CAPITAL STRUCUTRE
-- New equity and convertible debt issues - On December 13, 2012, the Trust completed a public offering and issued 13,570,000 Units at a price of $10.60 per unit for gross proceeds of $143.8 million. Concurrently, the Trust issued $86.3 million aggregate principal amount of 5.25% convertible unsecured subordinated debentures due December 31, 2019, for aggregate gross proceeds of $230.1 million. On December 19, 2012, the Trust issued an additional 2,358,491 Units at a price of $10.60 per Unit and an additional $25.0 million aggregate principal amount of 5.25% convertible unsecured subordinated debentures, to satisfy a portion of the purchase price for the KingSett Portfolio.-- Financing activity - On December 19, 2012, the Trust assumed $147.9 million in mortgages, net of $0.6 million of fair value adjustments, at a weighted-average face rate of 3.0%, and an average term to maturity of 3.1 years in connection with the acquisition of the KingSett Portfolio. The Trust also entered into a new portfolio mortgage of $35.0 million for a term of five years and an interest rate of 3.46%. Subsequent to year-end, the Trust entered into two mortgages totalling $99.0 million with an average 8.5-year term and an average interest rate of 3.8%, and repaid short term loans totalling $84.5 million.Key performance indicators December 31, 2012----------------------------------------------------------------------------Financing activities(2)Average effective interest rate(3) 3.72%Level of debt (debt-to-gross book value)(4) 54.3%Interest coverage ratio(5) 3.6 timesDebt - average term to maturity (years) 4.1----------------------------------------------------------------------------See footnotes on page 3
CONFERENCE CALL
Senior management will host a conference call to discuss the results tomorrow, February 20, 2013 at 2:00 p.m. (ET). To access the call, please dial: 416-849-5525 or toll free at 1-866-200-6965 and using passcode 15932286#. A taped replay of the call will be available for 30 days by dialling 646-216-7204 or 1-866-206-0173 and using passcode 279200#. To access the conference call via webcast, please go to Dundee Industrial REIT's website at www.dundeeindustrial.com and, in the Downloads section, click on Calendar of Events. The webcast will be archived for 30 days.
Other information
Information appearing in this news release is a select summary of results. The consolidated financial statements and management's discussion and analysis for the Trust, as well as its Supplementary Information Package will be available at www.dundeeindustrial.com and on www.sedar.com.
Dundee Industrial REIT is an unincorporated, open-ended real estate investment trust. Dundee Industrial REIT owns a portfolio of 158 primarily light industrial properties comprising approximately 11.4 million square feet of gross leasable area in key industrial markets across Canada. Its objective is to build upon and grow its portfolio and to provide stable, sustainable and growing cash distributions to its unitholders. For more information, please visit www.dundeeindustrial.com.
FOOTNOTE
(1) NOI, FFO and AFFO - are key measures of performance used by real estate operating companies; however, they are not defined by International Financial Reporting Standards ("IFRS"), do not have standard meanings and may not be comparable with other industries or income trusts.(2) The key performance indicators include the results of operations for the period from July 20, 2012 to December 31, 2012.(3) Average effective interest rate is calculated as the weighted average interest rate of all interest bearing debt.(4) Level of debt is determined as total debt before deferred financing costs and mark-to-market adjustments, divided by total assets.(5) The interest coverage ratio for the period, is calculated as net rental income plus interest and fee income, less general and administrative expenses, all divided by interest expense on debt.Forward looking information
This press release may contain forward-looking information within the meaning of applicable securities legislation. 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 Dundee REIT's control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and currency rate functions. Our objectives and forward-looking statements are based on certain assumptions, including that the general economy remains stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. Dundee REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise. Additional information about these assumptions and risks and uncertainties is contained in Dundee REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dundee REIT's website at www.dundeereit.com.
Contacts:
Dundee Industrial REIT
Michael Cooper
Chairman, Executive Committee
(416) 365-5145
mcooper@dundeeindustrial.com
Dundee Industrial REIT
Scott Hayes
President & Chief Executive Officer
(416) 365-5265
shayes@dundeeindustrial.com
Dundee Industrial REIT
Mario Barrafato
Chief Financial Officer
(416) 365-4132
mbarrafato@dundeeindustrial.com
www.dundeereit.com
