/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, April 2, 2020 /CNW/ – Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the “REIT”) today provided an update regarding the impact of the novel coronavirus (COVID-19) pandemic on its business.
COVID-19 Tenant Support
The REIT is continuing its active discussions with its tenants regarding the impact that COVID-19 has had, and is continuing to have, on their respective automotive dealership businesses. Although the various government orders that apply in the markets in which the REIT’s properties are located have confirmed that automotive service centers and/or dealerships are essential services and therefore can remain open, the business of the REIT’s tenants has been severely impacted. Therefore, in order to support its tenants at their time of need, the REIT is in discussions regarding limited rent deferrals.
“This is a tremendously difficult time for all Canadians,” said Milton Lamb, President and Chief Executive Officer of the REIT. “Since inception, we have been selective in choosing which dealership groups to partner with, but no business is immune from the impacts of this unprecedented pandemic. We have full confidence in our tenants, and we expect them to rebound from this pandemic, although the timing of that rebound is of course unknown.”
The REIT has been in regular discussions with its tenants throughout the COVID-19 pandemic, and expects to agree with them shortly on a support regime that will include limited rent deferrals. The REIT will provide further information once details become known.
Strong Liquidity Position
As previously announced, the REIT is in a strong liquidity position with a debt to gross book value of approximately 44%, $65 million of undrawn credit facilities and approximately $19.5 million cash on hand following the REIT’s regular amortization payments on March 31, 2020. The REIT also has eight properties that are unencumbered having an IFRS value in excess of $100 million. As part of its COVID-19 contingency planning, the REIT has also been in regular communication with its lenders and they have each confirmed their support of the REIT.
Given the REIT’s strong liquidity position, subject to the terms of the tenant support the REIT is able to conclude with its tenants, the REIT expects to maintain its current distribution policy for the foreseeable future.
The REIT is continuing to closely monitor the impact of the COVID-19 pandemic on its business and the business of its tenants, and will continue to prudently manage the REIT’s available resources during this economic uncertainty. The tenant support described above is in-line with the REIT’s strategy of partnering with its tenants and by doing so, the REIT is giving short term relief to help its tenants succeed over the long term.
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
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/ TORONTO, April 2, 2020 /CNW/ – Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the “REIT”)…