/NOT FOR DISTRIBUTION IN THE U.S. OR OVER U.S.
NEWSWIRES/
TORONTO, June 27,
2024 /CNW/ - True North Commercial Real Estate
Investment Trust (TSX: TNT.UN) (the "REIT") is pleased to
announce that it has completed the previously announced sale of a
90,550 square foot office property located at 9200 Glenlyon
Parkway, Burnaby, British Columbia
(the "Property") for a sale price of $37.0 million, excluding transaction costs. The
REIT intends to use the net proceeds, after repayment of the
existing first mortgage related to the Property, to repay existing
indebtedness on its credit facility. The sale of the Property,
along with the completion of three other non-core asset sales
previously announced and closed in 2024, has allowed the REIT to
enhance its overall liquidity position while continuing to focus on
the immediately accretive normal course issuer bid repurchase
program ("NCIB") whereby the trust units of the REIT ("Units") can
currently be repurchased at a significant discount to the REIT's
net asset value and at an inferred distribution yield of
approximately 20.0%(1).
"With available liquidity in the market for smaller commercial
properties, the REIT capitalized by strategically disposing select
smaller non-core assets under favourable terms", said Daniel Drimmer, the REIT's Chief Executive
Officer. "All four properties were sold for more than their initial
purchase value. These dispositions underscore the strength of the
REIT's portfolio and its ability to access liquidity and attract
buyers for its assets despite challenging market conditions."
Update on Normal Course Issuer Bid
From the commencement of the NCIB which was renewed on
April 18, 2024 to June 26, 2024, the REIT has repurchased 348,926
Units for approximately $3.2 million
at a weighted average price of $9.14
per Unit resulting in an inferred distribution yield of
approximately 18.7% (2). The REIT intends to continue to
purchase Units under the NCIB until the release of the Q2-2024
results in August of 2024 at which point the REIT will re-evaluate
the continuation of the NCIB program or the reinstatement of a
distribution as operating and capital market conditions
improve.
About the REIT
The REIT is an unincorporated, open-ended real estate investment
trust established under the laws of the Province of Ontario. The REIT currently owns and operates
a portfolio of 40 properties consisting of approximately 4.6
million square feet in urban and select strategic secondary markets
across Canada focusing on long
term leases with government and credit rated tenants.
For more information regarding the REIT, please visit
www.sedarplus.com or the REIT's website at
www.truenorthreit.com.
Forward-Looking Information
Certain statements contained in this news release may constitute
forward-looking statements within the meaning of applicable
Canadian securities laws. These statements relate to future events
or the REIT's future performance. All statements other than
statements of historical fact may be forward-looking statements.
The use of any of the words "may", "might", "will", "could",
"should", "would", "expect", "plan", "anticipate", "believe",
"intend", "seek", "aim", "estimate", "target", "goal", "project",
"predict", "forecast", "potential", "continue", "likely" and
similar expressions are intended to identify forward-looking
statements. Forward-looking statements are often, but not always,
identified by such words. These statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements. In particular, and
without limiting the foregoing, this news release contains
forward-looking statements with respect to the REIT's intentions
with respect to the NCIB and the effects of repurchases of Units
thereunder, including any enhancement to unitholder value. Such
forward-looking information is based on certain assumptions and
analysis made by the REIT in light of its experience and perception
of current conditions and expected future developments as well as
other factors it believes are appropriate in the circumstances.
However, whether actual results, performance or achievements will
conform to the REIT's expectations and predictions is subject to a
number of known and unknown risks and uncertainties which could
cause actual results to differ materially from the REIT's
expectations. Further information regarding the assumptions and
risks inherent in the making of forward-looking statements can be
found in the REIT's most recently filed Annual Information Form
("AIF"), along with the REIT's other public disclosure documents.
Copies of the AIF and the REIT's other public disclosure documents
are available through the REIT's website at
www.truenorthreit.com and through the SEDAR+ website at
www.sedarplus.ca. The forward-looking information included in this
news release is expressly qualified in its entirety by the
foregoing cautionary statements. Unless otherwise stated, the
forward-looking information included in this news release is made
as of the date of this news release and the REIT assumes no
obligation to update or revise any forward-looking information to
reflect new events or circumstances, except as required by law.
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(1) Estimated using the
$1.70775 per Unit distribution prior to reallocating funds used for
distributions to the NCIB and the average market price of the Units
as at June 26, 2024.
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(2) Estimated using the
$1.70775 per Unit distribution prior to reallocating funds used for
distributions to the NCIB and the average cost of Units repurchased
by the REIT through the NCIB program for the period described
above.
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SOURCE True North Commercial Real Estate Investment Trust