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TORONTO, Feb. 10,
2025 /CNW/ - Automotive Properties Real Estate
Investment Trust (TSX: APR.UN) ("Automotive Properties REIT" or the
"REIT") announced today that it has entered into an agreement to
acquire a Tesla-tenanted collision center property (the "Property")
in Dublin, Ohio, a suburb of
Columbus, from a third party for a
purchase price of approximately US$17.8
million. The addition of the Property is expected to
increase the REIT's Adjusted Funds from Operations ("AFFO") per
unit.
"This acquisition will further increase our exposure to Tesla
and the electric vehicle market in North
America. We currently own six automotive properties in urban
markets in Canada that are
tenanted by Tesla," said Milton
Lamb, President and CEO of Automotive Properties REIT. "This
acquisition is consistent with our focus on owning and acquiring
attractive automotive properties in growing metropolitan
markets."
The Property consists of an approximately 94,000 square-foot
Tesla collision service center facility that is situated on 6.32
acres of land located along a commercial corridor at 5600 Britton
Parkway in Dublin, Ohio, adjacent
to a large retail shopping center. The Property is in close
proximity to Interstate 270, an auxiliary interstate highway that
forms a beltway loop freeway in the Columbus Metropolitan Area. Columbus is a growing metropolitan market in
the United States.
The Property is tenanted by Tesla under a mid-term net lease.
The REIT expects to close the Property acquisition in the first
quarter of 2025, subject to satisfaction of customary closing
conditions. The REIT intends to fund the purchase price of the
acquisition primarily 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 and other OEM dealership and
service properties located in Canada and the
United States. The REIT's portfolio currently consists of 78
income-producing commercial properties, representing approximately
2.9 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 and
OEM dealership and service 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 International Financial Reporting Standards ("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.
Forward-Looking Information
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", "should",
"anticipates", "could" and "expects". Forward-looking information
includes statements regarding the financial impact of the
Property acquisition on the REIT's AFFO per
unit and the expected timing of closing the
Property acquisition. 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 Judgments & Estimates" in the REIT's Management's
Discussion & Analysis ("MD&A") for the three and nine-month
periods ended September 30, 2024 and
in the REIT's annual information form dated March 7, 2024, which are available on SEDAR+
(www.sedarplus.ca) and the REIT's website
(www.automotivepropertiesreit.ca). 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
