Nexus Industrial REIT Declares Q1 2022 Outcomes and Annual Assembly Voting Outcomes

This part is

by GlobeNewswire

Publishing date:

Might 12, 2022 • 15 minutes in the past • 11 minute learn • Be a part of the dialog

TORONTO and MONTREAL, Might 12, 2022 (GLOBE NEWSWIRE) — Nexus Industrial REIT (the “REIT”) (TSX: NXR.UN) introduced as we speak its outcomes for the quarter ended March 31, 2022.

Highlights

Accomplished $236.4 million of commercial property acquisitions throughout Q1 2022, rising NOI from industrial properties to roughly 84.4% of NOI for the quarter. To partially fund the acquisitions the REIT accomplished $127.3 million of latest mortgage financing at a weighted common rate of interest of three.25% and a time period of seven.8 years.
On January 1, 2022 the 100,000 sq. foot growth on the REIT’s co-owned Ajax industrial property was accomplished by the seller, with the tenant in-place and paying hire.
As a part of its capital-recycling program, the REIT has decided to promote 5 non-industrial properties with a carrying worth of $54.9 million which might be underneath negotiation or being marketed.
Occupancy of 97% at March 31, 2022, elevated from 96% at December 31, 2021 and 94% at March 31, 2021.
Q1 2022 internet working earnings of $22.0 million elevated by $11.5 million or 108% as in comparison with $10.6 million for Q1 2021 and by $3.0 million or 15% as in comparison with $19.1 million for This fall 2021.
Q1 2022 Similar Property NOI⁽¹⁾ of $10.1 million decreased by $0.3 million or 3.2% as in comparison with Q1 2021 and by $0.3 million or 3.2% as in comparison with This fall 2021. The decreases are primarily attributable to vacancies at one of many REIT’s workplace properties and an industrial property in Regina. Efforts to re-lease the areas are underway, and discussions are being held with potential new tenants.
As at March 31, 2022, the REIT had $150 million of not too long ago acquired properties which had been unencumbered. As soon as these properties are financed and the proceeds are deployed to amass extra properties, the proceeds of 2021 fairness raises can be totally deployed.
Q1 2022 Normalized FFO⁽¹⁾ per unit of $0.192, as in comparison with $0.194 for This fall 2021 and $0.203 for Q1 2021.
Q1 2022 Normalized AFFO⁽¹⁾ per unit of $0.165, as in comparison with $0.173 for This fall 2021 and $0.183 for Q1 2021.
Q1 2022 Normalized AFFO payout ratio⁽¹⁾ of 96.7%, as in comparison with 96.5% for This fall 2021 and 87.7% for Q1 2021.
Basic and administrative expense for the quarter included a $0.6 million RSU expense with RSUs granted and 1/3 vested within the quarter. Q2 2022 RSU expense is anticipated to lower to $0.15 million.
Weighted common rate of interest on mortgages of three.29% at March 31, 2022, in comparison with at 3.28% at December 31, 2021, because the REIT managed acquisition financing in a rising rate of interest setting, and down from 3.62% at March 31, 2021. On the similar time, the weighted common time period to maturity elevated to six.71 years at March 31, 2022 from 6.61 years at December 31, 2021 and three.76 years at March 31, 2021.
NAV⁽¹⁾ per unit elevated to $12.35 at March 31, 2022 as in comparison with $12.18 at December 31, 2021 and $10.09 at March 31, 2021.
Administration of the REIT will host a convention name on Friday Might 13^th at 11AM EST to overview outcomes and operations

(1)

Non-IFRS Monetary Measure

“We acquired $236.4 million of commercial properties, on common half-way via the 1^st quarter, and we’ll see the total constructive affect of those acquisitions within the second quarter. We’re extraordinarily happy with the standard of the properties acquired and the alternatives for growth and rental charge will increase that a number of of those properties provide. These properties had been underneath contract previous to cap charge contraction, and we financed them previous to latest rate of interest hikes,” commented Kelly Hanczyk, the REIT’s Chief Govt Officer. “We’re realizing important carry in renewal rental charges in our London and Montreal industrial portfolios that may start to indicate within the 3^rd and 4^th quarters of this 12 months. There are 5 retail and workplace properties which might be at the moment being marketed or underneath negotiation for disposition and we’re making ready to launch on the sale of a sixth retail property shortly. As we proceed to develop our asset base we have now not too long ago added depth to our administration workforce as there are a selection of acquisition alternatives we’re actively pursuing. We count on to proceed to extend our industrial weighting in 2022.”

Abstract of Outcomes

Included within the tables that observe and elsewhere on this information launch are non-IFRS monetary measures that shouldn’t be construed as a substitute for internet earnings / loss, money from working actions or different measures of economic efficiency calculated in accordance with IFRS and is probably not corresponding to comparable measures as reported by different issuers. Sure extra disclosures for these non-IFRS monetary measures have been integrated by reference and could be discovered on web page 3 within the REIT’s Administration’s Dialogue and Evaluation for the three months ended March 31, 2022, out there on SEDAR at www.sedar.com and on the REIT’s web site underneath Investor Relations. See Appendix A of this earnings launch for a reconciliation of the non-IFRS monetary measures to the first monetary assertion measures.

(In hundreds of Canadian {dollars}, besides per unit quantities)	Three Months ended March 31,
	2022	2021
Monetary Outcomes	$	$

Property revenues	31,699	16,588
Web working earnings (NOI)	22,024	10,566
Web earnings	18,064	10,209

Monetary Highlights

Funds from operations (FFO)⁽¹⁾	14,724	6,684
Normalized FFO^{(1) (2)}	14,879	7,321
Adjusted funds from operations (AFFO)⁽¹⁾	12,678	5,954
Normalized AFFO^{(1) (2)}	12,833	6,591
Similar Property NOI⁽¹⁾	10,052	10,385
Distributions declared⁽³⁾	12,412	5,777

Weighted common models excellent (000s) – primary⁽⁴⁾	77,560	36,041
Weighted common models excellent (000s) – diluted⁽⁴⁾	77,720	36,124

Per unit quantities:
Distributions per unit – primary^{(3) (4)}	0.160	0.160
FFO per unit – primary^{(1) (4)}	0.190	0.185
Normalized FFO per unit – primary^{(1) (2) (4)}	0.192	0.203
AFFO per unit – primary^{(1) (4)}	0.163	0.165
Normalized AFFO per unit – primary^{(1) (2) (4)}	0.165	0.183

NAV per unit⁽¹⁾	12.35	10.09

Normalized AFFO payout ratio – primary^{(1) (2) (3)}	96.7%	87.7%
Debt to complete belongings ratio	45.4%	45.8%

	(1)	Non-IFRS Monetary Measure
	(2)	See Appendix A – Non-IFRS Monetary Measures
	(3)	Contains distributions payable to holders of Class B LP Models that are accounted for as curiosity expense within the condensed consolidated interim monetary statements.
	(4)	Weighted common variety of models contains the Class B LP Models.

For the three months ended March 31, 2022, NOI of $22.0 million was $11.5 million larger than Q1 2021 NOI of $10.6 million. Acquisitions accomplished in Q1 2022 generated $1.6 million of incremental NOI in Q1 2022 as in comparison with Q1 2021. Acquisitions accomplished in 2021 generated $9.5 million of incremental NOI in Q1 2022 as in comparison with Q1 2021. Incremental rental earnings from the completion of an growth on the REIT’s Ajax property elevated Q1 2022 NOI by $0.1 million as in comparison with Q1 2021. Q1 2022 Similar Property NOI decreased $0.3 million as in comparison with Q1 2021, primarily pushed by emptiness at one of many REIT’s workplace properties ($0.3 million) and an industrial property ($0.1 million), partially offset by rental steps and CPI will increase at sure of the REIT’s industrial properties. Straight-line rents additionally contributed $0.7 million to the rise over Q1 2021, pushed primarily by newly acquired properties with steps in hire. Occupancy remained sturdy at 97% at March 31, 2022 in comparison with 96% at December 31, 2021 and 94% at March 31, 2021. Acquisitions accomplished in Q1 2022 had been on common accomplished mid-quarter and can contribute roughly twice as a lot NOI in Q2 2022.

Honest worth changes of funding properties of $1.9 million for Q1 2022 displays $8.9 million of honest worth features primarily associated to compression of capitalization charges for industrial properties situated in sure markets in Ontario and Western Canada, partially offset by $6.8 million associated to transaction prices and acquisition accounting changes on properties acquired in the course of the quarter with Class B LP Models issued as consideration or mortgages assumed.

Earnings Name

Administration of the REIT will host a convention name at 11:00 AM Japanese Normal Time on Friday Might 13, 2022 to overview the monetary outcomes and operations. To take part within the convention name, please dial 416-915-3239 or 1-800-319-4610 (toll free in Canada and the US) not less than 5 minutes previous to the beginning time and ask to affix the Nexus Industrial REIT convention name.

A recording of the convention name can be out there till June 13, 2022. To entry the recording, please dial 604-674-8052 or 1-855-669-9658 (toll free in Canada and the US) and enter entry code 8875.

Annual Assembly Voting Outcomes

Every of the issues set out within the REIT’s administration data round dated March 28, 2022 (the “Round”) for the annual assembly of unitholders held on Might 12, 2022 (the “Assembly”) was permitted by the requisite majority of unitholders.

Every of the trustee nominees listed within the Round was elected as a trustee of the REIT. Voting outcomes for the person trustees are as follows:

Nominee	Variety of Votes For	Share of Votes For	Variety of Votes Withheld	Share of Votes Withheld
Floriana Cipollone	38,222,014	99.51%	189,934	0.49%
Bradley Cutsey	38,277,775	99.65%	134,173	0.35%
Justine Delisle	36,960,129	96.22%	1,451,819	3.78%
Louie DiNunzio	37,195,341	96.83%	1,216,607	3.17%
Kelly C. Hanczyk	34,751,729	90.47%	3,660,219	9.53%
Ben Rodney	35,810,046	93.23%	2,601,902	6.77%

Last outcomes on all issues thought of on the Assembly are reported within the Report of Voting Outcomes as filed on SEDAR (www.sedar.com).

About Nexus Industrial REIT

Nexus is a growth-oriented actual property funding belief targeted on rising unitholder worth via the acquisition of commercial properties situated in main and secondary markets in Canada and doubtlessly together with the USA, and the possession and administration of its portfolio of properties. The REIT at the moment owns a portfolio of 106 properties comprising roughly 10.5 million sq. ft of gross leasable space. The REIT has roughly 57,952,000 Models issued and excellent. Moreover, there are Class B LP Models of subsidiary restricted partnerships of Nexus issued and excellent, that are convertible into roughly 20,773,000 Models.

Ahead Trying Statements

Sure statements contained on this information launch represent forward-looking statements which replicate the REIT’s present expectations and projections about future outcomes. Typically, however not at all times, forward-looking statements could be recognized by way of phrases comparable to “plans”, “expects” or “doesn’t count on”, “is predicted”, “estimates”, “intends”, “anticipates” or “doesn’t anticipate”, or “believes”, or variations of such phrases and phrases or state that sure actions, occasions or outcomes “could”, “might”, “would”, “would possibly” or “will” be taken, happen or be achieved. Ahead-looking statements contain identified and unknown dangers, uncertainties and different elements which can trigger the precise outcomes, efficiency or achievements of the REIT to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by the forward-looking statements. Precise outcomes and developments are prone to differ, and should differ materially, from these expressed or implied by the forward-looking statements contained on this information launch. Such forward-looking statements are based mostly on a lot of assumptions that will show to be incorrect.

Whereas the REIT anticipates that subsequent occasions and developments could trigger its views to vary, the REIT particularly disclaims any obligation to replace these forward-looking statements besides as required by relevant regulation. These forward-looking statements shouldn’t be relied upon as representing the REIT’s views as of any date subsequent to the date of this information launch. There could be no assurance that forward-looking statements will show to be correct, as precise outcomes and future occasions might differ materially from these anticipated in such statements. Accordingly, readers mustn’t place undue reliance on forward-looking statements. The elements recognized above usually are not meant to signify a whole checklist of the elements that might have an effect on the REIT.

For additional data please contact:

Kelly C. Hanczyk, CEO at (416) 906-2379 or

Rob Chiasson, CFO at (416) 613-1262.

APPENDIX A – NON-IFRS FINANCIAL MEASURES

(In hundreds of Canadian {dollars}, besides per unit quantities)	Three Months ended March 31,
	2022		2021
FFO	$		$

Web earnings	18,064		10,209
Changes:
Loss on disposal of funding properties	–		95
Honest worth adjustment of funding properties	(1,925	)	(5,096	)
Honest worth adjustment of Class B LP Models	3,692		4,236
Honest worth adjustment of unit choices	142		166
Honest worth adjustment of restricted share models	42		48
Honest worth adjustment of spinoff monetary devices	(8,467	)	(3,873	)
Changes for fairness accounted three way partnership⁽¹⁾	(304	)	(267	)
Distributions on Class B LP Models expensed	3,205		995
Amortization of tenant incentives and leasing prices	265		144
Lease principal funds	(13	)	(16	)
Amortization of right-of-use belongings	23		23
Deferred earnings taxes	–		20
Funds from operations (FFO)	14,724		6,684
Weighted common models excellent (000s) – primary⁽⁵⁾	77,560		36,041
FFO per unit – primary	0.190		0.185

FFO	14,724		6,684
Add: Vendor hire obligation⁽²⁾	555		630
Much less: Different earnings⁽²⁾	(400	)	(200	)
Add: TSX commencement itemizing charges⁽³⁾	–		207
Normalized FFO	14,879		7,321
Weighted common models excellent (000s) – primary⁽⁵⁾	77,560		36,041
Normalized FFO per unit – primary	0.192		0.203

(In hundreds of Canadian {dollars}, besides per unit quantities)	Three Months ended March 31,
	2022		2021
AFFO	$		$

FFO	14,724		6,684
Changes:
Straight-line changes floor lease and hire	(796	)	(105	)
Capital reserve⁽⁴⁾	(1,250	)	(625	)
Adjusted funds from operations (AFFO)	12,678		5,954
Weighted common models excellent (000s) – primary⁽⁵⁾	77,560		36,041
AFFO per unit – primary	0.163		0.165

AFFO	12,678		5,954
Add: Vendor hire obligation⁽²⁾	555		630
Much less: Different earnings⁽²⁾	(400	)	(200	)
Add: TSX commencement itemizing charges⁽³⁾	–		207
Normalized AFFO	12,833		6,591
Weighted common models excellent (000s) – primary⁽⁵⁾	77,560		36,041
Normalized AFFO per unit – primary	0.165		0.183

	(1)	Adjustment for fairness accounted three way partnership pertains to a good worth adjustment of swaps in place on the three way partnership to swap floating charge bankers’ acceptance charges to a hard and fast charge and honest worth adjustment of the three way partnership funding property.
	(2)	Normalized FFO and Normalized AFFO embody changes for vendor hire obligation quantities associated to the REIT’s Richmond, BC and Ajax properties, that are payable from the distributors of the properties till buildout of the properties is full and tenants are occupying and paying hire. The seller hire obligation quantity isn’t included in NOI for accounting, however the estimated complete quantity of vendor hire obligation is recorded in different earnings. Normalized FFO and Normalized AFFO exclude estimated future vendor hire obligation quantities included in different earnings within the condensed consolidated interim statements of earnings and complete earnings and embody the scheduled quarterly rents receivable within the type of vendor hire obligation.
	(3)	Normalized FFO and Normalized AFFO = embody changes for $0.2 million of one-time TSX itemizing charges associated to commencement to the TSX, that are included typically and administrative expense within the interval ended March 31, 2021.
	(4)	Capital reserve contains upkeep capital expenditures, tenant incentives and leasing prices. Reserve quantities are established with regards to constructing situation reviews, value determinations, and inner estimates of tenant renewal, tenant incentives and leasing prices. The REIT believes {that a} reserve is extra acceptable given the fluctuating nature of those expenditures.
	(5)	Weighted common variety of models contains the Class B LP Models.

(In hundreds of Canadian {dollars})	Three Months ended March 31,
	2022		2021
Similar Property NOI	$		$

Property revenues	31,699		16,588
Property bills	(9,675	)	(6,022	)
NOI	22,024		10,566
Add/(Deduct):
Amortization of tenant incentives and leasing prices	265		167
Straight-line changes of hire	(776	)	(85	)
Improvement	(90	)	–
Acquisitions	(11,367	)	(128	)
Disposals	(4	)	(135	)
Similar Property NOI	10,052		10,385

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