Pro REIT closes sale of 12 properties for $51.3-million

Executive Summary

• Pro Real Estate Investment Trust (Pro REIT) completed the sale of 12 non‑core retail properties for total gross proceeds of $51.3 million ($185 per square foot).
• Net proceeds were allocated to repay $27.0 million of related mortgages, $13.0 million of revolving credit facility borrowings, with the remainder earmarked for general business purposes.
• The disposals advance Pro REIT’s strategic shift to a pure‑play light industrial REIT, now comprising 92 % of its gross leasable area (GLA) and 90 % of annualized base rent.

Key Details

• Properties sold: 12 retail assets totaling ~277,000 sq ft GLA.
• Gross proceeds: $51.3 million ($185/ft²), excluding closing costs.
• Breakdown of sales:
• Nine properties previously announced – $39.8 million.
• Three additional properties closed in this transaction – $11.5 million.
• Use of net proceeds:
• $27.0 million to repay related mortgages.
• $13.0 million to partially repay amounts drawn under the REIT’s revolving credit facility.
• Remaining balance for general business purposes.
• Post‑transaction portfolio:
• 106 investment properties (including 50 % interests in 40 properties).
• Approx. 6.4 million sq ft GLA.
• Industrial segment now represents 92 % of GLA and 90 % of annualized base rent; Atlantic Canada accounts for 45 % of annualized base rent.
• Strategic outcome: Completion of the transition from a diversified REIT to a pure‑play light industrial REIT, meeting the medium‑term target of 90 % industrial base rent.
• Brand refresh: Introduction of new logo and tagline “Strong Foundations, Industrial Edge” to reflect the strategic evolution.

Notable Quotes

“Achieving our medium‑term target of 90‑per‑cent industrial base rent marks an important achievement for PROREIT in its evolution from a diversified REIT to a pure‑play light industrial REIT… Looking ahead, we will remain focused on strengthening our position as a prominent Canadian light industrial REIT and on delivering long‑term, sustainable value for our stakeholders.” – Gordon G. Lawlor, President & CEO, Pro REIT