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WPT Industrial REIT (TSX:WIR.U/UN) contributes $370 million portfolio to new joint venture
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  • WPT Industrial REIT (WIR.U/UN) has contributed a US$370 million portfolio to a new joint venture with the Investment Management Corporation of Ontario
  • The portfolio holds stabilized, income producing properties
  • They comprise 4,750,000 square feet that are 100 per cent leased for an average of 5.5 years
  • The venture will generate approximately US$255 million and result in liquidity of US$153 million
  • The company retains majority ownership in the properties and continues to operate them as part of the joint venture
  • WPT manages distribution and logistics properties across 20 U.S. states
  • WPT Industrial REIT (WIR.UN) is down 0.05 per cent and is currently trading at C$19.00 per share

WPT Industrial REIT (WIR.U/UN) has contributed a US$370 million portfolio to a new joint venture with the Investment Management Corporation of Ontario.

The venture is part of WPT's capital recycling initiative to reduce overall leverage and increase liquidity.

The portfolio holds stabilized, income-producing properties which WPT retains majority ownership of and continues to operate as part of the joint venture. 

The properties are spread out across Chicago, New Jersey, Atlanta, Kansas City and St. Louis.

They comprise 4,750,000 square feet that are 100 per cent leased for an average of 5.5 years.

The average tenant size is 317,000 square feet.

The venture will generate US$255 million in sale and financing proceeds, which WPT will use to fund future development and investment activity.

The transaction lowers WPT's debt-to-assets by 4 per cent on a consolidated basis resulting in liquidity of US$153 million.

Scott Frederiksen, WPT's CEO, commented,

"The formation of a new stabilized joint venture represents meaningful progress on our capital recycling initiative and underscores the REIT’s ability to attract and expand our relationships with strong institutional capital partners.

The transaction strengthens our balance sheet, provides additional capacity to fund our growing development pipeline and accelerates growth in our private capital management platform."

WPT anticipates that the transaction will give rise to some taxable income for Canadian tax purposes. Such income may increase the taxable portion of the REIT’s distributions or be paid to unitholders as a special distribution. Any such special distribution must be declared before December 31, 2021.

WPT is an unincorporated, open-ended real estate investment trust. The REIT manages 109 distribution and logistics properties spread over 37.2 million square feet across 20 U.S. states.

WPT Industrial REIT (WIR.UN) is down 0.05 per cent and is currently trading at C$19.00 per share as of 1:58 pm ET.

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