AIP.U AIP Realty Trust

AIP Realty Trust (the “Trust” or “AIP”) (TSXV: AIP.U) today announced that its exclusive development and property management partner, Dallas-based AllTrades Industrial Properties, Inc. (“AllTrades”), has completed construction, ready for occupancy by tenants, of a new facility located in the east central area of Dallas-Fort Worth, TX (the “Plano Property”). All dollar figures are stated in U.S dollars.

The Plano Property is a light industrial flex facility comprised of approximately 82,280 rentable square feet across 30 WorkSpace Shops™ and 51 WorkSpace Secured Parking™ spaces. As a result of AllTrades’ pre-leasing during construction, the facility is 100% leased at the completion of construction at an average blended NNN rental of $15.20 per sq foot.

Recently completed AllTrades property in Plano, Texas.

“AllTrades continues to execute on its development program with the opening of another high-quality facility in Dallas-Fort Worth,” said Les Wulf, Executive Chairman. “Like the previously completed facilities, the Plano Property is experiencing strong demand from tenants as demonstrated by the high initial occupancy rate. AIP is pleased to see ongoing progress on its acquisition pipeline.”

The Plano Property is the second facility to be completed among a group of five properties the Trust agreed to acquire earlier this year. As announced on May 24, 2022, AIP entered into membership interest purchase agreements (the “Agreements”) with AllTrades Five Properties, LLC (“AT5P”) providing the Trust with the exclusive option to acquire up to five properties in final stages of development in the Dallas-Fort Worth (“DFW”) area of Texas, including the Plano Property. The Mesquite property was the first of this group to be completed, as announced August 9, 2022, and is now 100% leased and generating NNN rental average of $15.04 per square foot. The remaining three properties from that group are expected to be completed by the end of the first quarter of 2023.

On September 26, 2022, the Trust announced similar forward purchase agreements to acquire up to seven additional AllTrades-branded properties in the DFW area. To date, AIP has now entered into forward purchase agreements to acquire a total of 12 light industrial flex properties totaling 841,109 square feet of leasable space, comprised of 191 WorkSpace Shops™, 136 WorkSpace Studios™ and 339 WorkSpace Secured Parking™ spaces. The aggregate projected purchase price assuming that all of the properties are acquired by AIP would be $205,500,000.

AllTrades facilities are targeted at the trades and services sectors and small businesses which are often underserved and relegated to older buildings with outdated amenities. The facilities offer turnkey modern, appealing spaces that can be readily adapted to multiple uses. The facilities are intended to address the underserved needs for new generation, high-quality light industrial flex space by the large, diverse, and growing market of trades, services, and small businesses in the US seeking locations close to their customer base, following the growing trend of last mile service.

The Trust’s governance committee will begin the process of evaluating whether to exercise the option based on its review of the audited financial statements and the appraisal of the Plano Property. The Trust will only move forward with the acquisition of the Plano Property if the Trust’s governance committee and independent trustees make a favorable recommendation, and the Trust has secured the funds necessary to do so.

About AIP Realty Trust

AIP Realty Trust is a real estate investment trust with a growing portfolio of light industrial flex facilities focused on small businesses and the trades and services sectors in the U.S. These properties appeal to a diverse range of small space users, such as contractors, skilled trades, suppliers, repair services, last-mile providers, small businesses and assembly and distribution firms. They typically offer attractive fundamentals including low tenant turnover, stable cash flow and low capex intensity, as well as significant growth opportunities. With an initial focus on the Dallas-Fort Worth market, AIP plans to roll out this innovative property offering nationally. AIP holds the exclusive rights to finance the development of and to purchase all the completed and leased properties built across North America by its development and property management partner, AllTrades Industrial Properties, Inc. For more information, please visit www.aiprealtytrust.com.

For further information from the Trust, contact:Leslie WulfExecutive Chairman(214) 679-5263les.wulf@aiprealtytrust.com

Or

Greg VorwallerChief Executive Officer(778) 918-8262Greg.vorwaller@aiprealtytrust.com

Cautionary Statement on Forward-Looking Information

This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of AIP Realty Trust with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding, the expected timing and completion of the acquisition of the LLCs, the effect of the acquisitions of the LLCs on AIP’s financial performance, the ability to secure the funding required to complete the acquisition of the LLCs, the satisfaction of the conditions precedent to consummation of the acquisition of the LLCs, including the ability to obtain required regulatory approvals, the ability of AIP to execute its business and growth strategies, future acquisitions by the Trust, the ability to obtain regulatory and unitholder approvals and other factors. When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to proposed financing activity, proposed acquisitions, regulatory or government requirements or approvals, the reliability of third-party information and other factors or information. Such statements represent the Trust’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Trust, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the following: (i) AIP will receive financing on favourable terms; (ii) the future level of indebtedness of AIP and its future growth potential will remain consistent with AIP’s current expectations; (iii) there will be no changes to tax laws adversely affecting AIP’s financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on AIP’s operations, including its financing capacity and asset value, will remain consistent with AIP’s current expectations; (v) the performance of AIP’s investments in Texas will proceed on a basis consistent with AIP’s current expectations; and (vi) capital markets will provide AIP with readily available access to equity and/or debt. The Trust does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.

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. AIP 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release is not an offer of securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”). The Trust has not registered and will not register the securities under the U.S. Securities Act. The Trust does not intend to engage in a public offering of their securities in the United States.

Photos accompanying this announcement are available athttps://www.globenewswire.com/NewsRoom/AttachmentNg/28a0277a-cf63-44c8-98e3-158833162134 

https://www.globenewswire.com/NewsRoom/AttachmentNg/538b4dde-885f-4958-9b6f-2a922705f358