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TORONTO, May 8, 2020 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the "REIT") today provided a further update on the impact of the novel coronavirus (COVID-19) pandemic on its business. As previously announced, the business of the REIT's tenants has been severely impacted as a result of COVID-19 and the REIT has been in active discussions with its tenants in light of that.
To-date, the REIT has either collected base rents, or entered into rent deferral agreements (the "Deferral Agreements") with tenants, representing in the aggregate approximately 94% of the REIT's base rent in April and May. Specifically, the REIT has collected base rent from tenants representing approximately 75% of its aggregate monthly base rents in April and May, with approximately 63% of base rents being paid in full and a further 12% paid pursuant to the Deferral Agreements. The Deferral Agreements have been entered into with tenants representing, in the aggregate, approximately 31% of the REIT's base rent in the months of April and May. Pursuant to the Deferral Agreements, the REIT has agreed to defer, interest free, a portion of the applicable tenants' base rents for a three month period occurring between April and July, 2020.
The REIT is continuing its efforts to enter into a rent deferral arrangement with one tenant group representing the balance of the REIT's current monthly base rent.
"As previously announced, we entered into discussions with our tenants regarding the impact that COVID-19 has had, and is continuing to have, on their respective automotive dealership businesses, and we committed to providing support to those that needed it," said Milton Lamb, President and CEO of Automotive Properties REIT. "Our solid financial liquidity position enables us to provide this support through limited rental deferrals to certain tenants for a three-month period, with no expected impact to the REIT's distribution policy."
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 currently consists of 64 income-producing commercial properties, representing approximately 2.4 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario 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" and "expects". Forward-looking information includes the REIT's expectation of the impact of COVID-19 on its tenants and the REIT's distribution policy. 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 & Uncertainties, Critical Judgements & Estimates" in the REIT's MD&A for the year ended December 31, 2019 and in the REIT's annual information form dated March 23, 2020, both of which are available 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. This forward-looking information speaks only as of the date of this news release.
SOURCE Automotive Properties Real Estate Investment Trust
For further information: please contact: 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, Tel: (647) 789-2446