VANCOUVER, British Columbia, Aug. 29, 2022 (GLOBE NEWSWIRE) -- AIP Realty Trust (the “Trust” or “AIP Realty”) (TSXV:AIP.U) today announced its financial results for the three and six-month period ended June 30, 2022. All dollar amounts are stated in U.S. dollars.
Q2 2022 Highlights
- Completed a Qualifying Transaction through a reverse take-over on April 14, 2022 (the “Qualifying Transaction”), leading to the listing of the Trust’s units on the TSX Venture Exchange with trading commencing April 21, 2022.
- As part of the Qualifying Transaction, the Trust acquired its first property, a 100% leased multi-tenant light industrial flex facility located on Eagle Court in Lewisville, Texas (the "Eagle Court Property").
- Entered into agreements providing the Trust with the option to acquire up to five additional properties being developed in the Dallas-Fort Worth (“DFW”) area by AllTrades Industrial Properties, Inc. (“AllTrades”), the Trust’s exclusive development partner, and a related party of the Trust.
- Secured unitholder approval for amendments to the Declaration of Trust to enable the Trust to execute on its business model and capital markets strategy.
- Generated rental revenue of $103,643 from the Eagle Court Property, comprised of tenant rental revenue and revenue from contracts with customers, specifically common area maintenance.
- Incurred property operating expenses of $25,507, resulting in net rental income of $78,136.
- Declared an initial quarterly distribution of $0.04 per unit, which was paid to unitholders subsequent to the end of the quarter.
“We achieved several key milestones during the second quarter, including completing our Qualifying Transaction, becoming publicly traded and acquiring our initial property,” said Les Wulf, Executive Chairman, AIP Realty Trust. “We have seen strong demand for light industrial flex facilities in the rapidly growing DFW area and throughout Texas, and our partner AllTrades is executing on a solid development pipeline. Our focus remains on continuing to demonstrate the strength of our business model.”
| For the three months ended June 30 (unaudited) | 2022 | 2021 | ||
| Rental revenue | $103,643 | – | ||
| Property operating expenses | ($25,507) | – | ||
| Net rental income | $78,136 | – | ||
| Other expenses | ($2,117,360) | ($98,739) | ||
| Fair value adjustment to investment property | $9,628 | - | ||
| Net loss and total comprehensive loss | ($2,025,068) | ($98,739) | ||
| As at June 30 (unaudited) and December 31 (audited) | 2022 | 2021 | ||
| Investment property | $5,750,000 | – | ||
| Cash | $1,583,861 | $315,308 | ||
| Secured bank indebtedness (net of debt discount) | $3,133,672 | – | ||
| Subscription receipt liability | – | $5,505,000 | ||
| Units outstanding | $3,417,861 | $72,861 | ||
Selected Financial Information
The foregoing is a summary of selected information for the three months ended June 30, 2022 and is qualified in its entirety by, and should be read in conjunction with, the Trust’s condensed interim consolidated financial statements and management discussion and analysis for the three and six months ended June 30, 2022.
Readers should note that results for the three months ended June 30, 2022 reflect approximately 11 weeks of operations rather than the typical 13-week period that comprises a fiscal quarter, since the Eagle Court Property was acquired on April 14, 2022 with the completion of the Qualifying Transaction. Furthermore, while figures are provided for the comparable prior year period, it is noteworthy that the Trust did not yet own any real property assets in 2021.
Related party disclosures
The executive management team of the Trust is the same executive management team as AllTrades.
Outlook
The Trust intends to finance the construction, acquisition and management of light industrial flex multi-tenant properties. Through its agreement with AllTrades, the Trust has been granted an exclusive right to purchase all AllTrades completed and leased facilities, as well as any facilities in development. The Trust will also provide AllTrades with a percentage of the required funding for the development of its national rollout.
As previously announced, AllTrades’ pipeline of properties includes five DFW-area facilities already completed or nearing completion, and six additional facilities on which development is expected to commence in September. Development on these facilities is being fully funded with equity capital from AllTrades and Trinity Investors, a $6 billion Dallas-based real estate private equity fund. AllTrades also plans on starting another six facilities by the end of this year.
AIP Realty’s condensed interim consolidated financial statements and management discussion and analysis for the period ended June 30, 2022 are available on SEDAR at www.sedar.com, and on the Trust’s website at www.aiprealtytust.com.
About AIP Realty Trust
AIP Realty Trust is a real estate investment trust with a growing portfolio of light industrial flex facilities focused on small businesses and the trades and services sectors in the U.S. These properties appeal to a diverse range of small space users, such as contractors, skilled trades, suppliers, repair services, last-mile providers, small businesses and assembly and distribution firms. They typically offer attractive fundamentals including low tenant turnover, stable cash flow and low capex intensity, as well as significant growth opportunities. With an initial focus on the Dallas-Fort Worth market, AIP plans to roll out this innovative property offering nationally. AIP holds the exclusive rights to finance the development of and to purchase all the completed and leased properties built across North America by its development and property management partner, AllTrades Industrial Properties, Inc. For more information, please visit www.aiprealtytrust.com.
For further information from the Trust, contact:
Leslie Wulf
Executive Chairman
(214) 679-5263
les.wulf@aiprealtytrust.com
Or
Greg Vorwaller
Chief Executive Officer
(778) 918-8262
Greg.vorwaller@aiprealtytrust.com
Cautionary Statement on Forward-Looking Information
This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of AIP Realty Trust with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding, future acquisitions by the Trust, the ability to obtain regulatory and unitholder approvals and other factors. When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the commencement of development on certain of the AllTrades facilities, proposed financing activity, proposed acquisitions, regulatory or government requirements or approvals, the reliability of third-party information and other factors or information. Such statements represent the Trust’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Trust, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward- looking statements. These forward-looking statements are made as of the date hereof and are expressly qualified in their entirety by this cautionary statement. The Trust does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release is not an offer of securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”). The Trust has not registered and will not register the securities under the U.S. Securities Act. The Trust does not intend to engage in a public offering of their securities in the United States.
Source: AIP Realty Trust
