WINNIPEG, MB,
Aug. 12,
2024 /CNW/ - Artis Real Estate Investment Trust
("Artis" or the "REIT") (TSX: AX.UN) announced today that it has
closed on the previously disclosed sale of a portfolio of nine
industrial properties located in the Greater Phoenix Area, Arizona, and the
Twin Cities Area, Minnesota
(the "Arizona and Minnesota
Industrial Portfolio").
"This portfolio sale is one further step in our overall
disposition strategy that has been in place for the past two
years," said Samir Manji, President
and Chief Executive Officer of Artis. "As reported in our second
quarter results announced last week, our debt to gross book value
has decreased to 49.8% at June 30,
2024. Proceeds from this sale will be used to further
decrease debt and will bring our leverage below 45%. With a
stronger balance sheet and enhanced liquidity, we can pursue growth
opportunities, enabling us to grow net asset value per unit and
ultimately maximize value for our owners."
The Arizona and Minnesota
Industrial Portfolio comprises six properties located in the
Greater Phoenix Area, Arizona, totalling 822,393 square feet of
leasable area and three properties located in the Twin Cities Area, Minnesota, totalling 317,646 square feet of
leasable area. The sale price of US$197.4
million represents a price per square foot of US$173, and the properties had approximately
US$58.8 million of mortgage financing
at the time of the sale.
Proceeds from the sale of the Arizona and Minnesota Industrial Portfolio
will be used to reduce overall debt.
Artis is a diversified Canadian real estate investment trust
with a portfolio of industrial, office and retail properties in
Canada and the United States. Artis's vision is to become
a best-in-class real estate asset management and investment
platform focused on value investing.
Cautionary Statements
This press release contains forward-looking statements. For this
purpose, any statements contained herein that are not statements of
historical fact 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 phrases or state that
certain actions, events or results ''may'', ''would'' or ''will''
occur or be achieved are intended to identify forward-looking
statements. Particularly, statements regarding building Artis into
a best-in-class 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 of proceeds of the transaction are
forward-looking statements. Forward-looking statements are based on
a number of factors and assumptions which have been used to develop
such statements, but which may prove to be incorrect. Artis cannot
assure investors that actual results will be consistent with
any forward-looking statements and Artis assumes no obligation
to update or revise such 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.
Suite 600-220 Portage Avenue
Winnipeg, MB R3C 0A5
T 204.947.1250 F 204.947.0453
www.artisreit.com
AX.UN on the TSX
SOURCE Artis Real Estate Investment Trust