True North Commercial Real Estate Investment Trust Announces over 425,000 Square Feet in Leasing Activity

 Portfolio Weighted Average Lease Term of 4.4 years and 80% Government and Credit-Rated Tenants

/NOT FOR DISTRIBUTION IN THE U.S. OR OVER U.S. NEWSWIRES/

"This news release constitutes a "designated news release" for the purposes of the REIT's prospectus supplement dated April 21, 2022 to its short form base shelf prospectus dated February 17, 2022."

TORONTO, June 29, 2023 /CNW/ - True North Commercial Real Estate Investment Trust (TSX: TNT.UN) (the "REIT") is pleased to announce significant progress of its lease renewals totaling approximately 374,000 square feet and over 51,000 square feet of new leases (the "Leases") with a combined weighted average lease term of 4.3 years.

"The significant lease activity completed to date demonstrates the REIT's continued focus on maintaining strong relationships with its tenants and reinforces our strategic focus of securing and retaining government and credit-worthy tenants" stated Daniel Drimmer the REIT's Chief Executive Officer.

The REIT completed approximately 141,000 square feet of lease renewals across three properties in New Brunswick with the Province of New Brunswick ("New Brunswick Renewal"). The New Brunswick Renewal extends the provinces' tenancy for a further five years to September and October 2027. The REIT's New Brunswick portfolio is currently 85% occupied.

The REIT also completed a five-year lease renewal totaling approximately 58,600 square feet with the Province of Alberta, the anchor tenant at 13140 St. Albert Trail, Edmonton, Alberta ("13140 St. Albert Trail"). Under the terms of the renewal, the lease term has been extended to January 2029. 13140 St. Albert Trail is 92% occupied, with the Province of Alberta occupying 78% of its rentable area.

Lastly, the REIT is pleased to announce a lease renewal of approximately 44,800 square feet with General Motors of Canada Company at 101 McNabb Street, Markham, Ontario ("101 McNabb") to further extend its term until December 2027. 101 McNabb is 100% occupied by General Motors of Canada and TD Insurance with an average remaining lease term of 4.0 years.

The REIT's portfolio which is 91% occupied generates 80% of revenue from government and credit rated tenants with a weighted average remaining lease term of 4.4 years. 

About the REIT

The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT currently owns and operates a portfolio of 46 properties consisting of approximately 5.0 million square feet in urban and select strategic secondary markets across Canada. The REIT is focused on growing its portfolio principally through acquisitions across Canada and such other jurisdictions where opportunities exist.

For more information regarding the REIT, please visit www.sedar.com or the REIT's website at www.truenorthreit.com.

Forward-looking Statements

Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws, including statements regarding anticipated outcomes and benefits in respect of the Leases, and the REIT's future plans (including the Board's and management's expectations regarding the REIT's leverage, portfolio and future distributions). Forward-looking statements are provided for the purposes of assisting the reader in understanding the REIT's financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information may relate to future results, performance, achievements, events, prospects or opportunities for the REIT or the real estate industry and may include statements regarding the financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the REIT. In some cases, forward-looking information can be identified by such terms as "may", "might", "will", "could", "should", "would", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "goal", "project", "predict", "forecast", "potential", "continue", "likely", or the negative thereof or other similar expressions suggesting future outcomes or events.

Forward-looking statements necessarily involve known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in the REIT's materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements as there can be no assurance actual results will be consistent with such forward-looking statements.

Information contained in forward-looking statements is based upon certain material assumptions applied in drawing a conclusion or making a forecast or projection, including management's perception of historical trends, current conditions and expected future developments and the financial performance of the REIT resulting from the Leases, the breadth of impact of COVID-19 on the REIT's business, operations and performance, including the performance of its Units; the REIT's ability to mitigate any impacts related to fluctuating mortgage and interest rates, inflation and COVID-19; the impact of COVID-19 on the commercial real estate industry, property occupancy levels and the REIT; credit, market, operational, and liquidity risks generally; Starlight Group Property Holdings Inc., or any of its affiliates, will continue its involvement as asset manager of the REIT in accordance with its current asset management agreement; and  the risks identified or referenced above, collectively, will not have a material impact on the REIT. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.

The forward-looking statements made in this news release are dated and relate only to events or information as of the date of this news release. Except as specifically required by applicable Canadian law, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

SOURCE True North Commercial Real Estate Investment Trust

Daniel Drimmer, Chief Executive Officer, [phone] or Tracy Sherren, President and Chief Financial Officer, [phone]