PROREIT ANNOUNCES ACQUISITION OF INDUSTRIAL PROPERTY IN WINNIPEG FOR $5.4 MILLION

Executive Summary

• PROREIT acquired a 100% interest in a 24,665 sq ft industrial property in Winnipeg for $5.4 million, expanding its Winnipeg portfolio to 23 properties (~1.3 M sq ft GLA).
• The purchase was funded with $3.5 million cash from an expansion of its existing $63 million credit facility and the issuance of ~345,161 trust units (valued at $6.20 per unit) representing $2.1 million to the seller, Parkit Enterprise Inc.
• The transaction is accretive, adds a fully‑occupied single‑tenant cross‑dock with long‑term lease terms, and reinforces PROREIT’s position among the top three industrial landlords in Winnipeg.

Key Details

• Purchase Price: $5.4 million (excluding closing costs), equivalent to ~$217 per sq ft and a mid‑six percent cap rate.
• Seller: Parkit Enterprise Inc. (TSXV: PKT).
• Financing Mix:
• $3.5 million cash drawn from an expansion of the existing three‑year secured non‑revolving credit facility (originally $63 million) at a fixed five‑year swap rate of 4.55%.
• Approximately $2.1 million satisfied by issuing 345,161 PROREIT trust units to Parkit at $6.20 per unit.
• Property Description: Single‑tenant light industrial cross‑dock located at 555 Camiel Sys Street, St. Boniface Industrial Park, Winnipeg; fully occupied by a national logistics tenant under a long‑term lease with annual rent escalations and renewal option.
• Portfolio Impact: Increases Winnipeg small‑ and mid‑bay holdings to 23 properties (including one development parcel), totaling ~1.3 million sq ft GLA.
• Strategic Rationale: Strengthens PROREIT’s market position in Winnipeg, creates long‑term growth opportunities for unitholders, and leverages the strategic relationship with Parkit.

Notable Quotes

“This accretive industrial property acquisition further strengthens our position in the Winnipeg market where we are now among the top three largest industrial landlords,” – Gordon Lawlor, President & CEO, PROREIT.