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Summit Industrial Income REIT (2)
Symbol SMU
Shares Issued 168,196,130
Close 2021-06-21 C$ 17.67
Recent Sedar Documents

Summit arranges $200-million at-the-market program

2021-06-21 22:19 ET - News Release

Ms. Dayna Gibbs reports

SUMMIT INDUSTRIAL INCOME REIT ANNOUNCES ESTABLISHMENT OF $200 MILLION AT-THE-MARKET EQUITY PROGRAM AND OTHER UPDATES

Summit Industrial Income REIT has established an at-the-market equity program, has filed a short form base shelf prospectus and has made certain amendments to its distribution reinvestment plan (DRIP).

"The establishment of the ATM program will provide the [real estate investment trust] with further flexibility with respect to its equity financing strategy that may be used in conjunction with existing funding sources while providing a cost-efficient way of matching capital requirements as appropriate," commented Dayna Gibbs, chief operating officer.

ATM program

The ATM program allows the REIT to issue, at its discretion, up to $200-million of REIT units over a 25-month period until July 21, 2023, unless the ATM program is terminated prior to such date by the REIT, or otherwise in accordance with its terms. Any units issued pursuant to the ATM program will be issued from treasury, through the Toronto Stock Exchange or any other marketplace on which the units are listed, quoted or otherwise traded in Canada.

The volume and timing of distributions under the ATM program, if any, will be determined at the REIT's sole discretion. Since the units distributed pursuant to the ATM program will be distributed to the public at prevailing market prices at the time of sale, prices may vary among purchasers and during the period of distribution.

The REIT intends to use the net proceeds from the ATM program, if any, to finance future acquisitions, development and redevelopment opportunities, repayment of indebtedness, and/or other general trust purposes.

Sales of units through the ATM program, if any, will be made pursuant to the terms of an equity distribution agreement dated June 21, 2021 (the EDA), among the REIT and BMO Capital Markets, Canaccord Genuity, Desjardins Securities, National Bank Financial and RBC Capital Markets as agents.

The REIT has filed with the securities regulatory authorities in each of the provinces and territories of Canada a prospectus supplement dated June 21, 2021, to the shelf prospectus for the ATM program. You may access these documents and the EDA by visiting SEDAR.

Shelf prospectus

The REIT also announced today that it has filed and obtained a receipt for the shelf prospectus. The shelf prospectus was filed with securities regulatory authorities in each of the provinces and territories of Canada on June 21, 2021, for the purpose of the sale of securities.

The shelf prospectus is valid for a 25-month period, during which time the REIT may issue, from time to time, units (including under the ATM program), debt securities, subscription receipts or any combination thereof, having an aggregate offering price of up to $2.25-billion.

The shelf prospectus was filed to provide the REIT with continued financial flexibility and efficient access to Canadian capital markets. The previous final base shelf prospectus dated May 28, 2019, as amended, was set to expire on June 28, 2021.

Amendment to the distribution reinvestment plan

The REIT has received approval from the Toronto Stock Exchange to amend its DRIP. Effective today, the DRIP was amended such that the number of additional REIT units to which unitholders participating in the DRIP are entitled to receive will be changed from 5 per cent to 3 per cent of the amount of their reinvested distribution.

Pursuant to the DRIP, registered or beneficial unitholders of the REIT who are resident in Canada can acquire additional REIT units by reinvesting all, or a portion of, their monthly cash distributions without paying brokerage commissions. REIT units purchased under the DRIP are issued at a price per REIT unit calculated by reference to the volume-weighted average of the trading price for the REIT units on the TSX for the five trading days immediately preceding the date the relevant distribution is paid. Effective today, unitholders who elect to participate in the DRIP will receive a distribution of REIT units equal to 3 per cent of each distribution pursuant to the DRIP.

Participants in the DRIP who wish to amend or alter their participation in the DRIP should make arrangements with their broker, dealer, bank or other market participant. The terms of the DRIP are available on SEDAR and the REIT's website.

About Summit Industrial Income REIT

Summit Industrial Income is an unincorporated open-end trust focused on expanding and managing a portfolio of light industrial properties across Canada. Summit's units are listed on the TSX and trade under the symbol SMU.UN.

We seek Safe Harbor.

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