Melcor Real Estate Investment Trust (“Melcor REIT” or the “REIT”) (TSX: MR.UN) today announced results for the first quarter ended March 31, 2024. The first quarter Management Discussion & Analysis and Condensed Interim Financial Statements are available on our website (www.MelcorREIT.ca) under Financial Reports, or on SEDAR+ (www.sedarplus.ca)
Andrew Melton, CEO of Melcor REIT commented: “We are pleased to report stable first quarter results despite challenging market conditions. Stable results are the result of first-class service provided by our property management group and consistent leasing efforts by our leasing team.
“In the first quarter of 2024, we continue to navigate headwinds arising from rising costs due to inflation and elevated interest rates. Certain asset classes have begun to exhibit modest improvements; however, challenges still exist. Despite these ongoing uncertainties, we continue to demonstrate resilience and adaptability, and remain focused on tenant retention and actively leasing vacant space.
“As part of a strategic decision to focus on our Alberta markets and debt repayment we have classified four properties as held for sale, including three retail properties and one office property in Saskatchewan and British Columbia. Net cash from the sale of these assets is expected to be used to pay down the revolving credit facility and reducing our overall debt. On April 16, 2024, we entered an unconditional sale of one of these assets for gross proceeds of $7.80 million which is expected to close on May 10, 2024. Net proceeds from this sale will be used to reduce debt.”
On February 22, 2024, the Board of Trustees of Melcor REIT announced the establishment of an Independent Committee (the “Independent Committee”) to oversee a broad-based strategic review with a focus on unlocking unitholder value. The Independent Committee has retained BMO Capital Markets as financial advisor and DLA Piper (Canada) LLP as legal counsel to evaluate a broad range of strategic alternatives to maximize unitholder value. The Independent Committee is chaired by Richard Kirby, and also includes Bernie Kollman and Barry James as committee members. We will continue to provide updates to the market as they become available.
About Melcor REIT
Melcor REIT is an unincorporated, open-ended real estate investment trust. Melcor REIT owns, acquires, manages and leases quality retail, office and industrial income-generating properties in western Canada. Its portfolio is currently made up of interests in 38 properties representing approximately 3.1 million square feet of gross leasable area located across Alberta and in Regina, Saskatchewan and Kelowna, British Columbia. For more information, please visit www.melcorREIT.ca.
Contact Information:
Investor Relations
ir@melcorREIT.ca
