TORONTO--(EON: Enhanced Online News)--Agellan Commercial Real Estate Investment Trust (“Agellan”) (TSX: ACR.UN)
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Agellan Commercial Real Estate Investment Trust (“Agellan”) (TSX: ACR.UN) provided an update today on positive leasing activity that occurred during the first quarter of 2017.
- Year to date, Agellan entered into leases at its Parkway Place office properties relating to approximately 68% of leases that were scheduled to expire during 2017. These new and amended leases reflect weighted average net rents that are approximately 5.75% higher than the comparable expiring weighted average net rents.
- Leasing achievements also continue to be made at the retail and parking facility under development at Parkway Place, with approximately 13,000 square feet of such space having been leased or being subject to binding offers to lease. Agellan is in discussions with several other retailers for the remaining 30,000 square feet of retail space within the facility and has seen an increase in leasing momentum as development activities near completion.
- During the first quarter of 2017, Agellan entered into new leases representing approximately 11,000 square feet and lease renewals representing approximately 42,000 square feet, in each case at its industrial properties in Atlanta, Georgia.
- These lease renewals account for approximately 33% of all 2017 scheduled lease expiries in Agellan’s Atlanta portfolio and were completed at weighted average net rents that were approximately 18% higher than the comparable expiring weighted average net rents.
- Agellan has had continued leasing success with its Houston-area office and industrial properties. During the first quarter of 2017, Agellan leased approximately 40,000 square feet of industrial space at its Minimax Drive property, thereby eliminating the remaining vacancy at the property effective as of May 1, 2017. This industrial space was re-leased with an approximate 32% increase in net rental rates as compared with the net rent rate of the previous tenant.
- During the first quarter of 2017, Agellan also renewed tenants within its Houston industrial portfolio totaling approximately 70,000 square feet of gross leasable area. These lease renewals account for approximately 25% of the 2017 scheduled lease expiries at Agellan’s Houston industrial properties, and were completed at weighted average net rental rates that were approximately 4% higher than the comparable expiring weighted average net rental rates.
April 2017 Distribution
Agellan also announced today that its Board of Trustees has declared a distribution of $0.06458 per unit for the month of April, 2017, representing $0.775 per unit on an annualized basis. The distribution will be payable on May 15, 2017 to unitholders of record as at April 28, 2017.
Agellan offers a distribution reinvestment plan (“DRIP”) to unitholders whereby the participants may elect to have their cash distributions used to purchase trust units of Agellan. Unitholders wishing to participate should contact their investment advisors to enroll in the DRIP.
First Quarter Conference Call
Agellan announced today that it will hold a conference call to discuss its financial performance for the three-month period ended March 31, 2017 on Tuesday, May 9, 2017 at 2:00 p.m. (Toronto time). The financial results will be released prior to the call.
To access the call, please dial 1-416-340-2217 or 1-800-806-5484 and enter the participant pass code: 3660591. For operator assistance during the call, please press *0.
A replay of the conference call will be available from 5:00 p.m. (Toronto time) on May 9, 2017 until midnight (Toronto time) on May 24, 2017. To access the replay, please call 1-905-694-9451 or 1-800-408-3053 and enter participant pass code: 6267024.
About Agellan Commercial Real Estate Investment Trust
Agellan is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT was created for the purpose of acquiring and owning industrial, office and retail properties in select target markets in the United States and Canada.
The REIT’s current portfolio represents approximately 5.9 million square feet of gross leasable area in 34 properties. The properties are primarily located in major urban markets in the United States and Canada.
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects Agellan’s current expectations regarding future events. 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 Agellan’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. These forward-looking statements are made as of the date of this press release and, except as expressly required by applicable law, Agellan assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.