Automotive Properties REIT Announces Agreement to Acquire Tesla Collision Center Property in Columbus, Ohio for a Purchase Price of US$17.8 Million

CNW Group

Mon, Feb 10, 2025, 5:30 AM 2 min read

TORONTO, Feb. 10, 2025 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) ("Automotive Properties REIT" or the "REIT") announced today that it has entered into an agreement to acquire a Tesla-tenanted collision center property (the "Property") in Dublin, Ohio, a suburb of Columbus, from a third party for a purchase price of approximately US$17.8 million. The addition of the Property is expected to increase the REIT's Adjusted Funds from Operations ("AFFO") per unit.

"This acquisition will further increase our exposure to Tesla and the electric vehicle market in North America. We currently own six automotive properties in urban markets in Canada that are tenanted by Tesla," said Milton Lamb, President and CEO of Automotive Properties REIT. "This acquisition is consistent with our focus on owning and acquiring attractive automotive properties in growing metropolitan markets."

The Property consists of an approximately 94,000 square-foot Tesla collision service center facility that is situated on 6.32 acres of land located along a commercial corridor at 5600 Britton Parkway in Dublin, Ohio, adjacent to a large retail shopping center. The Property is in close proximity to Interstate 270, an auxiliary interstate highway that forms a beltway loop freeway in the Columbus Metropolitan Area. Columbus is a growing metropolitan market in the United States.

The Property is tenanted by Tesla under a mid-term net lease. The REIT expects to close the Property acquisition in the first quarter of 2025, subject to satisfaction of customary closing conditions. The REIT intends to fund the purchase price of the acquisition primarily by drawing on its revolving credit facilities.

About Automotive Properties REIT

Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive and other OEM dealership and service properties located in Canada and the United States. The REIT's portfolio currently consists of 78 income-producing commercial properties, representing approximately 2.9 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive and OEM dealership and service real estate properties. For more information, please visit: www.automotivepropertiesreit.ca.

(1) Non-IFRS Financial Measure

This news release contains a financial measure which is not defined under International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures presented by other real estate investment trusts or enterprises. AFFO is a key measure of earnings performance used by real estate businesses. This measure is not defined by IFRS and does not have a standardized meaning prescribed by IFRS, and therefore should not be construed as an alternative to net income or cash flow from operating activities calculated in accordance with IFRS. The REIT believes that AFFO is an important measure of economic earnings performance and is indicative of the REIT's ability to pay distributions from earnings. The IFRS measurement most directly comparable to AFFO is net income. Please refer to the REIT's Management Discussion & Analysis ("MD&A") most recently filed on SEDAR+ for further discussion of this non-IFRS financial measure.

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events and in some cases can be identified by such terms as "will", "should", "anticipates", "could" and "expects". Forward-looking information includes statements regarding the financial impact of the Property acquisition on the REIT's AFFO per unit and the expected timing of closing the Property acquisition. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risks & Uncertainties, Critical Judgments & Estimates" in the REIT's Management's Discussion & Analysis ("MD&A") for the three and nine-month periods ended September 30, 2024 and in the REIT's annual information form dated March 7, 2024, which are available on SEDAR+ (www.sedarplus.ca) and the REIT's website (www.automotivepropertiesreit.ca). The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.