TORONTO, Aug. 27, 2015 /PRNewswire/ - WPT Industrial Real Estate Investment Trust (TSX:WIR.U) (the "REIT") announced today that it has renewed a major lease with Fullbeauty Brands Inc. (fka OSP Group, Inc.), a leading on-line retailer and one of the REIT's top-five tenants, at the REIT's distribution property located at 3003 Reeves Road, Plainfield, Indiana. The original lease term for the 741,092 square foot single-tenant property was set to expire on August 31, 2016. The new five-year lease term has a renewal rate that exceeds in-place rental rates, expires on August 31, 2021 and extends the REIT's overall weighted average lease term to just over four years.
Built in 2003, the 3003 Reeves Road property features a 36-foot clear ceiling height, ESFR sprinkler system, metal halide and T-5 lighting and ample dock doors and trailer / auto parking.
In connection with the lease renewal, the REIT will invest in a number of long-term improvements to the property including parking lot upgrades, warehouse lighting improvements, security, landscaping, exterior painting and door upgrades. In addition, the amended lease removes a previously included 10-acre parcel of developable land from the tenants' demised premises, which will allow the REIT to pursue future development opportunities on land adjacent to the building.
"We are pleased to be extending our relationship with this high-quality tenant and further strengthening the stability and predictability of our long-term cash flows," 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. WPT Industrial, LP (the REIT's operating subsidiary) indirectly owns a portfolio of properties consisting of approximately 15.1 million square feet of gross leasable area comprised of 46 industrial properties and two office properties located in thirteen states within the United States.
About Welsh Property Trust, LLC:
Welsh Property Trust, LLC ("Welsh"), a privately held real estate investment management company, is the external asset manager and property manager of the REIT. The Welsh organization was founded in 1977 and has extensive experience in the acquisition, management and disposition of industrial and office real estate assets in attractive markets throughout the United States.
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", "does not expect", "scheduled", "estimates", "intends", "anticipates", "does not anticipate", "projects", "believes" or variations of such words and phrases 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. Some of the specific forward-looking statements in this press release include, but are not limited to, statements with respect to: financing proceeds for the acquisition, expectations regarding accretion to the REIT's AFFO per unit and the effect of the acquisition on the REIT's payout ratio; and the expected capitalization rate for the acquired properties. 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. The REIT's estimates, beliefs and assumptions, which may prove to be incorrect, include the various assumptions set forth herein, including, but not limited to, the REIT's and each property's future growth potential, 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. 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 under "Risk Factors" in the REIT's annual information form for the year ended December 31, 2014, which is available under the REIT's profile on SEDAR at www.sedar.com. These forward-looking statements are 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.
SOURCE WPT Industrial Real Estate Investment Trust