Mr. Gordon Lawlor reports

PROREIT COMPLETES SALE OF TWO NON-CORE PROPERTIES FOR GROSS PROCEEDS OF $20.7 MILLION

Pro Real Estate Investment Trust has completed the sale of two non-core properties totalling approximately 124,000 square feet of gross leasable area (GLA) for total gross proceeds of $20.7-million, excluding closing costs. Proceeds of the sale were used to repay approximately $16-million in related mortgages, with the balance used for general business purposes.

In addition, Pro REIT has entered into an unconditional sale agreement in respect of a 10,000-square-foot non-core retail property for approximately $5.4-million. The sale is expected to be completed in the next 30 days and is subject to customary closing conditions.

"We are pleased with the sale of these non-core assets as we continue to optimize both our portfolio and balance sheet while focusing on our organic growth in the industrial property sector," said Gordon G. Lawlor, president and chief executive officer of Pro REIT. "From the proceeds of these sales, we used $8.3-million to reduce the mortgage maturities due in 2024 from approximately $33.2-million to $24.9-million."

Transaction details

The details for the completed dispositions, which represent the first portfolio transactions in fiscal 2024, are as shown in the attached table.

Following the two completed dispositions, Pro REIT owns 121 investment properties (including a 50-per-cent ownership interest in 42 investment properties), representing approximately 6.2 million square feet of GLA. As of Feb. 15, 2024, the industrial segment accounts for 82.9 per cent of GLA and 74.4 per cent of base rent, up from 81.3 per cent and 71.7 per cent, respectively, at Sept. 30, 2023.

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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