TORONTO and MONTREAL, Dec. 22, 2020 (GLOBE NEWSWIRE) -- Nexus Real Estate Investment Trust (the “REIT”) (TSXV: NXR.UN) announced today the declaration of the December 2020 distribution.
The REIT will make a cash distribution in the amount of $0.01333 per unit, representing $0.16 per unit on an annualized basis, payable January 15, 2021 to unitholders of record as of December 31, 2020.
The REIT’s current distribution per unit continues to be $0.01333 per month. The REIT’s distribution reinvestment plan (“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.
Insider participation in the DRIP is approximately 1.5% of total participation for the December distribution payable on January 15, 2021.
A total of 3,240,306 units have been issued under the DRIP since its inception in February 2014.
Acquisition Update
On December 1, 2020, the REIT completed the acquisition announced on November 16, 2020. The REIT acquired a single-tenant industrial property located in Moncton, New-Brunswick, for a contractual purchase price of $8,000,000 at an attractive 7.5% going-in capitalization rate. The property has a gross leasable area of 93,443 square feet and is fully occupied by a Fortune 500 company. The contractual purchase price was partially satisfied through the issuance of 1,600,000 REIT units at a deemed value of $2.00 per unit.
Issuance of Units to Settle Debt
On each of November 2, 2020 and December 1, 2020, the REIT issued 93,167 Class B LP Units of Nexus Richmond LP, a subsidiary limited partnership of the REIT, to the vendor of the REIT’s Richmond BC property (the “Richmond Partner) in partial satisfaction of development management fees payable to the Richmond Partner pursuant to a development management agreement entered into between the REIT and the Richmond Partner. The units were issued at a deemed value of $2.30 per unit, in settlement of $428,568 of development management fees.
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 74 properties comprising approximately 4.2 million square feet of rentable area. The REIT has approximately 111,900,000 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 25,485,000 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.