VANCOUVER, British Columbia, April 30, 2025 (GLOBE NEWSWIRE) — AIP Realty Trust (the “Trust” or “AIP Realty”) (TSXV:AIP.U) today announced its financial results for the year ended December 31, 2024. All dollar amounts are stated in U.S. dollars.
2024 Highlights
- The Trust owns a 100% leased multi-tenant light industrial flex facility located on Eagle Court in Lewisville, Texas (the “Eagle Court Property”). Investment property revenue was down approximately 7% in the year ended December 31, 2024 compared to 2023, mainly due to the expiration of a lease that included a large parking agreement component and the vacancy of one unit from July 2024 through September 2024 with no rental revenue. That unit has been leased to a new tenant effective December 2024 at a 28% suite rental rate increase over the original lease.
- The Eagle Court Property generated investment property revenue of $552,699, comprised of tenant rental revenue and revenue from contracts with customers, specifically for common area maintenance. Investment property operating expenses were $205,176, resulting in investment property net rental income of $347,523.
- Effective November 14, 2024, the Trust announced that, through its newly formed wholly owned subsidiary AIP OP, LP (“OP LP”) has entered into a securities purchase agreement (the “Securities Purchase Agreement”) with 2024 ATIP, Inc. (“ATIP”) pursuant to which the Trust proposes to acquire (the “AllTrades Transaction”) all of the issued and outstanding membership interests (“Membership Interests”) of AllTrades Industrial Properties, LLC (“AllTrades”). OP LP is a Delaware limited partnership of which AIP Realty USA, Inc., a wholly owned subsidiary of the Trust, serves as general partner. AllTrades develops and manages Serviced Industrial Business Suites (“SIBS”), which offer light industrial flex space coupled with high-quality office space and paid-for secured rolling stock parking.
- Effective November 14, 2024, the Trust closed a securities purchase transaction whereby Plymouth Industrial OP, LP, a subsidiary of Plymouth Industrial REIT, Inc. (“Plymouth”), purchased an aggregate of 4,400,000 Series A-1 Preferred Limited Partnership Interests (the “OP Units”) of OP LP at a price of $0.50 per OP Unit for aggregate cash consideration of $2,200,000 (the “Plymouth Transaction”). The Plymouth Transaction was carried out pursuant to the terms of an investment agreement among the Trust, AIP Realty USA, OP LP and Plymouth, dated November 14, 2025.
- From April 19, 2024 to February 12, 2025, the Trust completed four tranches of a non-brokered private placement (the “Financing”). In total, the Trust issued 8,890,000 Preferred Units under the Financing for aggregate gross proceeds of $4,445,000 and paid $197,250 in finder’s fees to a non-related third party. Each of the Preferred Units issued from the Financing will be subject to a four-month and one-day hold period from the date of issuance. The Trust is utilizing the proceeds of the Financing for working capital and general corporate purposes
- The Trust suspended its 2024 quarterly distributions to support the Trust’s priority of preserving capital to fund working capital until the properties discussed below are acquired.
Selected Financial Information
| Year ended December 31 | 2024 | 2023 (1) | ||
| Investment property revenue | $552,699 | $595,793 | ||
| Investment property operating expenses | ($205,176) | ($197,740) | ||
| Investment property net rental income | $347,523 | $398,053 | ||
| Trust expense | ($3,887,025) | ($3,141,607) | ||
| Fair value adjustment to investment property | $170,598 | $72,000 | ||
| Fair value adjustment to preferred share liability | $124,926 | $ – | ||
| Net loss and total comprehensive loss | ($3,243,978) | ($2,671,554) |
| As at December 31 | 2024 | 2023 (1) | ||
| Investment property | $5,992,598 | $5,822,000 | ||
| Cash | $519,601 | $118,642 | ||
| Project debt (net of debt discount) | $2,920,352 | $3,017,083 | ||
| Accounts payable and accrued expenses | $6,670,515 | $4,639,38 | ||
| Units outstanding | 4,924,448 | 3,424,448 | ||
(1) Certain prior year amounts have been reclassified to conform to the fiscal 2024 presentation.
The foregoing is a summary of selected information for the years ended December 31, 2024 and 2023 and is qualified in its entirety by, and should be read in conjunction with, the Trust’s consolidated financial statements and management discussion and analysis for the years ended December 31, 2024 and 2023. These documents are available on SEDAR+ at www.sedarplus.com, and on the Trust’s website at www.aiprealtytrust.com.
Related party disclosures
The executive management team of the Trust is the same executive management team as AllTrades. There were no cash payments made by the Trust to its executive management team during the years ended December 31, 2024 or 2023. During the fourth quarter of 2024, the Trust made cash payments of $50,000 to each of its independent trustees, for a total cash outflow of $200,000. No other cash payments to trustees were made during the years ended December 31, 2024 or 2023. At December 31, 2024, the Trust had recorded $5,015,635 (2023 – $3,349,726) of accrued and unpaid compensation for the executive management team and $821,699 (2023 – $790,192) of accrued and unpaid compensation for its independent trustees. The executive management compensation is on a non-cash basis for an initial three-year term through April 14, 2025 and will only be issued in units of the Trust, upon approval from the Board of Trustees.
Outlook and Subsequent Events
Through its agreement with AllTrades, the Trust has been granted an exclusive right to purchase all AllTrades’ completed and leased facilities, as well as any facilities in development. This includes 13 properties subject to forward purchase agreements, including six DFW-area facilities already completed or nearing completion, and seven additional facilities on which development has commenced or is ready to commence. Development on these facilities was funded with equity capital from AllTrades and Trinity Investors, a $7 billion Dallas-based real estate private equity investor. In addition, AllTrades is actively planning the next tranche of facilities in DFW and Houston, TX.
Effective March 10, 2025, the Trust announced that it entered into a term sheet and mandate letter with a leading US banking institution to serve as the administrative agent and sole lead arranger of a senior first mortgage, secured, interest-only credit facility (the “Facility”). The total Facility will be for $300,000,000, with the initial amount being $100,000,000. The Facility will be subject to an accordion option whereby the Trust shall have the right to increase the Facility by an amount equal to an additional $200,000,000.
Closing of the Facility will be subject to certain customary conditions precedent, and further details will be disclosed in a press release of the Trust upon entering into the definitive documentation for the Facility, which will be filed on the Trust’s SEDAR+ profile at www.sedarplus.com. The funds made available pursuant to the Facility will be used to finance the acquisition of AllTrades branded SIBS light industrial flex facilities following the completion of the AllTrades Transaction (as defined above).
Additionally, the Trust announced an Off-Balance Sheet Development JV whereby it entered into a non-binding term sheet (the “Term Sheet”) between the Trust and a significant financial institutional group (the “JV Partner”), pursuant to which the Trust and the JV Partner will form a joint venture entity (the “Joint Venture”), governed by a joint venture agreement (the “Joint Venture Agreement”) to be negotiated by the parties. This joint venture will serve as an off-balance sheet development vehicle to construct new AllTrades SIBS facilities (each a “SIBS Facility”) across the Sunbelt states, which the Trust will then acquire outright upon completion and leasing stabilization. The details include the following:
- The Trust and the Joint Venture will enter into forward purchase agreements (each, a “Forward Purchase Agreement”) for each SIBS Facility being developed in the Joint Venture, pursuant to which the Trust will have a right but not obligation to purchase such SIBS Facility at a 10% discount to the independently appraised value for one year after property completion. The Trust and the JV Partner, from the sale of the SIBS Facility to the Trust, after the 10% discount, will receive equal waterfall return economics based on the equity each has provided for the development; and
- AllTrades (which is to become an indirect, wholly owned subsidiary of the Trust, following the completion of the proposed transaction) will serve as the operations manager for the development of each new SIBS Facility pursuant to the terms of a management agreement to be entered into in connection with the approval of each new SIBS Facility (each, a “Management Agreement”).
About AIP Realty Trust
AIP Realty Trust is an unincorporated, open ended mutual fund trust with a growing portfolio of AllTrades branded SIBS light industrial flex facilities focused on small businesses and the trades and services sectors in the U.S. These properties appeal to a diverse range of small space users, such as contractors, skilled trades, suppliers, repair services, last-mile providers, small businesses and assembly and distribution firms. They typically offer attractive fundamentals including low tenant turnover, stable cash flow and low capex intensity, as well as significant growth opportunities. With an initial focus on the Dallas-Fort Worth market, AIP plans to roll out this innovative property offering nationally. AIP holds the exclusive rights to finance the development of and to purchase all the completed and leased properties built across North America by its development and property management partner, AllTrades Industrial Properties, LLC. For more information, please visit www.aiprealtytrust.com.
For further information from the Trust, contact:
Leslie Wulf
Executive Chairman
(214) 679-5263
[email protected]
Or
Greg Vorwaller
Chief Executive Officer
(778) 918-8262
[email protected]
Cautionary Statement on Forward-Looking Information
This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of AIP Realty Trust with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding, future acquisitions by the Trust, the ability to obtain regulatory and unitholder approvals and other factors. When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the commencement of development on certain of the AllTrades facilities, receipt of final approval from the TSXV for the Financing and the Unit Issuance, proposed financing activity, proposed acquisitions, regulatory or government requirements or approvals, the reliability of third-party information and other factors or information. Such statements represent the Trust’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Trust, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward- looking statements. These forward-looking statements are made as of the date hereof and are expressly qualified in their entirety by this cautionary statement. The Trust does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release is not an offer of securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”). The Trust has not registered and will not register the securities under the U.S. Securities Act. The Trust does not intend to engage in a public offering of their securities in the United States.
Source: AIP Realty Trust
