Summit Industrial Income REIT Reports Q2 2022 Financial Results

TORONTO, Aug. 9, 2022 /CNW/ - Summit Industrial Income REIT ("Summit" or the "REIT") (TSX: SMU.UN) announced today continued growth and strong operating performance for the three and six months ended June 30, 2022.

"Revenue continued to increase in the second quarter, driven by portfolio growth, occupancy rising to near-full levels, and significant rental rate increases on renewals. With this revenue growth, and our proven property management and leasing activities, funds from operations¹ increased by over 39% in the quarter," commented Paul Dykeman, Chief Executive Officer. "Looking ahead, demand remains exceptionally strong in all of our target markets with record low availability rates and significant market rent increases. By capitalizing on these solid fundamentals, we are confident we will achieve another record year of property performance in 2022."

Q2 2022 HIGHLIGHTS

FINANCIAL:

• Revenue from investment properties increased by 13.8% to $62.3 million.
• Net rental income increased by 13.8% to $46.8 million.
• Fair value gains on investment properties of $45.4 million (0.9% of investment property fair value).
• FFO¹ increased 39.4% to $36.4 million ($0.192 per Unit).
• Increased the Green Unsecured Development Credit Facility by $100 million to $200 million ($150 million green tranche and $50 million conventional tranche).
• Increased the unsecured revolving credit facility by $100 million to $400 million and extended the term by one year to March 23, 2025.
• Entered into $169.7 million of new 10-year secured term mortgage financing at an effective interest rate of 4.43%, a significant portion of which is interest-only.
• Approximately $1.4 billion of available liquidity¹ and $3.3 billion of unencumbered assets at June 30, 2022.

OPERATIONS:

• Near-full occupancy at 99.1% with an average lease term of 5.5 years and 2.0% average annual contractual rent steps.
• Future lease commitments on 101,829 sq. ft. (or 49.8% of vacancy) as at June 30, 2022.
• Same property NOI¹ increased 7.7% with Ontario and Quebec contributing 13.2% and 2.4%, respectively.
• Completed over 1.6 million sq. ft. of lease renewals and new lease deals year-to-date generating a 46.4% overall increase in rents, including 76.0% in Ontario and 73.9% in Quebec (excluding contractual renewals).
• Pre-leasing completed on approximately 333,000 sq. ft. (100%) of GLA under construction for development properties that are expected to be completed and transferred to income-producing properties in the third quarter of 2022.

___________________

¹ Non-GAAP measure. Refer to "Non-GAAP Measures" section in this press release for further information.

PROPERTY PORTFOLIO:

• Acquired one income-producing property totalling 76,423 sq. ft. in Vaughan, Ontario for a purchase price of $25.2 million at a going-in capitalization rate of 4.25%.
• Completed acquisition of remaining 50% interest in one industrial property under development nearing completion in Guelph, Ontario totalling 91,782 sq. ft. for a total acquisition cost of $12.8 million. Including its existing ownership interest, the REIT's total investment is approximately $21.7 million generating a consolidated cap rate of approximately 4.8%.
• Subsequent to quarter end, the REIT acquired two industrial properties totalling 174,790 square feet located in Mississauga, Ontario, for a purchase price of $59.3 million at a going-in capitalization rate of 4.9%.

OTHER:

• Insider ownership fully aligned with 6.9% of REIT Units outstanding held by management and Trustees at June 30, 2022.
• Recognized by the Globe and Mail's 2022 annual Women Lead Here benchmark of executive gender diversity for the second consecutive year in a row.
• The REIT published its inaugural Green Bond Allocation Report dated April 12, 2022 in relation to the Series C senior unsecured debentures (Green Bond) issued on April 12, 2021, allocating $160.4 million of the $249.1 million net proceeds of the Series C debentures to Eligible Green Initiatives.

DISTRIBUTION INCREASE:

• On May 10, 2022, the REIT'S Board of Trustees announced a 3.0% increase in monthly cash distributions to $0.0484 per Unit ($0.581 per Unit annualized), effective for the May 2022 distribution.

This press release should be read in conjunction with Summit's Unaudited Condensed Consolidated Interim Financial Statements for the three and six months ended June 30, 2022 and 2021, and Management's Discussion and Analysis for the three and six months ended June 30, 2022, which are available on the REIT's website at www.summitiireit.com and on SEDAR at www.sedar.com.

FINANCIAL AND OPERATING HIGHLIGHTS

Summit's key financial and operating metrics for the three and six months ended June 30, 2022 are as follows:

					Q2 2022		Q2 2021
(in thousands of Canadian dollars, except per Unit amounts)	Q2 2022		Q2 2021		YTD		YTD
Portfolio Performance
Occupancy	99.1 %		98.8 %		99.1 %		98.8 %
Revenue from investment properties	$                62,260		$                54,715		$              121,375		$              107,424
Property operating expenses	$                15,424		$                13,548		$                31,402		$                27,484
Net rental income	$                46,836		$                41,167		$                89,973		$                79,940
Finance costs^(2)	$                  9,274		$                13,977		$                18,540		$                23,375
Fair value adjustments to investment properties	$                45,390		$              588,797		$              255,102		$              693,645
Net income	$                83,054		$              618,305		$              324,965		$              750,727
Operating Performance
FFO^(1)(2)	$                36,351		$                26,076		$                68,842		$                54,258
FFO per Unit^(1)(2)	$                  0.192		$                  0.155		$                  0.375		$                  0.323
Net income per Unit - basic	$                  0.438		$                  3.677		$                  1.769		$                  4.469
Same property NOI^(1)	$                39,733		$                36,888		$                75,794		$                72,316
Same property NOI^(1)growth	7.7 %		5.5 %		4.8 %		3.7 %
Distributions
Distributions declared to Unitholders	$                27,283		$                23,379		$                52,856		$                46,042
Distributions per Unit declared to Unitholders	$                  0.144		$                  0.139		$                  0.285		$                  0.274
FFO payout ratio without DRIP benefit^(1)(2)	75.0 %		89.6 %		76.0 %		84.8 %
FFO payout ratio with DRIP benefit^(1)(2)	58.4 %		69.6 %		59.8 %		67.4 %
Weighted average Units outstanding (in thousands)	189,677		168,147		183,750		167,986
Liquidity and Leverage
Total assets	$           5,189,506		$           4,042,557		$           5,189,506		$           4,042,557
Total unencumbered assets	$           3,323,060		$           2,233,746		$           3,323,060		$           2,233,746
Total debt	$           1,387,127		$           1,303,113		$           1,387,127		$           1,303,113
Weighted average effective interest rate	2.74 %		2.80 %		2.74 %		2.80 %
Weighted average term to maturity (years)	5.1		5.3		5.1		5.3
Leverage^(1)	26.7 %		32.2 %		26.7 %		32.2 %
Interest coverage^(1)	4.8x		3.8x		4.6x		3.8x
Debt service coverage^(1)	3.6x		2.7x		3.5x		2.6x
Debt-to-adjusted EBITDA^(1)	7.8x		8.6x		8.2x		8.8x
DBRS Issuer Rating	BBB (low) Positive		BBB (low) Stable		BBB (low) Positive		BBB (low) Stable
Income-Producing Investment Properties
Number of properties acquired	1		2		4		3
Number of properties disposed	—		5		1		6
Total number of properties	160		156		160		156
Total GLA	21,591		20,253		21,591		20,253

^(1) Non-GAAP Measure. Refer to "Non-GAAP Measures" section in this press release for further information.
^(2) Finance costs and FFO includes strategic non-recurring mortgage prepayment costs of $4.0 million ($0.024 per Unit) for Q2 2021 and 2021 YTD. Excluding the prepayment costs, FFO per Unit was $0.179 per Unit and $0.347 per Unit for Q2 2021 and 2021 YTD, respectively. FFO payout ratio without DRIP benefit excluding the prepayment costs was 77.8% (60.4% including DRIP benefit) and 79.0% (62.8% including DRIP benefit), respectively, for Q2 2021 and 2021 YTD.

PORTFOLIO GROWTH
During Q2 2022, the REIT acquired one income-producing property, a 76,423 sq. ft. industrial building in Vaughan, Ontario for a purchase price of $25.2 million. The REIT also acquired the remaining 50% interest in an industrial property under development that is nearing completion in Guelph, Ontario totalling 91,782 sq. ft. from the REIT's joint venture partner for a total acquisition cost of $12.8 million. Including its existing ownership interest, the REIT's total investment is approximately $21.7 million generating a consolidated cap rate of approximately 4.8%. The Guelph property is expected to move into income-producing properties in Q3 2022.

To date in 2022, the REIT acquired four income-producing properties totalling 524,030 sq. ft., and five development sites totalling approximately 77 acres with the potential to add approximately 1.4 million sq. ft. of GLA to the portfolio.

At June 30, 2022, the REIT's portfolio totaled 160 properties aggregating 21.6 million sq. ft., with an additional 13 buildings under development aggregating 2.3 million sq. ft. of potential GLA, for a total net book value of approximately $5.0 billion. During the Q2 2022 and 2022 YTD, the REIT recognized fair value gains on its investment properties of $45.4 million and $255.1 million (0.9% and 5.1% of investment property fair value, respectively), $33.8 million of which related to investment properties under development that are nearing completion.

CONTINUED STRONG OPERATING PERFORMANCE
Revenue from investment properties for Q2 2022 and 2022 YTD rose 13.8% and 13.0% compared to the same prior year periods due primarily to acquisitions completed over the prior twelve months, continuing strong occupancy and higher overall rental rates on leasing activities. Occupancy remained strong at June 30, 2022 at 99.1% with an average lease term of 5.5 years and 2.0% annual contractual rent steps.

Net rental income for Q2 2022 and 2022 YTD increased 13.8% and 12.6% compared to the same prior year periods due primarily to continuing strong occupancy, higher overall rental rates on leasing activities and acquisitions completed over the prior twelve months.

FFO¹ increased 39.4% to $36.4 million ($0.192 per Unit) during Q2 2022 compared to $26.1 million ($0.155 per Unit) in the same prior year period. FFO¹ for 2022 YTD increased 26.9% to $68.8 million ($0.375 per Unit) compared to $54.3 million ($0.323 per Unit) in the same prior year period. FFO per Unit¹ for Q2 2022 and 2022 YTD increased 23.6% and 16.0%, respectively, compared to the same period year periods, despite a 12.8% and 9.4% increase in Units outstanding. The REIT's FFO payout ratio¹ for Q2 2022 and 2022 YTD was 75.0% and 76.0%, respectively, excluding the benefit of the REIT's DRIP (58.4% and 59.8%, respectively, including the benefit of the REIT's DRIP).

Same property NOI¹ rose 7.7% for Q2 2022 (4.8% for 2022 YTD), including a 13.2% increase in Ontario and 2.4% increase in Quebec (9.2% and 1.3% in Ontario and Quebec, respectively, for 2022 YTD). Growth in same property NOI¹ in the second quarter of 2022 was driven primarily by rental rate growth from 2021 and 2022 year-to-date lease renewals and new lease deals, which generated an average of 53.8% and 29.5% increase over expiring rents in Ontario and Quebec, respectively, in 2021, and 72.8% and 44.7% increase over expiring rents in Ontario and Quebec, respectively, year-to-date in 2022, in addition to an increase in other income in Ontario. Growth in same property NOI¹ for 2022 YTD was partially muted by the reversal of bad debt provisions due to the successful collection of rents ($0.1 million in 2022 YTD and $0.7 million in 2021 YTD). Same property NOI¹ for Q2 2022 represented approximately 84.8% of total portfolio NOI¹ and 87.0% of total GLA at June 30, 2022 (84.2% of total portfolio NOI and 85.4% of total GLA for 2022 YTD).

STRATEGIC LEASING PROGRAM
The REIT completed over 1.6 million sq. ft. of lease renewals and new lease deals during the second quarter of 2022 with a retention rate of 50.2%, generating an average increase in monthly rents of 46.4% over the expiring rent with a significant 76.0% increase over expiring rents in Ontario and 73.9% in Quebec (excluding contractual renewals).

The REIT maintained near-full occupancy in Q2 2022 with limited to no downtime, while also taking advantage of significantly higher market rents on turnover of the space, with some re-leasing at rental rates in excess of 100% of the expiring rent.

Furthermore, the REIT secured future lease commitments on 101,829 sq. ft. (or 49.8% of vacancy) as at June 30, 2022.

STRONG BALANCE SHEET AND LIQUIDITY
Total assets increased to $5.2 billion at June 30, 2022, up from $4.5 billion at December 31, 2021 due primarily to property acquisitions during the period and fair value gains on investment properties. Total debt was $1.4 billion at June 30, 2022 compared to $1.3 billion at December 31, 2021. At June 30, 2022, the REIT's unsecured debt represented 66% of total debt outstanding with approximately $3.3 billion in unencumbered assets.

On April 19, 2022, the REIT amended its green unsecured development credit facility to increase the commitment by $100 million. Following the amendment, the total credit facility size is $200 million, including a $150 million green tranche and a $50 million conventional tranche On May 4, 2022, the REIT amended its unsecured revolving credit facility to increase the commitment by $100 million to $400 million and to extend the term by one year to March 23, 2025. At June 30, 2022, nothing was drawn on the REIT's credit facilities.

During Q2 2022, the REIT repaid $37.4 million of maturing secured term mortgages that carried a weighted average interest rate of 2.82%. To date in 2022, the REIT repaid $60.9 million in maturing secured term mortgages that carried a weighted average interest rate of 2.92%. In May 2022, the also REIT entered into $169.7 million of new 10-year secured term mortgage financing at an effective interest rate of 4.43%, a significant portion of which is interest-only.

The REIT's debt metrics remained strong during the second quarter of 2022. At June 30, 2022, the REIT's leverage ratio¹ was 26.7% compared to 32.2% at June 30, 2021. Debt service coverage, interest coverage and debt-to-adjusted EBITDA ratios¹ were 3.6x, 4.8x and 7.8x, respectively, for Q2 2022 compared to 2.7x, 3.8x and 8.6x, respectively, for the same prior year period.

Debt-to-adjusted EBITDA was 7.8x and 8.2x for the three and six months ended June 30, 2022, respectively, a decrease from 8.6x and 8.8x for the same prior year periods.

At June 30, 2022, the REIT's liquidity position remained strong at approximately $1.4 billion of available liquidity¹ including cash, available borrowing capacity on its credit facilities, and potential for new financing that could be placed on a portion of its $3.3 billion of unencumbered assets.

MONTHLY CASH DISTRIBUTION INCREASE
On May 10, 2022, the REIT'S Board of Trustees announced a 3.0% increase in monthly cash distributions to $0.0484 per Unit ($0.581 per Unit annualized), effective for the May 2022 distribution.

INVESTOR CONFERENCE CALL
A conference call will be hosted by Summit's management team on Wednesday, August 10, 2022 at 10.00 am EST. The telephone numbers to participate in the conference call are North America Toll Free: [phone] and International: [phone]. Please use the access code 7589769# when requested.

A slide presentation to accompany management's comments during the conference call will be available prior to the conference call on Summit's website at www.summitiireit.com. The live call will also be available as a webcast. To access the audio webcast please access the link on Summit's website at www.summitiireit.com.

NON-GAAP MEASURES
The REIT prepares and releases consolidated financial statements prepared in accordance with IFRS (GAAP). In this release, the REIT discloses and discusses certain non-GAAP measures, including FFO, FFO per Unit, FFO payout ratio, NOI, same property NOI, leverage ratio, interest coverage ratio, debt service coverage ratio, debt-to-adjusted EBITDA and available liquidity. The non-GAAP measures are further defined and discussed in Appendix A | Non-GAAP Measures in the MD&A for the three and six months ended June 30, 2022 and filed on SEDAR (www.sedar.com), which is incorporated by reference and should be read in conjunction with this release. Since these measures are not determined by IFRS, such measures may not be comparable to similar measures reported by other issuers. The REIT has presented such non-GAAP measures as management believes the measures are a relevant measure of the ability of the REIT to earn and distribute cash returns to Unitholders and to evaluate the REIT's performance.  These non-GAAP measures should not be construed as alternatives to net income or cash flow from operating activities determined in accordance with IFRS as an indicator of the REIT's performance.

Reconciliation of Non-GAAP Measures
The following tables reconcile the REIT's non-GAAP measures to the most comparable IFRS measures for the three and six months ended June 30, 2022 and 2021.

FFO
The REIT's FFO, FFO per Unit and FFO payout ratio are calculated as follows:

			Q2 2022	Q2 2021
	Q2 2022	Q2 2021	YTD	YTD
Net income	$          83,054	$        618,305	$        324,965	$        750,727
Adjustments:
Free rent amortization	348	290	670	620
Amortization of other assets	74	84	295	147
Fair value adjustment to deferred unit compensation	(1,735)	885	(1,986)	1,100
Fair value adjustment to loans receivable	—	(4,691)	—	(4,691)
Fair value adjustment to investment properties	(45,390)	(588,797)	(255,102)	(693,645)
FFO^(1)	$          36,351	$          26,076	$          68,842	$          54,258
FFO per Unit^(1)	$            0.192	$            0.155	$            0.375	$            0.323
Distributions declared to Unitholders	$          27,283	$          23,379	$          52,856	$          46,042
Distributions per Unit declared to Unitholders	$            0.144	$            0.139	$            0.285	$            0.274
Cash Distributions paid	$          21,218	$          18,144	$          41,145	$          36,572
Regular FFO payout ratio without DRIP benefit^(1)	75.0 %	89.6 %	76.0 %	84.8 %
Regular FFO payout ratio with DRIP benefit^(1)	58.4 %	69.6 %	59.8 %	67.4 %
Weighted average number of Units outstanding (in thousands)	189,677	168,147	183,750	167,986
Units issued and outstanding at the end of the period (in thousands)	189,847	168,304	189,847	168,304
Other items:
Straight-line rent adjustment	$           (1,260)	$           (1,947)	$           (2,418)	$           (3,146)
Non-recoverable capital expenditures	$           (1,144)	$                  —	$           (1,990)	$              (386)
Leasing costs	$           (4,002)	$           (2,789)	$           (8,367)	$           (5,476)

^(1) FFO includes strategic non-recurring mortgage prepayment costs of $4.0 million ($0.024 per Unit) for Q2 2021 and 2021 YTD. Excluding the prepayment costs, FFO per Unit was $0.179 per Unit and $0.347 per Unit for Q2 2021 and 2021 YTD, respectively. FFO payout ratio without DRIP benefit excluding the prepayment costs was 77.8% (60.4% including DRIP benefit) and 79.0% (62.8% including DRIP benefit), respectively, for Q2 2021 and 2021 YTD.

Same Property NOI
In calculating same property NOI, the impacts from the straight-lining of rents and amortization of free rent have been excluded. Same property NOI excludes properties that would have had changes due to acquisitions, dispositions and redevelopments, as well as properties classified as held for sale.

The following tables reconcile same property NOI to net rental income for the periods presented:

				Change	Change
	GLA	Q2 2022	Q2 2021	($)	( %)
Ontario	10,267	$               21,656	$               19,128	$                 2,528	13.2 %
Quebec	3,254	5,609	5,478	131	2.4 %
Alberta	5,229	12,370	12,188	182	1.5 %
Other Canada	42	98	94	4	4.3 %
Same property NOI	18,792	$               39,733	$               36,888	$                 2,845	7.7 %
Acquisitions/dispositions/redevelopments	2,799	6,191	2,622	3,569
Straight-line rent		1,260	1,947	(687)
Free rent amortization		(348)	(290)	(58)
Net rental income	21,591	$               46,836	$               41,167	$                 5,669

		Q2 2022	Q2 2021	Change	Change
	GLA	YTD	YTD	($)	( %)
Ontario	9,924	$               40,094	$               36,709	$                 3,385	9.2 %
Quebec	3,254	11,073	10,935	138	1.3 %
Alberta	5,229	24,431	24,479	(48)	-0.2 %
Other Canada	42	196	193	3	1.6 %
Same property NOI	18,449	$               75,794	$               72,316	$                 3,478	4.8 %
Acquisitions/dispositions/redevelopments	3,142	12,431	5,098	7,333
Straight-line rent		2,418	3,146	(728)
Free rent amortization		(670)	(620)	(50)
Net rental income	21,591	$               89,973	$               79,940	$               10,033

Available Liquidity
The REIT's available liquidity is calculated as follows:

	June 30	December 31
	2022	2021
Unencumbered assets	$        3,323,060	$        2,996,333
Assets required to be reserved under unsecured debt agreements:
Senior unsecured debentures^(1)	(1,202,500)	(1,202,500)
Unsecured revolving credit facility^(2)	(520,000)	(390,000)
Green Unsecured Development Credit Facility^(3)	(260,000)	(130,000)
Unencumbered assets available to be encumbered	1,340,560	1,273,833
Borrowing Capacity on Unencumbered Assets^(4)	$           737,308	$           700,608
Cash	117,202	16,052
Undrawn portion of unsecured revolving credit facility^(5)	372,000	300,000
Undrawn portion of Green Unsecured Development Credit Facility^(5)	189,000	90,000
Borrowing capacity on unencumbered assets (per above)	737,308	700,608
Available Liquidity	$        1,415,510	$        1,106,660

^(1) Calculated as 1.3 times $925 million in aggregate senior unsecured debentures outstanding.
^(2) Calculated as 1.3 times $400 million committed amount of unsecured revolving credit facility (December 31, 2021 - $300 million).
^(3) Calculated as 1.3 times $200 million committed amount of Green Unsecured Development Credit Facility (December 31, 2021 - $100 million).
^(4) Borrowing capacity is calculated as unencumbered assets available to be encumbered multiplied by 55% loan-to-value.
^(5) Includes amounts drawn and letters of credit issued under the credit facility agreements.

Financial Ratios
The REIT's interest coverage ratio, debt service coverage ratio and debt-to-adjusted EBITDA are calculated as follows:

			Q2 2022	Q2 2021
	Q2 2022	Q2 2021	YTD	YTD
Net income	$             83,054	$           618,305	$           324,965	$           750,727
Adjustments:
Free rent amortization	348	290	670	620
Amortization of other assets	74	84	295	147
Straight-lining of rents	(1,260)	(1,947)	(2,418)	(3,146)
Fair value adjustment to deferred unit compensation	(1,735)	885	(1,986)	1,100
Fair value adjustment to loans receivable	—	(4,691)	—	(4,691)
Fair value adjustment to investment properties	(45,390)	(588,797)	(255,102)	(693,645)
Finance costs^(1)	9,274	13,977	18,540	23,375
Adjusted EBITDA	$             44,365	$             38,106	$             84,964	$             74,487
Adjustments to finance costs:
Non-recurring mortgage prepayment costs^(1)	—	(3,974)	—	(3,974)
Interest expense (finance costs) excluding adjustments	$               9,274	$             10,003	$             18,540	$             19,401
Interest Coverage	4.8x	3.8x	4.6x	3.8x
Principal repayments (excluding mortgage payouts)	$               2,913	$               4,116	$               5,464	$               9,249
Principal and interest payments	$             12,187	$             14,119	$             24,004	$             28,650
Debt Service Coverage	3.6x	2.7x	3.5x	2.6x
Non-current loans and borrowings	$        1,321,456	$        1,224,303	$        1,321,456	$        1,224,303
Current loans and borrowings	65,671	78,810	65,671	78,810
Total loans and borrowings	1,387,127	1,303,113	1,387,127	1,303,113
Adjustments:
Unamortized premium on debt	(1,803)	(2,478)	(1,803)	(2,478)
Unamortized deferred financing charges	4,925	4,802	4,925	4,802
Total loans and borrowings (principal outstanding)	$        1,390,249	$        1,305,437	$        1,390,249	$        1,305,437
Adjusted EBITDA per above, annualized	$           177,460	$           152,424	$           169,928	$           148,975
Debt-to-Adjusted EBITDA	7.8x	8.6x	8.2x	8.8x

⁽¹⁾ The REIT incurred non-recurring mortgage prepayment costs of $4.0 million during Q2 2021 on the strategic early repayment of $103.2 million of secured term mortgages, which were recorded in finance costs.

About Summit Industrial Income REIT
Summit Industrial Income REIT is an unincorporated open-ended trust focused on growing and managing a portfolio of light industrial properties in key markets across Canada. Summit's units are listed on the TSX and trade under the symbol SMU.UN. For more information, please visit the REIT's website at www.summitiireit.com.

Caution Regarding Forward Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "goal" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning the goal to build Summit's property portfolio. The forward-looking statements and information are based on certain key expectations and assumptions made by Summit, including general economic conditions. Although Summit believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Summit can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed, and given the impact of the COVID-19 pandemic and government measures to contain it, as well as the current geopolitical environment, there is inherently more uncertainty associated with the REIT's assumptions as compared to prior periods. These risks and uncertainties include, but are not limited to, tenant risks, current economic environment, including disputes between nations, war and international sanctions, environmental matters, general insured and uninsured risks and Summit being unable to obtain any required financing and approvals. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Summit undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Summit Industrial Income REIT

Summit Industrial Income REIT, Dayna Gibbs, Chief Operating Officer, [phone] ext. 220, [email protected]