WINNIPEG, MB, 12 August 2024 /CNW/ – Artis Real Estate Investment Trust (“Artis” or the “REIT”) (TSX: AX.UN) today announced that it has completed the previously announced sale of a portfolio of nine industrial properties located in the Greater Phoenix, ArizonaAnd the Twin Cities region, Minnesota (The “Arizona and Minnesota Industrial Portfolio”).
“This portfolio sale is a further step in our divestment strategy that we have been pursuing for two years,” said Samir ManjiPresident and CEO of Artis. “As reported in our second quarter results last week, our debt to gross book value decreased to 49.8%. June 30, 2024. The proceeds from this sale will be used to further repay debt and will reduce our leverage to below 45%. With a stronger balance sheet and improved liquidity, we can capitalize on growth opportunities, allowing us to increase net asset value per unit and ultimately maximize value for our owners.”
The Arizona and Minnesota Industrial Portfolio includes six properties in the Greater Phoenix, Arizonawith a total rental area of ​​77,500 square meters and three properties in the Twin Cities region, Minnesotaa total of 317,646 square meters of rentable space. The sales price of 197.4 million US dollars represents a price per square foot of 173 US dollarsand the plots had approx. 58.8 million US dollars mortgage financing at the time of sale.
Proceeds from the sale of Arizona and the Minnesota Industrial Portfolio will be used to reduce overall debt.
Artis is a diversified Canadian real estate investment fund with a portfolio of industrial, office and retail properties in Canada And the United StatesArtis’ vision is to become a premier real estate asset management and investment platform with a focus on value investing.
Warnings
This press release contains forward-looking statements. For this purpose, all statements contained herein that are not historical facts may be deemed to be forward-looking statements. Without limiting the foregoing, the words “expects,” “anticipates,” “intends,” “estimates,” “projects,” “seeks” and similar expressions or variations of such words and expressions or statements that certain actions, events or results “may,” “would,” or “will” occur, are intended to identify forward-looking statements. In particular, statements regarding the building of Artis into a premier asset management and investment platform focused on value investing in real estate, the REIT’s ability to strengthen its balance sheet, strengthen its liquidity position, reduce leverage, maximize value and use the proceeds of the transaction are forward-looking statements. Forward-looking statements are based on a number of factors and assumptions used to develop such statements, but may prove to be incorrect. Artis cannot assure investors that actual results will be consistent with actual results.
Artis undertakes no obligation to update or revise any forward-looking statements to reflect actual events or new circumstances. All forward-looking statements contained in this press release are qualified by this cautionary statement.
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Source: Artis Real Estate Investment Trust
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