Summit Industrial Income REIT Announces $126 Million Logistics Centre Acquisition and $110 Million Bought Deal Equity Offering

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TORONTO, Sept. 15, 2021 (GLOBE NEWSWIRE) -- Summit Industrial Income REIT (“Summit” or the “REIT”) (TSX: SMU.UN) announced today that it has entered into an agreement to purchase two newly-constructed Class A logistics centres totaling 725,000 square feet of gross leasable area (the “Logistics Centre”) located in Calgary, Alberta close to the Calgary International Airport. The transaction is subject to certain closing conditions and is expected to close early in the fourth quarter 2021. Summit is expected to pay $126.0 million for the Logistics Centre, financed by the net proceeds from a $110 million bought deal equity offering, discussed below, and cash on hand, generating an attractive stabilized capitalization rate of approximately 4.3%.

The Logistics Centre consists of two brand-new, state-of-the-art logistics buildings with 36-foot clear ceiling heights, energy efficient LED lighting, high volume sprinkler systems, numerous loading docks and additional outside trailer parking. The first property, built in 2020, totals 525,000 square feet and is 100% occupied by one of the largest global online retailers under a ten-year lease. The second property totals 200,000 square feet and is currently under construction with an expected completion date of October 2021. Over 60% of the second property has been pre-leased to an existing tenant of the REIT who has an option to lease the balance of the building. The Logistics Centre was developed through a partnership between Montez Corporation and Hopewell Development LP.

“We are very pleased to be selectively adding these highly accretive properties to our portfolio from Hopewell given their proven track record of developing state of the art industrial and logistics facilities across North America and look forward to working with them in the future,” commented Dayna Gibbs, Chief Operating Officer. “The Calgary industrial market has strengthened significantly over the last several months with improved occupancies and near-record absorption. The quality of the tenant base of these two brand new properties is exceptional and will positively contribute to growing our cash flow in the years to come,” Ms. Gibbs added.

Summit also announced today that that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets (collectively, the "Underwriters") to sell, on a bought deal basis, 5,270,000 Units of the REIT (the “Units”) for a price of $20.90 per Unit for gross proceeds to Summit of approximately $110 million (the "Offering"). In addition, Summit has granted the Underwriters an over-allotment option to purchase up to an additional 790,500 Units on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after closing of the Offering. The Offering is expected to close on or about September 22, 2021 and is subject to customary conditions, including approval of the Toronto Stock Exchange.

The Units will be offered by way of a prospectus supplement to the REIT’s short form base shelf prospectus dated June 21, 2021, which prospectus supplement is expected to be filed with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada on or about September 17, 2021. The REIT intends to use the net proceeds from the Offering (and cash on hand) to fund the acquisition of the Logistics Centre with the balance, if any, to be used for general trust purposes. The Offering is not conditional upon the closing of the Logistics Centre acquisition.

The 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. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Units in the United States or to, or for the account or benefit of, U.S. persons.

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 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. 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. More particularly and without limitation, this news release contains forward-looking statements and information with respect to the following: the intention of the REIT to acquire the Logistics Centre and to complete the Offering on the terms and conditions described herein; the date on which the closing of the Offering is expected to occur; the timing for the filing of the prospectus supplement; the use of the proceeds of the Offering; 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 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.

The forward-looking statements and information are based on certain key expectations and assumptions made by Summit, including general economic conditions. Although Summit 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 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, and given the impact of the COVID-19 pandemic and government measures to contain it, there is inherently more uncertainty associated with the REIT’s assumptions as compared to prior periods. These risks and uncertainties include, but are not limited to, tenant risks, current economic environment, environmental matters, general insured and uninsured risks and Summit 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 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.

For more information, please contact:

Dayna Gibbs, COO at (905) 791-1181 ext. 220
dgibbs@summitiireit.com