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TORONTO, Dec. 22, 2016 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the "REIT") today announced that it has closed the previously-announced acquisition of Mercedes-Benz West Island, an automotive dealership property located at 4525 Boulevard Saint-Jean in suburban Montreal, Quebec (the "Property"). The addition of the Property to the REIT's portfolio is expected to be immediately accretive to the REIT's Adjusted Funds from Operations ("AFFO") on a per unit basis.
Mercedes-Benz West Island, owned by the Dilawri Group, will be the operating tenant and has entered into a 17-year, triple-net lease with the REIT with an annual 1.5% fixed rent escalator. The REIT funded the purchase price through draws on its existing credit facilities.
With the completion of this acquisition, the REIT has now completed six accretive acquisitions of automotive dealership properties for an aggregate purchase price of approximately $93.0 million since its initial public offering in July 2015. Through these acquisitions, the REIT has expanded its presence in the Greater Toronto Area and established a presence in new major markets, including Edmonton and Montreal. Further, the REIT has also augmented its automotive brand diversification, by adding Jaguar, Land Rover and Mercedes-Benz dealership properties to its portfolio. The REIT's automotive dealership property portfolio now represents 29 global brands, ranging from the mass market segment to ultra-luxury.
About Automotive Properties REIT
Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive dealership properties located in Canada. The REIT's portfolio of 32 income producing commercial properties represents approximately 1.3 million square feet of gross leasable area in Ontario, Saskatchewan, Alberta, British Columbia and Québec. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive dealership real estate properties. For more information, please visit: www.automotivepropertiesreit.ca.
This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events and in some cases can be identified by such terms as "will", "expected" and "intends". Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risks and Uncertainties" in the REIT's management's discussion and analysis ("MD&A") most recently filed on SEDAR (www.sedar.com). The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Non-IFRS Financial Measure
This news release contains a financial measure which is not defined under IFRS and may not be comparable to similar measures presented by other real estate investment trusts or enterprises. AFFO is a key measure of performance used by real estate businesses. This measure is not defined by IFRS and does not have a standardized meaning prescribed by IFRS, and therefore should not be construed as an alternative to net income or cash flow from operating activities calculated in accordance with IFRS. The REIT believes that AFFO is an important measure of economic performance and is indicative of the REIT's ability to pay distributions. The IFRS measurement most directly comparable to AFFO is net income. Please refer to the REIT's MD&A for further discussion of this non-IFRS financial measure.
SOURCE Automotive Properties Real Estate Investment Trust
For further information: Bruce Wigle, Investor Relations, Bay Street Communications, Tel: 647-496-7856; Milton Lamb, President & CEO, Automotive Properties REIT, Tel: 647-789-2445; Andrew Kalra, CFO & Corporate Secretary, Automotive Properties REIT, 647-789-2446