WPT Industrial REIT completes acquisition of Kentucky distribution property
TORONTO, June 27, 2014 /CNW/ - WPT Industrial Real Estate Investment Trust (TSX:WIR.U – OTCQX: WPTIF) (the "REIT") announced today that it has completed the previously announced acquisition of a 127,800 square foot distribution property located in Hebron, Kentucky within the Cincinnati, Ohio airport submarket. The REIT has indirectly acquired the property from a third-party vendor for a purchase price of approximately US $5.5 million (exclusive of closing and transaction costs), representing a capitalization rate of approximately 7.34%. The purchase price was satisfied with cash on hand, and the REIT's revolving credit facility.
The building is a state-of-the-art Class A distribution facility built in 2003 and expanded in 2010. It features ESFR fire suppression, 125-foot truck courts and 19 loading docks with direct access to the Cincinnati International Airport. The property is 100% leased to OIA Global, a third-party logistics and freight forwarding company under a lease expiring in September 2018. The lease includes average annual contractual increases in the tenant's rental rate of approximately one percent through the balance of the lease term.
"We are pleased to be increasing our presence in the Cincinnati distribution market with this accretive acquisition while further strengthening and diversifying our overall property portfolio," commented Scott Frederiksen, Chief Executive Officer.
About WPT Industrial Real Estate Investment Trust:
WPT Industrial Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been formed to own and operate an institutional-quality portfolio of primarily industrial properties located in the United States, with a particular focus on warehouse and distribution industrial real estate. WPT Industrial, LP (the REIT's operating subsidiary) indirectly owns a portfolio of properties consisting of approximately 12.7 million square feet of gross leasable area, comprised of 40 industrial properties and two office properties located in 12 states within the United States.
This press release contains "forward-looking information" as defined under applicable Canadian securities law ("forward-looking information" or "forward-looking statements") which reflect management's expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words" plans", "expects", "does not expect", "scheduled", "estimates", "intends", "anticipates", "does not anticipate", "projects", "believes" or variations of such words and phrases or statements to the effect that certain actions, events or results "may", "will", "could", "would", "might", "occur", "be achieved" or "continue" and similar expressions identify forward-looking statements. Some of the specific forward-looking statements in this press release include, but are not limited to, statements with respect to expectations regarding accretion to the REIT's AFFO per unit. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management of the REIT as of the date of this press release, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The REIT's estimates, beliefs and assumptions, which may prove to be incorrect, include the various assumptions set forth herein, including, but not limited to, the REIT's and each property's future growth potential, results of operations, future prospects and opportunities, the demographic and industry trends remaining unchanged, no change in legislative or regulatory matters, future levels of indebtedness, the tax laws as currently in effect remaining unchanged, the continual availability of capital, the current economic conditions remaining unchanged, and continued positive net absorption and declining vacancy rates in the markets in which the REIT's properties are located.
When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under "Risk Factors" in the REIT's annual information form for the period ended December 31, 2013, which is available under the REIT's profile on SEDAR at www.sedar.com. These forward-looking statements are made as of the date of this press release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Net operating income ("NOI") and capitalization rate are not measures recognized under International Financial Reporting Standards as issued by the International Accounting Standards Board and as adopted by the Canadian Institute of Chartered Accountants in Part I of The Canadian Institute of Chartered Accountants Handbook — Accounting, as amended from time to time ("IFRS") and do not have standardized meanings prescribed by IFRS. Management believes that these terms are supplemental measures of a Canadian real estate investment trust's performance and the REIT believes they are relevant measures of the ability of the REIT to earn and distribute cash returns to investors in the REIT's trust units and to evaluate the REIT's performance. The IFRS measurement most directly comparable to NOI is net income.
"NOI" is used by industry analysts, investors and management to measure operating performance of real estate investment trusts. NOI represents investment properties revenue less investment properties operating expenses (adjusted for property taxes accounted for under IFRIC 21), as presented in the consolidated statements of net income and comprehensive income prepared in accordance with IFRS.
"capitalization rate" is defined as NOI divided by purchase price.
SOURCE WPT Industrial Real Estate Investment TrustFor further information: Scott Frederiksen, Chief Executive Officer, WPT Industrial Real Estate Investment Trust, Tel: (952) 897-7737, Fax: (952) 842-7737, www.wptreit.com