TORONTO and MONTREAL, Feb. 28, 2019 /CNW/ - Nexus Real Estate Investment Trust (the "REIT") (TSXV: NXR.UN) is pleased to announce that it has entered into an unconditional agreement to acquire four single-tenant industrial properties located in Fort St John, British Columbia; Blackfalds, Alberta; Medicine Hat, Alberta and Estevan, Saskatchewan. The four-property portfolio will be acquired for a purchase price of $31,000,000 at an attractive 9.33% capitalization rate. Appraisals conducted in December 2018 value the properties at approximately $40,000,000. In partial satisfaction of the purchase price, $14,763,390 of class B LP units of a subsidiary limited partnership of the REIT will be issued to the vendor at $2.10 per unit. This is a premium to the current market price of the REIT's units, increasing the REIT's market capitalization without the need to raise equity in the public markets. The acquisition is expected to close in March.
"We are extremely pleased to announce this acquisition as part of our continuing strategy of completing acquisitions by way of issuing equity at a premium to the current market price. The tenant is a strong covenant multinational company traded on the NYSE and has lease terms ranging between 4 - 7 years. With this acquisition, which will be highly accretive to AFFO per unit, Nexus will grow its market cap to approximately $241 million." stated Kelly Hanczyk, the REIT's Chief Executive Officer. I am also pleased to announce that the REIT has entered into a 5-year lease agreement for 23,597 sf of vacant space in its property located at 3490 Rue Griffith in St Laurent to a strong covenant company which is publicly traded on the NYSE. This lease will commence March 1st and fills one of the REIT's largest vacancies, representing a significant improvement in annual income to the REIT. Further, we are in late stage due diligence on another acquisition with a purchase price of $18,345,000, and hope to announce that conditions have also been removed on this deal shortly."
The REIT also announced today that it has revised the date it intends to release its financial results for the fourth quarter and year ended December 31, 2018 to before the opening of the TSX Venture Exchange on Wednesday April 3, 2019.
Management of the REIT will host a conference call at 1:00 PM Eastern Standard Time on Wednesday, April 3, 2019 to review the financial results and operations.
To participate in the conference call, please dial 416-915-3239 or 1-800-319-4610 (toll free in Canada and the US) at least five minutes prior to the start time and ask to join the Nexus REIT conference call.
A recording of the conference call will be available until May 3, 2019. To access the recording, please dial 604-674-8052 or 1-855-669-9658 (toll free in Canada and the US) and enter access code 2919.
About Nexus Real Estate Investment Trust
Nexus is a growth oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of industrial, office and retail properties located in primary and secondary markets in North America. The REIT currently owns a portfolio of 66 properties comprising approximately 3.7 million square feet of rentable area. The REIT has approximately 93,333,000 units issued and outstanding. Additionally, there are Class B LP units of subsidiary limited partnerships of Nexus REIT issued and outstanding, which are convertible into approximately 19,180,000 REIT units.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Nexus Real Estate Investment Trust
For further information: Kelly C. Hanczyk, President and CEO at (416) 906-2379; or Rob Chiasson, CFO at (416) 613-1262.