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Summit Industrial Income REIT Announces Establishment of $200 Million At-The-Market Equity Program And Other Updates

·7 min read

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, June 21, 2021 /CNW/ - June 21, 2021: Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today that it has established an at-the-market equity program (the "ATM Program"), filed a short form base shelf prospectus (the "Shelf Prospectus") and has made certain amendments to its distribution reinvestment plan ("DRIP").

"The establishment of the ATM Program will provide the REIT with further flexibility with respect to its equity financing strategy that may be used in conjunction with existing funding sources while providing a cost-efficient way of matching capital requirements as appropriate," commented Dayna Gibbs, Chief Operating Officer.

ATM Program

The ATM Program allows the REIT to issue, at its discretion, up to $200 million of REIT units (the "Units") over a 25-month period until July 21, 2023, unless the ATM Program is terminated prior to such date by the REIT, or otherwise in accordance with its terms. Any Units issued pursuant to the ATM Program will be issued from treasury, through the Toronto Stock Exchange (the "TSX") or any other marketplace on which the Units are listed, quoted or otherwise traded in Canada.

The volume and timing of distributions under the ATM Program, if any, will be determined at the REIT's sole discretion. Since the Units distributed pursuant to the ATM Program will be distributed to the public at prevailing market prices at the time of sale, prices may vary among purchasers and during the period of distribution.

The REIT intends to use the net proceeds from the ATM Program, if any, to fund future acquisitions, development and redevelopment opportunities, repayment of indebtedness, and/or other general trust purposes.

Sales of Units through the ATM Program, if any, will be made pursuant to the terms of an equity distribution agreement dated June 21, 2021 (the "EDA") among the REIT and BMO Capital Markets, Canaccord Genuity, Desjardins Securities, National Bank Financial and RBC Capital Markets, as agents (collectively, the "Agents").

The REIT has filed with the securities regulatory authorities in each of the provinces and territories of Canada a prospectus supplement dated June 21, 2021 to the Shelf Prospectus for the ATM Program. You may access these documents and the EDA by visiting SEDAR at www.sedar.com.

Shelf Prospectus

The REIT also announced today that it has filed and obtained a receipt for the Shelf Prospectus. The Shelf Prospectus was filed with securities regulatory authorities in each of the provinces and territories of Canada on June 21, 2021 for the purpose of the sale of securities.

The Shelf Prospectus is valid for a 25-month period, during which time the REIT may issue, from time-to-time, units (including under the ATM Program), debt securities, subscription receipts, or any combination thereof, having an aggregate offering price of up to $2.25 billion.

The Shelf Prospectus was filed to provide the REIT with continued financial flexibility and efficient access to Canadian capital markets. The previous final base shelf prospectus dated May 28, 2019, as amended, was set to expire on June 28, 2021.

Amendment to the Distribution Reinvestment Plan

The REIT has received approval from the TSX to amend its DRIP. Effective today, the DRIP was amended such that the number of additional REIT units to which unitholders participating in the DRIP are entitled to receive will be changed from 5% to 3% of the amount of their reinvested distribution.

Pursuant to the DRIP, registered or beneficial unitholders of the REIT who are resident in Canada can acquire additional REIT units by reinvesting all, or a portion of, their monthly cash distributions without paying brokerage commissions. REIT units purchased under the DRIP are issued at a price per REIT unit calculated by reference to the volume weighted average of the trading price for the REIT units on the TSX for the five trading days immediately preceding the date the relevant distribution is paid. Effective today, unitholders who elect to participate in the DRIP will receive a distribution of REIT units equal to 3% of each distribution pursuant to the DRIP.

Participants in the DRIP who wish to amend or alter their participation in the DRIP should make arrangements with their broker, dealer, bank or other market participant. The terms of the DRIP are available on SEDAR at www.sedar.com and the REIT's website at www.summitIIreit.com.

About Summit

Summit Industrial Income REIT is an unincorporated open-end trust focused on growing and managing a portfolio of light industrial properties across Canada. Summit's units are listed on the TSX and trade under the symbol SMU.UN. For more information, please visit our website at www.summitIIreit.com.

Selling Restrictions

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The REIT units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the "1933 Act") and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act.

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. Forward–looking information may relate to future results, performance, achievements, events, prospects or opportunities for the REIT or the real estate industry, outlook and anticipated events or results. Some of the specific forward–looking statements contained herein include statements with respect to the following: the anticipated sale and distribution of Units under the ATM Program, if any, on the terms and conditions described herein; the aggregate value of Units which may be issued pursuant to the ATM Program; the REIT's intended use of the net proceeds of the ATM Program; the anticipated benefits of the ATM Program; the purposes for which the REIT has filed the Shelf Prospectus; the intention of the REIT to make distributions to unitholders and the amount of such distributions; and Summit's plans, goals, strategies, intentions, beliefs, estimates, costs, objectives, economic performance or expectations or the assumptions underlying any of the foregoing.

A variety of factors, many of which are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the price at which Units are sold in the ATM Program; the aggregate net proceeds received by the REIT as a result of the ATM Program; and the risks discussed in the REIT's materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully as there can be no assurance that actual results will be consistent with such forward–looking statements.

Information contained in forward–looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including general economic conditions. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect. By its nature, 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, and given the impact of COVID–19 and government measures to contain it, there is inherently more uncertainty associated with the REIT's assumptions as compared to prior periods.

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 undertakes 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.

SOURCE Summit Industrial Income REIT

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View original content: http://www.newswire.ca/en/releases/archive/June2021/21/c7385.html

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