Granite REIT Announces Lease Extensions at its Properties in Graz, Austria

Rhea-AI Summary

Granite Real Estate Investment Trust (NYSE:GRPU) has extended the leases for its Graz, Austria facilities, comprising 5.0 million square feet, for ten years until January 31, 2034. Starting February 1, 2024, the annual rent for the first five years will increase with the consumer price index, capped at 10%. These facilities represent approximately 8% of Granite's annual revenue. Based in Canada, Granite specializes in logistics, warehouse, and industrial properties across North America and Europe, managing 141 properties with around 58.8 million square feet of leasable area.

Positive

• Lease extension for Graz facilities secured until January 31, 2034.
• Potential for rental income growth with CPI-linked increases, capped at 10%.
• Graz facilities represent approximately 8% of annual revenue, ensuring stability.

Negative

• None.

TORONTO--(BUSINESS WIRE)-- Granite Real Estate Investment Trust (“Granite”) (TSX: GRT.UN / NYSE: GRP.U) announced today that the leases at its properties in Graz, Austria (the “Graz Facilities”), comprising approximately 5.0 million square feet, have been contractually extended for ten years to January 31, 2034.

On February 1, 2024 the annual rent for the Graz Facilities for the initial five years of the extension will escalate by the increase in the consumer price index for the 60 month period preceding that date, to a maximum of ten percent. The Graz Facilities are Granite’s largest properties as measured by gross leasable area and currently account for approximately 8% of Granite’s annualized revenue⁽¹⁾.

ABOUT GRANITE

Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. Granite owns 141 investment properties representing approximately 58.8 million square feet of leasable area.

OTHER INFORMATION

Copies of financial data and other publicly filed documents about Granite are available through the internet on the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) which can be accessed at www.sedar.com and on the United States Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which can be accessed at www.sec.gov. For further information, please see our website at www.granitereit.com or contact Teresa Neto, Chief Financial Officer, at 647-925-7560.

FORWARD LOOKING STATEMENTS

This press release may contain statements that, to the extent they are not recitations of historical fact, constitute ‘‘forward-looking statements’’ or “forward-looking information” within the meaning of applicable securities legislation, including the United States Securities Act of 1933, as amended, the United States Securities Exchange Act of 1934, as amended, and applicable Canadian securities legislation. Forward-looking statements and forward-looking information may include, among others, statements regarding the expected annual rent increase and Granite’s future plans, goals, strategies, intentions, beliefs, estimates, costs, objectives, economic performance, expectations, or foresight or the assumptions underlying any of the foregoing. Words such as ‘‘may’’, ‘‘would’’, ‘‘could’’, ‘‘will’’, ‘‘likely’’, ‘‘expect’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘intend’’, ‘‘plan’’, ‘‘forecast’’, ‘‘project’’, ‘‘estimate’’, “seek” and similar expressions are used to identify forward-looking statements and forward-looking information.

Forward-looking statements and forward-looking information should not be read as guarantees of future events, performance or results and will not necessarily be accurate indications of whether or the times at or by which such future events or performance will be achieved. Undue reliance should not be placed on such statements. Forward-looking statements and forward-looking information are based on information available at the time and/or management’s good faith assumptions and analyses made in light of its perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances, and are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond Granite’s control, that could cause actual events or results to differ materially from such forward-looking statements and forward-looking information. Important factors that could cause such differences include, but are not limited to the risks set forth in the annual information form of Granite for 2021 dated March 9, 2022 (the “Annual Information Form”), filed on SEDAR at www.sedar.com and attached as Exhibit 1 to Granite’s Annual Report on Form 40-F for the year ended December 31, 2021 filed with the SEC and available online at www.sec.gov all of which investors are strongly advised to review. The ‘‘Risk Factors’’ section of the Annual Information Form also contains information about the material factors or assumptions underlying such forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information speak only as of the date the statements and information were made and unless otherwise required by applicable securities laws, Granite expressly disclaims any intention and undertakes no obligation to update or revise any forward-looking statements or forward-looking information contained in this press release to reflect subsequent information, events or circumstances or otherwise.

(1)

Annualized revenue is calculated as the contractual base rent for the month of January 2023 multiplied by 12. Annualized revenue excludes revenue from properties classified as assets held for sale.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230131006140/en/

Teresa Neto, Chief Financial Officer, at 647-925-7560

Source: Granite Real Estate Investment Trust

FAQ

What recent development occurred with Granite Real Estate Investment Trust (GRPU)?

Granite has extended leases for its Graz facilities in Austria for ten years until January 31, 2034.

How will the rent for Graz facilities change after February 1, 2024?

The annual rent for the first five years will increase based on the consumer price index, up to a maximum of 10%.

What percentage of Granite's revenue comes from the Graz facilities?

The Graz facilities account for approximately 8% of Granite's annualized revenue.

What is the size of the Graz facilities owned by Granite?

The Graz facilities comprise approximately 5.0 million square feet.

How many properties does Granite Real Estate Investment Trust own?

Granite owns 141 investment properties totaling about 58.8 million square feet of leasable area.