Nexus Industrial REIT Moves Forward with Strategic Sell-Off
Nexus Industrial REIT (“Nexus” or the "REIT") (TSX: NXR.UN) proudly announces the successful sale of its remaining Old Montreal office portfolio. This portfolio includes a significant office building and a mixed-use building within the vibrant Montreal area.
Transforming a Legacy into Opportunity
CEO Kelly Hanczyk remarked, “The sale of these legacy buildings closes the chapter on Nexus’ ownership of office buildings in the Old Montreal Port, significantly advancing our mission as a Canada-focused, pure-play industrial REIT.” The company has been rapidly transforming its portfolio to enhance its focus on industrial properties, which currently generate 94% of its net operating income (NOI).
Strategic Financial Goals
To strengthen its financial position, Nexus plans to devote the proceeds from these sales towards repaying existing debts on its credit facility. This approach is a deliberate step towards greater financial health and operational efficiency for the REIT.
Insight into the Sold Properties
The following properties were a part of this significant transaction:
- 63 rue des Brésoles, Montréal - 19,855 sq. ft.
- 425 rue Guy, Montréal - 18,717 sq. ft.
Sale of Vacant Land
In addition to the office buildings, Nexus Industrial REIT has also sold 11 acres of vacant land adjacent to its industrial property in Fort St. John for $2.4 million. This transaction is another calculated move in the REIT’s overall strategy to streamline its holdings and focus on core industrial assets.
Future Outlook for Nexus Industrial REIT
Looking ahead, the company is targeting approximately $110 million in total asset sales in the latter half of the year, which will aid in enhancing its core capabilities. By concentrating on industrial properties, Nexus aims to further increase its revenant streams and optimize operational performance.
About Nexus Industrial REIT
Nexus Industrial REIT is dedicated to fostering growth and increasing value for its unitholders through the strategic acquisition of industrial properties in both primary and secondary Canadian markets. Currently, the REIT boasts an impressive portfolio encompassing 111 properties, with a total gross leasable area nearing 13 million square feet.
Contact Information
For any inquiries, please reach out to Kelly C. Hanczyk, CEO at (416) 906-2379, or Mike Rawle, CFO at (647) 823-1381.
Frequently Asked Questions
What is the recent sell-off by Nexus Industrial REIT?
Nexus Industrial REIT has recently sold its remaining Old Montreal office portfolio and 11 acres of vacant land to strengthen its focus on industrial assets.
Why is Nexus selling its office buildings?
The sell-off is part of a strategic decision to exit the office space market and concentrate on its core industrial property holdings which provide substantial income.
How much debt will Nexus be repaying with the sale proceeds?
Nexus plans to use the proceeds from these sales primarily to repay existing indebtedness on its credit facility, promoting greater financial stability.
What percentage of Nexus’s income comes from industrial assets?
Currently, industrial assets contribute about 94% of the REIT’s net operating income (NOI).
How extensive is the Nexus Industrial REIT portfolio?
Nexus Industrial REIT holds a robust portfolio of 111 properties, totaling nearly 13 million square feet of gross leasable area across Canada.
