Agellan Commercial Real Estate Investment Trust Provides Update on Its Texas Portfolio Following Substantial Rainfall and Flooding

TORONTO--()--Agellan Commercial Real Estate Investment Trust (the “REIT”) (TSX: ACR.UN):

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Agellan Commercial Real Estate Investment Trust (the “REIT”) (TSX: ACR.UN) announced today that it was advised by its local Houston property management that one of the REIT’s Houston industrial properties have likely experienced flood-related damage as a result of Tropical Storm Harvey. Due to the difficulties of traversing the region at this time, the REIT’s Houston property management is currently unable to assess the full extent of the storm’s impact on the REIT’s Houston properties. However, any flood-related damages are expected to be covered under the REIT’s property insurance policies, which are subject to certain exceptions and deductibles. In addition, tenants of the REIT are required to maintain property and business interruption insurance policies pursuant to the terms of their leases with the REIT.

As significant rainfall and flooding are expected to continue in the Houston area for the coming days, the REIT and its Houston property management team will continue to closely monitor the situation and fully assess the storm’s impact on the REIT’s Houston portfolio as soon as conditions permit.

The REIT’s Houston portfolio consists of 3 office properties and 9 industrial properties containing approximately 1.5 million square feet of gross leasable area.

Forward-looking information:

This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information can be identified by words or expressions including, but not limited to, “plans”, “expects”, “scheduled”, “estimates”, “intends”, “anticipates”, “predicts”, ”projects”, “believes”, or variations of such words and phrases or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “should”, “might”, “occur”, “be achieved” or “continue” or similar expressions. Forward-looking information is necessarily based on a number of estimates and assumptions that are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the REIT’s control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. As such, management can give no assurance that actual results will be consistent with the forward-looking information. While such assumptions are considered reasonable by management of the REIT based on the information currently available, any of these assumptions could prove to be inaccurate and, as a result, the forward-looking information based on those assumptions could be incorrect. These risks and uncertainties include, but are not limited to: the REIT’s future growth potential; results of operations; future prospects for additional investment opportunities in Canada and the U.S., including access to debt and equity capital at acceptable costs, the ability to obtain necessary approvals and to minimize any unexpected costs or liabilities, environmental or otherwise, relating to any acquisitions or dispositions; demographic and industry trends remaining unchanged, including occupancy levels, lease renewals, the exercise of any early termination rights, rental increases and retailer competition; future levels of the REIT’s indebtedness remaining at acceptable levels, including its credit rating; tax laws as currently in effect remaining unchanged, including applicable specified investment flow-through rules; and current economic conditions remaining unchanged, including interest rates and applicable foreign exchange rates. Readers, therefore, should not place undue reliance on any such forward-looking statements, as forward-looking information involves significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. All forward-looking information in this news release speaks only as of the date of this news release. The REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities laws. All forward-looking statements in this news release are qualified by these cautionary statements. Additional information about these assumptions and risks and uncertainties is contained in the REIT’s filings with securities regulators, including its current annual information form and MD&A.

About Agellan Commercial Real Estate Investment Trust

The REIT is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning industrial, office and retail properties in select target markets in the United States and Canada.

The REIT’s 44 properties contain approximately 7.0 million square feet of gross leasable area, with the REIT’s ownership interest at approximately 6.7 million square feet. The properties are located in major urban markets in the United States and Canada.

Additional information about the REIT is available at www.agellancommercialreit.com or www.sedar.com.

Contacts

Agellan Commercial Real Estate Investment Trust
Frank Camenzuli, (416) 593-6800 x226
CEO
Fax: (416) 593-6700

Contacts

Agellan Commercial Real Estate Investment Trust
Frank Camenzuli, (416) 593-6800 x226
CEO
Fax: (416) 593-6700