VANCOUVER, Feb. 22, 2012 /CNW/ - Pure Industrial Real Estate Trust ("PIRET" or "REIT") (TSXV: AAR.UN) today provides an update on recent operational activities.
PIRET has refinanced $23 million of existing mortgages on eight properties. The net result of the refinancing is a reduction in the average interest rate on these mortgages of 180 basis points or 35%, and a savings of approximately $243,000 per annum. The new mortgages have a term of five years and an amortization of 25 years, with the resultant portfolio effect of extending PIRET's weighted average debt-to-maturity from 5.1 years to 5.5 years and decreasing the weighted average interest rate from 4.80% to 4.63%.
PIRET also announces that it has finalized an early lease renewal with Martin Brower of Canada Co., located in 36,728 square feet at 1725 Inkster Boulevard, a multi-tenant industrial warehouse in Winnipeg, MB that PIRET acquired on July 14, 2011. The new lease commenced December 1, 2011 at net rental rates higher than the expiring term, with built in contractual rent increases.
PIRET has also renewed the Shanahan's Limited Partnership leases, totaling 68,405 square feet, in Calgary, AB and Winnipeg, MB. These new leases have been renewed at rates 6% higher than the expiring rates, with rent steps over the term.
"These refinancings and lease renewals are in keeping with PIRET's active asset management strategy and further our goal of predictability of cash flow through long term, net leases and debt maturities," said Darren Latoski, Co-CEO of PIRET.
Finally, PIRET announces that for the second year in a row the TSX Venture Exchange has ranked PIRET in the top ten listed companies in the Diversified Industries category in the 2012 TSX Venture 50. The 2012 TSX Venture 50 is comprised of ten companies from each of five sectors; Clean Technology, Mining, Oil & Gas, Diversified Industries, and Technology & Life Sciences. The 2012 TSX Venture 50 companies were chosen based on the following criteria, with equal weighting assigned to each: share price appreciation, trading volume, market capitalization growth and analyst coverage.
About Pure Industrial Real Estate Trust (PIRET)
PIRET is an unincorporated, open-ended investment trust established for the purposes of acquiring, owning and operating a diversified portfolio of income-producing industrial properties in primary markets across Canada. PIRET focuses exclusively on investing in industrial properties and is the only publicly traded vehicle in Canada that offers investors exclusive exposure to Canada's industrial asset class.
TSX Venture Exchange - AAR.UN
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
For further information:
Director of Investor Relations
Pure Industrial Real Estate Trust (PIRET)
Suite 910, 925 West Georgia Street
Vancouver, BC V6C 3L2
Phone: (604) 681-5959 or (888) 681-5959
E-mail: [email protected]