MONTREAL and TORONTO, April 20, 2020 (GLOBE NEWSWIRE) -- Nexus Real Estate Investment Trust (the “REIT”) (TSXV: NXR.UN) announced today that it intends to release its financial results for the quarter ended March 31, 2020 before the opening of the TSX Venture Exchange on Friday May 15, 2020.
Management of the REIT will host a conference call at 1:00 PM Eastern Standard Time on Friday May 15, 2020 to review the financial results and operations.
To participate in the conference call, please dial 416-915-3239 or 1-800-319-4610 (toll free in Canada and the US) at least five minutes prior to the start time and ask to join the Nexus REIT conference call.
A recording of the conference call will be available until June 15, 2020. To access the recording, please dial 604-674-8052 or 1-855-669-9658 (toll free in Canada and the US) and enter access code 4378.
April and May Distributions
The REIT announced today that it will make a cash distribution in the amount of $0.01333 per unit, representing $0.16 per unit on an annualized basis, payable May 15, 2020 to unitholders of record as of April 30, 2020.
The REIT will also make a cash distribution in the amount of $0.01333 per unit, representing $0.16 per unit on an annualized basis, payable June 15, 2020 to unitholders of record as of May 29, 2020.
The REIT’s current distribution per unit continues to be $0.01333 per month. The REIT’s distribution reinvestment program (“DRIP”) entitles eligible unitholders to elect to receive all, or a portion of the cash distributions of the REIT reinvested in units of the REIT. Eligible unitholders who so elect will receive a bonus distribution of units equal to 4% of each distribution that was reinvested by them under the DRIP.
Issuance of Units to Settle Debt
On April 1, 2020, the REIT issued a total of 2,639,745 Class B LP Units of a subsidiary limited partnership of the REIT, valued at $2.30 per unit, in settlement of a total of $6,071,413.50 of contractual obligations. The units were issued at a $0.78 per unit premium over the $1.52 closing price of the REIT’s units on April 1, 2020. The Class B LP Units are exchangeable for REIT units on a one for one basis. Under applicable securities laws, the units issued are subject to a four-month hold period which will expire on August 1, 2020.
The units were issued pursuant to a development management agreement entered into between the REIT and the vendor of the REIT’s Richmond, BC property (the “Richmond Partner”), under which the REIT has engaged the Richmond Partner to manage the development of the Richmond, BC property, and pursuant to which the REIT will split the increase in value of the Richmond, BC property with the Richmond Partner, as previously noted in the REIT’s press release dated March 26, 2020, and will pay a development management fee to the Richmond Partner. The 2,639,745 units issued represent an advance of $5,000,000 (2,173,908 units) against the Richmond Partner’s portion of the increase in the property value (the “Lift Advance”), as well as payment of $1,071,413.50 (465,837 units) of the total of $3,000,000 in development management fees payable to the Richmond Partner pursuant to the development management agreement.
On April 1, 2020, 181,159 units, valued at $416,666, were released to the Richmond Partner, and the REIT holds the remaining 1,992,749 units issued in respect of the Lift Advance for disbursement to the Richmond Partner in equal installments of 181,159 units on the first of each month for 11 months commencing May 1, 2020, in full satisfaction of the Lift Advance.
On August 1, 2020, the 465,837 units issued on account of development management fees will be released to the Richmond Partner. While units are held by the REIT for disbursement, they will not accrue distributions.
Annual General Meeting
The REIT’s annual general meeting will be held at 9:00 AM Eastern Standard Time on Thursday May 14, 2020. In order to comply with government and public health directives regarding Covid-19 social distancing, unitholders are strongly encouraged to submit a form of proxy or voter information form in advance of the meeting, and not to plan to attend the meeting in person. The Meeting will be available through a conference call: 1-604-638-5340 or 1-800-319-4610 and a webcast: http://services.choruscall.ca/links/nexusreit20200514.html.
The REIT expects to file its management proxy circular and related materials with the securities regulators on SEDAR and mail such materials to unitholders on or about April 23, 2020.
About Nexus REIT
Nexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of industrial, office and retail properties located in primary and secondary markets in North America. The REIT currently owns a portfolio of 72 properties comprising approximately 4.0 million square feet of rentable area. The REIT has approximately 107,329,000 units issued and outstanding. Additionally, there are Class B LP units of subsidiary limited partnerships of Nexus REIT issued and outstanding, which are convertible into approximately 24,457,000 REIT units.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information please contact:
Kelly C. Hanczyk, CEO at (416) 906-2379; or
Rob Chiasson, CFO at (416) 613-1262.