Summit Industrial Income REIT Announces Monthly Cash Distribution And Adoption Of A Distribution Reinvestment Plan
TORONTO, March 15, 2013 /CNW/ - Summit Industrial Income REIT (" Summit II") (TSXV: SMU.UN) announced today that its Board of Trustees has approved a cash distribution policy to pay $0.0408 per Trust Unit on a monthly basis to Unitholders, aggregating $0.4896 on an annual basis. The first cash distribution will be paid on April 15, 2013 to Unitholders of record on March 29, 2013.
"We are very pleased to be implementing a monthly cash distribution policy," commented Lou Maroun, Chairman. "As we continue to grow and expand our property portfolio and increase our cash flows, we look to build on this initial cash distribution to achieve our ultimate goal of enhancing income and long-term value for our Unitholders."
"We recently completed the purchase of $171.4 million in high quality light industrial properties, increasing our asset base to just under $260.0 million," added Paul Dykeman, Chief Executive Officer. "Our new cash distribution will generate a highly attractive annualized yield of approximately 7.25% based on the $6.75 unit price from our recent equity offer, and we are very comfortable with the resulting forecasted AFFO payout ratio of between 90% and 95%, in line with our stated targets. As Summit II continues to grow it will look to further reduce its payout ratio to between 85% to 95%."
Summit II also announced today that it has implemented a Distribution Reinvestment Plan (" DRIP") whereby registered or beneficial holders of Summit II's Trust Units who are resident in Canada can acquire additional Trust Units by reinvesting all or a portion of their monthly cash distributions without paying brokerage commissions. Trust Units purchased under the DRIP will be issued from treasury at a price per Trust Unit calculated by reference to the volume weighted average of the trading price for the Trust Units on the TSX Venture Exchange for the five trading days immediately preceding the date the relevant distribution is paid. In addition, Unitholders who elect to participate in the DRIP will receive a further distribution of Trust Units equal to 5% of each distribution that was reinvested by them. Summit II has reserved 1,801,311 Trust Units for issuance under the DRIP, and it anticipates that insiders holding approximately 2.9% of the outstanding Trust Units will participate in the DRIP. The DRIP was approved by the TSX Venture Exchange on March 13, 2013."Our DRIP allows Unitholders to cost effectively purchase additional Units in Summit II, without any brokerage or other commissions, while receiving bonus Units" Mr. Maroun concluded.
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