Granite REIT Provides Business Update Related to COVID-19 Pandemic
April 15 2020 - 5:07PM
Business Wire
Granite Real Estate Investment Trust (“Granite”) (TSX: GRT.UN /
NYSE: GRP.U) today provided an update on its current liquidity
position, and the impact of COVID-19 on operations.
COVID-19 virus and various containment measures are having a
major impact on virtually all businesses and sectors globally,
including real estate. Granite’s first priority is to ensure the
safety of our employees and our tenants. Consequently, we have
implemented appropriate procedures to ensure that we are conducting
business in a safe and effective manner. All of our employees are
working remotely from their homes, and we are working diligently
with our service providers to remain operational through this
pandemic.
As at April 14, 2020, Granite had total liquidity of
approximately $740 million, including its fully undrawn $500
million operating facility. Granite’s liquidity is sufficient to
meet payments related to current committed acquisitions,
development and construction projects of approximately $210
million. Granite’s nearest debt maturity of $250 million occurs in
July 2021 and Granite’s investment property portfolio of over $4.5
billion remains fully unencumbered.
With respect to Granite’s operations, the status of rent
collection for April and requests for rent deferral as at April 14,
2020 is summarized below:
- 95% of rent due in respect of April has been received. Granite
is currently in discussions with those tenants in arrears.
- Requests for deferrals of rent have been received from 13
tenants for a weighted average period of 3.5 months and totaling
approximately $6.5 million, representing approximately 2.3% of
Granite’s total portfolio based on annualized rent(1). Discussions
with tenants continue on a case-by-case basis and no deferrals have
been granted to date.
Consistent with Granite’s usual practice, an update on
operational and strategic targets for 2020 will be provided in
Granite’s Management’s Discussion and Analysis (MD&A) for the
first quarter of 2020, expected to be released on May 13, 2020, and
on Granite’s earnings call scheduled for May 14, 2020.
(1) Annualized rent represents rental revenue, excluding tenant
recoveries, for the month of March 2020, recognized in accordance
with IFRS, multiplied by 12 months.
ABOUT GRANITE
Granite is a Canadian-based REIT engaged in the acquisition,
development, ownership and management of industrial, warehouse and
logistics properties in North America and Europe. Granite owns over
90 investment properties representing approximately 40 million
square feet of leasable area.
OTHER INFORMATION
Copies of financial data and other publicly filed documents
about Granite are available through the internet on the Canadian
Securities Administrators’ Systems for Electronic Document Analysis
and Retrieval (SEDAR) which can be accessed at www.sedar.com and on
the United States Securities and Exchange Commission’s Electronic
Data Gathering, Analysis and Retrieval System (EDGAR) which can be
accessed at www.sec.gov. For further information, please see our
website at www.granitereit.com or contact Teresa Neto, Chief
Financial Officer, at 647-925-7560 or Andrea Sanelli, Manager,
Legal & Investor Services, at 647-925-7504.
FORWARD LOOKING STATEMENTS
This press release may contain statements that, to the extent
they are not recitations of historical fact, constitute
“forward-looking statements” or “forward-looking information”
within the meaning of applicable securities legislation, including
the United States Securities Act of 1933, as amended, the United
States Securities Exchange Act of 1934, as amended, and applicable
Canadian securities legislation. Forward-looking statements and
forward-looking information may include, among others, Granite’s
expected ability to meet committed costs related to acquisitions,
development, construction and debt repayment, and Granite’s plans,
goals, strategies, intentions, beliefs, estimates, costs,
objectives, economic performance, expectations, or foresight or the
assumptions underlying any of the foregoing. Words such as “may”,
“would”, “could”, “will”, “likely”, “expect”, “anticipate”,
“believe”, “intend”, “plan”, “forecast”, “project”, “estimate”,
“seek”, “objective” and similar expressions are used to identify
forward-looking statements and forward-looking information.
Forward-looking statements and forward-looking information should
not be read as guarantees of performance or results and will not
necessarily be accurate indications of whether or the times at or
by which such performance or results will be achieved, Granite’s
expected ability to meet committed costs related to acquisitions,
development, construction and debt repayment, the potential for the
COVID-19 pandemic, and government measures to contain it, to
further affect Granite’s operations, or other events, performance
or results and will not necessarily be accurate indications of
whether or the times at or by which such impact of the acquisition
or other events or performance will be achieved. Undue reliance
should not be placed on such statements. Forward-looking statements
and forward-looking information are based on information available
at the time and/or management’s good faith assumptions and analyses
made in light of its perception of historical trends, current
conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances,
and are subject to known and unknown risks, uncertainties and other
unpredictable factors, many of which are beyond Granite’s control,
that could cause actual events or results to differ materially from
such forward-looking statements and forward-looking information.
Important factors that could cause such differences include, but
are not limited to, the risks set forth in the annual information
form of Granite Real Estate Investment Trust and Granite REIT Inc.
dated March 4, 2020 (the “Annual Information Form”). The “Risk
Factors” section of the Annual Information Form also contains
information about the material factors or assumptions underlying
such forward-looking statements and forward-looking information.
Forward-looking statements and forward-looking information speak
only as of the date the statements and information were made and
unless otherwise required by applicable securities laws, Granite
expressly disclaims any intention and undertakes no obligation to
update or revise any forward-looking statements or forward-looking
information contained in this press release to reflect subsequent
information, events or circumstances or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200415005746/en/
Teresa Neto, Chief Financial Officer 647-925-7560 or Andrea
Sanelli, Manager, Legal & Investor Services 647-925-7504
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