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SOURCE Summit Industrial Income REIT
TORONTO, March 15, 2013 /CNW/ - Summit Industrial Income REIT ("Summit II") (TSXV: SMU.UN) announced today that its Board of Trustees has
approved a cash distribution policy to pay $0.0408 per Trust Unit on a
monthly basis to Unitholders, aggregating $0.4896 on an annual basis.
The first cash distribution will be paid on April 15, 2013 to
Unitholders of record on March 29, 2013.
"We are very pleased to be implementing a monthly cash distribution
policy," commented Lou Maroun, Chairman. "As we continue to grow and
expand our property portfolio and increase our cash flows, we look to
build on this initial cash distribution to achieve our ultimate goal of
enhancing income and long-term value for our Unitholders."
"We recently completed the purchase of $171.4 million in high quality
light industrial properties, increasing our asset base to just under
$260.0 million," added Paul Dykeman, Chief Executive Officer. "Our new
cash distribution will generate a highly attractive annualized yield of
approximately 7.25% based on the $6.75 unit price from our recent
equity offer, and we are very comfortable with the resulting forecasted
AFFO payout ratio of between 90% and 95%, in line with our stated
targets. As Summit II continues to grow it will look to further reduce
its payout ratio to between 85% to 95%."
Summit II also announced today that it has implemented a Distribution
Reinvestment Plan ("DRIP") whereby registered or beneficial holders of Summit II's Trust Units
who are resident in Canada can acquire additional Trust Units by
reinvesting all or a portion of their monthly cash distributions
without paying brokerage commissions. Trust Units purchased under the
DRIP will be issued from treasury at a price per Trust Unit calculated
by reference to the volume weighted average of the trading price for
the Trust Units on the TSX Venture Exchange for the five trading days
immediately preceding the date the relevant distribution is paid. In
addition, Unitholders who elect to participate in the DRIP will receive
a further distribution of Trust Units equal to 5% of each distribution
that was reinvested by them. Summit II has reserved 1,801,311 Trust Units for issuance under the DRIP, and it anticipates that
insiders holding approximately 2.9% of the outstanding Trust Units will
participate in the DRIP. The DRIP was approved by the TSX Venture
Exchange on March 13, 2013.
"Our DRIP allows Unitholders to cost effectively purchase additional
Units in Summit II, without any brokerage or other commissions, while
receiving bonus Units" Mr. Maroun concluded.
Details about the DRIP and registration forms can be found on Summit
II's web site at www.summitIIreit.com, or at www.sedar.com.
About Summit II
Summit II is an open-ended mutual fund trust focused on growing and managing a portfolio of
light industrial properties across Canada. Summit II's units are listed
on the TSX Venture Exchange and trade under the symbol SMU.UN. For
more information, please visit our web site at www.summitIIreit.com.
Caution Regarding Forward Looking Information
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable securities
laws. The use of any of the words "expect", "anticipate", "continue",
"estimate", "objective", "ongoing", "may", "will", "project", "should",
"believe", "plans", "intends", "goal" and similar expressions are
intended to identify forward-looking information or statements. More
particularly and without limitation, this news release contains forward
looking statements and information concerning Summit II's distributions
and the DRIP. The forward-looking statements and information are based
on certain key expectations and assumptions made by Summit II. Although
Summit II believes that the expectations and assumptions on which such
forward-looking statements and information are based are reasonable,
undue reliance should not be placed on the forward looking statements
and information because Summit II can give no assurance that they will
prove to be correct. By its nature, such forward-looking information is
subject to various risks and uncertainties, which could cause the
actual results and expectations to differ materially from the
anticipated results or expectations expressed. These risks and
uncertainties include, but are not limited to, market conditions,
tenant risks, current economic environment, environmental matters,
general insured and uninsured risks and Summit II being unable to
obtain any required financing and approvals. Readers are cautioned not
to place undue reliance on this forward-looking information, which is
given as of the date hereof, and to not use such forward looking
information for anything other than its intended purpose. Summit II
undertake no obligation to update publicly or revise any
forward-looking information, whether as a result of new information,
future events or otherwise, except as required by law.
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.
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