Mr. Paul Dykeman reports

SUMMIT INDUSTRIAL INCOME REIT TO ACQUIRE SIX-BUILDING GTA INDUSTRIAL PARK

Summit Industrial Income REIT has waived conditions and will acquire 100 per cent of the Cochrane business park, a six-building light industrial campus located in Markham within the Greater Toronto Area (GTA). The six buildings total 228,719 square feet of gross leasable area (GLA). Summit will pay $45.15-million for the campus, well below replacement cost, financed by its acquisition credit facility and generating a going-in capitalization rate of approximately 4.3 per cent. Closing is expected on or before Feb. 14, 2020.

The campus consists of four single-tenant and two multitenant buildings, all with 24-foot clear ceiling heights and well located on Highway 7 with convenient access to both Highway 404, Highway 407 and the extensive GTA transportation network. The park is fully serviced by transit and commuter systems with ample parking for tenants. Occupancy for the portfolio is 94.4 per cent with a diverse group of traditional warehouse and industrial users, food production, studios, and service companies. No single tenant represents more than 21 per cent of the park's GLA. In-place rents are estimated to be approximately 50 per cent below market, providing a solid opportunity to increase returns as leases are renewed over time. The weighted average lease term for the campus is only 2.6 years.

"We are very pleased to be acquiring this modern industrial park with a prime location in an established GTA industrial node. The buildings contain very functional, highly leasable space and have been well maintained to an institutional standard," commented Paul Dykeman, chief executive officer. "This acquisition is an excellent example of how we are accretively building scale in the GTA, Canada's largest and strongest industrial market."

About Summit Industrial Income REIT

Summit Industrial Income is an unincorporated open-end trust focused on growing and managing a portfolio of light industrial properties across Canada.

We seek Safe Harbor.