AIP Realty Trust announces second quarter 2022 results

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VANCOUVER, British Columbia, August 29, 2022 (GLOBE NEWSWIRE) — AIP Realty Trust (the “trust” or “AIP real estate”) (TSXV:AIP.U) today announced its financial results for the three and six months ended June 30, 2022. All dollar amounts are in US dollars.

Highlights of the second quarter of 2022

  • A Qualifying Transaction completed by reverse takeover on April 14, 2022 (the “Qualifying Transaction‘), which resulted in the listing of the Trust’s shares on the TSX Venture Exchange, beginning trading on April 21, 2022.
  • As part of the Qualifying Transaction, the Trust acquired its first property, a 100% leased multi-tenant light industrial flex facility at Eagle Court in Lewisville, Texas (the “Eagle Court property“).
  • Agreements entered into that give the Trust the option to acquire up to five additional properties located in Dallas-Fort Worth (“DFW”) Division of AllTrades Industrial Properties, Inc. (“AllTrades’), the Trust’s exclusive development partner and a Trust related party.
  • Ensuring shareholder approval of changes to the Trust Deed to enable the Trust to implement its business model and capital markets strategy.
  • Rental income generated from the Eagle Court property of $103,643, comprised of rental income and income from contracts with customers, particularly common area maintenance.
  • Property operating expenses incurred of $25,507 resulting in net rental income of $78,136.
  • Declared an initial quarterly distribution of $0.04 per share, which was paid to shareholders after the quarter ended.

“We achieved several important milestones during the second quarter, including the completion of our qualifying transaction, the IPO and the acquisition of our original property,” said Les Wulf, Executive Chairman of AIP Realty Trust. “We have seen strong demand for light industrial flex equipment in the fast-growing DFW area and across Texas, and our partner AllTrades is working on a solid development pipeline. Our focus remains on further demonstrating the strength of our business model.”

For the three months ended June 30 (unaudited) 2022 2021
rental income $103,643
operating costs of the property ($25,507)
net rental income $78,136
Other expenses ($2,117,360) ($98,739)
Fair value adjustment of investment property $9,628
Net Loss and Total Loss ($2,025,068) ($98,739)
As of June 30 (unaudited) and December 31 (audited) 2022 2021
investment property $5,750,000
Cash $1,583,861 $315,308
Secured bank debt (less debt discount) $3,133,672
Liability for Subscription Receipts $5,505,000
units pending $3,417,861 $72,861

Selected Financial Information
The foregoing is a summary of selected information for the three months ended June 30, 2022 and is qualified in its entirety by the Trust’s condensed interim consolidated financial statements and management’s discussion and analysis for the three and six months ended as of June 30, 2022.

Readers should note that the results for the three months ended June 30, 2022 reflect approximately 11 weeks of operations and not the typical 13 week period comprising one fiscal quarter as the Eagle Court property was acquired on closing on April 14, 2022 the qualifying transaction. Additionally, although figures are provided for the comparable period last year, it is noteworthy that the Trust did not own any real estate assets as of 2021.

Related party details
The Trust’s leadership team is the same leadership team as AllTrades.

outlook
The Trust intends to fund the construction, acquisition and management of light industrial flex multi-tenant properties. Through its agreement with AllTrades, the Trust has been granted the exclusive right to acquire all facilities completed and leased by AllTrades, as well as all facilities under development. The Trust will also provide AllTrades with a percentage of the funding needed to develop its national rollout.

As previously announced, AllTrades’ pipeline of properties includes five facilities in the DFW area that have been completed or are nearing completion and six additional facilities that are expected to begin development in September. The development of these facilities will be funded entirely with equity from AllTrades and Trinity Investors, a $6 billion Dallas-based real estate private equity fund. AllTrades also plans to open six more facilities by the end of this year.

AIP Realty’s Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis for the period ended June 30, 2022 are available on SEDAR at www.sedar.com and on the Trust’s website at www.aiprealtytust.com.

About AIP Realty Trust
AIP Realty Trust is a real estate investment trust with a growing portfolio of light industrial flex facilities focused on small business, commercial and service sectors in the United States. These properties appeal to a variety of users of small areas, such as Suppliers, repair services, last mile suppliers, small businesses and installers and distributors. They typically offer attractive fundamentals, including low tenant churn, stable cash flow and low investment intensity, as well as significant growth opportunities. With an initial focus on the Dallas-Fort Worth market, AIP plans to roll out this innovative real estate offering nationwide. AIP has exclusive rights to fund the development and purchase of all completed and leased properties developed by its development and property management partner AllTrades Industrial Properties, Inc. throughout North America. For more information, visit www.aiprealtytrust.com.

For more information on the Trust please contact:
Leslie Wulf
CEO
(214) 679-5263
[email protected]

or

Greg Vorwaller
Managing Director
(778) 918-8262
[email protected]

caution Statement Regarding Forward-Looking Information
This press release contains statements that constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding AIP Realty Trust’s plans, intentions, beliefs and current expectations regarding future business activities and operating performance. Forward-looking information is frequently identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding future acquisitions by the Trust, the ability to obtain regulatory and unitholder approvals and other factors. When or if used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “aim,” “plan,” “forecast,” “may,” “plan” and similar words or phrases identify forward-looking statements or information. These forward-looking statements or information may relate to the commencement of development of certain AllTrades facilities, proposed financing activities, proposed acquisitions, government or regulatory requirements or approvals, the reliability of information provided by third parties, and other factors or information. Such statements represent the Trust’s current views with respect to future events and are necessarily based on a number of assumptions and estimates which, while considered reasonable by the Trust, involve inherently significant business, economic, competitive, political and social risks , imponderables and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to differ materially from the results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are made as of the date of this release and are expressly qualified in their entirety by this cautionary statement. The Trust does not intend and undertakes no obligation to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or other events affecting such statements and information except as required by applicable laws, rules and regulations.

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.

This press release is not an offer of securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended (the “US Securities Act”). The Trust has not and will not register the securities under the US Securities Act. The Trust does not intend to conduct a public offering of its securities in the United States.

Source: AIP Realty Trust

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