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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.
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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