Granite Real Estate Investment Trust and Granite REIT Inc.
(TSX: GRT.UN; NYSE: GRP.U) (“Granite” or the “Trust”) announced
today its combined results for the three month period and year
ended December 31, 2020 and also announced that is has acquired six
income-producing properties in the United States and Europe
comprising approximately 3 million square feet at a combined
purchase price of approximately $364 million (the
“Acquisitions”).
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12 Tradeport Road, Hanover, Township, PA
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FOURTH QUARTER 2020
HIGHLIGHTS
Highlights for the three month period ended December 31, 2020,
including events subsequent to the quarter, are set out below:
Financial:
- Granite’s net operating income (“NOI”) was $77.5 million in the
fourth quarter of 2020 compared to $63.9 million in the prior year
period, an increase of $13.6 million primarily as a result of
acquisition activity beginning in the fourth quarter of 2019;
- Same property NOI — cash basis(4) increased by 2.1% and 3.7%
for the three month period and year ended December 31, 2020,
respectively, excluding the impact of foreign exchange;
- Funds from operations (“FFO”)(1) was $59.6 million ($1.00 per
unit) in the fourth quarter of 2020 compared to $47.9 million
($0.91 per unit) in the fourth quarter of 2019;
- Adjusted funds from operations (“AFFO”)(2) was $56.1 million
($0.94 per unit) in the fourth quarter of 2020 compared to $46.2
million ($0.88 per unit) in the fourth quarter of 2019;
- AFFO payout ratio(3) was 79% for the fourth quarter of 2020
compared to 83% in the fourth quarter of 2019;
- Granite recognized $140.8 million in net fair value gains in
the fourth quarter of 2020 ($273.4 million for the year ended
December 31, 2020) driven by lower capitalization rates and/or
higher market rents observed in Granite’s markets of Greater
Toronto Area, U.S.A, Germany and the Netherlands; and
- Granite’s net income attributable to stapled unitholders
increased to $167.6 million in the fourth quarter of 2020 from
$90.6 million in the prior year period primarily due to a $93.3
million increase in net fair value gains on investment properties
and a $13.6 million increase in net operating income as noted
above, partially offset by a $29.3 million increase in income tax
expense and a $3.8 million increase in interest expense.
Operations:
- On October 23, 2020, Granite completed the previously announced
disposition of a Magna tenanted property located in Barcelona,
Spain for gross proceeds of $7.8 million (€5.0 million). Post
completion of the disposition activity in Canada and Spain during
2020, Granite’s overall exposure to Magna is reduced to 27% of
total GLA and 36% of total annualized revenue as at December 31,
2020;
- On November 12, 2020, Granite completed the previously
announced acquisition of 8500 Tatum Road, a 1.0 million square
foot, 36’ clear height modern warehouse distribution facility
situated on 83.5 acres in the city of Palmetto, Georgia for $105.2
million (US $80.3 million). The state-of-the-art facility was
completed in 2019 and is 100% leased to PVH Corp. for a remaining
lease term of 14.0 years, subject to contractual rent escalations.
The property, which serves as PVH Corp.’s primary e-commerce
distribution facility, was acquired at an in-going yield of
4.4%;
- On January 1, 2021, Mr. Michael Ramparas was promoted to EVP,
Global Real Estate and Head of Investments;
- On January 28, 2021, Granite disposed of one property located
in Redditch, United Kingdom for gross proceeds of $10.6 million
(£6.0 million); and
- Today, Granite released its first Green Bond use of proceeds
report with respect to the allocation of net proceeds of Granite’s
3.062% $500.0 million Series 4 Senior Debentures due 2027 (the
“Green Bond”). As at December 31, 2020, Granite has allocated 69%
of the net proceeds of the Green Bond to Eligible Green Projects,
as defined in Granite’s Green Bond Framework. Sustainalytics, a
leading provider of ESG and corporate governance research and
ratings to investors, conducted the verification of Granite’s Green
Bond use of proceeds. The Green Bond use of proceeds report can be
found on Granite’s website.
Financing:
- On November 4, 2020, the Trust increased its targeted
annualized distribution by 3.4% to $3.00 ($0.25 per month) per
stapled unit commencing with the December 2020 monthly distribution
payable in mid-January 2021;
- On November 24, 2020, Granite completed an offering of
3,841,000 stapled units at a price of $75.00 per unit for gross
proceeds of $288.1 million, including 501,000 stapled units issued
pursuant to the exercise of the over-allotment option granted to
the underwriters. The net proceeds received by Granite after
deducting the total costs related to the offering were $275.9
million;
- On December 18, 2020, Granite issued at par $500.0 million
aggregate principal amount of 2.378% Series 5 senior debentures due
December 18, 2030 (the “2030 Debentures”). Granite also entered
into a cross currency interest rate swap, to exchange the Canadian
dollar denominated principal and interest payments of the 2030
Debentures for Euro denominated payments, resulting in an effective
fixed interest rate of 1.045% for the ten-year term; and
- On January 4, 2021, Granite redeemed in full the outstanding
$250.0 million aggregate principal amount of the 2021 Debentures
for a total redemption price of $254.0 million. In conjunction with
the redemption, the related interest rate swap was terminated on
January 4, 2021 and the mark to market liability of $17.7 million
was settled.
ACQUISITIONS
During the fourth quarter of 2020, Granite closed the
Acquisitions for a combined purchase price of $364 million
representing an in-going weighted average stabilized yield of
approximately 5.1%. The Acquisitions are 100% leased with a
weighted average lease term of 14.4 years.
“These Acquisitions enhance our portfolio through the addition
of modern e-commerce and distribution facilities as well as future
expansion and redevelopment opportunities. Pro-forma these
Acquisitions Granite’s Magna concentration is further reduced to
34% based on revenue,” said Kevan Gorrie, Granite’s President and
Chief Executive Officer.
U.S. Acquisition
12 Tradeport Road, Hanover Township and 250 Tradeport Road,
Nanticoke, Pennsylvania, USA
- On December 22, 2020, Granite acquired two modern distribution
buildings totaling 2.0 million square feet situated on
approximately 200.0 acres in Northeastern Pennsylvania for $254.5
million (US $194.6 million). Constructed in 2019, the properties
are 100% leased to True Value Company and Spreetail for a remaining
weighted average lease term of 15.8 years, subject to contractual
rent escalations. The properties, which benefit from modern
distribution features and significant tenant investment in the
facilities, are being acquired at a stabilized yield, net of free
rent, of 5.1%. The assets are well positioned along the I-81/I-78
Corridor, which is one of the most active and fastest-growing
distribution nodes in the Northeastern U.S. and in close proximity
to the population centres of the East coast.
Netherlands Acquisitions
Industrieweg 15, Voorschoten, Netherlands
- On November 20, 2020, Granite acquired Industrieweg 15, a 0.4
million square foot, 30’-39’ clear height distribution facility
situated on 15.0 acres in the city of Voorschoten, Netherlands. The
logistics facility is 100% leased to Nippon Express for a remaining
lease term of approximately 5.8 years, subject to annual
inflationary adjustments, and was acquired at an in-going yield of
approximately 5.9%. The property is located 15 minutes from
downtown The Hague benefiting from close proximity to the A4 and
A44 motorways which connect The Hague with Amsterdam and Schiphol
International Airport. The proximity to The Hague and access to a
population in excess of 3 million provides the site with future
redevelopment potential as a last-mile e-commerce facility.
Zuidelijke Havenweg 2, Hengelo, Netherlands
- On December 4, 2020, Granite acquired Zuidelijke Havenweg 2, a
0.3 million square foot, 40’ clear height distribution facility
situated on 9.5 acres in the city of Hengelo, Netherlands, for
$46.2 million (€29.8 million). This modern logistics facility was
completed in various phases between 2015 and 2018 and is 100%
leased to Bolk Logistics for a remaining lease term of 15.0 years,
subject to contractual rent escalations. The property is
strategically located directly adjacent to the inland port Combi
Terminal Twente. The property benefits from close-proximity to the
A1 and A35 motorways and the Twentekanaal, an important link in the
North Sea-Baltic shipping corridor.
Beurtvaartweg 2-4 and Sprengenweg 1-2, Nijmegen,
Netherlands
- On December 18, 2020, Granite acquired Beurtvaartweg 2-4 and
Sprengenweg 1-2, two distribution buildings totaling 0.3 million
square feet situated on 13.0 acres in Nijmegen, Netherlands for
$39.1 million (€25.2 million). The properties are 100% leased to De
Klok Logistics B.V. for a remaining weighted average lease term of
10.0 years, subject to annual inflationary adjustments. The
properties were acquired at an in-going yield of 6.0%.
Strategically located in the city centre of Nijmegen, benefiting
from close-proximity to the A12, A37 and A50 motorways and the
barge terminal connecting to the Maas-Waal waterways.
GRANITE’S FINANCIAL, OPERATING AND PROPERTY
HIGHLIGHTS
Three Months Ended December
31,
Years Ended December
31,
(in millions, except as noted)
2020
2019
2020
2019
Net operating income (“NOI”)
$
77.5
$
63.9
$
293.0
$
238.3
Net income attributable to stapled
unitholders
$
167.6
$
90.6
$
429.8
$
382.1
Funds from operations (“FFO”)(1)
$
59.6
$
47.9
$
225.4
$
177.5
Adjusted funds from operations
(“AFFO”)(2)
$
56.1
$
46.2
$
215.7
$
172.7
Diluted FFO per stapled unit(1)
$
1.00
$
0.91
$
3.98
$
3.62
Diluted AFFO per stapled unit(2)
$
0.94
$
0.88
$
3.81
$
3.52
Monthly distributions paid per stapled
unit
$
0.73
$
0.70
$
2.90
$
2.80
Special distribution paid per stapled
unit
—
—
—
$
0.30
AFFO payout ratio(3)
79%
83%
77%
81%
As at December 31,
2020
2019
Fair value of investment properties
$
5,855.6
$
4,457.9
Cash and cash equivalents
$
831.3
$
298.7
Total debt
$
2,297.5
$
1,250.3
Net leverage ratio(5)
25%
21%
Number of income-producing properties
108
85
Gross leasable area (“GLA”), square
feet
49.5
40.0
Occupancy, by GLA
99.6%
99.0%
Magna as a percentage of annualized
revenue(7)
36%
42%
Magna as a percentage of GLA
27%
35%
Weighted average lease term in years, by
GLA
6.3
6.5
Overall capitalization rate(6)
5.6%
6.1%
A more detailed discussion of Granite’s combined financial
results for the three month periods and years ended December 31,
2020 and 2019 is contained in Granite’s Management’s Discussion and
Analysis of Results of Operations and Financial Position
(“MD&A”) and the audited combined financial statements for
those periods and the notes thereto, which are available through
the internet on the Canadian Securities Administrators’ System for
Electronic Document Analysis and Retrieval (“SEDAR”) and can be
accessed at www.sedar.com and on the
United States Securities and Exchange Commission’s (the “SEC”)
Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”),
which can be accessed at www.sec.gov.
COVID-19 PANDEMIC UPDATE
Granite continues to monitor developments regarding the COVID-19
pandemic and to ensure the safety of its tenants and staff. While
the full impact of the COVID-19 pandemic continues to be difficult
to predict, Granite believes at this time that its portfolio and
strong liquidity position will allow it to weather the on-going
impact of COVID-19.
During the year ended December 31, 2020, there has not been a
significant impact on Granite’s operations, assets or liabilities
as a result of COVID-19. Granite has received 100% of 2020 rents
due, and 100% and 99.9%, respectively, of January and February 2021
rents to date. Granite has not recognized any provisions for
uncollected rent at this time as all outstanding rental income has
been received. Granite reviewed its future cash flow projections
and the valuation of its properties considering the impacts of the
COVID-19 pandemic during the year ended December 31, 2020 and
Granite does not expect, at this time, that COVID-19 will have a
significant impact to the fair value of its investment property
portfolio. In addition, there have not been any significant fair
value losses on investment properties recorded in the year ended
December 31, 2020.
From a liquidity perspective, as at the date of this MD&A,
March 3, 2021, Granite has total liquidity of approximately $1.1
billion, including its fully undrawn operating facility which is
sufficient to meet its current committed acquisitions, development
and construction projects. Subsequent to year end, Granite redeemed
in full the outstanding $250.0 million aggregate principal amount
of the 2021 Debentures, therefore Granite’s nearest debt maturity
of $400.0 million does not occur until 2023 and Granite’s
investment property portfolio of approximately $5.9 billion remains
fully unencumbered. Granite believes it is well-positioned to
weather any short-term negative impacts on its business; however,
Granite will continue to evaluate and monitor its liquidity as the
situation prolongs.
CONFERENCE CALL
Granite will hold a conference call on Thursday, March 4, 2021
at 11:00 a.m. (ET). The toll free number to use for this call is 1
(800) 771-7838. For international callers, please call 1 (416) 981-
9013. Please dial in at least 10 minutes prior to the commencement
of the call. The conference call will be chaired by Kevan Gorrie,
President and Chief Executive Officer. To hear a replay of the
scheduled call, please dial 1 (800) 558-5253 (North America) or 1
(416) 626-4100 (international) and enter reservation number
21989191. The replay will be available until Tuesday, March 16,
2021.
OTHER INFORMATION
Additional property statistics as at December 31, 2020 have been
posted to our website at https://www.granitereit.com/propertystatistics/view-property-statistics.
Copies of financial data and other publicly filed documents are
available through the internet on SEDAR, which can be accessed at
www.sedar.com and on EDGAR, which can
be accessed at www.sec.gov.
Granite has filed its annual report on Form 40-F for the year
ended December 31, 2020 with the SEC. The Form 40-F, including the
audited combined financial statements, included therein, is
available at http://www.granitereit.com. Hard copies of the audited
combined financial statements are available free of charge on
request by calling (647) 925-7500 or writing to:
Investor Inquiries 77 King Street West, Suite 4010, P.O. Box 159
Toronto-Dominion Centre Toronto, Ontario M5K 1H1
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 114
investment properties representing approximately 49.4 million
square feet of leasable area.
For further information, please see our website at www.granitereit.com or contact Teresa Neto, Chief
Financial Officer, at (647) 925-7560.
NON-IFRS MEASURES
Readers are cautioned that certain terms used in this press
release such as FFO, AFFO, AFFO payout ratio, same property NOI —
cash basis, net leverage ratio and any related per unit amounts
used by management to measure, compare and explain the operating
results and financial performance of the Trust do not have
standardized meanings prescribed under International Financial
Reporting Standards (“IFRS”) and, therefore, should not be
construed as alternatives to net income, cash provided by operating
activities or any other measure calculated in accordance with IFRS.
Additionally, because these terms do not have a standardized
meaning prescribed by IFRS, they may not be comparable to similarly
titled measures presented by other publicly traded entities.
(1)
FFO is a non-IFRS performance
measure that is widely used by the real estate industry in
evaluating the operating performance of real estate entities.
Granite calculates FFO as net income attributable to stapled
unitholders excluding fair value gains (losses) on investment
properties and financial instruments, gains (losses) on sale of
investment properties including the associated current income tax,
deferred income taxes and certain other items, net of
non-controlling interests in such items. The Trust’s determination
of FFO follows the definition prescribed by the Real Estate
Property Association of Canada (“REALPAC”) White Paper on Funds
From Operations & Adjusted Funds From Operations for IFRS dated
February 2019 and as subsequently amended (“White Paper”). Granite
considers FFO to be a meaningful supplemental measure that can be
used to determine the Trust’s ability to service debt, fund capital
expenditures and provide distributions to stapled unitholders. FFO
is reconciled to net income, which is the most directly comparable
IFRS measure (see below). FFO should not be construed as an
alternative to net income or cash flow generated from operating
activities determined in accordance with IFRS.
(2)
AFFO is a non-IFRS performance
measure that is widely used by the real estate industry in
evaluating the recurring economic earnings performance of real
estate entities after considering certain costs associated with
sustaining such earnings. Granite calculates AFFO as net income
attributable to stapled unitholders including all adjustments used
to calculate FFO and further adjusts for actual maintenance capital
expenditures that are required to sustain Granite’s productive
capacity, leasing costs such as leasing commissions and tenant
allowances incurred and non-cash straight-line rent and tenant
incentive amortization, net of non-controlling interests in such
items. The Trust’s determination of AFFO follows the definition
prescribed by REALPAC’s White Paper. Granite considers AFFO to be a
meaningful supplemental measure that can be used to determine the
Trust’s ability to service debt, fund expansion capital
expenditures, fund property development and provide distributions
to stapled unitholders after considering costs associated with
sustaining operating earnings. AFFO is also reconciled to net
income, which is the most directly comparable IFRS measure (see
below). AFFO should not be construed as an alternative to net
income or cash flow generated from operating activities determined
in accordance with IFRS.
In the current year period, AFFO
was calculated by deducting maintenance or improvement capital
expenditures, leasing commissions and tenant allowances incurred
whereas in prior year periods AFFO was calculated by deducting
maintenance or improvement capital expenditures, leasing
commissions and tenant allowances paid. The AFFO metrics in the
comparative periods have been updated to conform to the current
period’s presentation. AFFO as well as basic and diluted AFFO per
unit for the three months ended December 31, 2019 were previously
reported as $46.7 million and $0.89 per unit, respectively. AFFO as
well as basic and diluted AFFO per unit for the year ended December
31, 2019 were previously reported as $172.8 million and $3.53 per
unit, respectively. Both methods of calculation are in accordance
with the REALPAC White Paper. There is no significant difference in
these metrics as a result of the change in calculation.
In accordance with the REALPAC
White Paper, leasing commissions incurred in the three months and
year ended December 31, 2020 exclude $0.3 million of leasing
commissions incurred on the lease-up of a recently acquired
property in Memphis, Tennessee and deemed related to the overall
acquisition costs. Leasing commissions incurred in the year ended
December 31, 2020 exclude $1.9 million of leasing commissions
incurred on the lease-up of a recently completed development
property in Plainfield, Indiana in the second quarter of 2020, $0.5
million of leasing commissions incurred on the lease-up of a
recently acquired property in Groveport, Ohio and $0.3 million of
leasing commissions incurred on the lease-up of a recently acquired
property in Memphis, Tennessee as previously mentioned and deemed
related to the overall acquisition costs.
Three Months Ended December
31,
Years Ended December
31,
(in millions, except per unit amounts)
2020
2019
2020
2019
Net income attributable to stapled
unitholders
$
167.6
$
90.6
$
429.8
$
382.1
Add (deduct):
Fair value gains on investment properties,
net
(140.8
)
(47.5
)
(273.4
)
(245.4
)
Fair value (gains) losses on financial
instruments
(1.3
)
(1.0
)
3.4
(1.2
)
Loss on sale of investment properties
0.7
1.0
0.9
3.0
Current income tax expense associated with
the sale of an investment property
0.7
—
0.7
—
Deferred income tax expense
32.4
4.5
62.5
37.6
Fair value remeasurement expense relating
to
the Executive Deferred Stapled Unit
Plan
0.3
0.3
1.4
1.3
Non-controlling interests relating to the
above
—
—
0.1
0.1
FFO(1)
[A]
$
59.6
$
47.9
$
225.4
$
177.5
Add (deduct):
Maintenance or improvement capital
expenditures incurred
(0.4
)
(0.8
)
(3.6
)
(3.3
)
Leasing commissions incurred(2)
(0.7
)
(0.5
)
(0.8
)
(1.1
)
Tenant allowances incurred
(1.2
)
(0.3
)
(1.8
)
(0.5
)
Tenant allowance amortization
1.3
1.3
5.3
5.2
Straight-line rent amortization
(2.5
)
(1.4
)
(8.8
)
(5.1
)
AFFO(2)
[B]
$
56.1
$
46.2
$
215.7
$
172.7
Basic and Diluted FFO per stapled
unit
[A]/[C] and [A]/[D]
$
1.00
$
0.91
$
3.98
$
3.62
Basic and Diluted AFFO per stapled
unit
[B]/[C] and [B]/[D]
$
0.94
$
0.88
$
3.81
$
3.52
Basic weighted average number of
stapled units
[C]
59.4
52.6
56.6
49.0
Diluted weighted average number of
stapled units
[D]
59.5
52.6
56.7
49.0
(3)
AFFO payout ratio is calculated
as monthly distributions, which exclude the special distribution,
declared to unitholders divided by AFFO in a period. AFFO payout
ratio may exclude revenue or expenses incurred during a period that
can be a source of variance between periods. The AFFO payout ratio
is a supplemental measure widely used by analysts and investors in
evaluating the sustainability of the Trust’s monthly distributions
to stapled unitholders. Refer to the change in the current year
period to the calculation of AFFO payout ratio in footnote (2)
above.
(4)
Same property NOI — cash basis
refers to the NOI — cash basis (NOI excluding lease termination and
close-out fees, and the non-cash impact from straight-line rent and
tenant incentive amortization) for those properties owned by
Granite throughout the entire current and prior year periods under
comparison. Same property NOI — cash basis excludes properties that
were acquired, disposed of, classified as properties under or held
for development or assets held for sale during the periods under
comparison. Granite believes that same property NOI — cash basis is
a useful supplementary measure in understanding period-over-period
organic changes in NOI — cash basis from the same stock of
properties owned.
(5)
The net leverage ratio is
calculated as the net debt (carrying value of total debt less cash
and cash equivalents) divided by the fair value of investment
properties. The net leverage ratio is a supplemental measure used
in evaluating the Trust’s degree of financial leverage, borrowing
capacity and the relative strength of its balance sheet.
(6)
Overall capitalization rate is
calculated as stabilized net operating income (property revenue
less property expenses) divided by the fair value of the
property.
(7)
Annualized revenue for each
period presented is calculated as rental revenue excluding tenant
recoveries, for the month of December 2020 or December 2019, as
applicable, recognized in accordance with IFRS, multiplied by 12
months.
FORWARD-LOOKING
STATEMENTS
This MD&A 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 future plans, goals, strategies, intentions,
beliefs, estimates, costs, objectives, capital structure, cost of
capital, tenant base, tax consequences, economic performance or
expectations, or the assumptions underlying any of the foregoing.
Words such as “outlook”, “may”, “would”, “could”, “should”, “will”,
“likely”, “expect”, “anticipate”, “believe”, “intend”, “plan”,
“forecast”, “project”, “estimate”, “seek” 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 future events,
performance or results and will not necessarily be accurate
indications of whether or the times at or by which such future
performance will be achieved. Undue reliance should not be placed
on such statements. There can also be no assurance that: Granite’s
expectations regarding the impact of the COVID-19 pandemic and
government measures to contain it, including with respect to
Granite’s ability to weather the impact of COVID-19, the
effectiveness of measures intended to mitigate such impact, and
Granite’s ability to deliver cash flow stability and growth and
create long-term value for unitholders; the expansion and
diversification of Granite’s real estate portfolio and the
reduction in Granite’s exposure to Magna and the special purpose
properties; the ability of Granite to accelerate growth and to grow
its net asset value and FFO and AFFO per unit; the ability of
Granite to find and integrate satisfactory acquisition, joint
venture and development opportunities and to strategically deploy
the proceeds from recently sold properties and financing
initiatives; Granite’s intended use of the net proceeds of its
equity and debenture offerings to fund potential acquisitions and
for the other purposes described previously; the potential for
expansion and rental growth at the properties in Mississauga,
Ontario and Ajax, Ontario and the expected enhancement to the
yields of such properties from such potential expansion and rental
growth; the expected construction on and development yield of the
acquired greenfield site in Houston, Texas; the expected
development and construction of an e-commerce and logistics
warehouse on recently acquired land in Fort Worth, Texas; the
expected construction of the distribution/light industrial facility
on the 13-acre site in Altbach, Germany; the completion of
construction at the property in Dallas, Texas; and the timing of
payment of associated unpaid construction costs and holdbacks;
Granite’s ability to dispose of any non-core assets on satisfactory
terms; Granite’s ability to meet its target occupancy goals;
Granite’s ability to secure sustainability or other certifications
for any of its properties; the expected impact of the refinancing
of the term loans on Granite’s returns and cash flow; and the
expected amount of any distributions and distribution increase, can
be achieved in a timely manner, with the expected impact or at all.
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 Granite’s
perception of historical trends, current conditions and expected
future developments, as well as other factors Granite believes are
appropriate in the circumstances. Given the impact of the COVID-19
pandemic and government measures to contain it, there is inherently
more uncertainty associated with our assumptions as compared to
prior periods. Forward-looking statements and forward-looking
information 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 impact of the COVID-19
pandemic and government measures to contain it, and the resulting
economic downturn, on Granite’s business, operations and financial
condition; the risk that the pandemic or such measures intensify;
the duration of the pandemic and related impacts; the risk of
changes to tax or other laws and treaties that may adversely affect
Granite REIT’s mutual fund trust status under the Income Tax Act
(Canada) or the effective tax rate in other jurisdictions in which
Granite operates; economic, market and competitive conditions and
other risks that may adversely affect Granite’s ability to expand
and diversify its real estate portfolio and dispose of any non-core
assets on satisfactory terms; and the risks set forth in the “Risk
Factors” section in Granite’s AIF for 2020 dated March 3, 2021,
filed on SEDAR at www.sedar.com and attached as Exhibit 1 to the
Trust’s Annual Report on Form 40-F for the year ended December 31,
2020 filed with the SEC and available online on EDGAR at
www.sec.gov, all of which investors are strongly advised to review.
The “Risk Factors” section 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 MD&A to reflect subsequent information, events or
circumstances or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210303006017/en/
Teresa Neto Chief Financial Officer (647) 925-7560
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