Summit Industrial Income REIT Reports Third Quarter 2022 Financial Results

TORONTO, Nov. 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 nine months ended September 30, 2022.

Q3 2022 HIGHLIGHTS

FINANCIAL:

• Revenue from investment properties increased by 19.8% to $63.0 million.
• Net rental income increased by 17.1% to $47.1 million.
• FFO¹ increased 16.8% to $35.7 million ($0.188 per Unit), excluding the non-recurring secured mortgage prepayment costs incurred in Q3 2021.
• On September 14, 2022, DBRS Limited upgraded the REIT's issuer rating and senior unsecured debentures rating to BBB with positive trends.
• Subsequent to quarter end, the REIT repaid $25.3 million of secured term mortgages at maturity.
• Approximately $1.4 billion of available liquidity¹ and $3.5 billion of unencumbered assets at September 30, 2022.

OPERATIONS:

• Near-full occupancy at 99.6% with an average lease term of 5.5 years and 2.4% average annual contractual rent steps.
• Future lease commitments on 22,212 sq. ft. (or 24.2% of vacancy) as at September 30, 2022.
• Same property NOI¹ increased 6.3% with Ontario and Quebec contributing 8.8% and 4.9%, respectively.
• Completed over 2.4 million sq. ft. of lease renewals and new lease deals year-to-date generating a 56.0% overall increase in rents, including 89.9% in Ontario and 66.8% in Quebec (excluding contractual renewals).
• Pre-leasing completed on approximately 395,000 sq. ft. (100%) of GLA under construction for development properties that are expected to be completed and transferred to income-producing properties in 2022.
• Completed construction on approximately 534,000 sq. ft. of GLA in 2022 YTD and transferred to income-producing properties, with an additional 395,000 sq. ft. of GLA expected to be completed before the end of 2022.

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

PROPERTY PORTFOLIO:

• Acquired two industrial properties totalling 174,790 sq. ft. in Mississauga, Ontario, for a purchase price of $59.3 million at a going-in capitalization rate of 4.9%.
• Completed construction on one property under development totalling 91,782 sq. ft. in Guelph, Ontario and transferred it from investment properties under development to income-producing investment properties.
• Subsequent to quarter end, the REIT acquired a 50% interest in a 26.8-acre development site in Kitchener, Ontario, through a joint venture partnership. The development site was acquired by the joint venture partnership for an aggregate purchase price of $26.2 million and has the potential to develop two industrial properties totalling approximately 483,000 square feet.

OTHER:

• Insider ownership fully aligned with 6.9% of REIT Units outstanding held by management and Trustees at September 30, 2022.
• On November 7, 2022, the REIT announced that it had entered into an agreement with GIC and Dream Industrial REIT, pursuant to which a joint venture between GIC and Dream Industrial REIT will acquire all of the assets and assume all of the liabilities of the REIT in an all-cash transaction, and the REIT will pay a special distribution and redeem all of its units for $23.50 per unit in cash. Closing of the transaction is expected to occur during the first quarter of 2023, subject to customary conditions, including REIT Unitholder, court and regulatory approvals. REIT Unitholders of record as of October 31, 2022 will receive the previously-declared monthly distribution for October that will be paid on November 15, 2022, following which the REIT has agreed to suspend its monthly distribution through closing.

This press release should be read in conjunction with Summit's Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended September 30, 2022 and 2021, and Management's Discussion and Analysis for the three and nine months ended September 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 nine months ended September 30, 2022 are as follows:

					Q3 2022		Q3 2021
(in thousands of Canadian dollars, except per Unit amounts)	Q3 2022		Q3 2021		YTD		YTD
Portfolio Performance
Occupancy	99.6 %		99.2 %		99.6 %		99.2 %
Revenue from investment properties	$                63,048		$                52,636		$              184,423		$              160,060
Property operating expenses	$                15,942		$                12,412		$                47,344		$                39,895
Net rental income	$                47,106		$                40,224		$              137,079		$              120,165
Finance costs^(2)	$                10,459		$                24,887		$                28,999		$                48,263
Fair value adjustments to investment properties	$                  4,081		$              239,773		$              259,184		$              933,418
Net income	$                39,427		$              253,028		$              364,393		$           1,003,754
Operating Performance
FFO^(1)(2)	$                35,701		$                14,506		$              104,543		$                68,763
FFO per Unit^(1)(2)	$                  0.188		$                  0.086		$                  0.563		$                  0.408
Net income per Unit - basic	$                  0.208		$                  1.492		$                  1.961		$                  5.956
Same property NOI ^(1)	$                41,592		$                39,141		$              114,540		$              108,558
Same property NOI^(1)growth	6.3 %		5.4 %		5.5 %		4.9 %
Distributions
Distributions declared to Unitholders	$                27,583		$                24,141		$                80,440		$                70,183
Distributions per Unit declared to Unitholders	$                  0.145		$                  0.141		$                  0.430		$                  0.415
FFO payout ratio without DRIP benefit^(1)(2)	77.3 %		164.9 %		76.4 %		101.7 %
FFO payout ratio with DRIP benefit^(1)(2)	73.1 %		127.2 %		64.3 %		80.0 %
Weighted average Units outstanding (in thousands)	189,942		169,599		185,837		168,530
Liquidity and Leverage
Total assets	$           5,219,015		$           4,393,410		$           5,219,015		$           4,393,410
Total unencumbered assets	$           3,451,958		$           2,809,100		$           3,451,958		$           2,809,100
Total debt	$           1,384,770		$           1,286,456		$           1,384,770		$           1,286,456
Weighted average effective interest rate	2.72 %		2.51 %		2.72 %		2.51 %
Weighted average term to maturity (years)	4.8		4.9		4.8		4.9
Leverage^(1)	26.5 %		29.3 %		26.5 %		29.3 %
Interest coverage^(1)	4.3x		4.3x		4.5x		4.0x
Debt service coverage^(1)	3.5x		3.2x		3.5x		2.8x
Debt-to-adjusted EBITDA^(1)	7.8x		8.4x		8.0x		8.6x
DBRS Issuer Rating	BBB Positive		BBB Positive		BBB Positive		BBB Positive
Income-Producing Investment Properties
Number of properties acquired	2		—		6		3
Number of properties disposed	—		—		1		6
Total number of properties	162		154		162		154
Total GLA	21,806		20,129		21,806		20,129

(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 $16.1 million ($0.095 per Unit) and $20.0 million ($0.119 per Unit), respectively, for Q3 2021 and 2021 YTD. Excluding the prepayment costs, FFO per Unit was $0.180 per Unit and $0.527 per Unit for Q3 2021 and 2021 YTD, respectively. FFO payout ratio without DRIP benefit excluding the prepayment costs was 78.2% (60.4% including DRIP benefit) and 78.8% (62.0% including DRIP benefit), respectively, for Q3 2021 and 2021 YTD.

PORTFOLIO GROWTH
During Q3 2022, the REIT acquired two industrial properties totalling 174,790 sq. ft. located in Mississauga, Ontario, for a purchase price of $59.3 million. The REIT also completed construction on one property under development totalling 91,782 sq. ft. in Guelph, Ontario and transferred it from investment properties under development to income-producing investment properties.

To date in 2022, the REIT acquired six income-producing properties totalling 698,820 sq. ft., and five development properties totalling approximately 75 acres with the potential to add approximately 1.4 million sq. ft. of GLA to the portfolio, including the 91,782 sq. ft. property in Guelph, Ontario, mentioned above, that has since been completed.

At September 30, 2022, the REIT's portfolio totaled 162 properties aggregating 21.8 million sq. ft., with an additional 14 buildings under development aggregating 2.5 million sq. ft. of potential GLA, for a total net book value of approximately $5.1 billion. During the Q3 2022 and 2022 YTD, the REIT recognized fair value gains on its investment properties of $4.1 million and $259.2 million (0.1% and 5.1% of investment property fair value, respectively).

CONTINUED STRONG OPERATING PERFORMANCE
Revenue from investment properties for Q3 2022 and 2022 YTD rose 19.8% and 15.2% 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 September 30, 2022 at 99.6% with an average lease term of 5.5 years and 2.4% annual contractual rent steps.

Net rental income for Q3 2022 and 2022 YTD increased 17.1% and 14.1% 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.

Excluding the non-recurring secured mortgage prepayment costs of $16.1 million ($0.095 per Unit) and $20.0 million ($0.119 per Unit) incurred in Q3 2021 and 2021 YTD, respectively, FFO¹ increased 16.8% and 17.7%, respectively. Excluding the mortgage prepayment costs discussed above, FFO per Unit¹ for Q3 2022 and 2022 YTD increased 4.4% and 6.7%, respectively, compared to the same period year periods, despite a 12.0% and 10.3% increase in Units outstanding and further balance sheet deleveraging that took place in 2022 resulting in leverage¹ of 26.5% at September 30, 2022. The REIT's FFO payout ratio¹ for Q3 2022 and 2022 YTD was 77.3% and 76.4%, respectively, excluding the benefit of the REIT's DRIP (73.1% and 64.3%, respectively, including the benefit of the REIT's DRIP).

Same property NOI¹ rose 6.3% for Q3 2022 (5.5% for 2022 YTD), including a 8.8% increase in Ontario and 4.9% increase in Quebec (9.2% and 3.2% in Ontario and Quebec, respectively, for 2022 YTD). Growth in same property NOI¹ in the third 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 87.7% and 42.3% 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 lower bad debt recoveries ($0.3 million in 2022 YTD and $1.0 million in 2021 YTD). Same property NOI¹ for Q3 2022 represented approximately 88.3% of total portfolio NOI¹ and 89.4% of total GLA at September 30, 2022 (83.6% of total portfolio NOI and 84.4% of total GLA for 2022 YTD).

STRATEGIC LEASING PROGRAM 
The REIT completed over 2.4 million sq. ft. of lease renewals and new lease deals 2022 YTD with a retention rate of 54.0%, generating an average increase in monthly rents of 56.0% over the expiring rent with a significant 89.9% increase over expiring rents in Ontario, 66.8% in Quebec and 6.6% in Alberta (excluding contractual renewals).

The REIT maintained near-full 99.6% occupancy in Q3 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 22,212 sq. ft. (or 24.2% of vacancy) as at September 30, 2022.

STRONG BALANCE SHEET AND LIQUIDITY 
Total assets increased to $5.2 billion at September 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 September 30, 2022 compared to $1.3 billion at December 31, 2021. At September 30, 2022, the REIT's unsecured debt represented 67% of total debt outstanding with approximately $3.5 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 September 30, 2022, nothing was drawn on the REIT's credit facilities.

During 2022 YTD, 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%. Subsequent to quarter end, the REIT repaid an additional $25.3 million of secured term mortgages at maturity. The REIT also 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 third quarter of 2022. At September 30, 2022, the REIT's leverage ratio¹ was 26.5% compared to 29.3% at September 30, 2021. Debt service coverage, interest coverage and debt-to-adjusted EBITDA ratios¹ were 3.5x, 4.3x and 7.8x, respectively, for Q3 2022 compared to 3.2x, 4.3x and 8.4x, respectively, for the same prior year period.

Debt-to-adjusted EBITDA was 7.8x and 8.0x for the three and nine months ended September 30, 2022, respectively, a decrease from 8.4x and 8.6x for the same prior year periods.

At September 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 $3.5 billion of unencumbered assets.

ARRANGEMENT AGREEMENT TO ACQUIRE THE REIT 
On November 7, 2022, the REIT announced that it had entered into an Arrangement Agreement with GIC and Dream Industrial REIT, pursuant to which a joint venture (the "Joint Venture") between GIC and Dream Industrial REIT will acquire all of the assets and assume all of the liabilities of the REIT in an all-cash transaction (the "Transaction").

The Transaction, expected to close in the first quarter of 2023, is subject to customary conditions, including REIT Unitholder, court and regulatory approvals, and is expected to occur via a plan of arrangement under the Canada Business Corporations Act, pursuant to which the Joint Venture will acquire all of the assets and assume all of the liabilities of the REIT, and the REIT will pay a special distribution and redeem all of its units for $23.50 per unit in cash. The Arrangement Agreement contains customary terms and conditions, including deal protections. REIT Unitholders of record as of October 31, 2022 will receive the previously-declared monthly distribution for October that will be paid on November 15, 2022, following which the REIT has agreed to suspend its monthly distribution through closing.

As a result of the announcement of the Transaction, Summit will not host a conference call and webcast to discuss the financial results and operations for the third quarter.

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 nine months ended September 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 nine months ended September 30, 2022 and 2021.

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

	September 30	December 31
	2022	2021
Unencumbered assets	$        3,451,958	$        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	1,469,458	1,273,833
Borrowing Capacity on Unencumbered Assets^(4)	$           808,202	$           700,608
Cash	31,375	16,052
Undrawn portion of unsecured revolving credit facility^(5)	400,000	300,000
Undrawn portion of Green Unsecured Development Credit Facility^(5)	189,000	90,000
Borrowing capacity on unencumbered assets (per above)	808,202	700,608
Available Liquidity	$        1,428,577	$        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.

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

			Q3 2022	Q3 2021
	Q3 2022	Q3 2021	YTD	YTD
Net income	$          39,427	$        253,028	$        364,393	$     1,003,754
Adjustments:
Free rent amortization	367	300	1,037	920
Amortization of other assets	74	88	369	235
Fair value adjustment to deferred unit compensation	(86)	863	(2,072)	1,963
Fair value adjustment to loans receivable	—	—	—	(4,691)
Fair value adjustment to investment properties	(4,081)	(239,773)	(259,184)	(933,418)
FFO^(1)	$          35,701	$          14,506	$        104,543	$          68,763
FFO per Unit^(1)	$            0.188	$            0.086	$            0.563	$            0.408
Distributions declared to Unitholders	$          27,583	$          24,141	$          80,440	$          70,183
Distributions per Unit declared to Unitholders	$            0.145	$            0.141	$            0.430	$            0.415
Cash Distributions paid	$          26,114	$          18,448	$          67,259	$          55,020
Regular FFO payout ratio without DRIP benefit^(1)	77.3 %	164.9 %	76.4 %	101.7 %
Regular FFO payout ratio with DRIP benefit^(1)	73.1 %	127.2 %	64.3 %	80.0 %
Weighted average number of Units outstanding (in thousands)	189,942	169,599	185,837	168,530
Units issued and outstanding at the end of the period (in thousands)	189,977	175,446	189,977	175,446
Other items:
Straight-line rent adjustment	$           (1,412)	$           (1,080)	$           (3,830)	$           (4,226)
Non-recoverable capital expenditures	$              (790)	$              (402)	$           (2,780)	$              (788)
Leasing costs	$           (4,478)	$           (1,764)	$         (12,845)	$           (7,240)

⁽¹⁾ FFO includes strategic non-recurring mortgage prepayment costs of $16.1 million ($0.095 per Unit) and $20.0 million ($0.119 per Unit), respectively, for Q3 2021 and 2021 YTD. Excluding the prepayment costs, FFO per Unit was $0.180 per Unit and $0.527 per Unit for Q3 2021 and 2021 YTD, respectively. FFO payout ratio without DRIP benefit excluding the prepayment costs was 78.2% (60.4% including DRIP benefit) and 78.8% (62.0% including DRIP benefit), respectively, for Q3 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	Q3 2022	Q3 2021	($)	( %)
Ontario	10,267	$               21,113	$               19,403	$                 1,710	8.8 %
Quebec	4,019	7,889	7,520	369	4.9 %
Alberta	5,177	12,492	12,120	372	3.1 %
Other Canada	42	98	98	—	0.0 %
Same property NOI	19,505	$               41,592	$               39,141	$                 2,451	6.3 %
Acquisitions/dispositions/redevelopments	2,301	4,469	303	4,166
Straight-line rent		1,412	1,080	332
Free rent amortization		(367)	(300)	(67)
Net rental income	21,806	$               47,106	$               40,224	$                 6,882

		Q3 2022	Q3 2021	Change	Change
	GLA	YTD	YTD	($)	( %)
Ontario	9,924	$               60,569	$               55,467	$                 5,102	9.2 %
Quebec	3,254	16,928	16,411	517	3.2 %
Alberta	5,177	36,749	36,389	360	1.0 %
Other Canada	42	294	291	3	1.0 %
Same property NOI	18,397	$             114,540	$             108,558	$                 5,982	5.5 %
Acquisitions/dispositions/redevelopments	3,409	19,746	8,301	11,445
Straight-line rent		3,830	4,226	(396)
Free rent amortization		(1,037)	(920)	(117)
Net rental income	21,806	$             137,079	$             120,165	$               16,914

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

			Q3 2022	Q3 2021
	Q3 2022	Q3 2021	YTD	YTD
Net income	$             39,427	$           253,028	$           364,393	$        1,003,754
Adjustments:
Free rent amortization	367	300	1,037	920
Amortization of other assets	74	88	369	235
Straight-lining of rents	(1,412)	(1,080)	(3,830)	(4,226)
Fair value adjustment to deferred unit compensation	(86)	863	(2,072)	1,963
Fair value adjustment to loans receivable	—	—	—	(4,691)
Fair value adjustment to investment properties	(4,081)	(239,773)	(259,184)	(933,418)
Finance costs^(1)	10,459	24,887	28,999	48,263
Adjusted EBITDA	$             44,748	$             38,313	$           129,712	$           112,800
Adjustments to finance costs:
Non-recurring mortgage prepayment costs^(1)	—	(16,062)	—	(20,036)
Interest expense (finance costs) excluding adjustments	$             10,459	$               8,825	$             28,999	$             28,227
Interest Coverage	4.3x	4.3x	4.5x	4.0x
Principal repayments (excluding mortgage payouts)	$               2,468	$               3,280	$               7,931	$             12,530
Principal and interest payments	$             12,927	$             12,105	$             36,930	$             40,757
Debt Service Coverage	3.5x	3.2x	3.5x	2.8x
Non-current loans and borrowings	$        1,305,392	$        1,213,815	$        1,305,392	$        1,213,815
Current loans and borrowings	79,378	72,641	79,378	72,641
Total loans and borrowings	1,384,770	1,286,456	1,384,770	1,286,456
Adjustments:
Unamortized premium on debt	(1,666)	(2,243)	(1,666)	(2,243)
Unamortized deferred financing charges	4,679	5,685	4,679	5,685
Total loans and borrowings (principal outstanding)	$        1,387,783	$        1,289,898	$        1,387,783	$        1,289,898
Adjusted EBITDA per above, annualized	$           178,992	$           153,252	$           172,949	$           150,400
Debt-to-Adjusted EBITDA	7.8x	8.4x	8.0x	8.6x
^(1)The REIT incurred non-recurring mortgage prepayment costs of $16.1 million and $20.0 million during Q3 2021 and Q3 2021 YTD on the strategic early repayment of $329.5 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 Transaction and the terms thereof; the anticipated closing of the Transaction including the timing thereof; the expected October monthly distribution and the suspension of distribution thereof of Summit. There can be no assurance that the proposed Transaction will be completed or that it will be completed on the terms and conditions contemplated in this news release. The proposed Transaction could be modified, restructured or terminated in accordance with its terms. 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, the anticipated benefits of the Transaction to unitholders, the receipt in a timely manner of regulatory, court, Unitholder and other approvals for the Transaction,  the availability of cash flow from operations to meet monthly distributions, the ability to satisfy the conditions applicable to the Transaction, 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]