VANCOUVER, British Columbia, May 28, 2025 (GLOBE NEWSWIRE) — In a release issued earlier today by AIP Realty Trust (TSXV:AIP.U), please note that the year in the headline should read “2025” instead of “2024”. The corrected release follows:
AIP Realty Trust (the “Trust” or “AIP Realty”) (TSXV:AIP.U) today announced its financial results for the three months ended March 31, 2025. All dollar amounts are stated in U.S. dollars.
Q1 2025 Highlights
- The demand for light industrial flex facilities is continuing to drive rental rate increases, and the Eagle Court property is demonstrating robust leasing momentum. While the Trust aims to minimize vacancies and has been successful in this endeavor, unit turnover provides an opportunity to update suite revenue per square foot and bring it in-line with current market conditions. New leases signed in 2025 at Eagle Court have seen an average 19% increase in suite revenue per square foot.
- Investment property revenue was $124,232 for the three months ended March 31, 2025, compared to $151,042 in the same period in 2024, a decrease of $26,810, or 18%. The decline in investment property revenue was mainly due to a decline in parking revenue from a 2024 lease expiration that included a large parking agreement component and normal turnover that resulted in the scheduled vacancy of two units starting in February 2025. Both vacant units were released at higher rates to new tenants that moved in mid-March 2025.
- Investment property operating expense for the three months ended March 31, 2025 increased to $64,742, compared to $48,602 for the three months ended March 31, 2025, an increase of $16,140, or 33%. The increase in investment property operating expense was primarily due to the variable nature of maintenance and repair expense, as the Trust took advantage of the scheduled vacancies in the first quarter of 2025 to perform maintenance on its parking lot and property-wide fire system, which resulted in over $14,000 of additional expense in the first quarter of 2025 compared to 2024. As a result, overall investment property net rental income for the three months ended March 31, 2025 was $59,490, compared to $102,440 for the three months ended March 31, 2024, a decline of $42,950, or 42%.
- Effective February 12, 2025, the Trust completed a fourth tranche of a non-brokered private placement (the “Financing”) and issued 5,200,000 Preferred Units at a price of $0.50 per Preferred Unit for aggregate gross proceeds of $2,600,000. The Trust paid $160,000 in finder’s fees to a non-related third party in connection with the fourth tranche of the Financing. The Trust intends to use the proceeds of the Financing and Plymouth Transaction for working capital and general corporate purposes.
- On March 10, 2025, the Trust entered into a term sheet and mandate letter with a leading US banking institution to serve as the administrative agent and sole lead arranger of a senior first mortgage, secured, interest-only credit facility (the “Facility”). The total Facility will be for $300,000,000, with the initial amount being $100,000,000. The Facility will be subject to an accordion option whereby the Trust shall have the right to increase the Facility by an amount equal to an additional $200,000,000.
- Additionally on March 10, 2025, the Trust announced an Off-Balance Sheet Development JV whereby it entered into a non-binding term sheet between the Trust and a significant financial institutional group (the “JV Partner”), pursuant to which the Trust and the JV Partner will form a joint venture entity (the “Joint Venture”), governed by a joint venture agreement to be negotiated by the parties. The Joint Venture will serve as an off-balance sheet development vehicle to construct new AllTrades SIBS facilities across the Sunbelt states, which the Trust will then acquire outright upon completion and leasing stabilization.
Selected Financial Information
| Three Months Ended | ||||||
| March 31, 2025 | March 31, 2024 | |||||
| Investment property revenue | $ | 124,232 | $ | 151,042 | ||
| Investment property operating expenses | (64,742 | ) | (48,602 | ) | ||
| Investment property net rental income | 59,490 | 102,440 | ||||
| Trust expense | (1,480,425 | ) | (481,285 | ) | ||
| Fair value adjustment to investment property | 91,403 | 1,375 | ||||
| Net loss and total comprehensive loss | $ | (1,329,532 | ) | $ | (377,740 | ) |
| March 31, 2025 | December 31, 2024 | |||||
| (unaudited) | (audited) | |||||
| Investment property | $ | 6,092,924 | $ | 5,992,598 | ||
| Cash | $ | 664,650 | $ | 519,601 | ||
| Project debt (net of debt discount) | $ | 2,896,346 | $ | 2,920,352 | ||
| Accounts payable and accrued expenses | $ | 7,121,233 | $ | 6,670,515 | ||
| Units outstanding | 4,924,448 | 4,924,448 | ||||
The foregoing is a summary of selected information for the three months ended March 31, 2025 and 2024 and is qualified in its entirety by, and should be read in conjunction with, the Trust’s condensed interim consolidated financial statements and management discussion and analysis for the three months ended March 31, 2025 and 2024. These documents are available on SEDAR+ at www.sedarplus.com, and on the Trust’s website at www.aiprealtytrust.com.
Related party disclosures
The executive management team of the Trust is the same executive management team as AllTrades.
Outlook and Subsequent Events
Through its agreement with AllTrades, the Trust has been granted an exclusive right to purchase all AllTrades’ completed and leased facilities, as well as any facilities in development. This includes 13 properties subject to forward purchase agreements, including six DFW-area facilities already completed or nearing completion, and seven additional facilities on which development has commenced or is ready to commence. Development on these facilities was funded with equity capital from AllTrades and Trinity Investors, a $7 billion Dallas-based real estate private equity investor. In addition, AllTrades is actively planning the next tranche of facilities in DFW and Houston, TX.
As previously disclosed in March 2024, the Board of Trustees continues to explore the execution of its business plan and relationship with AllTrades and anticipates closing the AllTrades Transaction by the end of the third quarter 2025. The Trust is currently engaged in advanced discussions with several leading banks who have shown interest in serving as lead investment banker of the syndicate members to the Concurrent Financing in connection with the AllTrades Transaction.
About AIP Realty Trust
AIP Realty Trust is an unincorporated, open ended mutual fund trust with a growing portfolio of AllTrades branded SIBS light industrial flex facilities focused on small businesses and the trades and services sectors in the U.S. These properties appeal to a diverse range of small space users, such as contractors, skilled trades, suppliers, repair services, last-mile providers, small businesses and assembly and distribution firms. They typically offer attractive fundamentals including low tenant turnover, stable cash flow and low capex intensity, as well as significant growth opportunities. With an initial focus on the Dallas-Fort Worth market, AIP plans to roll out this innovative property offering nationally. AIP holds the exclusive rights to finance the development of and to purchase all the completed and leased properties built across North America by its development and property management partner, AllTrades Industrial Properties, LLC. For more information, please visit www.aiprealtytrust.com.
For further information from the Trust, contact:
Leslie Wulf
Executive Chairman
(214) 679-5263
les.wulf@aiprealtytrust.com
Or
Greg Vorwaller
Chief Executive Officer
(778) 918-8262
greg.vorwaller@aiprealtytrust.com
Cautionary Statement on Forward-Looking Information
This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of AIP Realty Trust with respect to future business activities and operating performance. Forward-looking information is often 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 news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the commencement of development on certain of the AllTrades facilities, proposed financing activity, proposed acquisitions, regulatory or government requirements or approvals, the reliability of third-party information and other factors or information. Such statements represent the Trust’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Trust, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward- looking statements. These forward-looking statements are made as of the date hereof and are expressly qualified in their entirety by this cautionary statement. The Trust does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than 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 news 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 U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”). The Trust has not registered and will not register the securities under the U.S. Securities Act. The Trust does not intend to engage in a public offering of their securities in the United States.
Source: AIP Realty Trust
