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TORONTO, Feb. 28, 2022 /CNW/ - Automotive Properties Real
Estate Investment Trust (TSX: APR.UN) ("Automotive Properties REIT"
or the "REIT") announced today that it has waived all conditions
and completed the acquisitions of two Tesla automotive service
properties (the "Properties") for a combined purchase price of
approximately $25.9 million. The
Properties are located at 2180 / 2200 Cyrille-Duquet Street in
Québec City, Québec (the "Cyrille-Duquet Street Property") and 2474
Doral Drive in Innisfil, Ontario
(the "Doral Drive Property"). The Properties are tenanted by Tesla
Canada. The addition of the Properties is expected to be
immediately accretive to the REIT's Adjusted Funds from Operations
("AFFO")¹ per unit on a leverage-neutral basis.
"We continue to increase the electric vehicle component within
our portfolio. We now own five properties tenanted by Tesla
Canada in urban markets across Canada," said Milton
Lamb, CEO of Automotive Properties REIT.
The Cyrille-Duquet Street Property consists of two buildings
totaling 50,763 square feet, including a 20,100 square-foot
automotive service facility situated on approximately 1.16 acres of
land at 2180 Cyrille-Duquet Street, and a 30,663 square-foot
automotive service facility situated on approximately 2.16 acres of
land at 2200 Cyrille-Duquet Street. The Cyrille-Duquet Street
Property is adjacent to Autoroute 440 in an area of substantial
commercial development. The tenant of the Cyrille-Duquet Street
Property has entered into a long-term, triple-net lease with the
REIT. The purchase price for the Cyrille-Duquet Street Property,
including capital improvements and related expenses, is expected to
total approximately $16.0 million
(excluding closing costs).
The Doral Drive Property consists of a 16,670 square-foot
automotive service facility that is situated on approximately 3.1
acres of land along a commercial corridor adjacent to Highway 400,
just south of Barrie. The Doral Drive Property is in close
proximity to several automotive dealerships, including the REIT's
Audi Barrie dealership property. The
tenant of the Doral Drive Property has entered into a long-term,
triple-net lease with the REIT. The purchase price for the Doral
Drive Property, including capital improvements and related
expenses, is expected to total approximately $9.9 million (excluding closing costs).
The REIT funded the respective purchase prices of the
Cyrille-Duquet Street Property and the Doral Drive Property by
drawing on its revolving credit facilities.
About Automotive Properties REIT
Automotive Properties REIT is an unincorporated, open-ended real
estate investment trust focused on owning and acquiring primarily
income-producing automotive dealership properties located in
Canada. The REIT's portfolio
currently consists of 70 income-producing commercial properties,
representing approximately 2.7 million square feet of gross
leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec. Automotive Properties REIT
is the only public vehicle in Canada focused on consolidating automotive
dealership real estate properties. For more information, please
visit: www.automotivepropertiesreit.ca.
(1) Non-IFRS Financial Measure
This news release contains a financial measure which is not
defined under IFRS and may not be comparable to similar measures
presented by other real estate investment trusts or enterprises.
AFFO is a key measure of earnings performance used by real estate
businesses. This measure is not defined by IFRS and does not have a
standardized meaning prescribed by IFRS, and therefore should not
be construed as an alternative to net income or cash flow from
operating activities calculated in accordance with IFRS. The REIT
believes that AFFO is an important measure of economic earnings
performance and is indicative of the REIT's ability to pay
distributions from earnings. The IFRS measurement most directly
comparable to AFFO is net income. Please refer to the REIT's
Management Discussion & Analysis ("MD&A") most
recently filed on SEDAR for further discussion of this non-IFRS
financial measure.
Forward-Looking Information
This news release contains forward-looking information within
the meaning of applicable securities legislation, which reflects
the REIT's current expectations regarding future events and in some
cases can be identified by such terms as "will" and "is expected".
Forward-looking information includes statements regarding the
financial impact of the acquisitions on the REIT's AFFO per unit.
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 the REIT'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. Such risks and
uncertainties include, but are not limited to, the factors
discussed under "Risks & Uncertainties, Critical Judgements
& Estimates" in the REIT's most recent MD&A and in the
REIT's annual information form dated March
23, 2021, both of which are available on SEDAR
(www.sedar.com). The REIT does not undertake any obligation to
update such forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law. This forward-looking information speaks
only as of the date of this news release.
SOURCE Automotive Properties Real Estate Investment Trust