TORONTO, Feb. 04, 2019 (GLOBE NEWSWIRE) -- WPT Industrial Real Estate Investment Trust (the “REIT”) (TSX: WIR.U - OTCQX: WPTIF) today provided the following update on recent portfolio leasing activity:
2018 Lease Expirations
The REIT had 2,523,097 square feet of leases set to expire in 2018. Of this expiring square footage, 1,963,301 square feet of leases were renewed with existing tenants. The REIT also leased 543,687 square feet of additional space through leases with new tenants or expansions of existing tenancies. Combined leasing activity for 2018 lease expirations will result in US$0.4 million of free rent recorded in 2019, a 3.4% increase in base rent, and an average 4.9 years of additional lease term.
2019 Lease Expirations
The REIT has renewed 1,081,906 square feet of leases expiring in 2019, with 1,662,567 square feet of 2019 lease expirations currently remaining. Combined, these renewals will result in US$0.1 million of free rent recorded in 2019, a 3.0% increase in base rent, and an average of 7.4 years of additional lease term. Of the remaining 2019 lease expirations, the REIT expects the tenant occupying 311,100 square feet at 500 Sumner Way in Kansas City to vacate when the lease expires at the end of March 2019. The REIT is actively working on its remaining 2019 lease expirations, including the Sumner Way building, which is currently being marketed for sale or lease.
2020 Lease Expirations
The REIT has extended a 1,512,552 square foot lease with its largest tenant at the property located at 1871 Willow Springs Church Road in Atlanta. The lease term, originally set to expire on May 31, 2020, has been extended for a period of five years, now expiring on May 31, 2025. The lease extension includes five months of free base rent (commencing on January 1, 2019) and a tenant improvement allowance of approximately US$1.5 million for upgrading warehouse lighting to LED fixtures and other building improvements. After an initial reduction of 4.8% (commencing on January 1, 2019), base rent will increase 1.8% annually (commencing January 1, 2020) for the remainder of the lease term. Excluding the impact of free rent, the average base rent for the renewal term increased 4.8% as compared to the existing lease term.
Lease-up of Vacant Space
During 2018, the REIT also leased 219,101 square feet of previously vacant space with five new leases commencing between October 1, 2018 and January 1, 2019 and an average lease term of 4.0 years.
The REIT’s portfolio currently consists of 57 properties totalling approximately 18.9 million square feet with occupancy of 99.3% and a weighted average remaining lease term of 4.6 years.
“Our recent leasing efforts, including an early renewal of the REIT’s largest tenant, have produced a meaningful increase to the value of our portfolio by extending our overall weighted average lease term, reducing vacancy risk and locking in stable rent growth. We are pleased with the amount of leasing already done for 2019 and we look forward to continuing our progress throughout the year,” commented Scott Frederiksen, Chief Executive Officer of the REIT.
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. The REIT has been formed to own and operate an institutional-quality portfolio of primarily industrial properties located in the United States, with a particular focus on warehouse and distribution industrial real estate.
For more information, please contact:
Scott Frederiksen, Chief Executive Officer
WPT Industrial Real Estate Investment Trust
Tel: (612) 800-8501
This press release contains “forward-looking information” as defined under applicable Canadian securities law (“forward-looking information” or “forward-looking statements”) which 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 the various assumptions set forth herein, including, but not limited 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, 2017, which is available under the REIT’s profile on SEDAR at www.sedar.com. 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.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/bb5bc42d-91a3-4bc1-9fac-8da5bc985210