WPT Industrial REIT Announces Acquisition of US$226 Million Infill Logistics Portfolio
TORONTO, April 05, 2019 (GLOBE NEWSWIRE) -- WPT Industrial Real Estate Investment Trust (the “REIT”) (TSX: WIR.U - OTCQX: WPTIF) announced that it has closed on the previously announced acquisition of a portfolio of 13 industrial buildings and three land parcels located in multiple markets in the United States (the “Acquisition Portfolio”) totaling approximately 2.2 million square feet of gross leasable area for a purchase price of US$226 million, representing a going-in capitalization rate of 5.1% and a stabilized capitalization rate of 5.3%. The Acquisition Portfolio purchase was funded with cash on hand and a draw from the REITs senior unsecured credit facility.
Building Overview
| Address | City (Market) | State | GLA (sf) | Number of Tenants | Leased | WALT (years) | Year Built | Clear Height | |
| 12932-58 Midway Place | Cerritos (Los Angeles) | California | 161,517 | 1 | 100 | % | 6.9 | 1974 | 24' |
| 2910 Pacific Commerce | Rancho Dominguez (Los Angeles) | California | 150,000 | 1 | 100 | % | 2.6 | 1985 | 24' |
| 200 Depot Way | Haines City (Orlando) | Florida | 200,000 | 1 | 74 | % | 5.0 | 2008 | 30' |
| 6870 First Park Boulevard | Lakeland (Orlando) | Florida | 400,000 | 2 | 100 | % | 5.9 | 2007 | 30' |
| 10501 Commerce Parkway | Miramar (Miami) | Florida | 63,092 | 1 | 100 | % | 3.7 | 1994 | 17' |
| 1490 Chase Avenue | Elk Grove Village (Chicago) | Illinois | 51,964 | 1 | 100 | % | 4.5 | 2008 | 28' |
| 1500 Chase Avenue | Elk Grove Village (Chicago) | Illinois | 77,486 | 1 | 100 | % | 0.6 | 2008 | 30' |
| 2000 Arthur Avenue | Elk Grove Village (Chicago) | Illinois | 146,074 | 2 | 100 | % | 4.9 | 2008 | 28' |
| 400 Kimberly Drive | Carol Stream (Chicago) | Illinois | 263,208 | 2 | 100 | % | 7.6 | 1999 | 32' |
| 2000 USG Drive | Libertyville (Chicago) | Illinois | 242,200 | 1 | 100 | % | 1.1 | 1999 | 28' |
| 7420 S. Howell Avenue | Oak Creek (Milwaukee) | Wisconsin | 81,325 | 2 | 100 | % | 2.6 | 2007 | 24' |
| 305 E. Mahn Court | Oak Creek (Milwaukee) | Wisconsin | 103,132 | 3 | 100 | % | 6.7 | 2006 | 28' |
| 9150 217th Street | Lakeville (Minneapolis) | Minnesota | 282,100 | 1 | 100 | % | 4.5 | 2008 | 32' |
| Total/Weighted Average | 2,222,098 | 19 | 97.6 | % | 4.7 | 2001 | 29' | ||
Land Overview
| Address | City (Market) | State | Acres | |
| 3 Woodland Drive | Huron Township (Detroit) | Michigan | 5.33 | |
| 25 Commerce Drive | Huron Township (Detroit) | Michigan | 7.50 | |
| 215th Street West & Dodd Boulevard | Lakeville (Minneapolis) | Minnesota | 3.70 | |
| Total | 16.53 | |||
“We were pleased to quickly deploy the proceeds from our recent equity offering into a large portfolio that adds properties in some of the most desired logistics markets in the U.S. and enhances the overall diversification and quality of the REITs portfolio,” commented Scott Frederiksen, Chief Executive Officer.
About WPT Industrial Real Estate Investment Trust
WPT Industrial Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. WPT Industrial, LP (the REIT’s operating subsidiary) indirectly owns a portfolio of properties consisting of approximately 21.1 million square feet of gross leasable area, comprised of 69 industrial properties and one office property located in 16 states in the United States. The REIT’s objective is to acquire, develop, manage and own industrial properties located in the United States, with a particular focus on warehouse and distribution industrial real estate. The REIT pays monthly cash distributions, currently at $0.0633 per Unit, or approximately $0.76 per Unit on an annualized basis, in US funds.
For more information, please contact:
Scott Frederiksen, Chief Executive Officer
WPT Industrial Real Estate Investment Trust
Tel: (612) 800-8501
Forward-Looking Statements
This press release contains “forward-looking information” as defined under applicable Canadian securities law (“forward-looking information” or “forward-looking statements”), including with respect to the expected acquisition of the Acquisition Portfolio, the cost, timing and composition thereof and funding therefor, the expected impact of the Acquisition Portfolio on the REIT’s adjusted funds from operations and timing of such impact, as well as anticipated amendments to the Credit Facility. Such statements reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words “plans”, “expects”, “scheduled”, “estimates”, “intends”, “anticipates”, “projects”, “believes” or variations of such words and phrases (including negative variations) or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “occur”, “be achieved” or “continue” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management of the REIT as of the date of this press release, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such estimates, beliefs and assumptions include that the properties in the Acquisition Portfolio will be stabilized, that the Acquisition Portfolio’s projected operating expenses and recoveries align with historical financial results, that projected capital expenditure reserves are in-line with estimates from third-party reports, as well as with respect to rent growth potential, occupancy levels, anticipated amounts of expenses, anticipated amounts of base rent, tenant creditworthiness, results of operations, future prospects and opportunities, the demographic and industry trends remaining unchanged, no change in legislative or regulatory matters, future levels of indebtedness, the tax laws as currently in effect remaining unchanged, the continual availability of capital, the current economic conditions remaining unchanged, and continued positive net absorption and declining vacancy rates in the markets in which the REIT’s properties are located.
When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved, if achieved at all. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed or referenced under “Risk Factors” in the REIT’s annual information form for the year ended December 31, 2018, which is available under the REIT’s profile on SEDAR at These forward-looking statements have been approved by management to be made as of the date of this press release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-IFRS Measures
“NOI” is used by industry analysts, investors and management to measure operating performance of real estate investment trusts. NOI represents investment properties revenue less investment properties operating expenses (adjusted for property taxes accounted for under IFRIC 21), as presented in the consolidated statements of net income and comprehensive income prepared in accordance with IFRS.
"capitalization rate" is defined as NOI divided by purchase price.
