PROREIT COMPLETES SALE OF THREE PROPERTIES FOR GROSS PROCEEDS OF $13.5 MILLION

• Completion of previously announced sale of two non-core retail properties for gross proceeds of $7.0M
• Completion of sale of one flex industrial property for gross proceeds of $6.5M
• Refinanced two industrial properties with new $9.8M mortgage

MONTREAL, June 27, 2024 /CNW/ - PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSX: PRV.UN) today announced the completion of the sale of three properties, totalling approximately 57,500 square feet of gross leasable area ("GLA"), for total gross proceeds of $13.5 million, excluding closing costs. Additionally, PROREIT successfully completed a $9.8 million debt refinancing on two industrial properties with a new four-year mortgage.

"As part of PROREIT's previously announced plan to recycle capital from the sale of certain non-core properties, these property dispositions underscore the strength of our asset base as well as our ability to attract buyers despite challenging market conditions," said Gordon G. Lawlor, President and Chief Executive Officer of PROREIT.

"We are particularly pleased with the opportunistic sale of our flex industrial property in Winnipeg to a major tenant under favourable terms. With $39.6 million of dispositions year to date, we have the financial flexibility to opportunistically pursue potential acquisitions in our core industrial sector, complementing our capacity to generate organic cash flow growth," concluded Mr. Lawlor.

Portfolio Transaction Details

The details for the completed dispositions are as follows:

Disposal Date (2024)	Sector	Address	GLA (sq.ft.)	Gross Proceeds	Use of Proceeds
					Mortgage Repayment	Credit Facility Repayment or General Business (excluding closing costs)
May 15 (previously  announced)	Retail	420 Albert Street, Regina, Saskatchewan	11,000	$4.8M	̶	$4.8M
May 27 (previously announced)	Retail	789 Main Street, Pincher Creek, Alberta	8,500	$2.2M	̶	$2.2M
June 7 (not previously announced)	Flex Industrial	61-85 Muir Road, in Winnipeg, Manitoba	38,000	$6.5M	$5.9M (6.93% unrelated mortgage maturing in 2024)	$0.6M
	TOTAL		57,500	$13.5M	$5.9M	$7.6M

Following the three completed dispositions, PROREIT owns 117 investment properties (including a 50% ownership interest in 42 investment properties), representing approximately 6.2 million square feet of GLA, with the industrial segment accounting for approximately 83% of GLA and 75% of base rent.

Refinancing Details

On June 21, 2024, PROREIT completed the refinancing of two industrial properties in Edmonton, Alberta, with a new $9.8 million, four-year mortgage at a rate of 4.99%. Proceeds were used to repay approximately $7.2 million of mortgages expiring in 2024, with the remaining balance allocated to repaying a portion of the outstanding credit facility or for general business purposes.

Following these refinancings and mortgage repayments, PROREIT has approximately $4.2 million in remaining mortgages expiring in 2024, which can be either renewed at market terms or repaid at the time of renewal with cash on hand.

About PROREIT

PROREIT (TSX:PRV.UN) is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. Founded in 2013, PROREIT owns a portfolio of high-quality commercial real estate properties in Canada, with a strong industrial focus in robust secondary markets.

For more information on PROREIT, please visit the website at: https://proreit.com.

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation, including statements relating to certain expectations, growth plans and other information related to REIT's business strategy and future plans. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond PROREIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements.

Forward-looking statements contained in this press release include, without limitation, statements pertaining to the execution by PROREIT of its growth strategy, the use of proceeds from the completed refinancings, and the renewal or repayment of mortgages expiring in 2024. PROREIT's objectives and forward-looking statements are based on certain assumptions, including that (i) PROREIT will receive financing on favourable terms; (ii) the future level of indebtedness of PROREIT and its future growth potential will remain consistent with the REIT's current expectations; (iii) there will be no changes to tax laws adversely affecting PROREIT's financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on PROREIT's operations, including its financing capacity and asset value, will remain consistent with PROREIT's current expectations; (v) the performance of PROREIT's investments in Canada will proceed on a basis consistent with PROREIT's current expectations; and (vi) capital markets will provide PROREIT with readily available access to equity and/or debt.

The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. PROREIT 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 law.

Additional information about these assumptions and risks and uncertainties is contained under "Risk Factors" in PROREIT's latest annual information form and "Risk and Uncertainties" in PROREIT's management's discussion and analysis for the three months ended March 31, 2024, which are available under PROREIT's profile on SEDAR+ at www.sedarplus.ca.

SOURCE Pro Real Estate Investment Trust

For further information: Investor Relations: PRO Real Estate Investment Trust, Gordon G. Lawlor, CPA, President and Chief Executive Officer, 514-933-9552; PRO Real Estate Investment Trust, Alison Schafer, CPA, Chief Financial Officer and Secretary, 514-933-9552