Mr. Gordon Lawlor reports

PROREIT COMPLETES SALE OF THREE NON-CORE PROPERTIES AND PROVIDES BUSINESS UPDATE

Pro Real Estate Investment Trust has completed the sale of three non-core retail properties totalling approximately 68,000 square feet of gross leasable area (GLA) for total gross proceeds of $13.2-million, excluding closing costs. Proceeds of the sale were used to repay approximately $4.4-million in related mortgages, with the balance used for general business purposes.

Additionally, Pro REIT announced that it has refinanced its remaining mortgages maturing in 2023 with current lenders. The refinancing included a two-year renewal of approximately $19-million at a rate of 6.64 per cent and a one-year renewal of approximately $5.9-million at a rate of 6.93 per cent.

"We are pleased with the sale of these non-core assets as we continue to optimize our portfolio and generate organic growth, as evidenced by our successful GLA renewals for 2023 and 2024," said Gordon G. Lawlor, president and chief executive officer of Pro REIT. "With the refinancing of all mortgages for 2023 completed, we now have additional near-term financial flexibility and are well positioned to capture future opportunities in the industrial sector."

Portfolio transaction details

Including today's announcement, Pro REIT has sold seven non-core properties in 2023, as noted herein.

Following these dispositions, Pro REIT owns 123 investment properties (including a 50-per-cent ownership interest in 42 investment properties) representing approximately 6.2 million square feet of GLA, with the industrial segment accounting for 82 per cent of GLA and 73 per cent of base rent.

Business update

As of today's date, Pro REIT's occupancy rate remains high at approximately 98 per cent, including committed occupancy.

About 90 per cent of 2023 GLA has been renewed at approximately 44 per cent positive average spread and about 26 per cent of 2024 GLA has been renewed at approximately 28 per cent positive average spread.

Mortgage maturity exposure is limited to approximately $33-million for 2024, and Pro REIT has $43-million available on its credit facility.

About Pro Real Estate Investment Trust

Pro REIT is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. Founded in 2013, Pro REIT owns a portfolio of high-quality commercial real estate properties in Canada, with a strong industrial focus in robust secondary markets.

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