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 price was funded with $3.5 million cash from an expansion of its $63 million credit facility and the issuance of 345,161 trust units ($6.20 per unit) valued at approximately $2.1 million to the seller, Parkit Enterprise Inc.
• The property is fully leased to a national logistics tenant under a long‑term lease with annual rent escalations and renewal options, providing immediate cash flow and a mid‑six percent cap rate.

Key Details

• Purchase Price: $5.4 million (excluding closing costs).
• Price per Square Foot: ~$217/ft².
• Cap Rate: Mid‑six percent.
• Financing Structure:
• $3.5 million cash drawn from an expansion of a previously announced three‑year secured non‑revolving credit facility (originally $63 million) with two one‑year renewal options, fixed swap rate 4.55% for five years.
• Issuance of 345,161 PROREIT trust units at $6.20 per unit to Parkit, representing ~$2.1 million of the consideration.
• Seller: Parkit Enterprise Inc. (TSXV: PKT).
• Property Description: Single‑tenant light industrial cross‑dock facility located at 555 Camiel Sys Street, St. Boniface Industrial Park, Winnipeg; fully occupied by a national logistics tenant with long‑term lease, annual rent escalations, and renewal option.
• Portfolio Impact: Increases PROREIT’s Winnipeg small‑ and mid‑bay portfolio to 23 properties (including one development parcel), totaling ~1.3 million sq ft GLA; positions PROREIT among the top three industrial landlords in Winnipeg.

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 and CEO, PROREIT.

All forward‑looking statements are subject to risks and uncertainties detailed in PROREIT’s latest annual information filing.