Four vacant properties sold, three former Priszm/KFC sites re-leased
Committed occupancy currently 96.5 per cent
75 per cent of 2013 lease maturities already renewed
$21.9 million mortgages extended to 2022
TORONTO, Jan. 10, 2013 /CNW/ - KEYreit (TSX: KRE.UN) today provided the
Property Sales and Partial Repayment of IPO Mortgage
In December, KEYreit completed the previously announced sale of three
properties located in the province of Quebec for gross proceeds of $1.9
million. The REIT used $1.843 million of the net proceeds from the sale
to pay down a portion of the REIT's IPO Mortgage. As a result of this
partial repayment, the IPO Mortgage has a current outstanding balance
of $21.757 million.
Also in December, KEYreit completed the sale of one property located in
Nova Scotia for gross proceeds of $95,000. The property was
unencumbered and currently vacant.
KEYreit's committed occupancy is now approximately 96.5 per cent and the
REIT has addressed 75 per cent of the gross leasable area expiring in
2013, increasing its weighted average lease term to approximately eight
Since the release of KEYreit's third quarter 2012 results, three
formerly disclaimed sites representing 6,892 square feet of gross
leasable area have been re-leased. To date, of the 47 former KFC
locations previously disclaimed, KEYreit has sold five properties and
released 27 sites, representing a total of 70.1 per cent of the
disclaimed gross leasable area.
A total of 15 disclaimed locations remain vacant, representing gross
leasable area of 28,431 square feet, and the REIT expects to either
sell or re-lease these sites within the next six to twelve months.
In addition, in December 2012, KEYreit also successfully extended two
leases with Staples for the REIT's properties located in Charlottetown,
Prince Edward Island and Longueuil, Quebec. The lease extensions are
for 10 years each and extend the lease terms to 2023.
KEYreit amended and extended eight first mortgages with an outstanding
balance of $21.86 million. The first mortgages were assumed by IMC
Limited Partnership from Pacific and Western Bank of Canada and are
secured by eight properties tenanted by Shoppers Drug Mart. The
mortgages bear a new term of 10 years, maturing on December 1,
2022, and a new interest rate of 4.65 per cent. The previous nine
mortgages with an outstanding balance of $21.86 million as at December
1, 2012, had a term of five years maturing on October 1, 2016 and bore
an interest rate of 4.5 per cent. No fee was paid to extend the
In addition, KEYreit also fully repaid one first mortgage with an
outstanding balance of $165 thousand as part of the above transaction.
"KEYreit is well positioned going into 2013 with stable cash flows,
tenancies and growth opportunities; and we are committed to deliver in
2013 the releasing of the remaining vacant sites, disposing of non-core
properties, refinancing its IPO mortgage and extending its loan
maturity profile," said Teresa Neto, Chief Financial Officer of
KEYreit. "With these announced transactions, KEYreit's committed
occupancy is estimated to reach approximately 96.5 percent. The loan
extensions on the Shoppers-related mortgages significantly improves the
REIT's debt maturity schedule; and we continue to make progress towards
the refinancing and repayment of the IPO Mortgage."
KEYreit (TSX: KRE.UN) is Canada's premier small-box retail property
owner with 227 properties in nine provinces across Canada. KEYreit's
properties are well located and geographically diverse across Canada
with the majority of all properties containing long-term quadruple net
To find out more about KEYreit (TSX: KRE.UN), visit our website at www.keyreit.com.
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