Granite Real Estate Investment Trust (“Granite”) (TSX: GRT.UN /
NYSE: GRP.U) announced today that it has completed its acquisition
of eight income-producing properties in the United States
comprising approximately 4.0 million square feet (“SF”) at a
combined purchase price of approximately C$332 million (US$246.1
million). The properties are being acquired at an in-going weighted
average yield of approximately 5.5%.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20200708005887/en/
8779 Le Saint Drive, West Chester, OH
(Photo: Business Wire)
In addition, Granite has acquired a 36-acre parcel of land in
Fort Worth, Texas for the planned future development of a 605,000
SF e-commerce and logistics warehouse. Further, on July 1, 2020
Granite closed the previously announced acquisitions of two
properties in the Netherlands.
Granite also announced today that it has published a 2020
Environmental, Social and Governance (“ESG”) overview providing an
update on Granite’s ESG initiatives and progress.
MIDWEST AND MEMPHIS PORTFOLIOS,
USA
Granite acquired eight modern distribution buildings in Memphis
and the Midwest markets of Cincinnati, Columbus and Indianapolis
totaling 4.0 million SF. The eight properties are 100% leased to 11
tenants with a weighted average lease term of 5.1 years. Seven of
the properties closed on June 18, 2020 and the eighth property
closed on July 8, 2020. The acquisition was previously announced on
June 9, 2020.
The properties are located within established business parks and
are strategically located near major e-commerce distribution
infrastructure and benefit from access to extensive highway and
major air and rail systems.
5005 PARKER HENDERSON ROAD, FORT WORTH,
TEXAS
On June 8, 2020, Granite acquired 5005 Parker Henderson Road, a
36-acre greenfield site in southeast Fort Worth, TX for a purchase
price of approximately C$9.0 million (US$6.7 million). The site is
located at the major intersection of I-820 and SH-287, 7 miles from
downtown Fort Worth and 23 miles from the Dallas-Fort Worth
International Airport. The infill site is close to both FedEx
Ground and UPS Freight facilities and is less than 10 kilometers
from the I-20, a major east-west interstate highway. The future
speculative development of this property is anticipated to include
a 605,000 SF state-of-the-art e-commerce and logistics facility,
with 36’ clear height, up to 260 trailer parking spaces and
built-to-suit office. The project is expected to generate a
development yield of approximately 6.3%.
DE KROONSTRAAT 1 (TILBURG), FRANCIS
BACONSTRAAT 4 (EDE)
On July 1, 2020, Granite closed on the remaining two of the
three state-of-the-art facilities in the Netherlands that Granite
had previously agreed to acquire for a combined purchase price of
€70.9 million (approximately C$108.4M). The 125,626 SF Ede property
is 100% leased for an initial term of 15 years to ERIKS, a global
industrial service provider. The first phase of the Tilburg
property, consisting of 344,000 SF, is 100% leased to Decathlon,
the world’s largest sports retailer, for an initial term of 10.5
years. Phase two of the facility, comprised of approximately
144,000 SF and also leased to Decathlon, is expected to be
completed and delivered to the tenant in the fourth quarter of
2020. The remaining construction costs of approximately €5.0
million (C$7.7 million) to complete phase two at the Tilburg
facility will be paid during the remainder of the year. These
acquisitions were previously announced on December 20, 2019.
The two properties are located in highly-desirable distribution
nodes and are situated in some of the most densely populated areas
in Europe, making them attractive e-commerce locations. The design
of these build-to-suit properties incorporates several
sustainability features, leading management to expect the
properties to receive a BREEAM “Very Good” certification.
The acquisitions of the Midwest and Memphis portfolios and the
property in Fort Worth, Texas were funded using a combination of
net proceeds from Granite’s recent equity offering and cash on
hand. The acquisitions of the European properties were funded from
Granite’s cash on hand, including the proceeds of Granite’s recent
green bond offering. Granite’s current liquidity, following the
acquisitions of the Midwest and Memphis portfolios, the property in
Fort Worth, Texas and the European properties is approximately
C$1.0 billion.
ESG UPDATE
On June 19, 2020, Granite published an ESG overview providing an
update on Granite’s sustainability initiatives and a summary of
Granite’s progress to date against the principles outlined in
Granite’s Sustainability Plan. For access to the report and further
information on Granite’s sustainability plan, please visit
https://granitereit.com/sustainability.
COVID-19 PANDEMIC UPDATE
Further to Granite’s previous updates on the impacts of the
COVID-19 pandemic on its operations, the status of rent collection
for Q2 2020 as at July 3rd, 2020 is summarized below:
- Granite has received 99% of April, May and June rent due;
and
- No rent deferrals or rent abatements have been granted to date
and Granite continues its discussions with the few tenants with
accounts in arrears.
ABOUT GRANITE
Granite is a Canadian-based REIT engaged in the acquisition,
development, ownership and management of logistics, warehouse and
industrial properties in North America and Europe. Granite owns
over 100 investment properties representing approximately 44.7
million square feet of leasable area.
OTHER INFORMATION
Copies of financial data and other publicly filed documents
about Granite are available through the internet on the Canadian
Securities Administrators’ System 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.
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 Granite’s expectations with respect to the development of
the property in Fort Worth, Texas and the expected development
yield of such property, the completion of phase two of the
construction of the Tilburg facility, Granite’s expectations
regarding the BREEAM certification of the properties in the
Netherlands, 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 events, performance
or results and will not necessarily be accurate indications of
whether or the times at or by which such events, performance or
results 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 Real Estate Investment Trust and Granite REIT Inc.
dated March 4, 2020 (the “Annual Information Form”) and
management’s discussion and analysis of results of operations and
financial position for the three months ended March 31, 2020 (the
“Q1 MD&A). The “Risk Factors” section of the Annual Information
Form and the Q1 MD&A also contain 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200708005887/en/
Teresa Neto Chief Financial Officer 647-925-7560
Andrea Sanelli Manager, Legal & Investor Services
647-925-7504
Granite Real Estate Inve... (TSX:GRT.UN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Granite Real Estate Inve... (TSX:GRT.UN)
Historical Stock Chart
From Jul 2023 to Jul 2024