− Not for distribution to U.S. News Wire Services or dissemination in the United States −
TORONTO, Feb. 28, 2022 /CNW/ – Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (“Automotive Properties REIT” or the “REIT”) announced today that it has waived all conditions and completed the acquisitions of two Tesla automotive service properties (the “Properties”) for a combined purchase price of approximately $25.9 million. The Properties are located at 2180 / 2200 Cyrille-Duquet Street in Québec City, Québec (the “Cyrille-Duquet Street Property”) and 2474 Doral Drive in Innisfil, Ontario (the “Doral Drive Property”). The Properties are tenanted by Tesla Canada. The addition of the Properties is expected to be immediately accretive to the REIT’s Adjusted Funds from Operations (“AFFO”)¹ per unit on a leverage-neutral basis.
“We continue to increase the electric vehicle component within our portfolio. We now own five properties tenanted by Tesla Canada in urban markets across Canada,” said Milton Lamb, CEO of Automotive Properties REIT.
The Cyrille-Duquet Street Property consists of two buildings totaling 50,763 square feet, including a 20,100 square-foot automotive service facility situated on approximately 1.16 acres of land at 2180 Cyrille-Duquet Street, and a 30,663 square-foot automotive service facility situated on approximately 2.16 acres of land at 2200 Cyrille-Duquet Street. The Cyrille-Duquet Street Property is adjacent to Autoroute 440 in an area of substantial commercial development. The tenant of the Cyrille-Duquet Street Property has entered into a long-term, triple-net lease with the REIT. The purchase price for the Cyrille-Duquet Street Property, including capital improvements and related expenses, is expected to total approximately $16.0 million (excluding closing costs).
The Doral Drive Property consists of a 16,670 square-foot automotive service facility that is situated on approximately 3.1 acres of land along a commercial corridor adjacent to Highway 400, just south of Barrie. The Doral Drive Property is in close proximity to several automotive dealerships, including the REIT’s Audi Barrie dealership property. The tenant of the Doral Drive Property has entered into a long-term, triple-net lease with the REIT. The purchase price for the Doral Drive Property, including capital improvements and related expenses, is expected to total approximately $9.9 million (excluding closing costs).
The REIT funded the respective purchase prices of the Cyrille-Duquet Street Property and the Doral Drive Property by drawing on its revolving credit facilities.
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 70 income-producing commercial properties, representing approximately 2.7 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.
(1) 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 earnings 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 earnings performance and is indicative of the REIT’s ability to pay distributions from earnings. The IFRS measurement most directly comparable to AFFO is net income. Please refer to the REIT’s Management Discussion & Analysis (“MD&A”) most recently filed on SEDAR for further discussion of this non-IFRS financial measure.
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 “is expected”. Forward-looking information includes statements regarding the financial impact of the acquisitions on the REIT’s AFFO per unit. 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 most recent MD&A and in the REIT’s annual information form dated March 23, 2021, 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
− Not for distribution to U.S. News Wire Services or dissemination in the United States − TORONTO, Feb. 28, 2022 /CNW/ – Automotive Properties Real Estate Investment Trust (TSX: APR.UN)…