MONTREAL and TORONTO, July 22, 2020 (GLOBE NEWSWIRE) -- Nexus Real Estate Investment Trust (the “REIT”) (TSXV: NXR.UN) announced today that it intends to release its financial results for the quarter ended June 30, 2020 before the opening of the TSX Venture Exchange on Friday August 14, 2020.
Management of the REIT will host a conference call at 1:00 PM Eastern Standard Time on Friday August 14, 2020 to review the financial results and operations.
To participate in the conference call, please dial 416-915-3239 or 1-800-319-4610 (toll free in Canada and the US) at least five minutes prior to the start time and ask to join the Nexus REIT conference call.
A recording of the conference call will be available until September 14, 2020. To access the recording, please dial 604-674-8052 or 1-855-669-9658 (toll free in Canada and the US) and enter access code 5006.
July and August Distributions
The REIT announced today that it will make a cash distribution in the amount of $0.01333 per unit, representing $0.16 per unit on an annualized basis, payable August 14, 2020 to unitholders of record as of July 31, 2020.
The REIT will also make a cash distribution in the amount of $0.01333 per unit, representing $0.16 per unit on an annualized basis, payable September 15, 2020 to unitholders of record as of August 31, 2020.
The REIT’s current distribution per unit continues to be $0.01333 per month. The REIT’s distribution reinvestment program (“DRIP”) entitles eligible unitholders to elect to receive all, or a portion of the cash distributions of the REIT reinvested in units of the REIT. Eligible unitholders who so elect will receive a bonus distribution of units equal to 4% of each distribution that was reinvested by them under the DRIP.
TSX Graduation Update
The REIT had previously announced its intention to graduate to the TSX. Earlier this year, as COVID-19 impacts began to intensify, the decision was made to temporarily postpone graduation. Now that economic reopening is underway across the country, the REIT intends to again work towards graduating to the TSX and expects that it will make a formal TSX listing application by the end of the third quarter. Listing will ultimately be subject to the approval of the TSX in accordance with its original listing requirements. The REIT anticipates that, subject to Exchange approval, it may undertake a unit consolidation at or around the time of graduation to the TSX.
COVID-19 Update
On May 29, 2020, the REIT mortgaged 4 previously unencumbered properties. The aggregate principal amount of the mortgages was $14,270,000, providing additional liquidity should it be required to endure the impacts of COVID-19.
The following table provides a breakdown of the REIT’s rent collections to date by asset class:
| April 2020 | May 2020 | June 2020 | July 2020 | Total | |
| Industrial | 88% | 89% | 85% | 89% | 88% |
| Mixed Use | 94% | 83% | 82% | 81% | 85% |
| Office | 97% | 95% | 93% | 94% | 95% |
| Retail | 75% | 72% | 83% | 85% | 79% |
| 87% | 86% | 86% | 88% | 87% |
Rental deferrals with 4 of the REIT’s larger tenants account for approximately 4% of the uncollected rents for the period. The remaining 9% is attributable to tenants that are either expected to be included in the Canada Emergency Commercial Rent Assistance (CECRA) program or that the REIT has offered deferrals to or that the REIT is currently in discussions with.
CECRA eligibility requires that a tenant has experienced a 70% reduction in average revenues during April, May and June 2020. The REIT is currently coordinating with its tenants to determine their eligibility and to complete documentation required to proceed with applications for the CECRA program.
About Nexus REIT
Nexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of industrial, office and retail properties located in primary and secondary markets in North America. The REIT currently owns a portfolio of 72 properties comprising approximately 4.0 million square feet of rentable area. The REIT has approximately 107,925,000 units issued and outstanding. Additionally, there are Class B LP units of subsidiary limited partnerships of Nexus REIT issued and outstanding, which are convertible into approximately 24,107,000 REIT units.
Forward Looking Statements
Certain statements contained in this news release constitute forward-looking statements which reflect the REIT’s current expectations and projections about future results. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect.
While the REIT anticipates that subsequent events and developments may cause its views to change, the REIT specifically disclaims any obligation to update these forward-looking statements except as required by applicable law. These forward-looking statements should not be relied upon as representing the REIT’s views as of any date subsequent to the date of this news release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the REIT.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information please contact:
Kelly C. Hanczyk, CEO at (416) 906-2379; or
Rob Chiasson, CFO at (416) 613-1262.