TORONTO and MONTREAL, Jan. 18, 2022 (GLOBE NEWSWIRE) -- Nexus Real Estate Investment Trust (TSX: NXR.UN) (“Nexus” or the “REIT”) provides an acquisition update and announces its intention to change its name to Nexus Industrial REIT.
“2021 was a very active year for the REIT. We grew our industrial portfolio significantly and completed three very successful equity offerings, raising gross proceeds of approximately $295 million and issuing 25,717,106 units, greatly increasing trading liquidity” stated Kelly Hanczyk, the REIT’s Chief Executive Officer. “This growth, and our planned further industrial acquisitions are pushing us closer to becoming Canada’s next pure play industrial REIT. As we grow, we have also been high grading the quality of our portfolio. Today we are announcing our intention to change our name to Nexus Industrial REIT, subject to receiving TSX approval. Nexus began as an industrial focused REIT and the REIT has solely acquired industrial properties over the last several years. We feel that the new name better reflects the nature of the REIT’s current portfolio and its strategy of being a pure play industrial REIT.”
Acquisition Update
2021
Through to September 30, 2021, the REIT completed the acquisition of 16 industrial properties totalling 2.4 million square feet of gross leasable area (“GLA”) for an aggregate purchase price of $257.8 million, representing a weighted average going-in cap rate of 6.55%.
As previously announced, on October 1, 2021, the REIT completed the $230.4 million acquisition of three distribution centres with a total of 1.4 million square feet of GLA.
On October 13, 2021, the REIT completed the $11.5 million acquisition of a single-tenanted industrial property with 101,073 square feet of GLA located in Windsor, Ontario.
On November 1, 2021, the REIT completed the previously announced acquisition of a 391,074 square foot industrial property located at 1040 Wilton Grove Road and 961 Pond Mills Road in London, Ontario for a contractual purchase price of $44.1 million, representing a going-in capitalization rate of approximately 5.9%.
On November 19, 2021, the REIT completed the acquisition of a single-tenant class A distribution centre located in Nisku, Alberta with approximately 142,000 square feet of GLA and 18.5 acres for a purchase price of $15.25 million USD.
On December 9, 2021, the REIT completed the previously announced acquisition of a 50% interest in a newly constructed automated grocery customer fulfilment centre located in Point-Claire (Montreal), Quebec for $98.2 million. The 309,000 square foot (plus 186,000 square foot mezzanine) class A property is single tenanted by a subsidiary of Empire Company Limited.
On December 30, 2021, the REIT completed the acquisition of an approximately 100,000 square foot single-tenant distribution centre located in London, Ontario for a purchase price of $12.55 million.
In total, the REIT acquired 24 industrial properties in 2021, adding approximately 4.7 million square feet of GLA for an aggregate purchase price of $684.5 million, representing a 5.77% weighted average going in capitalization rate.
2022
On January 12, 2022, the REIT completed the $28 million acquisition of an approximately 180,000 square foot multi-tenant industrial property with 22 acres of excess land located in Regina, Saskatchewan.
The REIT is under contract to acquire in the remainder of 2022:
- An approximately 100,000 square foot newly constructed distribution centre located in the Montreal, Quebec area for a purchase price of $28.9 million, expected to close on February 1, 2022.
- An approximately 210,000 square foot industrial warehouse located in Edmonton, Alberta for a purchase price of $38.2 million, expected to close on February 7, 2022.
- Two industrial properties located in Edmonton, Alberta with total GLA of approximately 550,000 square feet for a purchase price of $91 million.
- A 72,420 square foot industrial property in Edmonton, Alberta for $14.75 million.
- 3 properties located in London, Ontario with a total GLA of approximately 340,000 square feet for approximately $35.7 million.
The weighted average capitalization rate for the property acquired on January 12, 2022 and the above properties under contract is 5.12%.
2023
The REIT is under contract to acquire:
- An approximately 550,000 square foot newly constructed distribution centre in Ontario for a $116.5 million purchase price. The property is leased long-term to an investment grade tenant. The building is currently being constructed and the acquisition is expected to close in early 2023.
- An approximately 325,000 square foot industrial property including an approximately 175,000 square foot newly constructed addition in London, Ontario for a purchase price of approximately $50.6 million. The addition is currently being constructed and the acquisition is expected to close in early 2023. The purchase price represents a 6.0% going-in capitalization rate.
Planned Name Change
The REIT announced today its intention to change its name to Nexus Industrial REIT, subject to receiving TSX approval. Nexus feels that the new name better reflects the nature of the REIT’s current portfolio and its strategy of acquiring quality industrial assets located in primary and secondary markets across Canada.
About Nexus REIT
Nexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada and potentially including the United States, and the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 98 properties comprising approximately 9.3 million square feet of gross leasable area. The REIT has approximately 57,325,000 Units issued and outstanding. Additionally, there are Class B LP Units of subsidiary limited partnerships of Nexus issued and outstanding, which are convertible into approximately 19,665,000 Units.
For further information please contact:
Kelly Hanczyk, CEO at (416) 906-2379; or
Rob Chiasson, CFO at (416) 613-1262.
