Educational Development Corporation Announces Execution of New Tenant Lease Agreement for Available Space at Hilti Complex
On May 30, 2024, Educational Development (NASDAQ: EDUC) announced a new five-year triple-net (NNN) lease agreement for 111,000 square feet of unused office and warehouse space in its Hilti Complex in Tulsa, Oklahoma. The lease, starting July 1, 2024, has an initial rate of $9.05 per rentable square foot, with a 3% annual increase. The space became available after new efficiencies from updated pick and pack lines rendered the legacy lines obsolete. This new tenant enhances the financial stability of the property and supports the company's ongoing sale of the Hilti Complex.
- New five-year lease agreement for 111,000 square feet at $9.05 per rentable square foot.
- Lease includes 3% annual escalation, increasing revenue over time.
- Increased financial stability by adding another long-term tenant.
- Enhanced marketing potential for the sale of the Hilti Complex.
- Efficient use of previously unused space, boosting overall financial performance.
- Dependency on new tenant's financial stability for sustained revenue.
- Potential risks if the Hilti Complex sale does not materialize.
- Annual escalations may not cover inflation or market rate increases.
Tulsa, Oklahoma--(Newsfile Corp. - May 30, 2024) - Educational Development Corporation (NASDAQ: EDUC) ("EDC" or "Landlord") (http://www.edcpub.com) announced it has entered into a triple-net ("NNN") lease (the "Lease") agreement for approximately 111,000 square feet of unused office and warehouse space in it's property located at 5402 S. 122nd East Ave, Tulsa, OK 74146 (the "Hilti Complex") with a new tenant ("Tenant"). The initial lease term is five years commencing July 1, 2024 and includes an option to extend the lease term for an additional five years. The initial lease rate shall be
Per Craig White, President and Chief Executive Officer, "During fiscal 2022, we implemented 2 new state-of-the-art pick and pack lines which not only add efficiencies but give us increased capacity. Given these new lines have been in operation, we are no longer using our legacy lines and thus the space that these lines occupy is currently only being used for bulk storage. The Hilti Complex was originally built as a manufacturing plant so leasing this space, and expanding our offsite bulk storage flex space, will create a strong financial improvement to our bottom line. In addition, having 3 long-term tenants in the building improves our ability to market the currently ongoing sale of the Hilti Complex. We are excited to add another financially strong tenant to the Hilti Complex and look forward to their occupancy which begins July 1, 2024."
About Educational Development Corporation (EDC)
EDC began as a publishing company specializing in books for children. EDC is the owner and exclusive publisher of Kane Miller Books ("Kane Miller"); Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. EDC is also the exclusive United States MLM distributor of Usborne Publishing Limited ("Usborne") children's books. EDC-owned products are sold via 4,000 retail outlets and EDC and Usborne products are offered by independent brand partners who hold book showings through social media, book fairs with schools and public libraries, in individual homes, as well as other in-person events and internet sales.
Contact:
Educational Development Corporation
Craig White, (918) 622-4522
Investor Relations:
Three Part Advisors, LLC
Steven Hooser, (214) 872-2710
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/211159
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