TORONTO, April 5, 2018 /PRNewswire/ - Granite Real
Estate Investment Trust ("Granite") (TSX: GRT.UN / NYSE: GRP.U)
) announced today that it recently acquired two properties in
the United States consisting of
approximately 1.0 million square feet of gross leasable area
for a total purchase price of US$74.1million.
One of the properties (0.4 million square feet) is located in
Greencastle, Pennsylvania,
approximately 100 miles from Granite's existing facility in
Bethel, Pennsylvania and the other
property (0.6 million square feet) is located in Plainfield, Indiana in close proximity to two
other Granite-owned properties. These acquisitions build on
Granite's presence in two strong, central U.S. logistic
markets.
Both properties were built in 2017, are single tenanted and 100%
occupied with a weighted average lease term of approximately 9.5
years. Together, these acquisitions represent an in-going yield of
approximately 5.5% and will be immediately accretive to funds from
operations and adjusted funds from operations. Granite funded the
acquisitions from cash on hand.
Michael Forsayeth, Granite's CEO,
commented that "Consistent with Granite's strategy, these
acquisitions in the U.S. will further reduce Granite's Magna
concentration from 61% to 59% based on gross leasable area and are
a step towards replacing the revenue from properties that were sold
earlier in the year."
Granite also announced further progress on renewing leases with
expiries in 2018 and re-leasing an existing vacancy. Since
announcing its 2017 year end results on March 1, 2018, Granite has renewed or
re-leased four properties having approximately 0.9 million
square feet and a weighted average lease term of approximately 9.7
years. This includes the re-leasing of a 0.7 million square foot
space that was acquired in October
2017 and was expected to be vacated in October 2018.
ABOUT GRANITE
Granite is a Canadian-based REIT engaged in the acquisition,
development, ownership and management of predominantly industrial,
warehouse and logistics properties in North America and Europe. Granite owns over 85 rental income
properties representing approximately 30 million square feet of
leasable area. Through the thoughtful deployment of its
balance sheet and selective dispositions, Granite is continuing to
build a high quality, globally diversified industrial real estate
business.
OTHER INFORMATION
Copies of financial data and other publicly filed documents
about Granite are available through the internet on the Canadian
Securities Administrators' Systems for Electronic Document Analysis
and Retrieval (SEDAR) which can be accessed at www.sedar.com and on
the United States Securities and Exchange Commission's Electronic
Data Gathering, Analysis and Retrieval System (EDGAR) which can be
accessed at www.sec.gov. For further information, please see
our website at www.granitereit.com or contact Michael Forsayeth, Chief Executive Officer, at
647-925-7600 or Ilias
Konstantopoulos, Chief Financial Officer, at
647-925-7540.
FORWARD LOOKING STATEMENTS
This press release may contain statements that, to the extent
they are not recitations of historical fact, constitute
"forward-looking statements" or "forward-looking information"
within the meaning of applicable securities legislation, including
the United States Securities Act of 1933, as amended, the
United States Securities Exchange Act of 1934, as amended,
and applicable Canadian securities legislation. Forward-looking
statements and forward-looking information may include, among
others, statements regarding the impact of the acquisitions
on Granite's funds from operations and adjusted funds from
operations, Granite's ability to deploy its balance sheet and make
selective dispositions, and Granite's plans, goals, strategies,
intentions, beliefs, estimates, costs, objectives, economic
performance, expectations, or foresight or the assumptions
underlying any of the foregoing. Words such as "may", "would",
"could", "will", "likely", "expect", "anticipate", "believe",
"intend", "plan", "forecast", "project", "estimate", "seek",
"objective" and similar expressions are used to identify
forward-looking statements and forward-looking information.
Forward-looking statements and forward-looking information should
not be read as guarantees of expected impact of the acquisitions on
Granite's funds from operations and adjusted funds from operations,
Granite's ability to deploy its balance sheet and make selective
dispositions, or other events, performance or results and will not
necessarily be accurate indications of whether or the times at or
by which such impact of the acquisitions or other
events or performance will be achieved. Undue reliance should
not be placed on such statements. Forward-looking statements and
forward-looking information are based on information available at
the time and/or management's good faith assumptions and analyses
made in light of its perception of historical trends, current
conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances,
and are subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond Granite's control,
that could cause actual events or results to differ materially from
such forward-looking statements and forward-looking information.
Important factors that could cause such differences include, but
are not limited to, the risks set forth in the annual information
form of Granite REIT and Granite GP dated March 1, 2018 (the "Annual Information
Form"). The "Risk Factors" section of the Annual Information
Form also contains information about the material factors or
assumptions underlying such forward-looking statements and
forward-looking information. Forward-looking statements and
forward-looking information speak only as of the date the
statements and information were made and unless otherwise required
by applicable securities laws, Granite expressly disclaims any
intention and undertakes no obligation to update or revise any
forward-looking statements or forward-looking information contained
in this press release to reflect subsequent information, events or
circumstances or otherwise.
SOURCE Granite Real Estate Investment Trust