- Monthly cash distribution of $0.0375 per unit declared
- 99.8% of rent collected in November
2020
- New $13.25 million term loan
secured
MONTREAL, Nov. 19, 2020 /CNW/ - PRO Real Estate
Investment Trust ("PROREIT" or the "REIT") (TSX: PRV.UN) today
announced its November 2020
distribution and provided an update on November rent collections
and operating liquidity.
"Our positive monthly rent collection trend continues in
November, with 99.8% of rent collected across our portfolio and
approved rent deferrals repaid on schedule," said James
Beckerleg, President and CEO, PROREIT.
"Underpinned by the stability of our cash flows, our
operating liquidity position remains very solid. We
are pleased to have successfully secured an additional
$13.25 million term loan with
proceeds being received this month," added Mr. Beckerleg.
"Although still in the midst of the pandemic, economic activity
has started to show encouraging signs with positive indications
regarding the ongoing development of vaccines. We are confident
in our ability to resume our growth plans as we
return to more normal market conditions," concluded James Beckerleg.
Rent Collection Update
|
November
2020
|
October
2020
|
Gross rent
collections, including government
and other tenants who typically pay at the
end of the month, based on historical collection
cycles
|
99.8%
|
99.6%
|
Breakdown:
|
|
|
Industrial
tenants
|
100.0%
|
100.0%
|
Mixed-use commercial
tenants
|
100.00%
|
98.5%
|
Office
tenants
|
100.0%
|
100.0%
|
Retail
tenants
|
99.2%
|
99.9%
|
Temporary rent
deferral agreements under
fixed repayment terms
|
0%
|
0%
|
Gross rent in arrears
and discussions with
tenants are ongoing and managed on a case-
by-case basis
|
0.2%
|
0.4%
|
Operating Liquidity Update
PROREIT entered into a new financing commitment with a
current lender to increase its operating liquidity, as
previously announced. Secured by second charge security on a pool
of 14 properties, the new term loan of $13.25 million has a three-year term
at an annual interest rate of 6.45%. Net proceeds of the loan
are expected to be received in November
2020 and will be used to pay down portions of certain term
loans and credit facilities, increasing the REIT's operating
liquidity by approximately $9 million.
Distribution
PROREIT's Board of Trustees declared a cash distribution of
$0.0375 per trust unit of the
REIT for the month of November 2020.
It will be payable on December
15, 2020 to unitholders of record as at November
30, 2020.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of applicable securities legislation. Forward-looking
statements are based on a number of assumptions and are subject to
a number of risks and uncertainties, many of which are beyond
PROREIT's control, that could cause actual results and events to
differ materially from those that are disclosed in or implied by
such forward-looking statements.
Forward-looking statements contained in this press release
include, without limitation, statements pertaining to the execution
by PROREIT of its growth strategy, the future economic activity and
the future performance of PROREIT. PROREIT's objectives and
forward-looking statements are based on certain assumptions,
including that (i) PROREIT will receive financing on favourable
terms; (ii) the future level of indebtedness of PROREIT and its
future growth potential will remain consistent with the REIT's
current expectations; (iii) there will be no changes to tax laws
adversely affecting PROREIT's financing capacity or operations;
(iv) the impact of the current economic climate and the current
global financial conditions on PROREIT's operations, including its
financing capacity and asset value, will remain consistent with
PROREIT's current expectations; (v) the performance of PROREIT's
investments in Canada will proceed
on a basis consistent with PROREIT's current expectations; and (vi)
capital markets will provide PROREIT with readily available access
to equity and/or debt.
The forward-looking statements contained in this news release
are expressly qualified in their entirety by this cautionary
statement. All forward-looking statements in this press release are
made as of the date of this press release. PROREIT does not
undertake to update any such forward-looking information whether as
a result of new information, future events or otherwise, except as
required by law.
Additional information about these assumptions and risks and
uncertainties is contained under "Risk Factors" in PROREIT's latest
annual information form and "Risk and Uncertainties" in PROREIT's
management's discussion and analysis for the nine months ended
September 30, 2020, which are
available under PROREIT's profile on SEDAR at www.sedar.com.
About PROREIT
PROREIT (www.proreit.com) is an unincorporated open-ended real
estate investment trust owning a diversified portfolio of 92
commercial properties across Canada representing over 4.5 million square
feet of gross leasable area. Established in March 2013, PROREIT is mainly focused on strong
primary and secondary markets in Québec, Atlantic Canada and Ontario, with selective exposure in
Western Canada.
SOURCE PROREIT