Artis Real Estate Investment Trust Announces Disposition of Four Office Properties During the Second Quarter of 2018

WINNIPEG, July 10, 2018 /CNW/ - Artis Real Estate Investment Trust (TSX: AX.UN) ("Artis" or the "REIT") announced today that it has sold, or entered into an unconditional contract to sell, four office properties located in British Columbia, Alberta and Manitoba during the second quarter of this year.

630-4^th Avenue SW, Calgary, Alberta

630-4^th Avenue SW (formerly referred to as Birchcliff Building), is a 68,069 square foot, five-storey, Class B office building located in downtown Calgary, Alberta. The property was recently vacated by a major tenant who occupied approximately 90% of the building. 630-4^th Avenue SW was sold for $9.0 million, which represents a price per square foot of $132. The transaction closed on June 1, 2018.

Eau Claire Place II, Calgary, Alberta

Eau Claire Place II is a 139,730 square foot, 17-storey office tower located in downtown Calgary, Alberta.  The property was sold for $20.5 million, which represents a price per square foot of $147 and a capitalization rate of 3.3%. Eau Claire Place II and Production Court (described below) were sold as a portfolio pursuant to a transaction that closed on June 27, 2018.

Production Court, Burnaby, British Columbia

Production Court is a 297,727 square foot, Class A office complex located in Burnaby, British Columbia. The property was sold for $100.5 million, which represents a price per square foot of $338 and a capitalization rate of 5.0%. Production Court and Eau Claire Place II were sold as a portfolio pursuant to a transaction that closed on June 27, 2018.

Centrepoint, Winnipeg, Manitoba

Artis and its partner have entered into an unconditional agreement to sell Centrepoint, a newly constructed 103,446 square foot office building and adjacent 406 stall parkade located in Winnipeg, Manitoba. Artis' 50% interest of the sale price is $27.3 million, which represents a price per square foot of $527 and a capitalization rate of 6.0%. The transaction is expected to close in the third quarter of this year.

The net gain over the International Financial Reporting Standards ("IFRS") value recorded at March 31, 2018, on these dispositions was approximately $12.2 million.

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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 British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and select markets in the United States. As of March 31, 2018, Artis' commercial property comprises approximately 25.1 million square feet of leasable area.

During the three months ended March 31, 2018, Property Net Operating Income ("Property NOI") by asset class, including Artis' proportionate share of properties held in joint venture arrangements, was approximately 53.4% office, 20.7% retail and 25.9% industrial. Property NOI by geographical region, including Artis' proportionate share of properties held in joint venture arrangements, was approximately 4.1% in British Columbia, 23.1% in Alberta, 6.3% in Saskatchewan, 13.5% in Manitoba, 11.9% in Ontario, 8.4% in Arizona, 18.2% in Minnesota, 8.9% in Wisconsin and 5.6% in U.S. – Other.

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.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

SOURCE Artis Real Estate Investment Trust