"). The REIT intends to use the net proceeds from the Offering to partially fund the Acquisitions, to fund expansion and redevelopment initiatives at new and existing properties, to repay certain indebtedness and for general business and working capital purposes. The Offering is expected to close on or about October 18, 2016 and is subject to customary conditions, including regulatory approval. Mr. Beckerleg further noted, "Upon closing the Offering, based on the current trading price of the Units and taking into consideration the Class B LP Units, the REIT will see its market capitalization exceed $100 million for the first time, while reducing our leverage." The Units will be offered by way of a short form prospectus to be filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, pursuant to National Instrument 44-101 - Short Form Prospectus Distributions. Issuance of Equity to Certain Vendors Vendors of certain of the properties that PROREIT intends to acquire have agreed to accept approximately $4.0 millionof Class B LP Units as partial consideration for the sale of such properties. Those vendors are related parties of PROREIT. The Class B LP Units are economically equivalent to and exchangeable for Units on a one-for-one basis, and will be accompanied by special voting units that provide their holder with equivalent voting rights to holders of Units of the REIT. The Class B LP Units will be issued upon the closing of the acquisition of the applicable properties at the Offering Price. The Class B LP Units will be issued on a private placement basis, which is subject to regulatory approvals, including the approval of the TSX Venture Exchange. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. State securities laws and may not be offered or sold, directly or indirectly, withinthe United States or its territories or possessions or to or for the account of any U.S. person (as defined in Regulation S under the U.S. Securities Act) other than pursuant to an available exemption from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any such securities within the United States, or its territories or possessions, or to or for the account of any U.S. person. About PROREIT PROREIT is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. PROREIT was established in March 2013 to own a portfolio of diversified commercial real estate properties in Canada, with a focus on primary and secondary markets in Québec, Atlantic Canada and Ontario with selective expansion into Western Canada. Non-IFRS and Operational Key Performance Indicators PROREIT's condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). In this press release, as a complement to results provided in accordance with IFRS, PROREIT discloses and discusses certain non-IFRS financial measures, including Adjusted Funds From Operations ("AFFO") and debt-to-Gross Book Value ("debt to GBV") as well as other measures discussed elsewhere in this release. These non-IFRS measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. PROREIT has presented such non-IFRS measures as Management believes they are relevant measures of PROREIT's underlying operating performance and debt management. Non-IFRS measures should not be considered as alternatives to net income, cash generated from (utilized in) operating activities or comparable metrics determined in accordance with IFRS as indicators of PROREIT's performance, liquidity, cash flow, and profitability. For a full description of these measures and, where applicable, a reconciliation to the most directly comparable measure calculated in accordance with IFRS, please refer to the "Non-IFRS and Operational Key Performance Indicators" section in PROREIT's Management's Discussion and Analysis for the three months ended June 30, 2016, available on SEDAR at www.sedar.com. SOURCE Pro Real Estate Investment Trust
PROREIT Completes $29 Million Equity Offering MONTRÉAL, QUÉBEC--(Marketwired - Oct. 18, 2016) - NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS OR WIRE SERVICES. PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSX VENTURERV.UN) is pleased to announce the closing of its previously announced equity offering of trust units of the REIT (the "Units") at a price of $2.25 per Unit (the "Offering"). The syndicate of underwriters, led by Canaccord Genuity Corp. and TD Securities Inc., elected to exercise its over-allotment option in full, resulting in a total of 12,880,000 Units being issued today for total gross proceeds of $28,980,000. The Units were issued pursuant to a short form prospectus dated October 12, 2016 filed with securities regulatory authorities in all provinces of Canada (the "Prospectus"). A copy of the Prospectus is available under the REIT's profile on SEDAR at www.sedar.com. Proposed Acquisitions Since the initial announcement of the REIT's proposed acquisitions on September 26, 2016, as a result of the REIT's continuing negotiations with the relevant vendors, the REIT has amended the conditional purchase agreement in respect of certain of the proposed acquisitions, and now intends to purchase 11 of the initially announced 12 commercial properties for an aggregate purchase price of approximately $58.3 million (excluding closing costs) (the "Acquisitions"), representing a weighted average capitalization rate of 7.4% (before closing costs). Upon completion of the Acquisitions, the REIT's portfolio will be comprised of 44 income producing commercial properties representing approximately 2.2 million square feet of gross leasable area ("GLA"). The Acquisitions will increase the REIT's weighted average remaining lease term from 6.3 years to 6.8 years, and will increase overall occupancy to approximately 96%, from 95% as at June 30, 2016. The Acquisitions are generally anchored by high quality tenants under long term leases. The Acquisitions represent an aggregate of approximately 511,000 square feet of GLA, comprised of nine retail properties (290,000 square feet comprising primarily grocery-anchored and other necessity based retail), one industrial property (171,000 square feet), and one commercial mixed-use property (50,000 square feet). The Acquisitions are located in primary and secondary markets throughout Québec (six properties representing 234,000 square feet), Nova Scotia (four properties representing 252,000 square feet), and Prince Edward Island (one property representing 25,000 square feet). The Acquisitions have a weighted average in-place occupancy rate of 99%, and a weighted average remaining lease term of 8.6 years. Government and national tenants represent 85% of the Acquisitions' base rent. The completion of the Acquisitions on the terms proposed is expected to be accretive to the REIT's unitholders and the REIT's AFFO (adjusted funds from operations) per unit. The purchase price of the Acquisitions is expected to be satisfied by a combination of the following funding sources: (i) approximately $13.7 million in cash from the Offering, (ii) the issuance to vendors for the LOI Acquisitions (as defined below) of an aggregate of approximately $4.0 million of Class B limited partnership units of PRO REIT Limited Partnership ("Class B LP Units"), a subsidiary of the REIT, at a price of $2.25 per unit, (iii) the assumption of approximately $10.0 million aggregate principal amount of existing mortgage debt, and (iv) approximately $30.6 million aggregate principal amount of new mortgage financing. The REIT has entered into conditional agreements in respect of six of the Acquisitions with three separate vendors. These acquisitions represent an aggregate of approximately 327,000 square feet of GLA. The aggregate purchase price (excluding closing costs) for these Acquisitions is anticipated to be approximately $43.3 million. These acquisitions are subject to customary due diligence and closing conditions, including with respect to financing. The REIT has also executed letters of intent with two separate vendors which are related parties of the REIT for the five other Acquisitions (the "LOI Acquisitions"). The LOI Acquisitions represent an aggregate of approximately 184,000 square feet of GLA. The aggregate purchase price (excluding closing costs) for the LOI Acquisitions is anticipated to be approximately $15.0 million, of which approximately $8.9 million is for four properties owned by one of the vendors and $6.1 million is for the one property owned by the other vendor. The LOI Acquisitions remain subject to satisfactory due diligence review in accordance with the REIT's standard operating procedures, including a review of independent appraisals, and are subject to regulatory approvals, including the approval of the TSX Venture Exchange. While there can be no assurance that any or all of the LOI Acquisitions will become subject to a binding purchase agreement, the REIT currently expects these transactions to proceed and announced the LOI Acquisitions as it intends to use a portion of the net proceeds of the Offering to satisfy a portion of the purchase price. As a result of the exercise by the syndicate of underwriters of the over-allotment option in full, PROREIT received today approximately $3.8 million of additional gross proceeds under the Offering, which PROREIT intends to use to fund future acquisitions or for general trust purposes. Square Foot Optimization and Deleveraging In addition to the Acquisitions, PROREIT has identified five of its properties that offer expansion potential with both existing and new tenants, including fit-out of currently vacant space and future pad development. PROREIT intends to use approximately $1.0 million of the proceeds from the Offering to fund construction costs associated with the expansion projects. PROREIT estimates that such projects, upon completion, will generate a weighted average return on invested capital of more than 20%. Additionally, PROREIT intends to use approximately $6.0 million of the proceeds of the Offering to repay amounts outstanding under one of the REIT's credit facilities, thereby reducing its debt to GBV ratio. For more information on the Acquisitions, the Offering and PROREIT's intended use of the net proceeds of the Offering, please refer to the Prospectus. About PROREIT PROREIT is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. PROREIT was established in March 2013 to own a portfolio of diversified commercial real estate properties in Canada, with a focus on primary and secondary markets in Québec, Atlantic Canada and Ontario with selective expansion into Western Canada. Non-IFRS and Operational Key Performance Indicators PROREIT's condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). In this press release, as a complement to results provided in accordance with IFRS, PROREIT discloses and discusses certain non-IFRS financial measures, including Adjusted Funds From Operations ("AFFO") and debt-to-Gross Book Value ("debt to GBV") as well as other measures discussed elsewhere in this release. These non-IFRS measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. PROREIT has presented such non-IFRS measures as Management believes they are relevant measures of PROREIT's underlying operating performance and debt management. Non-IFRS measures should not be considered as alternatives to net income, cash generated from (utilized in) operating activities or comparable metrics determined in accordance with IFRS as indicators of PROREIT's performance, liquidity, cash flow, and profitability. For a full description of these measures and, where applicable, a reconciliation to the most directly comparable measure calculated in accordance with IFRS, please refer to the "Non-IFRS and Operational Key Performance Indicators" section in PROREIT's Management's Discussion and Analysis for the three months ended June 30, 2016, available on SEDAR at www.sedar.com. Forward-Looking Statements This news release contains forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements are based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond PROREIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. Forward-looking statements contained in this press release includes, without limitation, statements pertaining to closing of each of the Acquisitions, the reduction of PROREIT's debt to GBV, the issuance of Class B LP Units, the impact of the Acquisitions on PROREIT's future financial performance, PROREIT's intended use of the net proceeds of the Offering and the ability of PROREIT to execute its growth strategies. PROREIT's objectives and forward-looking statements are based on certain assumptions, including that (i) PROREIT will receive financing on favourable terms; (ii) the future level of indebtedness of PROREIT and its future growth potential will remain consistent with REIT's current expectations; (iii) there will be no changes to tax laws adversely affecting PROREIT's financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on PROREIT's operations, including its financing capacity and asset value, will remain consistent with PROREIT's current expectations; (v) the performance of PROREIT's investments in Canada will proceed on a basis consistent with PROREIT's current expectations; and (vi) capital markets will provide PROREIT with readily available access to equity and/or debt. The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. PROREIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is contained under "Risk Factors" in PROREIT's latest annual information form and in the Prospectus, both of which are available on SEDAR atwww.sedar.com.
PROREIT closes four property acquisitions. 13 December 2016 Strong national and regional tenants reinforce consistent returns PRO Real Estate Investment Trust (“PROREIT” or the “REIT”) (TSXV: PRV.UN) is pleased to report that it has closed the acquisition of an additional four properties of the previously announced eleven acquisitions described in the REIT’s news release dated October 18, 2016. The four properties include three properties in Nova Scotia, and one property in Prince Edward Island, all acquired from a single vendor. The total purchase price for the four properties is $21.8 million. The acquisition was financed by $16.3 million of new debt, with a 5-year term at an interest rate of 3.16 percent. The net cash proceeds from the recent bought deal equity financing have now been substantially deployed. “We continue to build a high-quality portfolio of commercial properties servicing urban and suburban communities,” said James W. Beckerleg, President and Chief Executive Officer. “Our retail properties in these communities are anchored by a diverse range of strong national and regional brands with everyday utility to local consumers. We believe these properties will add to a strong foundation to provide predictable and consistent returns to our unitholders. It is a strategy that works.” The four closings announced today, together with two closings announced previously on November 23 and December 7, 2016, bring to six the number of properties now closed out of a total of 11 acquisitions announced on October 18, 2016. The six properties were acquired for a total purchase price of $43.3 million, expanding the assets of the REIT by over 20% to approximately $252 million based on the REIT’s balance sheet at September 30, 2016, and adding an aggregate gross leasable area (“GLA”) of approximately 327,000 square feet to the REIT’s portfolio. The aggregate purchase price for the six properties represents a going-in capitalization rate of approximately 7.4%. The acquisitions are financed by $30.7 million of new debt, with the balance funded from the proceeds of the bought deal financing which closed on October 18, 2016. Impact on the PROREIT Portfolio The six acquisitions add significantly to PROREIT’s financial and operating profile: · $43.3 million of additional investment properties, expanding the assets of the REIT by over 20% to approximately $252 million based on the REIT’s balance sheet at September 30, 2016; · Debt to gross book value reduced to approximately 60%; · Equity raised in the October 18, 2016 bought-deal financing is substantially deployed; · The portfolio occupancy rate increases to 96% from 95%; · The average lease term increases to 6.8 years from 6.3 years; · Market capitalization of the REIT of approximately $100 million based on the recent trading price of the REIT’s units, including the Class B limited partnership units (“Class B LP Units”) of PRO REIT Limited Partnership, a subsidiary of the REIT; · Portfolio tenant profile solidified further with strong national and regional anchor tenants; · The REIT acquires significant development potential on two properties. Six Low Risk Acquisitions: High Quality Tenants with Long-Term Leases All six properties that have now closed are leased to or anchored by brand name national tenants under long-term leases ranging in length from 9 to 13 years. The four additional properties include: 50 Empire Lane, Windsor, Nova Scotia is also known as Fort Edward Plaza. It is a Sobeys-anchored multi-tenant retail plaza facing Wentworth Road, which is the main retail artery connecting the city of Windsor with Highway 101. The property was built in 1972 and has been maintained in excellent condition, with renovations in 1988, 1991, 1994, 2000 and 2009. It is comprised of 125,393 square feet of GLA on approximately 28 acres of land. Fort Edward Plaza is 100% occupied by Sobeys, Home Hardware, Rossy and Dollarama, amongst others, and has 601 parking stalls. Sobeys occupies the property under a long-term lease until 2026. 531 North Main, Montague, Prince Edward Island is a single-tenant grocery store leased entirely to Sobeys on a long-term lease until 2029. The property has good exposure and is well located in the growing community of Montague, PEI. The property was built in 1997, expanded in 1999 and renovated in 2002. It is comprised of 24,515 square feet of GLA, on approximately 2 acres of land with 100 parking stalls. 95 Keltic Drive, Sydney River, Nova Scotia is a single-tenant grocery store leased entirely to Sobeys on a long-term lease until 2027. The property was built in 1987 with renovations completed in 2005. It is comprised of 50,517 square feet of GLA, on approximately 6 acres of land, with 380 parking stalls. The Nova Scotia Liquor Corporation occupies 12,500 square feet of the building and is a subtenant of Sobeys. The property is immediately next door to a Wal-Mart store, and is subject to a ground lease to 2037 with renewal options until 2062. 25 Brookside Street, Glace Bay, Nova Scotia is a single tenant grocery store leased entirely to Foodland (Sobeys) on a long-term lease until 2025. It is in the area’s primary commercial corridor at the intersection of Brookside Street and Commercial Street. The property, which was built in 1991, is comprised of 17,200 square feet of GLA, on approximately 2 acres of land with 125 parking stalls. Previously Closed Acquisitions Of the six properties closed since October 18, 2016, two were announced previously. The descriptions of the two properties are repeated here to provide a more complete picture of the portfolio as it stands today: 5110 St. Margaret’s Bay Road, Upper Tantallon, Nova Scotia is a Lawtons Drugs anchored multi-tenant three-building retail plaza. Lawtons Drugs occupies the property under a long-term lease until 2024. The property was acquired from an unrelated single vendor. The closing of the acquisition was announced on November 23, 2016 as part of the REIT’s third-quarter report. The retail plaza is well located in the growing Halifax suburb of Upper Tantallon. The property has an aggregate of 24,500 square feet of pad development density available and is adjacent to a Canadian Tire store. The property was built between 2008 and 2013, and is comprised of an aggregate of 58,907 square feet of GLA on approximately 12 acres of land with 280 parking stalls. It is 88.6% occupied by a variety of tenants, including Lawtons Drugs, Tim Horton’s, and Credit Union Atlantic. The total purchase price of the 5110 St. Margaret’s Square acquisition was $14.1 million, financed by $9.4 million of new debt at 3.82 percent over a 10-year term, plus cash on hand. 1275 Jules Verne Avenue in L’Ancienne Lorette, Québec is a multi-tenant mixed use office and retail building located in L’Ancienne Lorette, a suburb of Quebec City, and was acquired from a single vendor. The closing of the acquisition was announced on December 7, 2016. The total purchase price of the property was $7.4 million, financed by $5 million of new debt with an 8-year term, at 3.95 percent, and cash on hand. The property was built in 2004 with renovations completed in 2016. It is comprised of 49,760 square feet of GLA on approximately 4 acres of land with 212 parking stalls. The property is 100% occupied by 4 tenants, most notably of which are Nordia Inc. under a long-term lease until 2026 and Entrepot du Hockey (owned by a multi-store franchisee of FGL Sports, a subsidiary of Canadian Tire) under a long-term lease until 2026. The property is well located in the “big box” retail node of L’Ancienne Lorette, where a 350,000 square-foot IKEA is planned for development nearby. Properties Still to Be Closed Completing the eleven acquisitions are five additional properties being acquired from two separate related parties for a total purchase price of approximately $15.0 million (excluding closing costs) and expected to close early in 2017. The transactions with related parties are expected to be financed by a small amount of cash, mortgage assumptions and by the issue of Class B LP Units, and are subject to regulatory approvals, including the approval of the TSX Venture Exchange. The REIT has executed letters of intent with the related parties and is in the process of finalizing the binding purchase agreements for these acquisitions. About PROREIT PROREIT is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. PROREIT was established in March 2013 to own a portfolio of diversified commercial real estate properties in Canada, with a focus on primary and secondary markets in Québec, Atlantic Canada and Ontario with selective expansion into Western Canada.
PROREIT Announces Binding Agreement for Previously Announced Acquisition MONTREAL, QUEBEC--(Marketwired - Jan. 24, 2017) - NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS OR WIRE SERVICES. PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSX VENTURERV.UN) is pleased to report that it has entered into a binding conditional agreement in respect of one of its previously announced acquisitions. The agreement provides that the REIT will acquire a 50% undivided interest in the property located at 1750 Jean-Berchmans-Michaud Street, Drummondville, Québec for a purchase price of $3.0 million, representing a capitalization rate of 7.5%. The REIT had previously announced the entering into of a letter of intent for the acquisition of the property. The property is a freestanding single-tenant industrial property built in 1997 and totalling 171,119 square feet of gross leasable area on 10.75 acres of land. It is fully occupied under a long term lease of 12 years with contracted annual rent steps, expiring in 2028. The property is well located off the Trans-Canada Highway (Route 20), north of Montreal, and offers the opportunity for building expansion in the future. The warehouse has a clear ceiling height of 24 feet. The purchase price of $3.0 million is expected to be satisfied by (i) the assumption of 50% of a recently completed 4% ten-year mortgage of approximately $4.0 million, (ii) the issuance of approximately $0.9 million of Class B limited partnership units of PRO REIT Limited Partnership ("Class B LP Units"), a subsidiary of the REIT, at a price of $2.25 per Class B LP Unit, and (iii) a cash payment of $100,000. The acquisition is subject to customary due diligence and closing conditions, including the approval of the TSX Venture Exchange, and is expected to close in the second half of February. The vendor of the 50% undivided interest in the property is a corporation in which Shenoor Jadavji, a trustee of the REIT, indirectly owns and controls a majority interest. Peter Aghar, a trustee of the REIT, indirectly controls the remaining 50% undivided interest in the property. Upon closing of the transaction, the REIT will enter into a joint venture agreement with the co-owner. The acquisition therefore constitutes a "related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Shareholders in Special Transactions ("MI 61-101"). The REIT is relying on applicable exemptions from the minority approval and valuation requirements of MI 61-101 for related party transactions on the basis that the transaction has a value of less than 25% of the REIT's market capitalization. The transaction was unanimously approved by the independent trustees of the REIT and the purchase price for the property is supported by an independent estimate of the fair market value of the property prepared by an independent appraiser under the supervision of the independent trustees of the REIT. Based on the appraisal, the market value of the property in which the REIT will have a 50% undivided interest is $6.55 million. In accordance with the terms of the strategic investment agreement with Lotus Crux Acquisition LP, an entity in which Shenoor Jadavji and Peter Aghar respectively have a 50% interest, a fee of $26,250 will be paid to Lotus Crux Acquisition LP in connection with the purchase of the property. About PROREIT PROREIT (www.proreit.com) is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. PROREIT was established in March 2013 to own a portfolio of diversified commercial real estate properties in Canada, with a focus on primary and secondary markets in Québec, Atlantic Canada and Ontario with selective expansion into Western Canada. The portfolio is comprised of 39 properties with approximately 2 million square feet of commercial gross leasable area. PROREIT's portfolio is diversified by property type and geography across Québec, New Brunswick, Nova Scotia, Prince Edward Island, Ontario and Alberta.
