Artis continues to monitor the COVID-19 pandemic and its impact, and to take all appropriate measures to ensure the REIT is limiting the spread of COVID-19. Protocols for building cleanliness are continuously evolving to incorporate up-to-date recommendations from public health agencies and the REIT's property management team is working diligently to ensure safety at all properties, and to support tenants through this unprecedented time.
Tenant Support Program
Due to the government-mandated closure of non-essential businesses, a number of retail tenants have had to limit operations or close their businesses temporarily. In an effort to support tenants through this difficult time, a small number of qualifying tenants who are in need of assistance have been given the option to defer a portion of their base rent for April and May, with an agreement to repay the amount at a specified later date with no interest. To date, Artis has offered a total of approximately
Artis expects that the COVID-19 pandemic will continue to have the largest impact on its retail tenants, which accounted for 18% of the REIT's Q4-19 property net operating income. Also, only 2% of Artis' income is derived from the
Conservative Distribution Payout Ratio
The REIT's adjusted funds from operations payout ratio of 51.4% (for the year ended
Unit Purchases Under Normal Course Issuer Bid ("NCIB")
The recent market volatility has provided an opportunity to buy back units using the NCIB, which is highly accretive. On
Strong Balance Sheet and Liquidity
Since
Artis has ample liquidity which includes cash on hand and undrawn credit facilities. There are no credit facilities or debentures maturing prior to 2021.
The REIT's current liquidity sufficiently meets working capital requirements, obligations and capital commitments related to ongoing development projects and distribution payments to unitholders. Artis will continue to closely monitor the evolving situation and prudently manage its capital resources.
Artis' priority is to maintain a safe environment for tenants, employees, customers and visitors of its properties. The REIT will continue to work with tenants during this difficult time and is committed to minimizing the impact on its business. Further information pertaining to Artis' response to the COVID-19 pandemic can be found at https://www.artisreit.com/covid-19/statement-on-covid-19/ and a letter from
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Artis is a diversified Canadian real estate investment trust investing in office, retail and industrial properties. Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in
During the three months ended
Property NOI is a non-GAAP measure. Artis calculates Property NOI as revenues less property operating expenses such as utilities, repairs and maintenance and realty taxes. Property NOI does not include charges for interest or other expenses not specific to the day-to-day operation of the REIT's properties.
or accuracy of this press release.
SOURCE
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