Nexus Industrial REIT's Strategic Sale of Non-Core Properties
Nexus Industrial REIT (“Nexus” or the "REIT") (TSX: NXR.UN) has announced an important strategic decision that signifies a shift in its investment approach. The REIT has sold four non-core industrial buildings and two legacy office buildings, further streamlining its real estate portfolio. With this move, Nexus aims to concentrate on its high-quality industrial properties, emphasizing its commitment to becoming a leading Canada-focused industrial REIT.
Details of the Transaction
This recent transaction included properties located primarily in Saskatchewan, Quebec, and New Brunswick. The CEO of Nexus Industrial REIT, Kelly Hanczyk, remarked on the significance of this sale, stating that it represents a critical step in refining their portfolio to enhance profitability.
“The decision to sell these non-core and legacy buildings is a part of our strategy to focus resources on high-quality industrial properties,” said Hanczyk. By concentrating on industrial assets, Nexus has seen its industrial contributions surge to 96% of its net operating income (NOI). As they move forward with divesting from their legacy retail holdings, this percentage is expected to increase even further.
Properties Involved in the Sale
The properties sold include:
- 320 Industrial Drive, Regina, SK - Industrial, 60,000 sq. ft.
- 332 Industrial Drive, Regina, SK - Industrial, 85,260 sq. ft.
- 1117-1135 Pettigrew Road, Regina, SK - Industrial, 39,922 sq. ft.
- 1414 Fletcher Road, Saskatoon, SK - Industrial, 86,000 sq. ft.
- 10500 Ryan Avenue, Dorval, QC - Office, 52,372 sq. ft.
- 400 Main St., St. John, NB - Office, 159,989 sq. ft.
Nexus plans to utilize the net proceeds from this sale to reduce existing debt on its credit facility, which is a move designed to improve the REIT's financial stability and flexibility.
About Nexus Industrial REIT
Nexus Industrial REIT is a growth-oriented real estate investment trust that continuously seeks to enhance unitholder value. It focuses on acquiring industrial properties in both primary and secondary markets across Canada. Currently, the REIT boasts a sizeable portfolio of approximately 12.5 million square feet of gross leasable area, encompassing 105 properties. This robust portfolio positions Nexus well within the industrial real estate sector.
Nexus’s proactive approach in this competitive market reflects its strategy to prioritize high-performing industrial assets. As it divests from non-core and legacy holdings, the REIT is set to enhance its operational efficiency and align its resources towards more promising ventures.
Contact Information
If you require further information regarding this announcement, please contact:
Kelly C. Hanczyk, CEO at (416) 906-2379; or
Mike Rawle, CFO at (647) 823-1381.
Frequently Asked Questions
What properties did Nexus Industrial REIT sell?
Nexus Industrial REIT sold four non-core industrial buildings in Saskatchewan and two legacy office buildings in Quebec and New Brunswick.
Why did Nexus Industrial REIT decide to sell these properties?
The sale is part of Nexus's strategy to concentrate on high-quality industrial properties and improve its operational focus.
What is the main benefit of selling these non-core properties?
This move allows Nexus to increase its industrial asset concentration to 96% of its NOI, enhancing overall portfolio performance.
What will Nexus do with the proceeds from the sale?
Nexus plans to use the proceeds to repay existing indebtedness on its credit facility, strengthening its financial position.
How many properties does Nexus Industrial REIT currently own?
Nexus Industrial REIT currently owns a portfolio of 105 properties totaling approximately 12.5 million square feet of gross leasable area.
