Summit Industrial Income REIT Reports Strong Growth & Record Results in 2020

STRATEGIC PORTFOLIO GROWTH
During 2020, the REIT acquired interests in 23 light industrial properties adding approximately 1.7 million square feet of gross leasable area to the portfolio for total costs of approximately $345.1 million. Acquisitions in 2020 included the purchase of the remaining 50% interest in two properties from a joint venture development partner in Guelph, Ontario and the remaining 50% interest in a portfolio of 11 properties in Montreal, Quebec from another joint venture partner.

The REIT also sold two non-core properties in 2020 totaling 63,510 square feet of GLA for total proceeds of approximately $7.8 million. At year end, the REIT held three additional non-core properties for sale totaling 119,041 square feet of GLA with an aggregate fair market value of $15.9 million.

In addition, in 2020 the REIT sold its interest in a data centre property in Toronto for a realized gain of $21.0 million.

Given the REIT's growth during the year, its portfolio totaled 156 properties at December 31, 2020 aggregating 19.4 million square feet with a net book value of approximately $3.0 billion. With the acquisition of the remaining 50% interests in properties from its Montreal joint venture partner in 2020, Summit now internally manages 100% of its property portfolio.

GROWTH AND STRONG OPERATING PEFORMANCE GENERATE RECORD RESULTS
Revenue from income producing properties for the three months and year ended December 31, 2020 rose 24.3% and 34.3%, respectively, due primarily to acquisitions completed during the year, continuing strong occupancies and increased rents.

Same property NOI¹ rose 5.1% and 3.8% for the three months and year ended December 31, 2020, respectively, compared to the same periods in the prior year. In the REIT's target markets of Montreal and Toronto, same property NOI¹ for the year ended December 31, 2020 rose 6.5% and 3.9%, respectively, compared to the prior year, while the Alberta portfolio contributed 0.9% to same property NOI¹ growth. Same property NOI¹ represented approximately 63.8% of total NOI¹ and 68.0% of total GLA for the year ended December 31, 2020.

Net rental income for the three months and year ended December 31, 2020 increased 24.0% and 35.9%, respectively, compared to the same prior year periods due to the increase in same property NOI¹, higher overall rental rates on leasing activities, contractual steps in rent, and accretive acquisitions. Net rental income for the year ended December 31, 2020 was negatively impacted by provisions for tenant receivables of approximately $2.1 million, including approximately $0.5 million representing the 25% rent forgiveness required for certain tenants approved for the government-operated Canadian Emergency Commercial Rent Assistance ("CECRA") program.     

For the three months ended December 31, 2020, FFO¹ was $25.4 million ($0.159 per Unit) up 31.6% from the same prior year period. For the year ended December 31, 2020, FFO¹ was $94.4 million ($0.651 per Unit) up 40.6% from the prior year. The increase in FFO¹ was due primarily to acquisitions completed over the prior twelve months and strong operating performance, partially offset by the sale of the REIT's 50% interest in a data centre property in September 2019. The REIT's growth was highly accretive to Unitholders in 2020 as FFO per Unit rose 11.9% despite the 25.7% increase in Units outstanding.

The REIT's FFO payout ratio¹ for the year ended December 31, 2020 was a conservative 83.0% (67.6% including the benefit of the REIT's DRIP program) compared to 91.5% (80.1% including the benefit of the REIT's DRIP program) in the prior year.

PROACTIVE LEASING PROGRAM
Occupancy in the REIT's portfolio remained stable at 98.0% at December 31, 2020 with a weighted average lease term of approximately 5.5 years. The REIT continues to be proactive in addressing lease expiries well in advance.

The REIT completed 2.1 million square feet of 2020 lease renewals with a strong retention rate of 82.0%. Overall, 2020 renewals generated an average increase in monthly rents of 23.6% over the expiring rent with a significant 27.3% increase over expiring rents in the REIT's GTA target market. The REIT also completed leasing of 671,732 square feet of vacant space with an average lease term of 5.4 years. At December 31, 2020, 9.0% of the portfolio remains to be renewed in 2021.

STRONG BALANCE SHEET AND LIQUIDITY POSITION
Total assets increased to $3.2 billion at December 31, 2020, up from $2.6 billion as at December 31, 2019 due to the acquisition of 23 properties, including the remaining 50% interests 13 properties from the Trust's joint venture partners. Total debt was $1.2 billion at December 31, 2020 compared to $1.1 billion at December 31, 2019. At December 31, 2020, the REIT had a pool of approximately $1.4 billion of unencumbered properties.

On March 23, 2020, the REIT secured a new $300.0 million unsecured revolving credit facility which matures March 23, 2023. At December 31, 2020, this facility remained undrawn.

On June 30, 2020, the REIT completed an up-financing of an assumed mortgage on a Guelph property. The new $40.0 million mortgage replaced the assumed mortgage of $21.0 million at a blended average interest rate of 3.45% (interest rate of 3.05% on the new debt) for an 8-year term (increase from 1.75-year term). The mortgage proceeds were used to pay down a portion of the unsecured revolving credit facility.

In October 2020, the REIT obtained $30.5 million of new 10-year secured mortgage financing placed on four unencumbered investment properties at a fixed interest rate of 2.91%.

In 2020, the REIT completed two successful bought deal equity offerings of 28.7 million REIT Units for total gross proceeds of approximately $368.0 million, including proceeds from the full exercise of the over-allotment options.

In September 2020, the REIT was assigned an issuer rating from DBRS Limited of BBB (low) with a stable trend. On September 17, 2020, the REIT successfully completed its inaugural offering of $250.0 million 5-year Series A senior unsecured debentures at a fixed annual rate of 2.15%. On December 22, 2020, the REIT successfully completed a subsequent offering of $200.0 million 5.5-year Series B senior unsecured debentures at a fixed annual rate of 1.82%. Proceeds from the unsecured debentures were used to repay the REIT's outstanding balance on its non-revolving bridge credit facility, all 2021 mortgage maturities, as well as to finance an acquisition completed subsequent to year end.

At December 31, 2020, the REIT's liquidity position continued to remain very strong at approximately $600 million including cash, available borrowing capacity on its unsecured revolving credit facility, and potential for new debt financing that could be placed on a portion of its $1.4 billion in unencumbered properties.   

At December 31, 2020, the REIT's debt leverage ratio¹ was 37.4% compared to 43.2% at December 31, 2019. The weighted average effective interest rate on the REIT's mortgage portfolio was 3.61% at December 31, 2020 compared to 3.68% at December 31, 2019. Debt service and interest coverage ratios¹ were 2.2x and 3.2x, respectively, for the year ended December 31, 2020, an increase from 1.8x and 2.8x respectively, at the prior year-end. As at December 31, 2020, the REIT had reduced its exposure to floating interest rates to only 0.5% of total loans and borrowings, down from 36.0% at December 31, 2019.

STRONG AND STABLE RENT COLLECTION
Through the pandemic, the REIT has worked diligently with its tenants to collect the majority of its rents. In the second half of 2020 and continuing into 2021 rent collections have returned to pre-pandemic levels. The REIT entered into rent deferral agreements with certain tenants during 2020 for a total of $3.7 million. As of December 31, 2020, $0.6 million of this deferred rent had been repaid on schedule. Subsequent to year end a further $1.3 million has been repaid as scheduled. Management expects the majority of deferred rent to be repaid by mid-2021.

SUBSEQUENT EVENTS
On January 18, 2021, the REIT acquired a 342,830 square foot single-tenant warehousing and logistics facility in Ajax, Ontario for a purchase price of $68.0 million. The acquisition was financed with proceeds received from the Series B senior unsecured debenture offering that closed on December 22, 2020.

INVESTOR CONFERENCE CALL
A conference call will be hosted by Summit II's management team on Thursday, February 18, 2021 at 8.30 am EST. The telephone numbers to participate in the conference call are North America Toll Free: (833) 714-0924 and International: (778) 560-2693. Please use the access code 5236379# when requested. 

A slide presentation to accompany management's comments during the conference call will be available prior to the conference call. To view the slides, access the Summit II website at www.summitiireit.com and follow the link on the page. The live call will also be available as a webcast. To access the audio webcast please access the link on the website at www.summitiireit.com.

FINANCIAL AND OPERATING HIGHLIGHTS

	Three months ended December 31					Year Ended December 31
(in $ thousands, except per Unit amounts)	2020(4)			2019		2020(4)			2019			2018
Portfolio Performance
Occupancy (%)(3)	98.0%			98.5%		98.0%			98.5%			99.4%
Revenue from investment properties	$	51,253		$	41,229	$	190,906		$	142,193		$	92,150
Property operating expenses	14,392			11,508		50,796			39,118			27,310
Net rental income	36,861			29,721		140,110			103,075			64,840
Interest expense (finance costs)	9,819			9,883		41,535			36,068			22,491
Net income(6)	95,586			66,338		206,502			147,586			180,407
Operating Performance
FFO(1)	25,436			19,330		94,389			67,156			43,591
FFO per Unit (1)(2)	0.159			0.144		0.651 Werbung Mehr Nachrichten zur Summit Industrial Income REIT Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:47 - PR Newswire TwentyFour Income Fund - Monthly Factsheet & Commentary - April 2024 10:26 - PR Newswire Aberforth Smaller Companies Trust Plc - Holding(s) in Company 02:00 - PR Newswire FirstGroup Plc - Transaction in Own Shares Paukenschlag in den USA    diese Aktien könnten profitieren weiterlesen» Anzeige wo-site-teaser-box-16981_site-teaser-box_2024-05-17_07%253A00%253A00_2024-05-18_09%253A00%253A59