Dream Industrial REIT Announces Over $465 Million of High-Quality Acquisitions in Canada, Europe, and the U.S., and $225 Million Equity Offering
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TORONTO, Jan. 20, 2021 (GLOBE NEWSWIRE) -- Dream Industrial REIT (TSX: DIR.UN) (“Dream Industrial”, “DIR”, or the “Trust”) today announced an update on its capital deployment and financing activity.
ROBUST ACQUISITION ACTIVITY
Since the end of Q3 2020, the Trust has closed, waived conditions, or is currently in exclusive negotiations on over $465 million of high-quality acquisitions across its target markets in Canada, Europe and the U.S. The acquisitions comprise 20 assets totalling 2.9 million square feet of gross leasable area (“GLA”), with a weighted average lease term (“WALT”) of seven years and a weighted average going-in capitalization rate (“cap rate”) of 4.75% with growth potential from intensification, rent mark-to-market and lease-up of vacancy. One property in Montreal has significant excess land, which provides an opportunity to add over 220,000 square feet of prime logistics space in the near term. In addition, these acquisitions have over 100,000 square feet of high-quality vacant space in strong markets in Ontario and Quebec, and in-place rents are approximately 10% below market, leading to further NOI and NAV upside potential.
These acquisitions allow the Trust to add scale in its target markets with approximately $270 million of assets in Ontario and Quebec, over $180 million in Europe, and $15 million in the Midwest U.S. Out of the approximately $460 million of aforementioned acquisitions, the Trust has closed on approximately $112 million, waived conditions on $180 million, and is under contract or in exclusive negotiations on assets totalling approximately $175 million.
“These acquisitions are high quality properties that are well-suited for e-commerce use. We continue to execute on our strategy to acquire highly functional, well-located, modern logistics assets that offer strong organic growth potential and are targeted to improve our overall portfolio quality,” said Brian Pauls, Chief Executive Officer of Dream Industrial REIT. “Our local on-the-ground acquisition platforms allow us to consistently source attractive investment opportunities for the REIT. We continue to transform the company with over $620 million of acquisitions in 2020, increasing our portfolio by over 25%. Paired with our access to euro-equivalent debt at interest rates well below 1% currently, our capital deployment initiatives have materially improved our growth outlook for 2021 and future years.”