Agellan Commercial Real Estate Investment Trust :
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES
Agellan Commercial Real Estate Investment Trust (“Agellan”) (TSX: ACR.UN) provided an update today on positive leasing activity that occurred during the second quarter of 2017.
- Agellan has continued to build on the leasing momentum reported during the first quarter of 2017 and, to date, has re-leased approximately 61% of the 215,000 square feet that was set to expire during 2017 and 2018 at its Consumers Road office complex. These new and amended leases reflect initial weighted average net rents that are comparable to the weighted average net rents of the expiring leases, but include contractual rent increases over the terms of the leases.
- Leasing momentum has also continued at the retail and parking facility under development at Agellan’s Consumers Road office complex. During the second quarter of 2017, Agellan entered into leases and binding offers to lease for approximately 8,000 square feet of retail space. In aggregate, Agellan has leases and binding offers to lease covering approximately 21,000 square feet of the total 42,000 square feet and is in leasing discussions with several other retailers for the remaining retail space in the facility.
- During the second quarter of 2017, Agellan entered into a lease amending agreement with CEVA Freight, LLC at its Plainfield, Indiana distribution centre. This renewal addresses Agellan’s single largest potential lease expiration of 2017 and extends the current lease term by 5 years.
- Agellan continues to focus on eliminating the vacancy recently experienced at its Naperville, Illinois office property and, during the second quarter of 2017, entered into a new lease for approximately 20,000 square feet. The lease is expected to commence towards the end of the fourth quarter of 2017 and has a term of approximately 11 years.
- Leasing achievements at Agellan’s Atlanta, Georgia industrial properties continued throughout the second quarter of 2017 with approximately 36,000 square feet being renewed. Rental rate growth continues in Atlanta with the aforementioned renewals occurring at weighted average net rents that are approximately 5% greater than the weighted average net rents of the expiring leases.
- Additionally, Agellan has entered into leases representing approximately 27,000 square feet at its Atlanta industrial properties, increasing the weighted average occupancy of the properties by approximately 3%.
July 2017 Distribution
Agellan announced today that its Board of Trustees has declared a distribution of $0.06458 per unit for the month of July, 2017, representing $0.775 per unit on an annualized basis. The distribution will be payable on August 15, 2017 to unitholders of record as at July 31, 2017.
Agellan offers a distribution reinvestment plan (“DRIP”) to unitholders whereby the participants may elect to have their cash distributions used to purchase trust units of Agellan. Unitholders wishing to participate should contact their investment advisor to enroll in the DRIP.
Second Quarter Conference Call
Agellan will hold a conference call to discuss its financial performance for the three-month period ended June 30, 2017 on Tuesday, August 15, 2017 at 2:00 p.m. (Toronto time). The financial results will be released prior to the call.
To access the call, please dial 1-416-340-2217 or 1-888-789-9572 and enter the participant pass code: 6267054. For operator assistance during the call, please press *0.
A replay of the conference call will be available from 5:00 p.m. (Toronto time) on August 15, 2017 until midnight (Toronto time) on August 29, 2017. To access the replay, please call 1-905-694-9451 or 1-800-408-3053 and enter participant pass code: 4520624.
About Agellan Commercial Real Estate Investment Trust
The REIT is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning industrial, office and retail properties in select target markets in the United States and Canada.
The REIT’s 44 properties contain 7.0 million square feet of gross leasable area, with the REIT’s ownership interest at 6.7 million square feet. The properties are located in major urban markets in the United States and Canada.
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects Agellan’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Agellan’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. These forward-looking statements are made as of the date of this press release and, except as expressly required by applicable law, Agellan assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Agellan Commercial Real Estate Investment Trust
Frank Camenzuli, CEO
Tel: (416) 593-6800, x226
Fax: (416) 593-6700