Primaris REIT Provides Company Update Following Spin-off and Completion of HOOPP Transaction
Index inclusion, estimated NAVPU $ 22, Industry leading credit indicators, $ 700 million Credit facility
TORONTO, January 4, 2022 / CNW / – Primaris Real Estate Investment Trust (“Primaris REIT” or “Primaris”) (TSX: PMZ.UN) today provides an update on the activity following the finalization of the demerger by H&R REIT of Primaris REIT in a new independent company, a listed real estate investment trust, which closed the December 31, 2021.
“Primaris REIT begins in 2022 as a new independent Canadian REIT with a strong balance sheet, exceptional team and operating platform, and significant market opportunity,” said Alex avery, CEO of Primaris REIT.
Toronto Stock Exchange (âTSXâ) approval for listing and posting for trading of Primaris REIT Units has been received, and Primaris REIT Units will begin trading on the TSX under the symbol “PMZ.UN” the January 5, 2022.
In conjunction with the start of trading in PMZ.UN, Primaris REIT should be added to all indices where H&R REIT is a constituent, including the S & P / TSX Composite Index and the S & P / TSX Capped REIT Index.
$ 800 million HOOPP Transaction Completed, Scale Up, Diversify
Immediately following the spin-off, Primaris REIT completed the acquisition of six shopping centers and two additional properties from the Healthcare of Ontario Pension Plan (HOOPP) for $ 800 million, made up of $ 600 million of REIT units, the balance being paid in cash. The acquired properties provide Primaris REIT with additional economies of scale, geographic and tenant diversification, and make the REIT a stronger partner for retailers.
“With the acquisition of HOOPP, Primaris REIT can leverage the benefits of scale to improve operational performance,” said Patrick sullivan, President and Chief Operating Officer of Primaris REIT. âAlmost 100 new employees have joined Primaris REIT as part of the acquisition, and the process of integrating these new assets into the Primaris platform is already well advanced.
Robust liquidity, industry-leading credit indicators
Primaris is also announcing today that it has closed a $ 700 million credit facility with a syndicate of Canadian banks led by CIBC, Scotiabank and BMO and comprising RBC, TD and Desjardins. The availability on the credit facility will decrease from $ 700 million at $ 400 million to June 30, 2023, and has a due date of December 31, 2024.
âPrimaris REIT begins 2022 with strong liquidity and a differentiated balance sheet and financial model,â said Rags Davloor, Chief Financial Officer of Primaris REIT. “The strong financial position of the REIT is demonstrated by its low leverage of approximately 29% compared to the appraised value of the assets.1, and significant unused capacity on its new syndicated line of credit. As a result, we aim for a high quality credit rating and expect to enter the unsecured debenture market in 2022. â
From January 4, 2022, the main balance sheet items of Primaris REIT include:
Investment property valued at $ 3.2 billion from Primaris, as described in the H&R REIT Management Information Circular dated November 5, 2021, available on H&R REIT’s SEDAR profile at www.sedar.com
$ 930 million of total debt, of which:
Approximately 101.6 million units issued and outstanding in total of Primaris REIT, of which 3.3 million are exchangeable units
Taking into account the balance sheet items and working capital balances mentioned above, management estimates the net asset value per unit (“NAVPU”)2 around $ 22.00 per share Primaris REIT.
About Primaris FPI
Primaris REIT is from Canada The only REIT focused on closed malls, with interests primarily in closed malls that are dominant in their trading areas. The portfolio totals 11.4 million square feet and is valued at approximately $ 3.2 billion from Primaris. Economies of scale are realized through its fully in-house, vertically integrated, full-service national management platform. Primaris REIT is very well capitalized and is uniquely positioned to take advantage of market opportunities at an extraordinary time in the changing Canadian commercial real estate landscape.
Non-GAAP financial measures
This press release contains references to NAVPU or âNet Asset Value per Unit,â which is a non-GAAP financial measure. The term NAVPU does not have a standardized meaning under GAAP and therefore may not be comparable to similar measures presented by other issuers. No comparable GAAP financial measure is presented in Primaris’ consolidated financial statements and, therefore, no applicable quantitative reconciliation for such non-GAAP financial measure. Management believes that the measure provides useful information to its unitholders to understand the financial condition and performance of Primaris REIT, and can help assess Primaris REIT’s business against those of its peers. These data are provided to provide additional information and do not have any standardized meaning prescribed by GAAP. Therefore, it should not be viewed in isolation or as a substitute for measures of performance or financial position prepared in accordance with GAAP, and is not necessarily indicative of other measures presented in accordance with GAAP. The existing NAV of Primaris REIT is not necessarily predictive of the future performance of Primaris REIT or the NAV of Primaris Ras at a future date.
Calculated by dividing the total indebtedness of $ 930 million by the total appraised value of investment properties of $ 3.2 billion.
non-GAAP ratio. See âNon-GAAP Financial Measuresâ in this press release.
Certain statements contained in this press release contain forward-looking statements within the meaning of applicable securities laws (also called forward-looking statements). These forward-looking statements include, without limitation, statements regarding the listing and trading of units of Primaris REIT, the inclusion of Primaris REIT in certain indices, the integration of the acquisition of HOOPP, the prosecution by Primaris REIT’s investment grade credit rating, its expectation of entering the unsecured debenture market in 2022 and Primaris REIT’s NAVPU, and other statements in this release that are not historical facts. These forward-looking statements reflect Primaris’ current beliefs and are based on information currently available to management. These statements are not guarantees of future performance or events and are based on Primaris’ estimates and assumptions which are subject to risks and uncertainties, including those set forth in the H&R management information circular. REIT dated November 5, 2021 and in Primaris’ documents filed with Canadian securities regulatory authorities from time to time, which could cause the actual results and performance of Primaris to differ materially from the forward-looking statements contained in this press release. Although the forward-looking statements contained in this press release are based on what Primaris believes to be reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. There can be no assurance that the proposed transaction will take place or that the anticipated benefits will be realized. The proposed transaction could be amended, restructured or terminated. All forward-looking statements contained in this press release are qualified by these cautionary statements. These forward-looking statements are made to date and Primaris, except as required by applicable law, assumes no obligation to update or revise them to reflect new information or the occurrence of future events or circumstances.
Additional information about Primaris is available at www.primarisreit.com and at www.sedar.com. For more information please contact Alex avery, Primaris REIT (416) 642-7800, or by email at [email protected]
SOURCE Primaris Real Estate Investment Trust
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