TORONTO,
March 15, 2013 /CNW/ - Summit
Industrial Income REIT ("Summit II") (TSXV: SMU.UN)
announced today that its Board of Trustees has approved a cash
distribution policy to pay $0.0408
per Trust Unit on a monthly basis to Unitholders, aggregating
$0.4896 on an annual basis. The first
cash distribution will be paid on April 15,
2013 to Unitholders of record on March 29, 2013.
"We are very pleased to be implementing a
monthly cash distribution policy," commented Lou Maroun, Chairman. "As we continue to grow
and expand our property portfolio and increase our cash flows, we
look to build on this initial cash distribution to achieve our
ultimate goal of enhancing income and long-term value for our
Unitholders."
"We recently completed the purchase of
$171.4 million in high quality light
industrial properties, increasing our asset base to just under
$260.0 million," added Paul Dykeman, Chief Executive Officer. "Our new
cash distribution will generate a highly attractive annualized
yield of approximately 7.25% based on the $6.75 unit price from our recent equity offer,
and we are very comfortable with the resulting forecasted AFFO
payout ratio of between 90% and 95%, in line with our stated
targets. As Summit II continues to grow it will look to further
reduce its payout ratio to between 85% to 95%."
Summit II also announced today that it has
implemented a Distribution Reinvestment Plan ("DRIP")
whereby registered or beneficial holders of Summit II's Trust Units
who are resident in Canada can
acquire additional Trust Units by reinvesting all or a portion of
their monthly cash distributions without paying brokerage
commissions. Trust Units purchased under the DRIP will be issued
from treasury at a price per Trust Unit calculated by reference to
the volume weighted average of the trading price for the Trust
Units on the TSX Venture Exchange for the five trading days
immediately preceding the date the relevant distribution is paid.
In addition, Unitholders who elect to participate in the DRIP will
receive a further distribution of Trust Units equal to 5% of each
distribution that was reinvested by them. Summit II has reserved
1,801,311 Trust Units for issuance under the DRIP, and it
anticipates that insiders holding approximately 2.9% of the
outstanding Trust Units will participate in the DRIP. The DRIP was
approved by the TSX Venture Exchange on March 13, 2013.
"Our DRIP allows Unitholders to cost effectively
purchase additional Units in Summit II, without any brokerage or
other commissions, while receiving bonus Units" Mr. Maroun
concluded.
Details about the DRIP and registration forms
can be found on Summit II's web site at www.summitIIreit.com, or at
www.sedar.com.
About Summit II
Summit II is an open-ended mutual fund trust focused on
growing and managing a portfolio of light industrial properties
across Canada. Summit II's units
are listed on the TSX Venture Exchange and trade under the symbol
SMU.UN. For more information, please visit our web site at
www.summitIIreit.com.
Caution Regarding Forward Looking
Information
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends",
"goal" and similar expressions are intended to identify
forward-looking information or statements. More particularly and
without limitation, this news release contains forward looking
statements and information concerning Summit II's distributions and
the DRIP. The forward-looking statements and information are based
on certain key expectations and assumptions made by Summit II.
Although Summit II believes that the expectations and assumptions
on which such forward-looking statements and information are based
are reasonable, undue reliance should not be placed on the forward
looking statements and information because Summit II can give no
assurance that they will prove to be correct. By its nature, such
forward-looking information is subject to various risks and
uncertainties, which could cause the actual results and
expectations to differ materially from the anticipated results or
expectations expressed. These risks and uncertainties include, but
are not limited to, market conditions, tenant risks, current
economic environment, environmental matters, general insured and
uninsured risks and Summit II being unable to obtain any required
financing and approvals. Readers are cautioned not to place undue
reliance on this forward-looking information, which is given as of
the date hereof, and to not use such forward looking information
for anything other than its intended purpose. Summit II undertake
no obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Summit Industrial Income REIT